Answer: Option A
Explanation: Any person can become a principal having sufficient business but in order to become an agent of the principal one needs to have the capacity to contract on behalf of the principal.
In a principal agent relationship, the principal bounds the agent to act on his behalf. So, there is no legal contracts to become a principal but the acts of agent are legally bound to a certain extent.
Hence, option A is correct.
Answer:
a. 5.18%;
b. 10.12%;
c. 6.32%;
d. 9.22%.
Explanation:
We apply the formula of Annual rate of return to calculate for the four cases.
The formula for calculating annual rate of return as below:
Annual rate of return = ![\sqrt[year]{Ending value/Beginning value}](https://tex.z-dn.net/?f=%5Csqrt%5Byear%5D%7BEnding%20value%2FBeginning%20value%7D)
-1 ;
So, for each of the case given, by applying the formula, the detailed calculations for each case will be:
+ For case a :
![\sqrt[12]{769.5/420} -1](https://tex.z-dn.net/?f=%5Csqrt%5B12%5D%7B769.5%2F420%7D%20-1)
= 5.18%;
+ For case b:
![\sqrt[14]{11,567.45/3,000} -1](https://tex.z-dn.net/?f=%5Csqrt%5B14%5D%7B11%2C567.45%2F3%2C000%7D%20-1)
= 10.12%;
+ For case c:
![\sqrt[20]{110,000/32,303.47} -1](https://tex.z-dn.net/?f=%5Csqrt%5B20%5D%7B110%2C000%2F32%2C303.47%7D%20-1)
= 6.32%;
+ For case d:
![\sqrt[40]{1,100,000/32,275.63} -1](https://tex.z-dn.net/?f=%5Csqrt%5B40%5D%7B1%2C100%2C000%2F32%2C275.63%7D%20-1)
= 9.22%.
Answer:
False
Explanation:
In a competitive market, if production (and consumption) continues until the marginal benefit of one more unit equals marginal cost, then total surplus is maximized.
As for any extra unit produced
Marginal Benefit > Marginal cost = Surplus
Marginal Benefit = Marginal cost = No Surplus / No loss
Marginal Benefit > Marginal cost = loss
When your Marginal benefit is maximum and Marginal cost is minimum then the surplus will be maximized.
Most efficient situation in which benefit is maximum and the cost is minimum results in maximized surplus.
Answer:
it's 4, a skill you can use in many different situations
Answer:
The Present worth is $777930.25
Explanation:
FInd the NPV of the cashflows
NPV = 200000/(1+0.09)^1 + 200000/(1+0.09)^2 + 200000/(1+0.09)^3 + 200000/(1+0.09)^4 + 200000/(1+0.09)^5
= $777930.25
Therefore, The Present worth is $777930.25
