Answer:
Accounting profit = $45,000
Economic profit = $5,000
Explanation:
The computation of accounting profit and economic profit is shown below:-
Accounting profit = Sales - External expenses
= $75,000 - $30,000
= $45,000
Economic profit = Accounting profit - Implicit cost
= $45,000 - $40,000
= $5,000
Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive
Answer: THREAT OF SUBSTITUTE PRODUCTS.
Explanation:Porter's model was developed by a Harvard business school Lecturer known as Michael E. Porter in 1979. Michael E. Porter developed a Five Forces model that identifies and analyzes five competitive forces that shape every industry, and determines an industry's weaknesses and strengths.
The five competitive forces are as follows;
COMPETITIVE RIVALRY which determines the strength and number of your competitors.
SUPPLIER POWER which determines the uniqueness of the supplies given to you by your suppliers and the number of suppliers you have etc.
BUYER POWER which evaluates how many buyers you have,how easy it is for them to buy your products etc.
THREAT OF SUBSTITUTION which evaluates how easy it is for your buyers to buy another substitutes to your product etc.
THREAT OF NEW ENTRY which evaluates the ability or easy access of new products to penetrate the market,how well you are to maintain your strength etc.
Answer:
The issue is whether Joe is liable to pay for Bob to Avarice Bank or not.
Joe should prevail.
Explanation:
The original contract is between bank and Bob and in that contract Joe is not involved. Secondly payment on someone' behalf always has to be a written contract.
According to UCC, suretyships have to be written for them to be enforceable. This is mentioned in Statute of Frauds. It clearly states that any gurantee by thrid party for payment of debts has to be in writing.