The correct answer is FIFO meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold.
<u>Solution and Explanation:</u>
1. Yes, Dr. Chen's website is not making an express warranty as he is not promising any refund or guarantee a replacement in case the saffron extract is not giving the desired results. He is just claiming the benefits of using the saffron extract which will aid in weight loss.
2. No the implied warranty of merchantability will not apply to the pure saffron extract as it was sold as a weight loss supplement which is not guaranteed by saffron as a product. The inherent quality of saffron does not aid weight loss and the properties of saffron are not aiding weight loss. Hence the implied warranty of merchantability does not apply for saffron extracts. Saffron is good and fit for the ordinary purpose for which saffron is normally used.
3. Yes the Dr. Chens sale of saffron extract has breached the implied warranty for fitness for the saffron extract aiding weight loss because:
• Dr. Chen was aware of the purpose for the saffron extract was being bought i.e to aid weight loss.
• Milan was depending on the advice and skills of Dr. Chen when she bought the saffron extract which was to aid weight loss. Milan had bought the saffron extract because of the judgment of the seller here Dr. Chen who stated it would aid weight loss.
Answer:
reducing procurement costs.
Explanation:
Online business to business (B2B) marketing enables companies to enhance their performance by reducing procurement costs.
An online business to business (B2B) can be defined as a type of market where a business sells goods and services to another business online.
In an online business to business marketing or e-commerce, the cost of buying a product is usually lesser when compared to other channels of sales because the seller do not have to charge so much as sales are usually transparent and done automatically.
<em>Hence, companies that are engaged in B2B are able to improve their performance and cut down the costs of procurement for goods and services. </em>
Answer:
A. Substitution bias and the introduction of new goods.
Explanation:
The Consumer price index is a measure of the overall cost of goods and services (usually measured in fixed basket), purchased by a consumer in a year as compared to previous years. It gives the government and economists an idea of the cost of living of individuals in a nation. Some problems of the CPI include
1. Substitution Bias: The CPI assumes that prices of goods and services change in a fixed way as the years go by. It also does not consider the fact that sometimes some customers have preference for expensive items compare with the less expensive items. This is reflected in the OPEC case where it is automatically assumed that customers would prefer the cheaper hydrogen-powered engines to the gasoline engines.
2. Introduction of New goods: The CPI fails to recognize that new goods would enter a market because the CPI assumes a fixed basket of items and products. The introduction of new goods would affect comparisons to previous years' CPIs. The new good invented in the above case is the hydrogen-powered engine.
Answer:
d). Value of the preferred stock= $3/0.07= $42.86
Explanation:
A preferred stock represents a portion of ownership or an organisation. Although there are two types of stock which are ordinary/common stock and preferred stock, the characteristics of preferred stock is that its holders are entitled to dividend claims before the holders of the common stockholders.
The Value of Pfizer Inc.'s preferred stock is as follows:
Value of Preference Stock= The Annual dividend the required rate of return on the stock
Annual dividend = $3.00
Rate of return = 7%
Value of the preferred stock= $3/0.07= $42.86
