A is the answer
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<u>Solution and Explanation:</u>
1. Yes, Dr. Chen's website is not making an express warranty as he is not promising any refund or guarantee a replacement in case the saffron extract is not giving the desired results. He is just claiming the benefits of using the saffron extract which will aid in weight loss.
2. No the implied warranty of merchantability will not apply to the pure saffron extract as it was sold as a weight loss supplement which is not guaranteed by saffron as a product. The inherent quality of saffron does not aid weight loss and the properties of saffron are not aiding weight loss. Hence the implied warranty of merchantability does not apply for saffron extracts. Saffron is good and fit for the ordinary purpose for which saffron is normally used.
3. Yes the Dr. Chens sale of saffron extract has breached the implied warranty for fitness for the saffron extract aiding weight loss because:
• Dr. Chen was aware of the purpose for the saffron extract was being bought i.e to aid weight loss.
• Milan was depending on the advice and skills of Dr. Chen when she bought the saffron extract which was to aid weight loss. Milan had bought the saffron extract because of the judgment of the seller here Dr. Chen who stated it would aid weight loss.
The answer is the "Fixed Cost Curved". Why? Because the $50,000 license is a fixed cost. The license serves as a permission to sell liquor. The fixed cost curved will be affected since, the cost of the license is $50,000 and will not increase nor decrease regarding the amount of liquor sold by the store.
Answer:
a. Compute the current yield on both bonds.
Current yield = Annual coupon payment / current market price of bond
Bond A current yield = $80 / $800 = 0.1
Bond B current yield = $85 / $900 = 0.09
b. Which bond should he select based on your answer to part a?
Bond A, because it has a higher current yield.
What is the approximate yield to maturity on Bond B?
Approximate Yield to Maturity (YTM) = [C+ (F-P) / n] / [(F+P) / 2]
Where:
C = Coupon payment
F = Face value
P = Price
n = years to maturity
Because the face value is not specified in the question, we will assume is the same as the price.
Bond B YTM = [85 + (900-900) / 2] / [(900+900) / 2]
= 0.09
d. Has your answer changed between parts b and c of this question in terms of which bond to select?
Under the assumption that the price and face value of Bond b are the same, we can see that the YTM and the current yield are the same, so the choice of the bond (bond A) has not changed.
However, if the face value was higher or lower than the price, the YTM would be different to the current yield, for that reason, it is always best to check Yield to Maturity instead of current yield when choosing which bond to invest in.
Answer:
Sales orientation
Explanation:
Sales orientation refers to an approach that is taken by an organization in which the firm is improving its sales by using the sales tactics i.e. in terms of advertising, personal selling, etc
Therefore in the given case, for customer persuasion, the customers purchased the new products or existing products more products are purchased so this represents the sales orientation stage and the same is to be considered
