Answer:B. Instead of requesting Oak and Beach wood grown specifically on Hardwood's Land Taylor request shipment of Oak and Beach wood from Hardwood, and specifies in the contract that if Hardwood cannot supply the wood then Hardwood should obtain the requested wood from another Lumber supplier.
C. After the Tornadoes Hardwood and Taylor agreed to a novation where a competing company, Oakempire assumes the duty of Hardwood stated in the original contract.
Explanation:
As regards B option of the answer, Taylor having put a clause in the contract requesting Hardwood to seek supply from another Lumber supplier if unable to meet the demand will make the contract binding on Hardwood
The entry into a novation with Oakempire after the Tornadoes makes the contract binding on Oakempire to deliver as stated in the contract for he has legally assumed the position of Hardwood.
The A and C options of the answer are still cases of contract frustration i.e the loss is beyond the control of the contracting parties , it's an act of God and insurer does not cover such. The first frustration is from new legislation and second is by natural disaster.
The ending owner’s capital balance after closing is $382,300.
The company had a net profit for the year of $91,300. This is calculated by subtracting expenses from net income. $205,000-$113,700 = $91,300.
In order to calculate the the ending owner’s capital for the year the accountant will add the net income to the starting owner’s equity, and then subtract the amount that the owner withdrew from the business.
Starting owner’s equity ($317,000 ) + net income ($91,300) = $408,300 and then subtract the amount withdrawn ($26,000) = $382,300, which is the ending owner’s equity balance.
Answer:
overestimate because the value of the option depends on the volatility of revenue
Explanation:
The greater the market volatility, the greater the range that would be needed to determine the option premium. This would end up causing an overestimation of the premium value.
Therefore making use of oil price volatility in the option-pricing model will overestimate as value of option is dependent on how volatile the revenue is.
Answer:
The return on shareholders' equity for 2018 is 22.2%
Explanation:
Return on Equity measures the Return earned by the owners investments in the company.
Return on Equity = Net Income / Total Shareholders Funds × 100
= 200,000 / 900,000 ×100
= 22.2%
Answer:
In 1890, Alfred Marshall's Principles of Economics developed a supply-and-demand curve that is still used to demonstrate the point at which the market is in equilibrium. ... The prices of some goods can increase without reducing demand, which means their prices are inelastic.
