The economic principle of substitution says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.
<h3>The economic principle of substitution</h3>
- According to the principle of substitution, the cost of purchasing a substitute that is just as desired tends to establish the upper limit of value, assuming no inopportune delays.
- A shrewd investor would not spend more on an asset that generates income than it would cost to construct or buy an asset of a similar nature.
- According to this theory, the cost of acquiring a comparable substitute property with the same use, design, and revenue determine the maximum value of a property in most cases.
- For instance, why would somebody pay $1,000,000 for a home when they could pay $750,000 for a different but as appealing home in the same neighborhood?
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Answer:
<h2>The journal entry is shown below:</h2>
Explanation:
The journal entry for recording the establishment of the fund is as:
On September 1
Petty cash A/c.....................Dr $250
Cash A/c...........................Cr $250
Being recording the petty cash in the books
As creating the fund for the petty cash in the books, the account of petty cash is debited as there is increase in the assets which is debited. And the petty cash is created against cash. Therefore, the cash account is credited.
The life insurance policy in which death benefits last a lifetime but premiums are all paid after a specified time period is a limited-pay whole life policy.
Answer:
A servant leader takes some additional season of theirs to enable the associations culture that will cause the representatives to have great morals and in this way offer great administrations. It will be useful to the representatives as they would have the option to deliver more in light of the fact that there will be a culture to concentrate consequently would improve the productivity of the association, and in the long run improving the upper hand of the organization.
A servant leader demonstrates regard to representatives and by along these lines the workers get persuaded to give the association a decent notoriety helping it to increase serious. For example, in a client care association, the supervisor should demonstrate regard to the worker indicating hireling authority by giving the understanding the representative.
servant leader consistently put their kin in any case. Treating the representatives with genuineness, uprightness, and care and urging them an opportunity to time. For example, in a client relations association, the chief is required to give its representatives the right data about the association with the goal that they can advance the right data to the customers so as to improve the upper hand.
A servant leader has a solid conviction that accomplishment of an association can be accomplished by the commitment of each individual in the association. In this manner, the hireling chief will make solid groups that will collaborate and in the end would make the business extraordinary those different contenders
