Answer:
A) $930
B) $930
C) See explanation
Explanation:
A) Since Jeremy spends by purchasing products from Michele, Michele earns an income. As there are no further activity, the economy's income is $930.
B) Since Jeremy spends by purchasing products from Michele, Jeremy pays money. As there are no further activity, the economy's expense is $930.
C) There is a relationship between income and expenses in an economy. That relationship is called the consumption factor. If people earn money, they tend to spend that money. In an economy, someone's income may include another person's expenditure. An example can show the relationship in a better way -
If Mary earns money by providing services, it will be her income and also the economy's income. As another person pays fees for the services, it will be the customer's expense and also the economy's expenditure.
Answer: The actual cost of materials was less than the standard cost
Explanation:
Net materials cost variance = Favorable materials price variance + Favorable materials quantity variance
= 380 + (-120 unfavorable)
= 380 - 120
= $260 favorable
<em>As the materials cost variance is favorable, it means that the actual cost of materials was less than what was budgeted for it or rather its standard cost. </em>
Answer:
Security D
Explanation:
Fair rate of Return =
where B = Beta, which is the degree of responsiveness of security return to market return
= Risk Free Rate of return
= Return on market portfolio
Risk premium which is, 10 - 4 = 6 %
Thus, for security A = 4 + 0.85 × 6 = 9.1%
for security B = 4 + 0.75 × 6= 8.5%
for security C = 4 + 1.2 × 6 = 11.2%
for security D = 4 + 1.35 × 6 = 12.1%
for security E = 4 + 0.5 × 6 = 7%
Expected returns as given
for A = 7%
for B = 9%
for C = 9.5%
for D = 12.1%
for E = 14%
As is evident, the fair and expected return for stock D is the same i.e 12.1%. Hence, the investor would be indifferent in that case whether to buy, sell or hold such a stock.
Answer: Quasi contract
Explanation: A contract that exist by the order of court and not by the agreement between the parties is called a quasi contact. These contracts are made by the court to avoid the unjust enrichment of the party. In simple words these are the contracts created by the actions of the parties. In this case Stella was injured so she must be taken to the hospital which resulted in a quasi contract between her and the hospital.
Answer:
Responsible capitalism.
Explanation:
Responsible capitalism occurs when a company is managed in such a way that all stakeholders benefit not only shareholders and top management. The business model promotes philanthropic actions although they are also focused on making profit. Because stakeholders benefit, there is more buy in to the goals of the company and is very sustainable.
Beth is viewing the company as responsible capitalism because they enable towns where they operate attain prosperity.