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antoniya [11.8K]
3 years ago
14

Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product t

hat is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted's best defense is that:
a. his firm made a profit on the product.
b. he acted in good faith.
c. his attorney was incompetent.
d. the law is unfair.
Business
1 answer:
klio [65]3 years ago
3 0

Answer:

b. he acted in good faith.

Explanation:

To act in good faith is to have honest intention and not want to harm other parties.

Ted's actions in promoting the product were based on his understanding of the state law. The fact that the law was not clear could cause the attorney general to think he intentionally acted against the law.

So if he makes it clear he did not intentionally act against the state's directive, he can claim he acted in good faith.

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On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $191
Verdich [7]

Answer:

a. $21,800

Explanation:

The discoun of issuance of the bond is amortized over the period until maturity. Total Interest expesne on a discounted bond is the sum of the coupon payment and the amortization of the discount amount.

Coupon payment = $200,000 x 10% = $20,000 per year

Discount on the bond = $200,000 - $191,000 = $9,000

Discount amotized per year = $9,000 / 5 = $1,800

Total Interest Expense = Coupon Payment + Amortization of Discount

Total Interest Expense = 20,000 + 1800 = $21,800

5 0
3 years ago
If a perfectly competitive firm finds that price is less than average variable cost, it should: shut down immediately. increase
Musya8 [376]

Answer: It should shot down immediately.

Explanation:

If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.

4 0
3 years ago
The price of gold increases by 200%. if the price elasticity of demand for gold is 0.4, what will happen in the market?
SCORPION-xisa [38]
I believe the answer will be that, the Gold sales will decrease by 80%. (200 × 0.4)
Price elasticity is a measure of the change in the quantity demanded or purchased of a product in relation to its price change. It is the percentage change in the quantity demanded of a good or a service divided by the percentage change in the price. 
That is; Price elasticity of demand = % change in quantity/% change in price
3 0
3 years ago
Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?
Rudiy27

Answer:

D. Limited Partnership

Explanation:

Sole proprietorship is business owned , run & managed by single owner. Partnership is a business owned , run & managed by small group of people - deciding to share its profits .

Entrepreneurs in these have Unlimited Liability on personal assets, in case business assets are insufficient to settle business liabilities .

Corporation is a separate legal entity, distinct from its huge group of owners , guided by a board of directors. In case of any claim / sue case : it is against corporate entity & not the people, so they don't have any unlimited liability risk on personal assets to fulfil company's claims .

5 0
3 years ago
Importance of bop. business managers and investors need bop data to anticipate changes in host-country economic policies that mi
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The three specific signals that a country’s BOP data can provide are:

The BOP is an significant pointer of burden on a country's foreign exchange rate, and therefore on the possible for a firm swapping with or capitalizing in that country to practice foreign exchange gains or losses. Fluctuations in the BOP may forecast the burden or elimination of foreign exchange controls. 


Modifications in a country's BOP may indicate the nuisance or removal of controls over imbursement of dividends and interest, royalty fees, license fees, or other cash payments to foreign companies or stockholders.

The BOP assists to predict a nation's market prospective, particularly in the short run. A country undergoing a grave trade shortfall is not expected to enlarge imports as it would if successively a surplus. It may, though, welcome investments that grow its exports.
3 0
4 years ago
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