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3 years ago

Which of the following statements, if any, represent a principal's duty to an agent who works on a commission basis?

Business

1 answer:

Lena [83]3 years ago

4 0

Answer:

Explanation:

Here both statements I and II represent a principal's duty to an agent who works on a commission basis.

that is The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement and also he is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission.

Hence, option C is correct

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64 divided by 8 is 8

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3 years ago

What is Jared's accounting profit? Suppose Jared could have used his talents to run a similar kind of business instead. If he va

Deffense [45]

Answer:

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.

After working as a head chef for years, Jared gave up his $60,000 salary to open his own restaurant last year. He withdrew $50,000 of his own savings that had been earning 4% interest and borrowed another $100,000 from the bank at a rate of 5%. As the restaurant space he was leasing had no separate office, Jared converted his basement apartment into office space. He had previously rented the apartment to a student for $300/month. The following table summarizes his operations for the past year.

Total sales revenue $590,000

Employee wages $120,000

Materials $350,000

Interest on loan $5,000

Utilities $10,000

Rent $25,000

Total explicit costs $510,000

a, What is Jared's accounting profit?

b, Suppose Jared could have used his talents to run a similar kind of business instead. If he values his entrepreneurial skill at $10,000 annually, find Jared's total implicit costs.

c, What was Jared's economic profit last year?

My answer:

a. , What is Jared's accounting profit?

As we know that accounting profit is the difference between total sales revenue and Total explicit cost, from the table we can find that:

$590,000 - $510,000 = $80,000 is the accounting profit

b. Jared's total implicit costs.

Implicit costs include his foregone wages ($60,000), the value of his entrepreneurial skill ($10,000), foregone rent on the apartment ($3,600 = 12 x $300) plus the foregone interest on his savings ($2,000 = .04 x $50,000). These total $75,600.

c. What was Jared's economic profit last year?

Explicit plus implicit, was $585,600 = $510,000 + $75,600. His economic profit is the difference between revenue and economic cost, or $4,400 (= $590,000 – $585,600).

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3 years ago

Suppose that the market for athletic shoes is initially in equilibrium at point A. Further suppose the demand for athletic shoes

elixir [45]

Answer: Correct. When there is an increase in supply and an increase in demand, the new equilibrium quantity increases but whether the equilibrium price increases or decreases is unknown.

Explanation:

When the demand for the shoes increased, it had the effect of shifting the demand curve to the right. At the same time, with six more firms coming into the market, the supply increased as well which had the effect of shifting the supply curve right as well.

The new equilibrium as a result of these movements will see the quantity increase. However, due to the shift of both the supply and the demand curve in the same direction, it is uncertain if the price will change or not.

The general rule is that if the rise in supply is more than rise in demand then the price will decrease. If they rise by the same amount then price will remain the same. It shows therefore that if both supply and demand rise at the same time, the effect on equilibrium price is unknown.

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3 years ago

Emily included the following passage in her report: "Other mid-price restaurants in the Chicago area have achieved phenomenal su

Ratling [72]

Answer:

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