Answer:
Absolute, Comparative, Opportunity cost, Gains of trade, Not possible
Explanation:
The terms that will be filled in these blanks are economic terms that are used often in the business. The completed sentences have been written below -
- To have absolute advantage means to be able to produce more using the same resources.
- To have comparative advantage means to have a lower opportunity cost.
- Comparative advantage is the basis for gains of trade.
- It is not possible for one producer to have a comparative advantage for every good.
Answer:
C) Debit Office supplies, $500; credit Accounts payable, $500
Explanation:
The journal entry is as follows:
Office supplies A/c Dr $500
To Account payable A/c $500
(Being the office supplies are purchase on credit is recorded)
Since the office supplies are purchased so we debited the office supplies that increase the assets and credited the account payable as it purchase on credit basis plus the liabilities are also increased
Fiduciary duties are mentioned in the statue and enforceable in different states but there is not any clear demarcation. The court should rule in favor of Newbury group because it has not violated anything in the conduct of business
.
<u>Explanation:</u>
a- Following fiduciary duties owed by member of LLC to other members
i-<u>Fiduciary duty of Loyalty</u>- Under this member in the LLC should be loyal to each other and they should put the success of and benefits to the LLC above any personal or individual advantages. They should also note that conflict of interest between LLC’s objective and their own objective should be avoided to the fullest.
ii- <u>Fiduciary duty of Care</u>- The members of the LLC should act in good faith, honestly and should exercise reasonable care while carrying their obligation and duty for the LLC. All decision and steps they took should be taken with full dedication and ownership.
b - Fiduciary duties are mentioned in the statue and enforceable in different states but there is not any clear demarcation between personal and LLC duties. The words are vague and not clear. Judicial precedence and decision in certain cases have decided about the legality of violence of fiduciary duty. Through operating agreement members in LLC can alter the fiduciary duty.
c-The court should rule in favor of Newbury group because it has not violated anything in the conduct of business.
