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IrinaVladis [17]
3 years ago
15

Brian owns a parcel of land that is encumbered by a mortgage held by the First International Bank. Brian agrees to sell the land

to Piercel for $350,000. Brian and Pierce together go to the First International Bank to discuss the sale and purchase with the banker. Brian, Pierce, and the banker sign an agreement stating that Pierce will assume the mortgage and that Brian will be discharged from all further liability on the mortgage. In this case:
a, the bank can collect from Brian if Plerce defaults.
b. the bank is a third party donee beneficiary,
c. the agreement among the three is a novation.
d. Brian is a third party beneficiary of the agreement between Pierce and the bank.
Business
1 answer:
ivanzaharov [21]3 years ago
6 0

Answer: c. the agreement among the three is a novation.

Explanation:

A novation refers to a situation whereby a party to a contract is replaced by another party. That means that the duties and benefits of the party being replaced will be passed on to the new party to the contract.

In this scenario, Brian was replaced in the mortgage contract by Pierce and Pierce assumed all liability related to the land in question. This is therefore a novation.

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The risk premium (hence expected return) of a security is determined by its ________ risk and does not depend on its ___________
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Answer:

systematic risk ,diversifiable risk

Explanation:

risk premium is the investment return demanded by an investor for buying a risky assets that an investment is anticipated to deliver it reward to those who are willing to take higher risk than investors who prefer risk free investment.

systematic risk when economic treds influence assets and the market in similr way than investment risk for similr assets are corellated Systematic risk cannot be diversified away. Non-systematic risk, or the risk unique to each individual security, meanwhile, can be mitigated through diversification.

conclusion: both the sytematic and nom systematic risk are the influencing factor of the risk premium while sytematic risk is not influenced by market but diversfiable risk are influenced by market .

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7 0
1 year ago
Savings by _____ in small dollar amounts is the origin of much of the money that funds business loans in an economy
sukhopar [10]

Savings by<u> Household</u> in small dollar amounts is the origin of much of the money that funds business loans in an economy.

<h3>What is loan budget a business?</h3>

Business financing is a funding opportunity for business owners to access company loans to be able to pay for things like temporary cash flow interruptions, development schemes, inventory and equipment, and seasonal points in activity.

<h3>What is a good excuse for a business loan?</h3>

Probably the most obvious reason to think a small business loan is to invest in an increase opportunity for your business. When business is booming, continuing to grow your company can help ensure that your profits don't table or shrink.

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3 0
2 years ago
Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
HACTEHA [7]

Answer:

Actual Operating costs         $231,250  

Planned Operating Costs  budgeted = $ 235058

Planned Operating Costs at actual level   = $ 232430

Explanation:

The Planned costs are the costs estimated at the planned level of activity.

The actual costs are costs that actually occur.

But flexible costs are those which are planned ( determined) at actual level of activity.

Canniff Air

                                       Actual                 Planned

Operating costs         $231,250              

The cost formula for plane operating costs is $56,960 per month plus $2,634 per flight plus $6 per passenger.

Planned Operating Costs= $56,960+ 2634 *67 flights + 6*270 passengers

                                        = $ 56960 + 176478+ 1620

                                         = $ 235058

Actual Operating Costs = $56,960+ 2634 *66 flights + 6*271 passengers

                                         = $ 56960 + 173844+ 1626

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We put the values in the given formula to obtains these costs both planned and actual.

4 0
3 years ago
Lion Company makes 10,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part i
Dovator [93]

Answer:

It the company buys the units, the effect on income will be an $8,000 decrease.

Explanation:

Giving the following information:

Production costs:

Direct materials= $13.2

Direct labor= 20.8

Variable manufacturing overhead= 3.00

Avoidable fixed manufacturing overhead= 4.5

Unitary cost= $41.5

Outside supplier offer= 10,000 units for $42,3 each

We need to calculate the relevant total cost of each option.

Make in-house:

Total relevant cost= 10,000*41.5= $415,000

Buy:

Total relevant cost= 10,000*42.3= $423,000

It the company buys the units, the effect on income will be an $8,000 decrease.

8 0
3 years ago
The ________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the m
Eva8 [605]

Answer:

The correct word for the blank space is: product life cycle.

Explanation:

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