I. What is meant by derive demand? a. The demand is derived in beginning economic classes.

Michael operates his health food store as a sole proprietorship out of a building he owns. Based on the following information re

Elina [12.6K]

Answer:

c. $31000

Explanation:

Net self-employment income are gross income gotten from a trade or business, less allowable deductions attributable to the trade or business. When calculating self employment income, capital gains and losses, contributions for retirement, net operating losses are not considered.

Given that:

Gross receipts $100,000

Cost of goods sold $49,000

Utilities $6,000

Real estate taxes $1,000

Depreciation expense $5,000

Sec. 179 expense $1,000

Mortgage interest $7,000

Net self-employment income = Gross receipts - Cost of goods sold - Utilities - Real estate taxes - Depreciation expense - Sec 179 expense - Mort-age interest

Therefore, Net self-employment income = $100000 - $49000 - $6000 - $1000 - $5000 - $1000 - $7000 = $31000

5 0

3 years ago

Contestable markets true or false: if a firm is operating in a contestable market, it should operate at the efficient production

jok3333 [9.3K]

The first statement is false. A firm earning a zero profit is an action called predatory pricing, which there can be a temporary loss because of a super low price and when a new firm enters the market the new firm won’t be able to compete with a very low price forcing the new firm out of the market. This action can be a barrier of entry making the market less contestable. A firm in a contestable market should operate at efficient level of production and earn a minimal profit close to equilibrium.

<span>It is true that a contestable market model has important policy implications for example to increase competition policy maker can decrease regulation so that new firm can easily enter the market. Policy makers can also force firms to allow other firms to use their networks encouraging new firms to enter the market and lessening the monopoly power of restricting supplies. Policy makers can also set up its own new firm and distribute its resources to small new firms to increase competition.</span>

3 0

4 years ago

Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an exam

AURORKA [14]

Answer:

The correct answer is e. Legal-political.

Explanation:

Any law, order or administrative action of the Host Country resulting in the permanent and total cessation of the investment activities in the Host Country.

Causing the loss of ownership of shares and related assets.
Permanently depriving the company of the holding of foreign shares or its fixed and / or current assets, including retained earnings and collectible amounts between companies.
Rendering of loans between bad companies made on foreign subsidiaries.
Leaving the company legally obligated to pay loans made to the foreign subsidiary expropriated by third parties but guaranteed by their company. Rejection of the Contract by the Public Buyer (eg, Government)

4 0

3 years ago

Ferris owns an apartment in an apartment complex. The apartment-complex rules require the owner of each apartment to maintain it

lara31 [8.8K]

Answer:

Correct option is (d)

Explanation:

Creditor beneficiary is a party who is entitled to enjoy the benefits of the contract that has been put in place. They are not actively involved in the contract but are entitled to receive the benefit of contract executed by the promisor.

In this case, Erica is a third party creditor beneficiary for whom Ferris is legally obligated to perform his duties as the rules require owner to maintain the apartment which Ferris failed to oblige. So, Ferris breached contractual obligation to her.

3 0

4 years ago

Fill in the blanks with words that would best complete the passage.avoidance, contractual, abeyance, indemnification, principal,

Mama L [17]

Answer:

Constructive trust, contractual,

principal, constructive trust, avoidance,

indemnification

Explanation:

Constructive trust is a fair remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to a breach of fiduciary duty.

For misrepresentation, negligence, deceit, libel, slander or trespass by an agent contractual remedies may be applied such as; award of damages, restitution, or specific Performance.

The agency relationship is an arrangement in which one entity (the principal) legally appoints another (the agent) to act on its behalf, so anything that the agent obtains by virtue of the agency relationship belongs to the principal.

A constructive trust is imposed by a court If an agent breaches his or her fiduciary duty to the agent by retaining benefits or profits that belong to the principal. It would be Implied that the agent held the thing on the principal’s behalf.

Avoidance here implies that a principal can avoid or stay away from the contract.

Indemnification sometimes mandates an agent to indemnify (compensate, protect) the principal from the damages.

7 0

3 years ago