In most situations, the UCC uses the test of _____ for determining when a person is excused from performing contractual obligations.
Answer:
commercial impracticability.
Explanation:
Uniform Commercial Code (UCC) is a set of comprehensive, codified, and modernized business laws that regulate commercial transactions and financial contracts across different state in the United States of America.
The U.C.C isn't a federal law, but a uniformly adopted state law with the sole aim and purpose to create uniformity of law across multiple court jurisdictions in the United States of America. It is called the backbone of American commerce because it has been adopted by all 50 states, in whole or in large part and thus, enhancing commercial transactions or business to thrive significantly.
In most situations, the uniform commercial code (UCC) uses the test of commercial impracticability for determining when a person is excused from performing contractual obligations.
Commercial impracticability can be defined as the inability to perform a contractual obligation or act based on terms that are considered to be reasonable in commerce.
Additionally, the cause of this inability to perform are typically unforseen or unanticipated.
Which stage is arguably the most formal and structured opportunity for organizational change?a. Data gatheringb. Diagnosisc. Interventiond. Contracting
Answer:
Intervention
Explanation:
Structural change is defined as a change to corporate structure that can be as a result of internal or external factors and affects the mode of operation of the company.
Intervention are measures taken to improve organisation structure and processes.
It seeks to minimise negative effects and maximise effectiveness of the organisation.
This is the ideal stage for formal and organisational change to occur.
New systems can be put in place that will remove inefficiency in the business.
Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,800 and Machida's discount rate is 17 percent. Should Machida accept the project
Answer:
The NPV = $1578.185602 rounded off to $1578.19
As the NPV is positive, the project should be accepted.
Explanation:
The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project. If the NPV is positive, we should proceed with the project and vice versa.
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial Cost
Where,
CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on. r is the required rate of return
NPV = 3200 / (1+0.17) + 3200 (1+0.17)^2 + 3200 (1+0.17)^3 +
3200 (1+0.17)^4 + 5700 (1+0.17)^5 - 9800
NPV = $1578.185602 rounded off to $1578.19
Assume that the risk-free rate is 5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 1.5?
Answer:
15.5%
Explanation:
Calculation for the required rate of return
Using this formula
Required return=Risk free rate +(Expected return-Free risk rate)×(Beta)
Let plug in the formula
Required return=0.05+(0.12-0.05)×(1.5)
Required return=0.05+(0.07)×(1.5)
Required return=0.05+0.105
Required return=0.155×100
Required return=15.5%
Therefore the required rate of return on a stock with a beta of 1.5 will be $15.5%
When a municipal dealer gives a customer a "bond appraisal," he is disclosing:_________.
Answer: a likely price that the bonds can be sold which are based on market prices of similar securities
Explanation:
An appraiser bond is an insurance which is bought by appraise which show that they comply with certain laws and regulations. It gives confidence to the buyer of a home that their appraiser will be honest with them concerning the worth of the house.
When a municipal dealer gives a customer a "bond appraisal," he is disclosing a likely price that the bonds can be sold which are based on market prices of similar securities
McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 5.75% coupon paid semiannually (2.875% each 6 months), and those bonds sell at their par value. McCurdy's Class P bonds have the same risk, maturity, and par value, but the P bonds pay a 5.75% annual coupon. Neither bond is callable. At what price should the annual payment bond sell
Answer:
$993.08
Explanation:
the market interest is 2.875% semiannual, that is why Q bonds are sold at par. To determine the value of P bonds we must add the present value of the face value and the coupon payments:
the effective interest rate = (1 + 5.75%/2)² - 1 = 5.83%
PV of face value = $1,000 / (1 + 5.83%)¹² = $1,000 / 1.974405523 = $506.48
PV of coupon payments = $57.50 x 8.46254 (PV annuity factor, 5.83%, 112 periods) = $486.60
market price = $993.08
Due to a boom in the US, the average rate of return on investments is likely to rise causing the demand for US dollar to
Answer:
Increase
Explanation:
When there is a boom there is an increase in several key indicators in an economy. Gross domestic product will rise and so also will productivity. This would give rise also to profit as there would be increases in business sale. Then business income will go higher as well as family income. A boom is the result of an increase in consumer spending. The return on investment rises thereby causing an increase in demand for dollars.
Task _____ is the characteristic of a job that refers to how predictable job duties are from one day to the next.
Answer:
variability
Explanation:
When a worker is performing a task, he or she might come across a situation that is not expected or a situation not experienced before. Task variability enables the prediction of certain tasks, especially where those task are standardized and repetition of such reduces task variability.
Also, any exceptions experienced when carrying out a duty either in a new situation or at any stage in the value creation process, such would eventually make task variability high. In other words, take variability refers to the numbers of exceptions, a worker experienced when carrying out a duty.
Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:
Answer:
Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file file for the complete question.
The explanation of the answer is now provided as follows:
Operating income refers to the amount of profit that a business realized from its operations after operating expenses have been deducted.
Operating expenses are cost incurred by a business in its normal business operations.
The following two mistakes are prominent in the income statement in this question:
1. Gain on sale of equipment is included as part of Total Revenue instead of including under Other Income.
2. Interest Expense is included as part of operating expenses instead of including it under Interest income (expenses).
To correct this mistake, the income statement is prepared again appropriately using a Multi-step income statement format that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income.
Note: See the attached excel file for the new multi-step income statement that shows Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes.
In the attached excel file, Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0 (see red color).
If an organization permits its employees to use personally-owned computers for remote access, how are security and vulnerability management affected
Explanation:
In this case, it would be risky for a company to allow the use of personal computers for remote access to organizational systems that contain data and information that must be protected by information security, which includes the confidentiality, integrity and availability of information.
In this case, the vulnerability management would be reduced, since each different remote computer may present weaknesses in the pillars of information security that significantly compromise security and induce attacks, failures and exposure of essential information to a company's business, the which can negatively interfere in business and cause a lot of damage to a company.
The following information on selected cash transactions for 2011 has been provided by Mancuso Company:
Proceeds from sale of land $160,000
Proceeds from long-term borrowings 400,000
Purchases of plant assets 144,000
Purchases of inventories 680,000
Proceeds from sale of Mancuso common stock 240,000
What is the cash provided (used) by investing activities for the year ended December 31, 2011, as a result of the above information?
a. $16,000.
b. $256,000.
c. $160,000.
d. $800,000.
Answer:
a. $16,000.
Explanation:
The computation of the cash provided or used by the investing activities is shown below:
Cash flow from investing activities
Proceeds from the sale of land $1,60,000
Less:
Purchase of plant asset -$1,44,000
Net cash flows provided by investing activities $16,000
hence, the correct option is a. $16,000
Currently Ark is charged $3,144,267 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this
Question Completion:
A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement
B)Decrease Net Cash from Operations on the Cash Flow Statement
C)Increase Net Cash from Operations on the Cash Flow Statement
D)Just impact the balance sheet
Answer:
C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income. In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects. So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.
If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%
Answer:
PV= $30,111.98
Explanation:
Giving the following information:
Future value= $60,000
Number of periods= 8
Interest rate= 9%
To calculate the initial investment, we need to use the following formula:
FV= PV*(1+i)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 60,000 / 1.09^8
PV= 30,111.98
Which of the following is not a potential problem when estimating and using betas, i.e., which statement is false?
A. The beta of an "average stock," or "the market," can change over time, sometimes drastically.
B. Sometimes, during a period when the company is undergoing a change such as toward more leverage or riskier assets, the calculated beta will be drastically different from the "true" or "expected future" beta.
C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. This calculated historical beta may differ from the beta that exists in the future.
D. The fact that a security or project may not have a past history that can be used as the basis for calculating beta.
E. Sometimes the past data used to calculate beta do not reflect the likely risk of the firm for the future because conditions have changed.
Answer:
a.) The beta of an "average stock," or "the market," can change over time, sometimes drastically.
Explanation:
Estimation using betas in finance can be associated to the (CAMP) Capital Asset Pricing Model, it allows the calculation of volatility of the stock in relation to the market.
It should be noted that there are potential problems that can be experienced when estimating and using betas, and these are;
1) Sometimes, during a period when the company is undergoing a change such as toward more leverage or riskier assets, the calculated beta will be drastically different from the "true" or "expected future" beta.
2)The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. This calculated historical beta may differ from the beta that exists in the future.
3)The fact that a security or project may not have a past history that can be used as the basis for calculating beta.
4) Sometimes the past data used to calculate beta do not reflect the likely risk of the firm for the future because conditions have changed.
Hence among the given option, option A is false.
During its first year of operations, Anthony Lupa set up Lupo Inc. and invested $15,000 in the corporation. The company earned $35,000 of revenues and incurred $23,000 of expenses. A cash dividend of $2,000 was paid to Anthony. At the end of the year, the company's equity totaled:
Answer:
At the end of the year, the company's equity totaled: $25,000
Explanation:
The company earned $35,000 of revenues and incurred $23,000 of expenses.
Net income = Revenue - Expenses = $35,000 - $23,000 = $12,000
Retained earnings of the company = Net income - Cash dividend = $12,000 - $2,000 = $10,000
At the end of the year, the company's equity = Anthony Lupa's invested + Retained earnings = $15,000 + $10,000 = $25,000
Large corporations collect vast amounts of information about their customers' shopping habits, including how, when, why, where, and what they buy, and then use that information to ______.
Answer:
plan future products and services
Explanation:
Data collection by large corporations.on their customers is an important part of strategy to retain present Clint's and gain more market share.
Customer information like shopping habits, including how, when, why, where, and what they buy. Is used to predict customer behaviour and preferences.
This information is then used to plan future products and services.
For example if a customer buys watches, the company can target the customer by sending promotional materials on new watch releases.
An increase in the supply of money will lead to a(n) _____ in equilibrium real GDP and a _____ equilibrium interest rate.
Answer:
Increase and decrease
Increase, decrease.
The following information should be considered:
In the case when there is an increase in the supply of money so there should be increasein the real GDP. While on the same time, there is the decrease in the rate of interest.Learn more: brainly.com/question/17429689
Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000, compute the net income under absorption costing.
a) $70,000
b) $113,000
c) $210,700
d) $183,000
e) $288,000
Answer:
b) $113,000
Explanation:
For the computation of net income under absorption costing first we need to follow some steps which is shown below:-
variable overhead per unit = $105,000 ÷ 35,000
= $3 per unit
The Variable cost of production per unit
Particulars Amount
Direct material $19.00
Direct labor $21.00
Variable overhead $3.00
Variable cost of production
per unit $43.00
Cost per unit of finished goods under absorption costing
Particulars Amount
Total direct material cost $665,000
($19 × 35000)
Total direct labor $735,000
($21 × 35000)
Total variable overhead $105,000
Total fixed overhead $175,000
Total $1,680,000
Units in finished goods = Number of units produced - units sold
= 35,000 - 21,000
= 14,000
Cost of finished goods under variable costing
= Variable cost of production per unit × Number of units in finished goods
= $43 × 14,000
= $602,000
Cost of goods sold
= Production cost - Finished goods cost
= $1,680,000 - $602,000
= $1,078,000
Income statement under absorption costing
Particulars Amount
Sales revenue $1,491,000
($71 × 21,000)
Less: cost of goods sold -$1,078,000
Gross Profit $413,000
Less : operating expenses -$300,000
Net operating income $113,000
Buzz is a product of the Baldwin company which is primarily in the Nano segment, but is also sold in another segment. Baldwin starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 1128 of units of Buzz are sold in the Nano segment. If the competitive environment remains unchanged what will be the Buzz product’s demand next year (in 000’s)? Select: 1Save Answer 1128 1207 2572 1286
Answer:
1286
Explanation:
the following information is missing:
The marketing team makes a 14 percent growth forecastIf the competitive environment remains the same, then the sales forecast should equal actual demand + estimated sales increase:
actual demand = 1,128 units
estimated sales increase = 14%
sales forecast for next year = 1,128 + (14% x 1,128) = 1,128 + 157.92 = 1,285.92 ≈ 1,286 units
A company's income before interest expense and income taxes is $200,000 and its interest expense is $70,000. Its times interest earned ratio is:__________
Answer:
2.86
Explanation:
The times interest earned ratio is used basically to measure a firm's capacity to pay up it's debt. In other words, it is a covenant for loan which is primarily used by lenders to their debtors.
Times interest earned is calculated by dividing income before interest expense and income taxes by interest expense
= $200,000 / $70,000
= 2.86
If a nation has a higher level of technology than another nation it means that they will be able to produce:
Answer: b. more outputs with the same inputs.
Explanation:
Better technology means that labor will be more efficient in the production of goods and services. A country with a higher level of technology therefore will be more efficient in production than a country that is not and this will lead to them producing more output with the same input than the other country.
For instance, a country with technology that is able to reduce the wastage of wood will produce more furniture than a country without that technology.
15. What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units
Answer:
The question is incomplete, below is the complete question and accompanying data:
Martinez Company's relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Amount per Unit
Direct materials $7.00
Direct labor $4.50
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $5.00
Fixed selling expense $4.00
Fixed administrative expense $2.10
Sales commissions $1.10
Variable administrative expense $0.55
What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units? (Round answers to 2 decimal places)
Answer
total incremental cost = $13.45
Explanation:
in the case of an increase in production quantity by 1 unit, (11,000 to 11,0001), only the variable costs will increase, because variable costs are those costs that increase as the unit of output/production increases.
The variable costs here are:
Direct material = $7.00
Direct labor = $4.50
variable manufacturing overhead = $1.40
variable administrative expenses =$0.55
Total incremental cost = 7.00 + 4.50 + 1.40 + 0.55 = $13.45
Therefore, total incremental cost = $13.45
Kellerman Company purchased a building and land with a fair market value of $550,000 (building, $425,000, and land, $125,000) on January 1, 2018. Kellerman signed a 20-year, 6% mortgage payable. Kellerman will make monthly payments of $3,940.37. Round to two decimal places.
a. Journalize the mortgage payable issuance on January 1, 2018. Date Credit Debit 425000 15000 Non BUnding 550000 morigage payuple Prepare an amortization schedule for the first two payments. Principal Amortization
b. Carrying Value Cash Interest Date Payment Expense Borrow Date First Pmt Second Pmt
c. Journalize the first payment on January 31, 2018. Date Debit Credit
d. Journalize the second payment on February 28, 2018. Debit Credit Date
Answer:
a, Journal Entry
Date Account Title Debit Credit
Jan 1 Building $425,000
Land $125,000
Mortgage payable $550,000
b. Date Interest Cash Principal Carrying
expense payment amortization value
Borrow date $550,000
First payment $2,750 $3,940.37 $1,190.37 $548,809.63
Second payment $2,744.05 $3,940.37 $1,196.32 $547,613.31
Working
First payment date
Interest expenses = 550,000 x 6% x 1/12 = 2,750
Cash payment = 3,940.37
Principal amortization = 3,940.37 - 2,750 = 1,190.37
Carrying value = 550,000 - 1,190.37 = 548,809.63
Second payment date
Interest expenses = 548,809.63 x 6% x 1/12 = 2,744.05
Cash payment = 3,940.37
Principal amortization = 3,940.37 - 2,744.05 = 1,196.32
Carrying value = 548,809.63 - 1,196.32 = 547,613.31
c. Journal
Date Account Title Debit Credit
Jan 31 Mortgage payable $1,190.37
Interest expense $2,750
Cash $ 3,940.37
d . Journal
Date Account Title Debit Credit
Feb 28 Mortgage payable $1,196.32
Interest expense $2,744.05
Cash $3,940.37
CoffeeCarts has a cost of equity of , has an effective cost of debt of , and is financed with equity and with debt. What is this firm's WACC?
Complete Question:
Coffee Carts has a cost of equity of 15.5%, has an effective cost of debt of 3.9%, and is financed 75% with equity and 25% with debt. What is the firm's WACC?
Answer:
The firm's WACC is:
= (0.75 * 0.155) + (0.25 * 0.039)
= 0.11625 + 0.00975
= 0.126
= 12.6%
Explanation:
CoffeeCarts Company's WACC (Weighted Average Cost of Capital) is the average rate that the company is expected to pay to all its security holders (stockholders and debt holders) who financed its assets. We can calculate CoffeeCarts' WACC by multiplying the cost of each capital source (equity and debt) by its relevant weight, and then adding the products together. The weight is the proportional percentage of each class of finance source to the whole.
In an organization, project managers report directly to the head of a PMO. In this case, which statement is probably not true
Answer:
Projects will be run by the functional organization and project managers expedite change control.
Explanation:
A project management office or PMO is a department within an organisation that is tasked with maintaining the standard of project management. They also make sure there is economies of repitition in project execution (ensure success of projects is replicated).
In the given scenario if project managers report to the head of a PMO it means that the project management team is independent of the functional organisation.
So the statement - Projects will be run by the functional organization and project managers expedite change control.
Is false.
After receiving a reward for information leading to the arrest of a notorious criminal, you are considering investing it in an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity
Answer:
The maximum that should be paid for this annuity today is $62311.05
Explanation:
To calculate the maximum that should be paid for the annuity, we will calculate the present value of annuity. As the cash flow from annuity occur at the end of the period, it is an ordinary annuity. The formula for the present value of ordinary annuity is attached.
Present value = 5000 * [ 1 - (1+0.05)^-20 / 0.05 ]
Present value = $62311.05171 rounded off to $62311.05
Which of the following statements regarding early termination of a forward contract is most accurate?
A. Early termination through an offsetting transaction with the original counterparty eliminates default risk.
B. A party who terminates a forward contract early must make a cash payment.
C. A party who enters into an offsetting contract to terminate has no risk.
Answer: A. Early termination through an offsetting transaction with the original counterparty eliminates default risk.
Explanation:
A Forward contract is an agreement between two parties that obligates one party buying the asset that the seller will sell at a certain price and at a certain point in future.
If the contract is terminated early but there is an offsetting transaction which mirrors the contract obligation then that means that the obligation has been settled and so the default risk which is the risk that one party was not going to fulfil their obligation will be eliminated.
Consider the statements. Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics.
1. A tax on tires increases the price of tires Microeconomics Macroeconomics
paid by car owners.
2. As a result of a severe recession, the total
output gross domestic product of a nation falls
by 4%.
3. Increased consumer spending causes the
national unemployment rate to fall.
4. Increased consumer spending causes the rate
of rate of inflation to rise
5. Optimism about future car sales leads General
Motors to hire more auto workers.
6. Robotic technology reduces the demand for auto
workers.
Answer:
1. Microeconomics
2. Macroeconomics
3. Macroeconomics
4. Macroeconomics
5. Microeconomics
6. Microeconomics
Explanation:
Macroeconomics can be described as the study of the behavior of an overall economy. Macroeconomics studies issues that are related to the whole economy such as changes in unemployment, economic growth rate, national income, inflation, price levels, and gross domestic product (GDP).
On the other hand, Microeconomics can be described as the behavior of economic agents such as individuals and firms as regards their decision making relating the scarce resources allocation and the interactions among the economic agents.
Based on the above explanation, we can have the following categorizations:
1. A tax on tires increases the price of tires paid by car owners. This is Microeconomics because it concerns the behavior of individuals, i.e., car owners.
2. As a result of a severe recession, the total output gross domestic product of a nation falls by 4%.. This Macroeconomics because it concerns the gross domestic product which total values of goods produced in an economy.
3. Increased consumer spending causes the national unemployment rate to fall. This is Macroeconomics because it relates the national unemployment.
4. Increased consumer spending causes the rate of rate of inflation to rise. This is Macroeconomics because it relates an increase in inflation rate.
5. Optimism about future car sales leads General Motors to hire more auto workers. This is Microeconomics because it relates to the decision and action of a firm, i.e. General Motors.
6. Robotic technology reduces the demand for auto workers.This is Microeconomics because it relates to the decision and action of individuals, i.e. auto workers.
Based on the definitions of microeconomics and macroeconomics, the statements below fall under:
Macroeconomics:
2. As a result of a severe recession, the total output gross domestic product of a nation falls by 4%. 3. Increased consumer spending causes the national unemployment rate to fall. 4. Increased consumer spending causes the rate of inflation to riseMicroeconomics:
1. A tax on tires increases the price of tires paid by car owners.5. Optimism about future car sales leads General Motors to hire more auto workers.6. Robotic technology reduces the demand for auto workers.Macroeconomics relates to issues that affects the economy as a whole as opposed to a single industry or firm. A decrease in GDP, issues regarding national unemployment and inflation rising are therefore macroeconomic as they affect the entire economy.
Microeconomics on the other hand, relates to issues affecting an industry or only a single entity. This is why the other entries are microeconomics as they relate to a single industry.
Find out more at https://brainly.com/question/21123344.
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. What are the profits of the monopoly in equilibrium
A. $300.B. $400.C. $500.D. $600.
Answer: B. $400
Explanation:
Profit is maximised at point where Marginal revenue equals marginal cost.
The Marginal revenue curve is below the demand curve for a monopolist and is double slopped compared to an inverse demand curve.
The expression for the Marginal Revenue is therefore;
MR = 50 - 2Q
MR = MC
50 - 2Q = 10
2Q = 50 - 10
2Q = 40
Q = 20
P = 50 - Q
=50 - 20
= $30
Total revenue = P * Q
= 30 * 20
= $600
Total cost.
= AC * Q
MC is given as a fixed number so can be considered as Average Cost
= 10 * 20
= $200
Profit = TR - TC
= 600 - 200
= $400
Based on the information given the profits of the monopoly in equilibrium
is: B. $400.
Given:
Marginal cost = $10 per unit
Fixed costs=0
P = 50 - Q
Hence:
MR = 50 - 2Q
MR = MC
50 - 2Q = 10
2Q = 50 - 10
2Q = 40
Q = 20
P = 50 - Q
P=50 - 20
P= $30
Total revenue = 30×20
Total revenue = $600
Total cost= 10 × 20
Total cost= $200
Profit = Total Revenue - Total Cost
Profit= 600 - 200
Profit= $400
Inconclusion the profits of the monopoly in equilibrium is: B. $400.
Learn more about equilibrium here:https://brainly.com/question/24735820
Under FINRA rules, to recommend a direct participation program to a customer, the registered representative must ascertain that the customer:_______.
Answer:
has a fair market net worth sufficient to sustain the risks of the program.
Explanation:
FINRA is an acronym for Financial Industry Regulatory Authority. It is a non-profit agency in the United States of America, which is saddled with the responsibility of handling the licensing and regulation of broker-dealers in securities.
A direct participation program (DPP) can be defined as a financial security which gives an investor (customer) access to the cash flow and tax benefits of a business venture.
Under FINRA rules, to recommend a direct participation program (DPP) to a customer, the registered representative must ascertain and ensure that the customer has a fair market net worth that is considered to be sufficient to sustain the risks associated with the program, including loss of investment and lack of liquidity.