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Zinaida [17]
3 years ago
13

The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false?

Business
1 answer:
kumpel [21]3 years ago
5 0
The M/B ratio is the ratio between the market value and the book value.<span>  It is </span><span>one indicator used to measure the worth </span>
It is false that the average firm in each industry must have an M/B ratio that is equal to 1.0
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Answer:

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Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do.  Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.

Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.

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