Answer:
Assets have productive capacity; they are assets used to produce goods and services. TRUE
Assets are claims on real assets or the income generated by them. FALSE
Explanation:
It is a correct assertion that 'assets' have productive capacity and that they are assets used to produce goods and services because by definition an asset is a resource that can be used to produce value and that is held by a company to produce positive economic value
BUT
The assertion that 'assets are claims on real assets or the income generated by them' is FALSE because that is the meaning of liabilities. Liabilities by definition are claims on assets, which defines both liabilities and owners' equity.
If country ABC can produce a unit of good 1 by sacrificing fewer units of good 2 than can country XYZ, it is correct to say that country ABC A. has an absolute advantage in producing good 1. B. will not wish to trade good 1 with country XYZ. C. will import good 1. D. has a comparative advantage in producing good 1.
Answer:
has a comparative advantage in producing good 1
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries. Country abc has a comparative advantage because it sacrifices fewer quantities of good 2.
Country abc should specialise in production of good 1, while country xyz should import from country abc.
A country has an absolute advantage in the production of a good or service If it produces more quantity of the good compared with other countries.
I hope my answer helps you
A business school’s faculty parking lot has assigned parking spaces. Each professor is entitled to one parking space. This is an example of a _____ relationship.
Answer and Explanation:
One-to-many Unary
Financial literacy refers to:
a) How well you manage the financial stressors in your life.
b) How well you understand and use personal finance information.
c) How well you score on standardized measures of personal finance.
d) Your maximum score on a comprehensive consumer finance test.
Answer:
b) How well you understand and use personal finance information
Explanation:
Financial literacy involves understanding and using financial information. When applied, a person is in a position to understand their financial situation and possess the ability to make well informed decisions on matters relating to money. A financially literate person understands how much money comes in and how much goes out and for what purposes. All aspects of their financial wellbeing are intentional.
The management at Joy, a local jewelry store in London, has hired a comparison shopper to visit other local jewelry stores to gain product pricing information. This scenario most likely illustrates the concept of _____.a. threaded marketingb. competitive intelligencec. urban informaticsd. market basket analysis
Answer:
b. competitive intelligence
Explanation:
Competitive intelligence is the information a company collects about its rivals, business environment, and industry in order to analyze it to develop more effective business strategies.
I hope you find this information useful and interesting! Good luck!
Assume that 1200 births are randomly selected and exactly 608 of the births are girls. Use subjective judgment to determine whether the given outcome is unlikely, and also determine whether it is unusual in the sense that the result is far from what is typically expected.
a. Determine whether exactly 608 girls out of 1200 randomly selected births is unlikely.
b. Determine whether exactly 608 girls out of 1200 randomly selected births is unusual.
Answer:
a) For this case we have just one possibility out of 1200 births, since the other possiblities for the number of girls in 1200 are {1,2,3,......,607,609,610,.....,1200}, so then the probability for 698 is just :
[tex] p=\frac{1}{1200}=0.000833[/tex]
And since the probability is <0.05 we can consider the event unlikely.
b) If the number observed is similar than the expected value we can consider the event not unusual.
The expected value for this case since we have a sample 1200 and assuming the probability of being girl 0.5 then the expected value would be:
[tex] E(X) = n*p = 1200*0.5 = 600[/tex]
So as we can see 608 is not far away from the expected value so then we can consider the event NOT unusual
Explanation:
For this case we need to remember that an event is unlikely if the probability is very small for example <0.05. The complement for the event would be the probability for how likely is.
For this case we have the following event: A="In 1200 births selected exactly 698 of the births are girls"
Part a
For this case we have just one possibility out of 1200 births, since the other possiblities for the number of girls in 1200 are {1,2,3,......,607,609,610,.....,1200}, so then the probability for 698 is just :
[tex] p=\frac{1}{1200}=0.000833[/tex]
And since the probability is <0.05 we can consider the event unlikely.
Part b
If the number observed is similar than the expected value we can consider the event not unusual.
The expected value for this case since we have a sample 1200 and assuming the probability of being girl 0.5 then the expected value would be:
[tex] E(X) = n*p = 1200*0.5 = 600[/tex]
So as we can see 608 is not far way from the expected value so then we can consider the event NOT unusual
Ginger's working on creating her first Google Search Ad. She wants to create an inviting and relevant ad, so potential customers will respond favorably. To earn user clicks, Ginger should focus on creating an ad that _____. (Choose two.)
has a larger font size
includes a current promotion
is listed after search results
includes at least two different colors
has a relevant headline
Answer:
has a relevant headline
includes a current promotion
Explanation:
A google search ad is a paid advertisement that is created to promote a product or service using the google ads platform and they appear in the search results on Google. To create a relevant ad that will earn user clicks, Ginger should focus on creating an ad that has a relevant headline that is related to the product or service so that it will attract the potential customers that are looking what she is offering. Also, the ad should include a current promotion that will increase potential customer's interest and call them to action.
The other options are not right because having a large font size, being listed after search results and including at least two different colors won't get customers interest and lead them to act by clicking on the ad.
"Megan has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm's website in exchange for someone at the firm doing the startup's tax returns."
Answer:
Trade can make every one better off
Explanation:
In economics, trade is considered as an important tool to make everyone better off. Before the paper currency, people used to trade goods and services in exchange for goods and services and the concept is called barter trade. Megan has opted for the concept of economics which is called trade can make everyone better off.
Suppose your bank lowers its minimum balance requirement to get free checking by $500. So you take $500 out of your checking account and put it into your savings account. What is the overall effect on M1 and M2?
M1 falls by $500, M2 rises by $500.
M1 falls by $500, M2 is unchanged.
M1 is unchanged, M2 is unchanged.
M1 is unchanged, M2 rises by $500.
Answer:M1 is unchanged, M2 rises by $500.
Explanation:
Checking account is included in both M1 and M2 unlike savings account which only falls in M2 category. M2 category is less liquid which includes cerificates of deposit etc. M1 only includes money in your possession and public circulation.
Ruth keeps account of her family's expenses. She keeps track of the entire family's needs and discusses with other family members about what products need to be bought. She realizes that the family requires a bigger refrigerator and discusses this with her parents. She collects information about refrigerators from various brands so that her parents can make an informed decision.a. innovator
b. influencer
c. gatekeeper
d. purchaser
Answer:
Ruth keeps account of her family's expenses. She keeps track of the entire family's needs and discusses with other family members about what products need to be bought. She realizes that the family requires a bigger refrigerator and discusses this with her parents. She collects information about refrigerators from various brands so that her parents can make an informed decision.
Purchaser
Explanation:
Her parents does the purchase so she needs to inform them about the latest to be bought.
Creative task performance involves employee responses to task demands that are novel, unusual, or, at the very least, unpredictable.True / False.
Answer:
False
Explanation:
Creative task performance represents the degree or extent to to which persons or employees come up with original, new and usual responses to task demands. That part of the question is true.
However, the false part is the unpredictability aspect because adaptive task performance is the type of performance which is also unusual, new and original but is at the very least unpredictable.
The question therefore combined the features of both creative and adaptive task performances. Therefore, the answer is false
The latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price. How could this have possibly happened? 1. There was an increase in demand and no change in supply. 2. There was a decrease in demand and an increase in supply. 3. There was no change in demand and an increase in supply. 4. There was a decrease in demand and no change in supply. 5. There was no change in demand and a decrease in supply.
Answer:
(2) There was a decrease in demand and an increase in supply
Explanation:
For a movie studio, a decline in attendance suggests that demand for showtime (movies) had declined. If demand had increased, there would have been an increase in attendance at the movies. If demand had remained the same, attendance would have remained unchanged too with no increase or decrease.
However, the decline in the average ticket price suggests that supply of movies had most likely increased (it could also be the case that studios decrease prices in a bid to attract customers in the face of dwindling demand). An increase in average ticket price would have suggested that lower movies were available or demand was higher than supply.
Answer:
2. There was a decrease in demand and an increase in supply.
Explanation:
If the latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price, then this could possibly have happened as a result of 2 things:
1. A DECREASE IN DEMAND: This is very obvious because it is stated clearly that 'attendance at movies have declined'' that means people no longer go to movies as they used, at least some people may not even be going anymore.
2. INCREASE IN SUPPLY: The second reason might be less obvious but it can be recalled that one of the major reasons in economics that triggers a price drop is 'increase in supply'. In the scenario, the fact that average ticket price across board have declined points more in the direction of increase in supply.
A CPA can accept a gift from a client as long as:
Adequate safeguards exist to prevent any threats to compliance with the Integrity and Objectivity rule
Adequate internal controls exist in the client entity to ensure gifts are made without any pre-conditions
The amount is below what is considered to be a material payment
Audit services are not provided to the client
Answer:
A:Adequate safeguards exist to prevent any threats to compliance with the Integrity and Objectivity rule
A CPA can accept a gift from a client if there are safeguards against potential threats to their professional integrity and objectivity, and if the gift's value is not considered a material payment that could influence their professional judgment. It's more restricted when the client is an audit client.
Explanation:According to the Code of Professional Conduct for certified public accountants (CPAs), a CPA can accept a gift from a client under certain conditions. Primarily, there must be adequate safeguards in place to prevent any threats to compliance with the 'Integrity and Objectivity' rule. This rule ensures that CPAs maintain their professional independence and do not allow gifts to influence their professional judgment. Secondly, the amount of the gift must not be considered a 'material payment', a term that typically refers to a substantial amount that could potentially influence the CPA's professional opinion. Importantly, if the client is an audit client, accepting a gift may be prohibited or heavily restricted to maintain the CPA's independence and objectivity.
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When economists are sketching examples of a demand or supply curve that is close to horizontal, they refer to that demand or supply curve as ____________.
Answer:
Elastic
Explanation:
Description of a curve elastic.: The curve believed by the longitudinal axis of an initially normal elastic strip or bar bent to any structure of elements within its elastic limits.
Elasticity relates to the level of sales or market sensitivity in response to price changes. If a curve becomes more elastic than small price shifts can cause large volume changes consumption.At the poles, horizontal will be a beautifully elastic curve, while vertical will be a completely inelastic curve.When economists are sketching examples of a demand or supply curve that is close to horizontal, they refer to that demand or supply curve as perfectly elastic.
Explanation:When economists are sketching examples of a demand or supply curve that is close to horizontal, they refer to that demand or supply curve as perfectly elastic. This means that a small change in price leads to an infinitely large change in quantity demanded or supplied. Perfectly elastic curves occur in markets where there are countless substitutes for a product or in cases of very perfect competition.
For example, if a seller drops the price of a product by a small percentage and the quantity demanded increases significantly, this would be depicted with a perfectly elastic demand curve in a supply and demand diagram.
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To work on a specific issue that needs a resolution, your company could put together a(n) __________. A. collaborative committee B. cross-functional team C. ad hoc committee D. problem-solving team E. commission
Answer:
To work on a specific issue that needs a resolution, your company could put together a problem-solving team
Explanation:
It is a known fact that when problem arises, what comes to everyone's mind is a solution to such problem. From the above analogy, it is expedient to note that working on issues that needs resolution a problem-solving team is required in order to have a round peg in a round hole, thus; solving the problem without escalating it whatsoever.
Which accurately explains how profit is calculated? A. Benefits and costs are balanced. B. Total retail sales are determined. C. Gross domestic product is calculated. D. Costs are subtracted from revenues.
Answer:
Costs are subtracted from revenues.
Explanation:
As we know
Profit is calculated when the cost is subtracted from revenues.
In mathematically,
The profit = Revenues - cost
The profit which would be calculated above is shown in the debit side of the income statement.
As the income statement records all the expenses or cost incurred and all the revenues which are generated
Profit is the difference between total revenue and total costs, which includes both explicit and implicit costs. Accounting profit considers only explicit costs, while economic profit includes both. Calculating profit provides insight into the financial health of a business.
Explanation:Profit is calculated by subtracting costs from revenues. Specifically, accounting profit is found by taking total revenue and subtracting explicit costs, which are the tangible expenses like wages and materials. In contrast, economic profit accounts for both explicit and implicit costs, which include unmeasured costs such as opportunity costs. To determine true economic profit, it is crucial to subtract both types of costs from total revenues. For example, if a company has total revenues of $200,000, explicit costs of $85,000, and implicit costs of $125,000, the economic profit would be -$10,000 per year, indicating a loss. Total cost involves all expenditures required for production and selling the company's products, and it can differ in the short run versus the long run.
The machinery that Daesun buys is much more efficient than Cedric’s machinery, so Daesun often has downtime while he waits for Cedric to shear more sheep.
Answer:
Cedric's low performance is a drawback for Daesun.
Explanation:
Specialization helps to increase an individual's efficiency. But when two or more individuals work together and their efficiency levels are different, coordination problems can occur.
In this case, Daesun is much more efficient at shearing sheep than Cedric, which results in Daesun having nothing to do while waiting for Cedric to finish his job. This issue can be solved either by Daesun specializing in shearing sheep and Cedric doing something else, or Cedric improving his performance so that it matches Daesun's.
Kate and Sarah own a bakery together. The two figures illustrate the production possibilities available to them if they work at their bakery for 8h a day. Answer the question using these figures. Sarah Breads (loaves) Breads (loaves) 0 O 1 2 3 4 5 6 7 9 10 11 12 13 14 Cakes (units) i 2 3 4 5 6 7 8 9 10 11 12 13 14 Cakes (units) If Kate and Sarah both specialize in the good in which they have a comparative advantage, the total production of bread will be 4 loaves, and the total production of cake will be 9 units. total production of bread will be 16 loaves, and the total production of cake will be 17 units. O total production of bread will be 12 loaves, and the total production of cake will be 8 units total production of bread will be 8 loaves, and the total production of cake will be 8.5 units.
Answer:
Total production of bread will be 12 loaves, and the total production of cake will be 8 units
Explanation:
Firstly, let's calculate the comparative advantage of both Sarah and Kate. It is evident Sarah has absolute advantage over Kate. However, the difference is significantly lower when comparing cakes, rather then comparing their bread rates. It is evident the productivity would be maximized if Sarah produced just bread, and Kate produced just cakes. That means they would use their maximum capacity for those goods.
Therefore, the total daily production of bread would be 12 loaves (Sarah's capacity), while the total daily production of cake would be 8 units (Kate's capacity).
In order to avoid project delays, project managers confronted with a resource overload will seek to delay some of the noncritical activities by an amount no more than their slack period, to level the demand for that worker.
a. True
b. False
Answer: True
Explanation:
When a project manager is confronted with resource overload, an activity that is not on the critical path can be delayed in order not to unnecessarily delay the project. The non-critcal activities can be delayed than an amount no longer than the slack period. This levels demand for that worker.
Jim is able to sell a hand-carved statue for $670 which was a 35% profit over his cost. How much did the statue originally cost him? The sales price of a car is $12,590, whic
Answer:
The cost price of the statue is $ 496
Explanation:
Sale Price of statue = $ 670
Suppose the cost price is $ 100 then according to the given condition the sales price would be $ 135
Sale Price = Cost Price + Profit
135= 100 +35
Applying ratios
Sale Price Cost Price
$670 x
135 100
Using cross product rule
x= $670 * 100/135
x= $ 496.29
If a fee of $2,850 earned from a client was debited to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850, which of the following would be true?
a) The credit total of the trial balance would be higher by $270.
b) b. The debit total of the trial balance would be higher by $270.
c) The wrong account is credited
b) the trial balance total would be equal
The error in the accounting entry would result in the debit total of the trial balance being higher by $270.
Explanation:In this scenario, a fee of $2,850 earned from a client was debited incorrectly to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850. The correct entry should have been a debit to Cash or Accounts Receivable for $2,850 and a credit to Fees Earned for $2,850.
The error in debiting Accounts Receivable for $2,580 (instead of $2,850) and crediting Fees Earned for $2,850 (instead of $2,580) would result in an imbalance in the accounting equation. The trial balance would have the debit total higher by $270 (the difference between $2,850 and $2,580).
The correct entry should have balanced out the trial balance, but with the error, the debit and credit sides are not equal. Therefore, the answer is option (b) The debit total of the trial balance would be higher by $270.
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The discrepancy between the amounts credited and debited leads to the debit total of the trial balance being higher by the difference of $270. This is because less was debited to Account Receivable than what was actually received resulting in a higher balance on the debit side.
Explanation:Based on the information given, we understand that a $2,850 fee was debited to Accounts Receivable for $2,580 and credited to Fees Earned for $2,850. Debits increase the balance of asset accounts like Accounts Receivable while credits increase the balance of income accounts such as Fees Earned. However, there seems to be an error as the account was debited and credited differing amounts.
Due to this error, the debit total of the trial balance would be higher by $270 , which is the difference between the amount received and the amount debited. This happens because the debit entry was made for a lesser amount than was actually received, leading to a higher balance on the debit side. Therefore, the correct answer to your question is option (b).
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Management accounting information of a company is primarily used by: Multiple Choice a) its customers to understand the pricing of a product. b) its investors to make investment decisions. c) its creditors to understand the credibility of the business. d) its employees to plan and control operations.
Answer:
d). it's employees to plan and control operations
Explanation:
Management accounting, as the name suggests refers to analysis of cost of production and identifying and correcting those areas which increase the cost of production and presentation of this information to the management so as to take important decisions.
Management accounting aims at cost reduction without compromising the quality of products. It focuses upon optimal utilization of resources and efficiency.
The end users of management accounting information are the employees and the management itself.
Thus the objective of presentation and disclosure of such costs is to plan and control operations more efficiently.
Economic reasoning is based on the premise that: only economic decisions or actions have a cost associated with them. only non-economic decisions or actions have a cost associated with them. all decisions or actions have a cost associated with them. all decisions or actions are costless.
Answer:
Economic reasoning is based on the premise that: all decisions or actions have a cost associated with them.
Explanation:
Economic reasoning is a way of thinking in which all the actions are presented and analysed using economic principles to determine their economic viability. Some of the principles that form a basis for economic reasoning are;
1. People face trade-off's: every person has to engage in trade at one point or another since resources will always be limited and human needs are infinite. Therefor there will always be a scarcity that needs to be fulfilled.
2. People economize: people will always make decisions on something based on what they perceive as the best economic decision in terms of benefits over costs.
3. All choices involve costs: every choice even if it doesn't involve money or a business transaction has a cost. Even doing nothing has a cost since there is an opportunity cost of another alternative activity.
4. The consequences of choices lie in the future: decisions are often made without knowing what is to come. Humans however try to use their knowledge to predict the future. The future holds the consequences on the choices made now.
5. People respond to incentives: incentives can be either rewards or punishments. These incentives determine how people will react and can be used to model behavior.
6. Voluntary trade creates wealth because both parties expect to gain value from the exchange.
7. Markets facilitate exchange: these institutions encourage people to engage trade depending on their individual perceptions.
8. Governments can some times improve market outcomes
9. The standards of living, both individual and national all depend on the ability to produce goods and services.
Economic reasoning is based on the premise that all decisions or actions have a cost associated with them.
Explanation:Economic reasoning is a critical thinking skill used to analyze and solve economic problems. It involves evaluating costs, benefits, incentives, and trade-offs to make informed decisions and understand how individuals and societies allocate resources to satisfy unlimited wants with limited resources. Economic reasoning is based on the premise that all decisions or actions have a cost associated with them.
Economics teaches us that every choice involves tradeoffs and that even non-economic decisions have associated costs. For example, if a student chooses to spend their time playing video games instead of studying, the cost of that decision could be a lower grade on a test. Therefore, understanding the concept of opportunity cost is crucial in economic reasoning.
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During which phase of the hype cycle, developed by Gartner Inc., does interest wane as experiments and implementations fail to deliver on the hype of the peak?
Answer:
Trough of disillusionment
Explanation:
The five overlapping stages in a technology hype cycle are:
Innovation Trigger : the possibility of technological breakthrough, implementation of the technology startsPeak of Inflated Expectations: success stories start to multiply, as well as failures, but nothing concrete. Trough of Disillusionment : If experiments and implementation continue to fail, interest wanes and producers tend to shake out or fail.Slope of Enlightenment : the potential benefits of the technological breakthrough start to multiply, other producers try to imitate the technology .Plateau of Productivity: technology starts to be adopted by the mainstream marketAnswer:
Disillusionment
Explanation:
Trough of Disillusionment: Interest wanes as experiments and implementations fail to deliver. Producers of the technology shake out or fail. Investments continue only if the surviving providers improve their products to the satisfaction of early adopters.
Rufus, a supervisor at an automobile store, is considered friendly by his subordinates and has the authority to assign important work to high performers under his wing. But he does not chalk out clear objectives for his workers. According to Fiedler's contingency leadership theory model, which of the following leadership styles should Rufus follow in order to be a better leader?
a. Task-oriented
b. Relationship-oriented
c. Power-oriented
d. Team-oriented
Answer:
a. Task-oriented
Explanation:
Since Rufus, is already considered friendly by his subordinates and has the authority to assign important work to high performers under his wing, with the only limitation being that he does not chalk out clear objectives for his workers. According to Fiedler's contingency leadership theory model, the leadership styles that Rufus should follow in order to be a better leader is Task-oriented leadership.
The reason for the above suggestion is that Task-oriented leaders are focused on getting the job done and achieving set goals. These category of leaders are not as bothered about employees as they are about developing clear objectives required for achieving tasks meeting goals.
Myra provides accounting services as an independent contractor for Great Northern. Because of this relationship, Great Northern is responsible for withholding and paying Myra's employment taxes, including federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
a) true
b) false
Final answer:
The statement is false because Myra, as an independent contractor, is responsible for her own employment taxes, including FUTA, Social Security (FICA), and Medicare contributions. Great Northern is not responsible for withholding or paying these taxes on behalf of Myra.
Explanation:
The statement about Myra, an independent contractor, is false. As an independent contractor providing accounting services to Great Northern, Myra is responsible for her own employment taxes, not the company. According to tax laws, independent contractors receive a 1099 tax statement and must pay both the employee and employer sides of payroll taxes, which includes Federal Unemployment Tax Act (FUTA), Social Security (FICA), and Medicare contributions.
Employment taxes for FUTA are paid by the employer and not withheld from an employee's wages, which means Myra, as an independent contractor, would need to handle this tax on her own. The same applies to FICA taxes, where typically an employer would withhold Social Security and Medicare taxes from an employee's wages and also pay a matching amount. However, since Myra is an independent contractor, she would be responsible for the full contribution, covering both the employee and employer shares, often referred to as self-employment tax.
Hunter-gatherer societies allocated resources by a combination of Individual decisions. Sharing customs. Organized hunting/gathering activity All of the above.
Answer:
All of the above.
Explanation:
Hunter-gatherer societies is a community of people also known as foragers, prehistoric men or early men, existed in the early ages. They hunt for food, they live a nomadic life, they use very crude implements made from things around them both for protection and hunting for food. The did not practice agriculture, they hunt for games.
They allocate according to the norms and values of their environment.
Frank, a marketing manager, has often noticed that his team members do not communicate with each other and are rarely present for team meetings. He also noticed that his team's productivity is considerably low. This scenario illustrates that Frank's team lacks _____.
Answer:
Cohesiveness
Explanation:
The measure of the level of unity in a group or team is called cohesiveness. It is a measure of how communicative the members of a team are. It describes the linking bond among them that makes them act as a team.
Cohesiveness is important because it also affect the extent to which members of a team are committed to working with centrally defined strategies and decisions. A cohesive team is a team that with increased morale and it also helps to boost productivity.
The feeling of being part of something big helps highly cohesive teams to achieve great job performance.
The lack of cohesiveness in Frank's team is evident in the low level of communication as well as the low level of productivity.
A project charter is most likely developed in which project management process group?
a. Definition of activities.
b. Initiating.
c. Planning.
d. Defining scope.
Answer: Initiating
Explanation: A project charter also called project definition or project statement is developed in the initiating phase which is the first phase and indicates the start of a project management cycle. It explains the project at hand, if the impending project is achievable, the purpose of the project and the project charter which is the main output of the initiating phase defines what is required, the scope and objective of the project.
McGraw purchased an antique rocking chair from Tillis by check. The check was dishonored by the bank due to insufficient funds. In the meantime, McGraw sold the rocking chair to Rio who had no knowledge that McGraw’s check had been dishonored. Which of the following is correct?
A. Tillis may repossess the rocking chair from Rio.
B. Tillis may recover money damages from Rio.
C. Tillis may recover money damages from McGraw.
D. Tillis may recover damages from McGraw based on fraud.
Answer:
Depends on the price of the chair, it may be one or the other.
C) Tillis may recover money damages from McGraw.
D) Tillis may recover damages from McGraw based on fraud.
Explanation:
If the price of the rocking chair was higher than $500, then McGraw committed a felony by writing a bad check, but if the price of the rocking chair was lower than $500, then McGraw wouldn't go to jail, but he is still responsible for any damages suffered by Tillis. Most states consider writing a bad check for more than $500 a felony (check fraud), but if the amount is lower it may be considered a misdemeanor. The misdemeanor doesn't always apply since it can be considered unintentional, it all depends on the circumstances.
Since Rio bought the rocking chair in good faith and McGraw owned it at that moment, then he will keep it and no one can accuse him of any type of crime or wrongdoing.
Final answer:
In this legal scenario, Tillis has the right to reclaim the item but cannot recover damages from Rio. The responsibility for payment falls on McGraw unless fraud is proven.
Explanation:
Tillis may repossess the rocking chair from Rio because Tillis has the right to reclaim the item as the original owner.
Tillis cannot recover money damages from Rio since Rio purchased the item in good faith without knowledge of the check being dishonored. However, Tillis may recover monetary damages from McGraw for not fulfilling the payment obligation.
Tillis cannot recover damages from McGraw based on fraud unless there is clear evidence of fraudulent intent in the transaction.
An individual acquired 500 shares of stock on December 20, year 1, for a personal portfolio. On March 15, year 2, the individual executed a short sale of 500 shares of the stock. On December 21, year 2, the individual delivered the 500 shares to cover the short sale. Which of the following statements best characterizes the gain or loss on the short sale?
1 The transaction will be treated as ordinary income because of the March short sale.
2 The transaction will be treated as a long-term capital asset sale.
3 The transaction will be treated as a 40% short-term/60% long-term capital asset sale.
4 The transaction will be treated as a short-term capital asset sale.
Answer:
4) The transaction will be treated as a short-term capital asset sale.
Explanation:
This person engaged in a short sale, which is classified as a short term capital asset sale since the holding period was shorter than 1 year (March 15 - December 21).
A short sale takes place when an investor sells property that he either doesn't own, or owns but doesn't want to sell. This sale is done in two steps:
the investor borrows the stock and delivers it to the buyerthe investor later purchases the same stock (hopefully at a lower cost) and returns them to the lenderThe investor cannot realize any gain or loss until he/she actually returns the stocks to the lender. If the investor managed to buy the stocks at a lower price, he/she will have realized a capital gain.