Answer:
b. social benefits will be greater than private benefits
Explanation:
Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.
This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.
An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.
So it is correct to say that the social benefits will be greater than the private ones. Letter b.
accepting responsibility if its personal or public.
Answer:
Pine Corp. will base the determination of its loss on involuntary conversion on fair market value of $550,000.
Explanation:
Involuntary conversion is the forced payment for property that was damaged or stolen.
Capital gains will when compensation received is greater than conversion market value.
Answer:
a. Carol's transfer price is $6 per meal if she only recovers the variable costs.
b. $13,5 per meal
c. $27000 or a loss of $1.5 per meal.
d. The cost of the cafeteria should be charged to the user departments so that the actual profit or loss from each department can be valued
Explanation:
a. Variable costs = $108000 for 18000 meals.
Variable cost per meal = 108000 / 18000 = $6
Carol's transfer price is $6 per meal if she only recovers the variable costs.
b. If carol were to recover the full cost then the transfer price = Total cost / no. of meals
= (108000 + 135000) / 18000 = $13,5 per meal
c. If the transfer price is the market price i.e $12, the loss from the cafeteria = Revenue from meals - Total cost
= (18000 x 12) - (108000 + 135000)
= $27000 or a loss of $1.5 per meal.
d. The cost of the cafeteria should be charged to the user departments so that the actual profit or loss from each department can be valued.
This information is useful to the hospital management in knowing the actual costs of the meals consumed in the various departments and how the cost cutting measures can be implemented based on the cost of the different departments.
Answer:
A. Fred can only lose $10,000, but Marla can lose more
Explanation:
Fred can lose a maximum of $10,000 because he bought shares of a corporation. Shareholders of a corporation enjoy limited liability to its debts. Should the corporation face liquidation, the shareholder's liability is limited to the value of share contribution. It means that Fred can lose a maximum amount equal to the shares he purchased should the corporation collapse.
Marla bought a sole proprietorship business. The law considers a sole proprietorship business and the owner to be the same thing. Marla's business assets are her assets, while the debts of the business will be her debts. Should the restaurant incur debts more than the $10,000 that Marla paid for it, she stands to lose more if her business collapses. Her assets will be used to settle the debts of the restaurant.
