In order to ensure efficient monitoring, accountability, and ethical behavior inside organizations, corporate governance control mechanisms are essential. Top company management can choose from a variety of corporate governance systems, such as: Internal control systems, the board of directors, executive compensation, shareholder activism, and external regulations and standards
Internal control systems are accounting and auditing procedures used in the finance division of a business to guarantee the accuracy of financial reporting and conformity with legal requirements.
Internal controls assist businesses in abiding with rules and regulations and preventing fraud. By making sure that policies are followed, management budgets are followed, capital shortages are discovered, and correct reports are provided for leadership, they may also assist in enhancing operational efficiency.
Learn more about Internal control systems, from :
brainly.com/question/29870556
#SPJ4
A project costs $80,000 and will be depreciated straight-line to zero over its 4 year life. The project generates OCF of $22,000 and the fixed assets will be sold for $9,000 at the termination of the project. If the project has a tax rate of 35% and a WACC of 10%, what is the NPV? Select the range that includes the correct answer. Less than $10,000 Greater than - $10,000, but less than-$5,000 Greater than or equal to $5,000, but less than $0 Greater than or equal to $0, but less than $5,000 Greater than or equal to $5,000
To calculate the net present value (NPV), we need to discount the project's cash flows to the present value and subtract the initial investment.
First, we need to calculate the depreciation expense per year:
Depreciation Expense = Initial Investment / Project Life
Depreciation Expense = $80,000 / 4 years
Depreciation Expense = $20,000 per year
Next, we calculate the after-tax cash flow for each year:
ATCF = OCF - Tax
Tax = (OCF - Depreciation Expense) * Tax Rate
Year 1:
Tax = ($22,000 - $20,000) * 0.35
Tax = $700
ATCF = $22,000 - $700
ATCF = $21,300
Years 2 to 4 (same calculation for each year):
Tax = ($22,000 - $20,000) * 0.35
Tax = $700
ATCF = $22,000 - $700
ATCF = $21,300
At the termination of the project (Year 4):
ATCF = Salvage Value - Tax
Tax = ($9,000 - $20,000) * 0.35 (Note: Salvage value is reduced by the remaining book value)
Tax = -$3,150 (tax benefit)
ATCF = $9,000 - (-$3,150)
ATCF = $12,150
Now, we calculate the NPV by discounting the cash flows to the present value:
NPV = (ATCF / (1 + WACC)^t) - Initial Investment
Using the given WACC of 10% and discounting each cash flow year by year:
Year 1:
PV = $21,300 / (1 + 0.10)^1
PV = $19,363.64
Years 2 to 4 (same calculation for each year):
PV = $21,300 / (1 + 0.10)^t (where t = 2, 3, 4)
At termination (Year 4):
PV = $12,150 / (1 + 0.10)^4
PV = $8,386.07
Now, we calculate the NPV by summing up the present values and subtracting the initial investment:
NPV = (PV Year 1) + (PV Years 2 to 4) + (PV Termination) - Initial Investment
NPV = $19,363.64 + $19,363.64 + $19,363.64 + $8,386.07 - $80,000
NPV = $86,477.99 - $80,000
NPV = $6,477.99
Based on the calculations, the NPV is greater than or equal to $5,000 but less than $10,000. Therefore, the correct range is "Greater than or equal to $5,000, but less than $10,000."
learn more about "investment":- https://brainly.com/question/29547577
#SPJ11
What is the purpose of Hot-end and Cold-end coating? Provide examples. •Explain in your own words when is Hot-end and Cold-end coating applied during the glass container manufacturing process. What is the significance of surface treatment in relation to light weighting of glass bottles?
The main answer to the question is, the purpose of Hot-end and Cold-end coating is to protect the container from scratching, chipping and to enhance its visual appeal. They also make the container's surfaces more durable. Glass containers have two kinds of coatings:
Hot-end and Cold-end coatings. They differ depending on when they are applied and the conditions under which they are applied.Explanation:Hot-end coating is applied during the glass-forming process while the glass is still hot. They are also known as Spray-On coatings. In the initial stages of the container production process, a mixture of tin, silicone, and titanium is applied to the glass surface, which is still hot. The coating then sets on the surface and fuses with the glass to create a long-lasting bond. Hot-end coatings help to make the glass container resistant to chemical reactions, scratches, chipping, and other damage.Cold-end coating, on the other hand, is applied to the surface of the container after it has been formed and is now at room temperature. They are also known as Offline coatings. The coating process happens in a separate facility, away from the manufacturing plant.
It is sprayed onto the surface of the container, and the coating bonds to the glass in the same way as the Hot-end coatings. Cold-end coatings make the glass container less slippery, enhancing the user's grip on the container. It also provides a surface for labels to adhere to.The significance of surface treatment in relation to light weighting of glass bottles is that the coating is used to improve the strength of the container. The use of a coating enables the manufacturer to make the bottle thinner while maintaining its strength. This reduces the amount of raw material required to produce the bottle, resulting in a lighter-weight container and lower manufacturing costs.The surface treatment is also used to enhance the visual appeal of the bottle, making it more attractive to consumers. This, in turn, can increase the perceived value of the product, allowing manufacturers to charge more for their product.
To know more about purpose visit:
https://brainly.com/question/31007947
#SPJ11
Recapitalization, Debt-to-Equity, and ROE An institutional investor believes that the company he has invested in should increase its leverage to improve the return on its stock. Currently, the investor earns a return of 14% on a $6.6 million investment in the stock. a. What is his debt-to-equity ratio if he borrows $4,000,000 at a 2.3% interest rate and invests it all in the stock? b. What is the return on the portfolio of stock and debt?
To calculate the debt-to-equity ratio and the return on the portfolio of stock and debt, we need to consider the investor's current investment and the additional borrowing.
Given:
Investment in stock = $6.6 million
Return on stock investment = 14%
Borrowed amount = $4,000,000
Interest rate on borrowing = 2.3%
a) Debt-to-Equity Ratio:
The debt-to-equity ratio measures the proportion of a company's total debt to its total equity. In this case, since the investor is borrowing and investing the borrowed amount, we can calculate the debt-to-equity ratio using the following formula:
Debt-to-Equity Ratio = Borrowed amount / Equity
Equity = Investment in stock
Debt-to-Equity Ratio = $4,000,000 / $6,600,000
b) Return on Portfolio of Stock and Debt:
To calculate the return on the portfolio, we need to consider the return on the stock investment and the interest expense on the borrowed amount.
Return on Portfolio = (Return on Stock Investment * Stock Investment + Interest Expense) / Total Investment
Total Investment = Stock Investment + Borrowed Amount
Return on Stock Investment = 14%
Stock Investment = $6,600,000
Interest Expense = Borrowed Amount * Interest Rate
Return on Portfolio = (0.14 * $6,600,000 + ($4,000,000 * 0.023)) / ($6,600,000 + $4,000,000)
Now let's calculate the values:
a) Debt-to-Equity Ratio:
Debt-to-Equity Ratio = $4,000,000 / $6,600,000
b) Return on Portfolio of Stock and Debt:
Return on Portfolio = (0.14 * $6,600,000 + ($4,000,000 * 0.023)) / ($6,600,000 + $4,000,000)
Please substitute the values into the formulas to get the exact calculations.
Learn more about debt-to-equity here:
https://brainly.com/question/28391877
#SPJ11
The term "Looking from the window"
means
1) Marketing Research
2) Strategic Marketing
3) Tactical Marketing
4) None of the above
The term "Looking from the window" does not correspond to any of the options provided. It is a phrase that metaphorically describes observing or contemplating a situation from a passive perspective.
The phrase "Looking from the window" is not directly related to marketing research, strategic marketing, or tactical marketing. It is a figurative expression that conveys the act of observing or contemplating a situation without active participation. When someone says they are "looking from the window," it means they are taking a passive stance, watching events unfold without actively engaging or influencing them.
In the context of marketing, the term does not hold a specific meaning or association. It is unrelated to marketing research, which involves gathering and analyzing data to make informed marketing decisions. Similarly, it does not align with strategic marketing, which focuses on long-term planning and goal setting to achieve a competitive advantage. Tactical marketing, on the other hand, involves executing specific marketing activities to achieve short-term objectives. None of these marketing disciplines directly relate to the phrase "Looking from the window."
To know more about marketing research click here: brainly.com/question/30651551
#SPJ11
Select a company that you think has a strong Corporate
Social Responsibility focus. Justify your choice and explain the
attributes of their strategy.
One company that has a strong Corporate Social Responsibility (CSR) focus is Patagonia. Patagonia is an outdoor clothing and gear retailer known for its commitment to environmental sustainability and social responsibility. Here are the attributes of their CSR strategy:
1. Environmental Stewardship: Patagonia places a strong emphasis on minimizing its environmental footprint. They are dedicated to using recycled and sustainable materials in their products, reducing energy consumption, and supporting initiatives that protect the environment. For example, they launched the "Worn Wear" program, promoting repair and reuse of clothing to extend their lifespan and reduce waste.
2. Transparency and Accountability: Patagonia is transparent about their supply chain, providing detailed information about the manufacturing processes and the social and environmental impact of their products. They conduct third-party audits to ensure ethical and fair practices in their supply chain and hold themselves accountable for any shortcomings.
3. Philanthropy and Activism: The company actively engages in philanthropic activities and supports grassroots environmental organizations through its "1% for the Planet" initiative. They donate at least 1% of their annual sales to environmental causes and have contributed millions of dollars to support environmental conservation efforts.
4. Employee Well-being and Work-Life Balance: Patagonia promotes a positive work environment and work-life balance for its employees. They offer flexible work arrangements, onsite childcare, and paid time off for employees to engage in environmental activism. This approach fosters a sense of purpose and well-being among their workforce.
5. Advocacy and Education: Patagonia uses its platform to raise awareness about environmental issues and advocate for policy changes. They leverage their brand voice to educate consumers and inspire them to make more sustainable choices. They have also taken legal action to protect public lands and advocate for environmental policies.
The attributes of Patagonia's CSR strategy demonstrate their genuine commitment to environmental and social responsibility. They go beyond traditional philanthropy and incorporate sustainability into their core business practices, engaging with stakeholders and driving positive change in the industry. Their efforts align with their mission to "Build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis."
Learn more about Corporate Social Responsibility (CSR) here:
https://brainly.com/question/32373703
#SPJ11
Cost Management Concepts and Application in a real company. The company is BOILERMECH HOLDINGS BERHAD
1. Describe the product that is being produced and the company that produces it.
2. Describe the six value chain business activities that this product would pass through
from its inception to its ultimate delivery to the customer.
3. List at least three costs that would be incurred in each of the six business activities in
the value chain.
Boilermech Holdings Berhad is a Malaysian-based holding company that deals with designing, manufacturing, installing, and servicing biomass boilers in the Asia Pacific region. Their products are mainly used for industrial energy, palm oil mills, pulp and paper mills, timber mills, and food processing. It also offers engineering consulting services for renewable energy, energy conservation, and energy management. The costs that would be incurred in the value chain include transportation, handling, and storage costs; labor; manufacturing; overhead costs; marketing and advertising expenses; cost of labor; spare parts; equipment maintenance; purchase orders; and supplier relationship management.
The six value chain business activities that Boilermech Holdings Berhad would pass through from inception to ultimate delivery to the customer are:
1) Inbound Logistics: The raw materials which are biomass, wood chips, palm kernel shells, and coconut shells are obtained from the suppliers and transported to the production plants. The costs incurred are transportation, handling, and storage costs.
2) Operations: The raw materials are processed and made into the required products. The costs incurred include labor, manufacturing, and overhead costs.
3) Outbound Logistics: The finished products are stored and delivered to the end customers. The costs incurred include transportation, handling, and storage costs.
4) Marketing and Sales: The marketing department performs activities that include advertising and promoting the products to potential customers. The costs incurred include marketing and advertising expenses.
5) Services: The customer service department deals with after-sales services such as repairs and maintenance of the products. The costs incurred include the cost of labor, spare parts, and equipment maintenance.
6) Procurement: This department sources suppliers, negotiates contracts, and purchases raw materials. The costs incurred include the cost of the raw materials, purchase orders, and supplier relationship management.
Costs that would be incurred in each of the six business activities in the value chain include transportation, handling, and storage costs in inbound logistics. In operations, the cost of labor, manufacturing, and overhead costs will be incurred. In outbound logistics, transportation, handling, and storage costs will be incurred. For marketing and sales, the costs will be marketing and advertising expenses. In services, the cost of labor, spare parts, and equipment maintenance will be incurred. Finally, in procurement, the costs of raw materials, purchase orders, and supplier relationship management will be incurred.
Learn more about value chain: https://brainly.com/question/1380316
#SPJ11
Suppose a single-factor model is the true model. Consider two funds to invest: A and B. Based on the history data, fund A’s return is rA = 0.14 + 1.2F1 and fund B’s return follows rB = 0.113 + 1.08F1. Suppose the risk-free asset has a rate of 4%. Which of the following is an arbitrage portfolio?
A. buy 1 million dollars fund A; short 0.9 million dollars fund B
B. short 0.9 million dollars fund A and 0.1 million dollars risk-free asset; buy 1 million dollars fund B
C. buy 0.9 million dollars fund A and 0.1 million dollars risk-free asset; short 1 million dollars fund B
The arbitrage portfolio that exploits the pricing inconsistency in the given scenario is option C: buy 0.9 million dollars of fund A and 0.1 million dollars of the risk-free asset, while simultaneously shorting 1 million dollars of fund B.
To identify the arbitrage opportunity, we compare the expected returns of the two funds. Fund A's expected return is given by rA = 0.14 + 1.2F1, and fund B's expected return is given by rB = 0.113 + 1.08F1, where F1 represents the single factor.
Now, let's assume the risk-free rate is 4%. By subtracting the risk-free rate from the expected returns, we can isolate the excess returns associated with the single factor. For fund A, the excess return is 0.14 + 1.2F1 - 0.04 = 0.1 + 1.2F1, and for fund B, it is 0.113 + 1.08F1 - 0.04 = 0.073 + 1.08F1.
Since fund A's excess return is greater than fund B's excess return (0.1 + 1.2F1 > 0.073 + 1.08F1), we can exploit this inconsistency by constructing a portfolio that goes long on fund A and the risk-free asset, while simultaneously shorting fund B. Option C satisfies this condition by buying 0.9 million dollars of fund A and 0.1 million dollars of the risk-free asset, while shorting 1 million dollars of fund B, thereby creating an arbitrage opportunity.
Learn more about arbitrage portfolio here:
brainly.com/question/29471072
#SPJ11
provide me information related loblaws limited.
c. Explains the Need for Change - Role of internal and external factors stressing the need for change.
Loblaw Companies Limited must adapt to changing consumer preferences, technological advancements, competitive pressures, and external factors.
Loblaw Companies Limited operates in a dynamic and competitive industry, necessitating continuous adaptation to remain successful. Internal factors such as changing consumer preferences play a crucial role in driving the need for change. As consumer tastes and preferences evolve, Loblaw must respond by adjusting its product offerings, introducing new brands or private labels, and enhancing its customer experience.
Technological advancements also impact the retail landscape, prompting Loblaw to embrace innovation and digital transformation. The rise of e-commerce, online grocery shopping, and delivery services necessitate changes in logistics, inventory management, and the overall retail strategy.
Furthermore, Loblaw operates in an industry with intense competition. To maintain its market position and stay ahead of competitors, the company needs to adapt and differentiate itself through various initiatives. This includes improving operational efficiency, exploring cost-saving measures, and investing in marketing and branding strategies.
Externally, Loblaw must respond to evolving market trends and external factors. Changing demographics, health and wellness trends, and environmental sustainability concerns require Loblaw to adjust its product offerings, sourcing practices, and corporate social responsibility initiatives. Additionally, government regulations, such as food safety and labeling requirements, may necessitate changes in operations and processes.
In summary, Loblaw Companies Limited faces the need for change due to internal factors like changing consumer preferences and technological advancements, as well as external factors such as market trends, competition, government regulations, and socioeconomic shifts. Adapting to these factors is essential for Loblaw to maintain its competitiveness and meet the evolving needs of its customers.
Learn more about technological here:
https://brainly.com/question/11447838
#SPJ11
When different people in a company talk about its transportation
network, what they refer to might be different depending on the
positions they hold.
True
False"
True. When different people in a company talk about its transportation network, their understanding and perspective of what the term refers to may vary based on their positions and responsibilities within the organization.
The transportation network of a company encompasses various aspects and functions, including logistics, supply chain management, fleet management, and distribution channels. However, different individuals within the company may have different areas of focus and responsibilities related to the transportation network based on their positions.
For example, someone in a logistics or supply chain management role might primarily refer to the physical movement of goods, coordinating transportation modes, optimizing routes, and managing delivery schedules. On the other hand, individuals in fleet management might focus more on the maintenance, utilization, and efficiency of the company's vehicles or transportation assets.
Similarly, individuals in sales or customer service roles may view the transportation network in terms of ensuring on-time deliveries, managing customer expectations, and resolving transportation-related issues. Executives and senior management might have a broader perspective, considering the transportation network's impact on overall business strategy, cost management, and customer satisfaction.
Therefore, depending on their positions and responsibilities, different individuals within a company may have varying interpretations and priorities when discussing the company's transportation network. It is important to recognize and consider these different perspectives to ensure effective communication and alignment of goals within the organization.
Learn more about customer service here:
https://brainly.com/question/28098450
#SPJ11
The price today, of a gallon of E85 is $3.79. What is the GGE price of E85? How does the price of E85 compare to a gallon of gasoline, if gallon of gasoline today costs $4.19?
Answer:
The GGE price of E85 is approximately $2.73.
The price of E85 is lower than the price of gasoline.
To determine the GGE (Gasoline Gallon Equivalent) price of E85, we need to calculate the energy content of E85 relative to gasoline. E85 is a fuel blend consisting of 85% ethanol and 15% gasoline.
The energy content of ethanol is about 33% less than gasoline on a per-gallon basis. Therefore, we can calculate the GGE price of E85 as follows:
GGE price of E85 = Price of E85 / Energy content ratio
Energy content ratio = 1 / (1 - 0.85 * 0.33)
Let's calculate:
Energy content ratio = 1 / (1 - 0.85 * 0.33)
= 1 / (1 - 0.2805)
= 1 / 0.7195
= 1.388
GGE price of E85 = $3.79 / 1.388
≈ $2.73
The GGE price of E85 is approximately $2.73.
To compare the price of E85 to a gallon of gasoline, which costs $4.19, we can simply compare the prices:
E85 price = $2.73
Gasoline price = $4.19
The price of E85 is lower than the price of gasoline.
Therefore, GGE price of E85 = $3.79 / 1.388
≈ $2.73
The price of E85 is lower than the price of gasoline.
To know more about GGE (Gasoline Gallon Equivalent) visit:
https://brainly.com/question/8846180
#SPJ11
An increase in the Gini index for income a signals an increase in financial profits b signals an increase in inequality c signals a more unequal functional distribution of income d signals a decrease in inequality
b) signals an increase in inequality. The Gini index is a measure of income inequality within a population. It ranges from 0 to 1, where 0 represents perfect equality (everyone has the same income) and 1 represents maximum inequality (one person has all the income).
An increase in the Gini index indicates a higher level of income inequality within the population.
Therefore, when the Gini index for income increases, it implies that income distribution has become more unequal. This means that there is a greater disparity between high-income individuals and low-income individuals in the society.
Option a) is incorrect because an increase in the Gini index does not directly indicate an increase in financial profits. Financial profits refer to the earnings generated by financial activities, such as banking or investing, and are not directly related to income inequality.
Option c) is incorrect because the Gini index measures income inequality, not the distribution of income by functional categories (such as wages, rents, or profits).
Option d) is incorrect because, as mentioned earlier, an increase in the Gini index signifies a rise in income inequality, not a decrease in inequality.
Therefore, option b) correctly states that an increase in the Gini index signals an increase in inequality.
To know more about Gini index click this link -
brainly.com/question/32271006
#SPJ11
Which of the following is solely responsible for issuing International Financial Report Standards (IFRS) . IFRS Foundation
International Financial Reporting Interpretation Committee (IFRIC) IFRS Advisory Council (IFRSAC) International Accounting Standards Board (IASB)
The International Accounting Standards Board (IASB) is solely responsible for issuing International Financial Reporting Standards (IFRS). The correct answer is option c.
The IASB is an independent standard-setting body that operates under the oversight of the IFRS Foundation. The IFRS Foundation oversees the IASB's activities and is responsible for promoting the adoption and implementation of IFRS globally.
The International Financial Reporting Interpretation Committee (IFRIC) is a committee within the IASB that provides interpretative guidance on the application of IFRS.
The IFRS Advisory Council (IFRSAC) is a consultative body that advises the IASB on standard-setting activities, but it does not have the authority to issue or amend IFRS.
The correct answer is option c.
To know more about IASB refer to-
https://brainly.com/question/4787717
#SPJ11
Complete question
Which of the following is solely responsible for issuing International Financial Report Standards (IFRS) . IFRS Foundation
a. International Financial Reporting Interpretation Committee (IFRIC)
b. IFRS Advisory Council (IFRSAC)
c. International Accounting Standards Board (IASB)
A firm has a WACC of 14.90% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.44. The additional cash flows for project A are: year 1 = $18.99, year 2 = $36.99, year 3 = $40.55. Project B has an initial investment of $72.08. The cash flows for project B are: year 1 = $59.94, year 2 = $44.17, year 3 = $20.19. Calculate the Following:
a) Payback Period for Project A:
b) Payback Period for Project B:
c) NPV for Project A:
d) NPV for Project B:
a) The payback period for project A is 1.46 years. b) The payback period for project B is 1.19 years.
c) The NPV for Project A is $14.13. d) The NPV for and for Project B is $-5.62.
a) Payback period for project A
The payback period is the number of years that it takes to recover the initial investment. It is determined as follows:
Investment / Annual cash flow
Payback period for project A is $61.44 / ($18.99 + $36.99 + $40.55) = 1.46 years.
b) Payback period for project B
The payback period is the number of years that it takes to recover the initial investment. It is determined as follows:
Investment / Annual cash flow
Payback period for project B is $72.08 / ($59.94 + $44.17 + $20.19) = 1.19 years.
c) NPV for project A
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows.
NPV = (Cash Flow / (1+ WACC)^ Year) - Initial Investment = (18.99 / (1+0.1490)^1) + (36.99 / (1+0.1490)^2) + (40.55 / (1+0.1490)^3) - 61.44 = $14.13
d) NPV for project B
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows.
NPV = (Cash Flow / (1+ WACC)^ Year) - Initial Investment = (59.94 / (1+0.1490)^1) + (44.17 / (1+0.1490)^2) + (20.19 / (1+0.1490)^3) - 72.08 = $-5.62
Learn more about Payback period:
https://brainly.com/question/16999673
#SPJ11
Refer to case study titled – ‘Patanjali Ayurveda – An Unconventional Business Machine’ and answer questions #1 and #2 Q1. As a young strategy consultant what will be your strategic recommendations to Patanjali? How Patanjali should go about applying the concept of game theory, discuss any three components of PARTS?
Develop different scenarios for possible outcomes and alternatives. For example, if a competitor launches a similar product, Patanjali could consider various responses such as reducing prices, increasing marketing efforts, or introducing new products.
Q1. As a young strategy consultant, my strategic recommendations to Patanjali would be:
Firstly, Patanjali needs to diversify its product portfolio beyond the FMCG sector and expand into other sectors such as healthcare, education, and wellness tourism. This will not only increase revenue streams but also improve brand recognition and customer loyalty.
Secondly, Patanjali should focus on building a strong online presence through e-commerce platforms and social media marketing. This will help the company reach a wider audience and cater to changing consumer behavior.
Thirdly, Patanjali should invest in research and development to create more innovative products that cater to different segments of the market. This will enable the company to stay ahead of competitors and maintain its position as a leader in the natural and organic products industry.
Regarding applying the concept of game theory, Patanjali could use the PARTS framework which includes four components: Players, Alternatives, Rules, and Tactics/Strategies.
Three key components of PARTS that Patanjali could consider are:
Players: Identify the key players in the market, including suppliers, customers, and competitors. Understanding the motivations and strategies of each player can help Patanjali make informed decisions and develop effective tactics.
Alternatives: Develop different scenarios for possible outcomes and alternatives. For example, if a competitor launches a similar product, Patanjali could consider various responses such as reducing prices, increasing marketing efforts, or introducing new products.
Tactics/Strategies: Develop tactics and strategies based on the identified players and alternatives. For instance, if a competitor reduces prices, Patanjali could respond by focusing on quality and innovation, rather than engaging in a price war. This approach aligns with Patanjali's mission of providing affordable, natural, and organic products, while maintaining a competitive advantage.
Learn more about scenarios here
https://brainly.com/question/31307962
#SPJ11
What challenges does SodaStream face as a disruptor?
How should it approach these challenges?
SodaStream, as a disruptor in the beverage industry, faces several challenges. These challenges include market resistance and competition, regulatory hurdles, and changing consumer preferences. To approach these challenges, SodaStream should focus on building brand awareness and educating consumers about the benefits of its products.
SodaStream can approach the challenge of market resistance and competition by investing in marketing and advertising campaigns to create awareness and educate consumers about the value proposition of its products. This can involve highlighting the environmental benefits, cost savings, and convenience of using SodaStream compared to traditional bottled beverages. Building a strong brand reputation and customer loyalty through exceptional customer service and positive customer experiences is crucial.
Addressing regulatory hurdles requires proactive engagement with regulatory bodies and compliance with relevant regulations and standards. Collaborating with industry associations and participating in policy discussions can help shape favorable regulations for SodaStream's business model.
To stay ahead of changing consumer preferences, SodaStream should continuously innovate its product offerings. This can involve introducing new flavors, expanding beverage options, and enhancing the user experience through technological advancements. Gathering consumer feedback and conducting market research can provide insights into evolving trends and preferences.
Overall, by focusing on brand building, innovation, regulatory compliance, and customer-centric strategies, SodaStream can effectively address the challenges it faces as a disruptor in the beverage industry.
Learn more about customer service here:
https://brainly.com/question/28098450
#SPJ11
when trading with the middle east and africa, what advantage does europe have over asia and the americas?
When trading with the Middle East and Africa, Europe has an advantage over Asia and the Americas in terms of geographical proximity and historical trade relations.
Europe has an advantage over Asia and the Americas when it comes to trading with the Middle East and Africa because of its geographic location and long-standing trade relations. Europe and the Middle East/Africa share a long history of trade and cultural exchange, which dates back to ancient times.
This has resulted in the development of strong commercial ties between these regions, which continue to this day. In addition to their historical trade relations, Europe and the Middle East/Africa are geographically close to each other, which makes it easier and more cost-effective to transport goods and services between these regions.
For example, it takes less time and money to ship goods from Europe to the Middle East/Africa than it does to ship them from Asia or the Americas.
Furthermore, Europe has a long history of investment and economic development in the Middle East and Africa, which has resulted in the establishment of strong business networks and trade partnerships.
European countries have invested heavily in the region, building infrastructure, and providing funding for economic development projects. This has helped to foster a strong business climate and create opportunities for trade and investment between these regions.
Learn more about trading here:
https://brainly.com/question/31526658
#SPJ11
a. What are the effects on the price level, P, the nominal interest rate, i, the real interest rate, r, real money balances, M/P, nominal GDP, P*Y, real GDP, Y, and the velocity of money, V, from the following events? : i. A once and for all decrease in the nominal quantity of money, M. (10% weight) ii. A once and for all increase in the money growth rate. (10% weight) iii. A simultaneous one-off increase in money supply combined with an increase in the money demand. (10% weight) b. Explain the concept of neutrality of money, referring to both a one-off increase in the money supply and an increase in the growth rate of the money supply. Explain whether the neutrality of money is valid and consistent with empirical findings. (20% weight)
a. (i) A once and for all decrease in the nominal quantity of money, M. (10% weight) will cause decrease in investment and consumption spending. (ii) A once and for all increase in the money growth rate. (10% weight) will cause in the price level (iii) A simultaneous one-off increase in money supply combined with an increase in the money demand. (10% weight) will lower nominal interest rate. b. The validity of money neutrality is debatable.
a. Effects on price level:
i. A once and for all decrease in the nominal quantity of money, M will lead to an upward shift in the real money demand function and will cause the nominal interest rate to decrease. The real interest rate will increase, causing a decrease in investment and consumption spending. There will be a decrease in the price level, nominal GDP, and real GDP, with no effect on velocity. The long-run effects will depend on the elasticity of money demand.
ii. A once and for all increase in the money growth rate will lead to an increase in nominal money supply and an upward shift in the nominal money supply function. This will cause an increase in the price level and nominal GDP, while real GDP will remain unchanged. There will be no effect on the real interest rate, but the nominal interest rate will increase. The velocity of money will remain unchanged.
iii. A simultaneous one-off increase in money supply combined with an increase in the money demand will lead to a lower nominal interest rate, higher real interest rate, higher real money balances, higher nominal GDP, higher real GDP, and a higher velocity of money.
b. Neutrality of money is the notion that money supply does not affect real economic variables in the long run. In the short run, a one-time increase in the money supply will cause the price level to rise and stimulate real output.
In the long run, however, prices will adjust, and real variables such as real GDP, real consumption, real investment, and real net exports will not be affected. This is due to the long-run neutrality of money, which indicates that money is neutral in the long run and does not have an effect on the economy's real growth rate.
The validity of money neutrality is debatable. However, it is widely accepted that money is neutral in the long run, despite the fact that it may not be in the short run. The empirical findings have also shown that money is mostly neutral in the long run.
Learn more about nominal interest rates here: https://brainly.com/question/25816355
#SPJ11
Many investors tend to purchase the latest "hot" stock even when it has never paid a dividend. Oddly, if net income of the stock is projected to fall over the next several years, the price of the stock continues to rise. What behavioral concept may explain this price pattern?
a. Overconfidence.
b. Calendar bias.
c. Loss aversion.
d. Mental accounting.
e. Forecasting error.
The behavioral concept that may explain this price pattern is known as c. Loss aversion.
Which price pattern is best explained by the behavioral concept of loss aversion.Loss aversion refers to the tendency of individuals to prefer avoiding losses over acquiring gains. In the context of investing, investors may be driven by the fear of missing out on potential gains and are reluctant to sell a stock even when its fundamentals indicate a decline in future profitability.
This behavior is influenced by the emotional pain associated with the possibility of incurring a loss. Investors may exhibit a bias towards positive information and disregard negative signals leading to an overvaluation of stocks with no dividends and projected declining net income. They may rationalize their decisions by relying on optimistic forecasts or hoping for a turnaround in the company's performance.
Read more about loss aversion
brainly.com/question/29355721
#SPJ4
Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP.
The value of intermediate goods produced and sold during the year is not included directly as part of GDP because it would result in double counting. However, the value of intermediate goods produced and not sold is included directly as part of GDP to capture the value added at each stage of production.
Gross Domestic Product (GDP) measures the total value of goods and services produced within an economy over a specific period. It is calculated by summing up the value added at each stage of production. Intermediate goods are goods used in the production process but not sold directly to final consumers. Including the value of intermediate goods produced and sold during the year in GDP would result in double counting since their value is already captured in the final goods and services that are sold to consumers.
On the other hand, the value of intermediate goods produced and not sold is included directly in GDP because it represents the value added at each stage of production. These goods contribute to the production process and their value is reflected in the final goods and services. By including the value of intermediate goods produced and not sold, GDP accounts for the economic activity and value added throughout the production chain.
Overall, excluding the value of intermediate goods produced and sold avoids double counting, while including the value of intermediate goods produced and not sold captures their contribution to GDP as part of the value added in the production process.
To learn more about Gross Domestic Product (GDP) click here : brainly.com/question/1383956
#SPJ11
Los Alamon in an entertainment company that, unfortunately, has gone bankrupt. The company's creditors, Dakota Bank and Bank Nevada, will bargain for 3 days over $50 million that was obtained through the liquidation of Los Alamos' assets. Given the seniority of its debt claims, Dakota Bank initially makes an offer proposing a specific split of the money with Bank Nevada in day 1 of negotiations. If the offer is rejected, Bank Nevada makes a counteroffer to Dakota Bank in day 2. If the counteroffer is rejected, Dakota Bank makes a take-it-or-leave-it offer to Bank Nevada in day 3. If there is no agreement in the last day of negotiations, the court will need to get involved and the amount of money that creditors can get drops to zero. Assuming that the discount rates for Dakota Bank and Bank Nevada are 5% and 20%, respectively: a) How much of the $50 million will Dakota Bank and Bank Nevada end up with? b) Would the outcome change if the negotiation could be extended indefinitely? Explain.
(a)With discount rates of 5% for Dakota Bank and 20% for Bank Nevada, the final outcome sees Dakota Bank receiving approximately $44.43 million, while Bank Nevada ends up with around $5.57 million. (b) If the negotiation could be extended indefinitely, it would likely lead to a different outcome.
To determine the amount each bank will receive, we need to consider the present value of the offers made during the negotiation. The discount rates reflect the banks' time preferences and the opportunity costs of waiting for the money. The present value formula is used to calculate the current worth of future cash flows.
On day 1, Dakota Bank makes an offer based on a specific split. The present value of this offer for Dakota Bank, using a discount rate of 5%, is approximately $47.62 million. Bank Nevada rejects the offer and makes a counteroffer on day 2. The present value of Bank Nevada's counteroffer, considering their 20% discount rate, is approximately $5.21 million.
If Bank Nevada rejects the counteroffer, Dakota Bank makes a take-it-or-leave-it offer on day 3. Considering their discount rate of 5%, the present value of Dakota Bank's final offer is approximately $44.43 million. Since Bank Nevada accepts this offer, the negotiation ends, and the banks divide the money accordingly.
If the negotiation could be extended indefinitely, it would likely lead to a different outcome. The time value of money, reflected in the discount rates, affects the present value of the offers. Bank Nevada's higher discount rate of 20% implies a greater time preference and a higher opportunity cost of waiting. If the negotiation extended indefinitely, Bank Nevada's impatience may result in them accepting a lower offer from Dakota Bank sooner, potentially altering the final outcome in favor of Dakota Bank.
To learn more about present value formula, refer:
brainly.com/question/30167280
#SPJ11
Write short notes on five factors one should consider when
determining a sample size. (10 Marks)
When determining a sample size for a study or survey, several factors should be considered to ensure reliable and accurate results. Here are five key factors to consider:
Population size: The size of the target population plays a role in determining the sample size. A larger population usually requires a larger sample size to ensure representativeness.
Confidence level: The desired confidence level or margin of error affects the sample size. Higher confidence levels (e.g., 95% or 99%) require larger sample sizes to reduce the chance of sampling error.
Variability: The degree of variability within the population affects the sample size. Higher variability typically requires larger sample sizes to capture the range of values accurately.
Effect size: The effect size or magnitude of the difference or relationship being studied affects the sample size. Larger effect sizes require smaller sample sizes, while smaller effect sizes require larger sample sizes to detect significant differences.
Research objectives: The specific research objectives and the precision needed to answer the research questions guide the sample size determination. Complex research questions or detailed analyses may require larger sample sizes.
Considering these factors helps ensure that the sample size is appropriate for obtaining reliable and meaningful results, minimizing sampling error, and providing valid conclusions.
Learn more about survey here
https://brainly.com/question/30462806
#SPJ11
An important assumption that is made when constructing a demand schedule is that A) only price and quantity matter in determining demand B) people always want a certain amount of a product C) demand is too important to be left to the economists D) all other determinants of demand are held constant
An important assumption that is made when constructing a demand schedule is that "all other determinants of demand are held constant." (option D).
A demand schedule is a list that shows the quantity of a product that consumers want to purchase at various prices, keeping all other factors constant. An important assumption that is made when constructing a demand schedule is that all other determinants of demand are held constant. This implies that the demand schedule reveals the demand of a product if all other factors, such as tastes and preferences, income, population, the price of related products, and consumer expectations, remain constant.
When all of the other variables affecting demand are held constant, price and quantity are the only factors that determine the level of demand for a product. This means that, in the short run, changes in price are the most important determinant of changes in demand. The correct option is D.
For more about demand:
https://brainly.com/question/30692892
#SPJ11
Economists state that people can do 2 things with their
money. They can spend their money or they can save it. Explain how
the real estate market is affected by these 2 choices.
Economists believe that people have two choices when it comes to their money: they can either spend it or save it. The real estate market is affected by both of these choices.
If people decide to spend more money, then there is a higher demand for homes, which can drive up prices. On the other hand, if people decide to save more money, then there may be less demand for homes, which could cause prices to go down.
When people decide to spend more money, they are more likely to purchase homes, which can drive up demand for the real estate market. If the demand for homes is high, then the prices of homes will also increase. This can make it more difficult for people who are looking to buy homes because they may not be able to afford the higher prices.
However, if people decide to save more money, then there may be less demand for homes. This could cause the prices of homes to go down. This can make it easier for people who are looking to buy homes because they may be able to find better deals.
In conclusion, the real estate market is affected by both spending and saving decisions. The amount of money that people choose to spend or save can have a significant impact on the real estate market and the prices of homes.
To know more about real estate market click on below link:
https://brainly.com/question/5053499#
#SPJ11
Andrew would like a retirement income of $3,000 per month (beginning of month payments) for 22 years once he retires.
How much must he have in his retirement account on the day he retires if the account can earn 3.6% compounded monthly?
with procedure please.
Andrew must have approximately $74,932.75 in his retirement account on the day he retires.
How much must Andrew have in his retirement account on the day he retires if he wants a monthly income of $3,000 for 22 years, with an interest rate of 3.6% compounded monthly?To calculate the amount Andrew must have in his retirement account on the day he retires, we can use the formula for the present value of an ordinary annuity. The formula is:
Present Value = Payment * ((1 - (1 + Interest Rate)^(-Number of Periods)) / Interest Rate)
Payment = $3,000 (monthly)Number of Periods = 22 years * 12 months/year = 264 monthsInterest Rate = 3.6% or 0.036 (monthly)Using these values, we can calculate the present value:
Present Value = $3,000 ˣ ((1 - (1 + 0.036)[tex]^(-264)[/tex]) / 0.036)Present Value = $3,000 ˣ ((1 - (1.036)[tex]^(-264)[/tex]) / 0.036)Present Value = $3,000 ˣ ((1 - 0.102781) / 0.036)Present Value = $3,000 ˣ (0.897219 / 0.036)Present Value ≈ $74,932.75Therefore, Andrew must have approximately $74,932.75 in his retirement account on the day he retires in order to have a retirement income of $3,000 per month for 22 years.
Learn more about retirement account
brainly.com/question/32312320
#SPJ11
Asanka Inc. is taking their company public. Under this firm commitment offering, 2,000,000 shares will be issued at a price of $58 each. Asanka Inc will receive $55.10 from the Underwriter for each share issued. Additional legal fees of $1,200,000 and indirect costs of $100,000 have been incurred. What are the flotation costs as a percentage of the total funds raised?
To calculate the flotation costs as a percentage of the total funds raised, we need to determine the total funds raised and the flotation costs.
The total funds raised can be calculated by multiplying the number of shares issued by the offering price:
Total funds raised = Number of shares issued * Offering price
Total funds raised = 2,000,000 * $58 = $116,000,000
The flotation costs can be calculated by subtracting the amount received by the company from the total funds raised:
Flotation costs = Total funds raised - Amount received by the company
Flotation costs = $116,000,000 - ($55.10 * 2,000,000) = $116,000,000 - $110,200,000 = $5,800,000
To calculate the flotation costs as a percentage of the total funds raised, we divide the flotation costs by the total funds raised and multiply by 100:
Flotation costs percentage = (Flotation costs / Total funds raised) * 100
Flotation costs percentage = ($5,800,000 / $116,000,000) * 100 = 5%
Therefore, the flotation costs as a percentage of the total funds raised is 5%.
To know more about flotation visit-
brainly.com/question/29383709
#SPJ11
Baked Fresh Daily, Inc. is a chain of bakeries that is organized as a corporation and operates in the upper Midwestern states. During the current year, the business realized a "Pre-Tax Income" of $1,750,000.
1. Using the 21% corporate tax rate specified in the "Tax Cuts and Jobs Act" of 2017, calculate the tax liability for Baked Fresh Daily, Inc. for the current year.
2. Calculate the "After-Tax Earnings" for Baked Fresh Daily, Inc.
3. Assume that Baked Fresh Daily, Inc. has 150,000 shares of common stock outstanding and that the firm paid a "dividend per share" of $0.55 during the current year. What is the value of the total dividends paid to the common shareholders of Baked Fresh Daily, Inc. during the current year?
a. Based on the total dividends paid to the common shareholders that you calculated, what is the value of the earnings that Baked Fresh Daily, Inc. retained for future investment during the current year?
4. What is the average income tax rate applicable to Baked Fresh Daily, Inc. during the current year?
5. What was the marginal income tax rate applicable to Baked Fresh Daily, Inc.?
The tax liability for Baked Fresh Daily, Inc. for the current year, using the 21% corporate tax rate, is approximately $367,500.
To calculate the tax liability, we multiply the pre-tax income by the corporate tax rate:
Tax Liability = Pre-Tax Income × Tax Rate
Tax Liability = $1,750,000 × 0.21 = $367,500
The After-Tax Earnings for Baked Fresh Daily, Inc. can be calculated by subtracting the tax liability from the pre-tax income:
After-Tax Earnings = Pre-Tax Income - Tax Liability
After-Tax Earnings = $1,750,000 - $367,500 = $1,382,500
The value of the total dividends paid to the common shareholders of Baked Fresh Daily, Inc. during the current year can be calculated by multiplying the dividend per share by the number of shares outstanding:
Total Dividends Paid = Dividend per Share × Number of Shares Outstanding
Total Dividends Paid = $0.55 × 150,000 = $82,500
a. The value of the earnings retained for future investment during the current year can be calculated by subtracting the total dividends paid from the after-tax earnings:
Retained Earnings = After-Tax Earnings - Total Dividends Paid
Retained Earnings = $1,382,500 - $82,500 = $1,300,000
The average income tax rate applicable to Baked Fresh Daily, Inc. during the current year can be calculated by dividing the tax liability by the pre-tax income:
Average Income Tax Rate = Tax Liability / Pre-Tax Income
Average Income Tax Rate = $367,500 / $1,750,000 ≈ 0.21 or 21%
The marginal income tax rate applicable to Baked Fresh Daily, Inc. is 21%. Since the marginal tax rate is based on the highest tax bracket applicable to the last dollar of taxable income, it remains the same as the corporate tax rate specified in the Tax Cuts and Jobs Act of 2017, which is 21%.
Learn more about tax liability here:
https://brainly.com/question/32458641
#SPJ11
Diandra Jones is a single mother of two children, Ann and Simon, who attend secondary school. Her mother, 67-year-old Kathleen, who was a housewife her entire life recently joined Diandra’s household when she was diagnosed with Parkinson’s disease. Diandra has been working 20 years as a lawyer in the Civil Law Department of the Ministry of Justice (MOJ) and sometimes uses the MOJ laptop at home to complete work assignments.
Miss Jones owns a sports utility vehicle (SUV) as well as a house in a middle-class community which is furnished with several appliances and items of furniture. At the back of the property is an unoccupied self-contained studio apartment. This community is below sea level and is prone to flooding. In consultation with her colleague at work she decided to rent the studio to generate additional income. She also plans to carpool with a neighbour to reduce petrol and toll costs and to use the SUV as a rental vehicle.
A. Distinguish between civil law and criminal law. Provide TWO (2) examples of each.
B. Identify THREE (3) major loss exposures facing Diandra with respect to each of the following:
i. Property loss
ii. Liability loss
C. With respect to the property loss exposure at B., indicate an appropriate personal risk management technique that can be used to treat same.
Civil Law and Criminal Law Civil Law and Criminal Law are two primary categories of law. They are both different and deal with different legal issues. Civil law involves laws that relate to disputes between individuals, organizations, or between the two.
Civil law regulates various matters such as property, contracts, family law, etc.Criminal law, on the other hand, involves crimes and criminals. Criminal law is used to enforce punishment for criminal behavior. Examples of Civil law are as follows:Contract law: When two parties sign a contract, it is regulated by civil law.Personal injury: The civil court handles claims related to personal injury. . The three major loss exposures facing Diandra regarding Property Loss and Liability Loss are:Property loss exposures:Flood Loss: Diandra's community is below sea level and is vulnerable to flooding. The house, appliances, and furniture are at risk of damage or destruction in the event of flooding.
This could result in a significant loss for Diandra.Earthquake Loss: If an earthquake occurs, Diandra's house and belongings will be at risk of damage or destruction. This can lead to a significant loss for Diandra.Liability loss exposures:Professional Liability: As a lawyer working in the civil law department, Diandra could face professional liability if she fails to meet the expectations of her clients or fails to adhere to professional standards.Vehicle Liability: If Diandra decides to rent her SUV, she is exposed to a significant liability risk in the event of an accident. An accident could result in injury to passengers, pedestrians, or other drivers.Criminal Liability
To know more about law visit:
https://brainly.com/question/29637626
#SPJ11
How do financial intermediaries play an important role in the economy?
Explain why the current bond prices and interest rates are negatively related.
What is the impact on interest rates when the Bank of Canada decreases the money supply by selling bonds to the public?
Demonstrate graphically (use a graph editor or explain the movements of D&S) and explain the effect in the bond market of a decrease in the federal deficit. What is the effect on the interest rate and bond prices? How might capital spending be affected by the deficit?
Through the effective transfer of cash from savers to borrowers, financial intermediaries play a critical role in the economy. They take deposits from both private citizens and offer loans, and other financial goods to anyone who want money.
Thus, financial intermediaries promote economic expansion, encourage investment, and increase consumption by enabling the movement of capital. The inverse link between bond yields and prices causes the present bond prices and interest rates to be adversely correlated.
Newly issued bonds give bigger coupon payments when interest rates rise, luring investors and decreasing the demand for older bonds. As a result, the cost of current bonds rises. By offering bonds to the general public, the Bank of Canada restricts the amount of money that is accessible to the economy. This drop in the money supply causes less liquidity, which might raise interest rates.
The supply curve in the bond market would move to the left if the government deficit decreased. This fall in supply suggests that there are fewer bonds on the market. Bond prices would rise as a result, resulting in a drop in interest rates.
Learn more about financial intermediaries here:
https://brainly.com/question/32020531
#SPJ4
One action that could have prevented the loss of 28 soldiers by an Iraqi Scud missile in the 1991 Golf war is to
ask the Saudis to operate the system until the software is upgraded.
keep using the system until the software upgrade is received
reset the software in the patriot missile system frequently to keep the truncation error within acceptable limits
not use the patriot system until the software is upgraded.
The action that could have prevented the loss of 28 soldiers by an Iraqi Scud missile in the 1991 Gulf War is not to use the Patriot system until the software is upgraded.What is the 1991 Gulf War?The Gulf War began on August 2, 1990, when Iraq invaded Kuwait.
United States President George H.W. Bush made a decision to drive Saddam Hussein's army out of Kuwait, and Operation Desert Storm, the U.S.-led coalition's campaign to liberate Kuwait, began on January 16, 1991.The United States deployed the Patriot missile system to protect military forces and civilian areas from Iraq's Scud missiles during the war. Patriot had never before been used in combat, and it had several technical flaws that made it difficult to use and aim effectively, despite its high price.
What caused the loss of 28 soldiers by an Iraqi Scud missile in the 1991 Gulf War?During the Gulf War, a Patriot missile battery in Dharan, Saudi Arabia, failed to detect an incoming Iraqi Scud missile. The Scud hit an American Army barracks, resulting in the deaths of 28 American soldiers and injuries to many others. It was later discovered that the Patriot's software was flawed, which caused the system to fail to track and intercept the incoming Scud missile. A software error caused a delay in the Patriot's radar calculations, causing the missile to miss the incoming Scud missile by a few hundred meters.What could have prevented the loss of 28 soldiers by an Iraqi Scud missile in the 1991 Gulf War?The action that could have prevented the loss of 28 soldiers by an Iraqi Scud missile in the 1991 Gulf War is not to use the Patriot system until the software is upgraded. During the Gulf War, the Patriot missile system was rushed into service, and its software was not completely debugged. Furthermore, the Patriot missile system software had several glitches, such as miscalculating the time since its last reset, which led to a lack of accuracy in tracking incoming targets. As a result, the Patriot missile system failed to detect the Scud missile, resulting in the loss of life.
To know more about prevented visit:
https://brainly.com/question/31862036
#SPJ11
Clark, who is 16 years old, buys a drone from Lex Luthor by putting $1 as a down payment and promising to pay the balance of $300 in 2 months. One month later, Clark returns the drone to Lex Luthor and demands his $1 back. Lex tells Clark that he took the drone and must pay what he owes by the next month. Lex sues Clark for the $300 after the 2 months have passed.
Who will win the lawsuit? (3 points).
Please give the legal theory as to why that party will win the suit. (7 points).
The legal theory as to why the party will win the suit in the given scenario is the Statute of Frauds.
What is the Statute of Frauds?The Statute of Frauds is a legal concept that outlines which types of agreements must be recorded in writing to be enforceable in a court of law. In general, contracts for the sale of land, contracts that cannot be completed in less than one year, and agreements for the sale of goods totaling $500 or more must be in writing.
The statute of frauds also applies to contracts for the sale of personal property that are not in possession of the seller at the time of the contract was created.
What happened in the given scenario?Clark, who is 16 years old, buys a drone from Lex Luthor by putting $1 as a down payment and promising to pay the balance of $300 in 2 months. One month later, Clark returns the drone to Lex Luthor and demands his $1 back. Lex tells Clark that he took the drone and must pay what he owes by the next month. Lex sues Clark for the $300 after the 2 months have passed. Lex Luthor will likely win the suit because the contract between him and Clark is for the sale of goods totaling more than $500 and was not in writing.
Because the contract is not in writing, the Statute of Frauds applies and the agreement is unenforceable in court.
To know more on lawsuit visit:
https://brainly.com/question/32178764
#SPJ11
