15–1. Undue Influence. Juan is an elderly man who lives with his nephew, Samuel. Juan is totally dependent on Samuel’s support. Samuel tells Juan that unless he transfers a tract of land he owns to Samuel for a price 35 percent below its market value, Samuel will no longer support and take care of him. Juan enters into the contract. Discuss fully whether Juan can set aside this contract.
Answers
Answer: It is Voidable
Explanation:
Samuel took advantage of his fiduciary responsibility is taking care of Juan to unfairly influence him to sell him a piece of land at a price 35% below market price. Juan as an old man who is TOTALLY dependant on Samuel, felt he had no choice but to agree as failure to do so will lead to Samuel no longer taking care of him and this could be quite disadvantageous to him.
There was UNDUE INFLUENCE and Coercion in this scenario which means Voluntary consent was lacking.
For this reason, the contract can be voided.
Related Questions
An important implication that arises out of the forces that influence quality is thatas the business world becomes more complex, quality must be approached from a(n) __________ perspective, rather than a(n) __________ perspective.a. internal; externalb. bottom-up; top-downc. system; processd. futuristic; historical
A company has the following items on its year-end trial balance:Net sales $500‚000Common stock 100,000Insurance expense 75,000Wages 50,000Cost of goods sold 100,000Cash 40,000Accounts payable 25,000Interest payable 25,000What is the company's gross profit?A. $230‚000B. $500,000C. $400,000D. $275‚000
Presented below are a number of operational guidelines and practices that have developed over time. Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) (a) Fair value changes are not recognized in the accounting records. (b) Financial information is presented so that investors will not be misled. (c) Intangible assets are amortized over periods benefited. (d) Agricultural companies use fair value for purposes of valuing crops. (e) Each enterprise is kept as a unit distinct from its owner or owners. (f) All significant post-balance-sheet events are disclosed
In a press conference, the president of a small country displays a chart showing that GDP has risen by 10 percent every year for five years. He argues that this growth shows the brilliance of his economic policy. However, his chart uses nominal GDP numbers. This chart might be wrong because it: is rare for GDP to increase by the same amount for five years. only uses five years of information. relies on nominal GDP which might have increased because of price increases and not output increases. relies on nominal GDP which might have increased because of output increases and not price increases. If you were a reporter at the press conference, to get a more accurate picture of the country’s economic growth you should ask for the: unemployment rate which reflects changes in international flows. growth rate of real GDP which excludes price changes. growth rate of real GDP which includes price changes. inflation rate which includes price change.
Answers
Answer:
Line Authority
Explanation:
Line authority refers to the power or authority assigned to individuals of supervisory position so as to direct and initiate employees to action in a desired manner, with the purpose of accomplishment of organizational goals and objectives.
For example, production manager may exercise line authority and supervise and direct production activities and subordinates.
In the given case, the vice president(VP) of a department i.e marketing tells marketing manager to prepare a presentation by the end of the week. Here, the VP is exercising his line authority, thereby supervising and directing the subordinates towards an action, carried out in organizational interest.
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.
Answers
Final answer:
The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.
Explanation:
The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:
- Issued stock for $6 cash: This transaction indicates that $6 cash was received in exchange for issuing stock.
- Purchased equipment costing $6,320: This transaction involves the cash payment of $4,893 and the remaining balance of $1,427 charged on account.
- Paid principal and interest expense on long-term debt: In this transaction, $513 is paid towards the principal amount and $91 is paid as interest expense. The debt is not specified.
- Earned sales revenue and collected cash: $88,988 is earned in sales revenue, of which $87,949 is collected in cash. The remaining amount is owed by the customers on account.
- Incurred shipping expenses: $10,766 in shipping expenses is incurred and charged on credit.
- Paid accounts owed to suppliers: $28,241 cash is paid towards accounts owed to suppliers.
- Incurred marketing expenses: $4,332 in marketing expenses is incurred and paid in cash.
- Collected cash from customers paying on account: $620 cash is collected from customers who are paying on account.
- Borrowed cash as long-term debt: $6,359 is borrowed in cash as long-term debt.
- Used inventory costing $62,752: Inventory costing $62,752 is used when sold to customers. The information does not mention the selling price or any profit.
- Paid income tax: $177 is paid as income tax recorded as an expense from the prior year.
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Final answer:
The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.
Explanation:
The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).
Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).
For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.
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Answers
Answer:
$ 183,544.30 = $ 183,544
Explanation:
Nuzum Corporation
Total Division M Division N
Sales $557,000 $254,000 $303,000
Variable expenses 144,910 81,280 63,630
Contribution margin 412,090 172,720 239,370
Traceable fixed expenses 273,000 128,000 145,000
Segment margin 139,090 44,720 94,370
Common fixed expenses 94,690 43,180 51,510
Net operating income $ 44,400 $ 1,540 $ 42,860
First we find the Segment CM ratio by the following formula:
Segment Contribution Margin Ratio= Segment Sales- Segment Variable Expenses/ Sales
Segment Contribution Margin Ratio= 303,000 -63630/303000
Segment Contribution Margin Ratio= 239370/303000=0.79
Then we find the break even sales in dollars.
Break Even Sales in Dollars= Traceable Fixed Expense/ Segment Contribution Margin Ratio
Break Even Sales in Dollars =145,000/0.79= $ 183,544.303
Answers
The options are:
A. leaving the current market selling a company's current products B. developing a new product C. selling in a company's current market D. selling in new as well as existing markets.
Answer:
B. developing a new product
Explanation:
Both when involved in product development strategy and diversification there will be development of a new product.
In product development strategy involves bringing new innovation to customers. New products that the market needs are developed.
In diversification strategy involves entering a new market and developing new product to get market share.
Both product development strategies and diversification strategies involveselling in new as well as existing markets. Hence option D is correct.
Both product development strategies and diversification strategies involve expanding a company's market reach. Product development strategies focus on introducing new products or improving existing products to target the company's current market.
On the other hand, diversification strategies involve entering new markets with either new or existing products. Both approaches aim to increase the company's market share and revenue by reaching new customers or expanding the offerings to existing customers.
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Answers
Answer:
Interest paid each year = 5% of 1000 = $50
$1000 is to be paid at the end of 10 years.So payment each year = pmt(rate,nper,pv,fv) where rate = 0.04,nper=10 and fv =1000.
Payment into the fund =pmt(0.04,10,0,1000) = $83.29 each year
Value of the sinking fund at the end of the 4th year =pv(rate,nper.pmt) =pv(0.04,4,83.29) = 302.34
Interest earned by sinking fund in year 5 = 0.04*302.34 = 12.09
Interest on loan in 5th year = $50
So difference between the interest payment on the loan and the interest earned by the sinking fund in the fifth year. = 50-12.09 = 37.91 = $38 (to nearest whole number)
Answers
The tax that needs to be reduced is $ 4.66 billion
Further Explanation
The amount (Deflationary / recessionary) gap =
Keynesian Spending Multiplier from government spending
k =
Tax Multiplier from tax
t =
Option 1: Increased government spending (Loosening / Expansionary Fiscal Policy) by
GovSpending (Gs) =
Option 2: Tax is reduced by (-)
Tax = =
In economics, deflation is a period in which prices generally fall and the value of money increases. Deflation is the opposite of inflation. If inflation occurs due to a large amount of money circulating in the community, deflation occurs due to a lack of money in circulation. One way to overcome deflation is to reduce interest rates.
In the macroeconomy, a recession is a condition when the gross domestic product (GDP) decreases or when real economic growth is negative for two quarters or more in one year. Recession can result in a simultaneous decline in all economic activities such as employment, investment, and corporate profits. Recession is often associated with falling prices (deflation), or, conversely, sharply rising prices (inflation) in a process known as stagflation. The economic recession that lasts long is called economic depression. The drastic decline in the level of the economy (usually due to severe depression, or due to hyperinflation) is called economic bankruptcy (economic collapse). Columnist Sidney J. Harris distinguishes the above terms in this way: "A recession is when a neighbor loses a job; depression is when you lose a job."
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Deflationary brainly.com/question/13135934
To Reduce Tax brainly.com/question/13135934
Details
Class: College
Subject: Business
Keywords: Deflationary, tax, recessionary
Final answer:
To close the remainder of the recessionary gap, taxes need to be reduced by approximately $11.67 billion.
Explanation:
To close the remainder of the recessionary gap of $10 billion, the government has approved a spending increase of $3 billion. The question asks how much taxes need to be reduced to make up the difference. We can use the concept of the Marginal Propensity to Consume (MPC) to find the answer.
The MPC represents the proportion of additional income that individuals spend. In this case, the MPC is given as 0.6. Therefore, for every additional dollar of income, individuals will spend $0.6.
To determine how much taxes need to be reduced, we can use the formula:
Tax Reduction = (Remainder of Recessionary Gap)/MPC
Substituting the values, Tax Reduction = $7 billion/0.6 = $11.67 billion. Therefore, taxes need to be reduced by approximately $11.67 billion to close the remainder of the recessionary gap.
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