Which of the following is not an attribute of a lockbox system Selectone: Oa.Stronger control over receipts of cash from clients Ob.An average shorter float period for receivables O c.Cash receipts collected once per day by the bank O d.Payment of a service charge to the bank Oe.Extension of time to pay vendor invoices
Answers
The attribute of a lockbox system that is not included in the options provided is option (e) - "Extension of time to pay vendor invoices."
A lockbox system is a mechanism employed by businesses to expedite the processing of cash receipts. It involves having customers send their payments directly to a special post office box that is monitored by a designated bank. The bank then collects the payments, deposits them into the company's account, and provides detailed information about the transactions. This system offers several advantages, such as stronger control over cash receipts from clients, an average shorter float period for receivables (the time it takes for funds to become available), and cash receipts being collected once per day by the bank.
However, the extension of time to pay vendor invoices is not directly related to a lockbox system. It refers to negotiating with vendors to extend the payment deadline for outstanding invoices, which is not specifically associated with the implementation of a lockbox system.
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Related Questions
an organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.
a. implicit
b. stated
c. authentic
d. real
Answers
An organization's stated goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.
Stated goals refer to the formal and publicized objectives that an organization communicates to its stakeholders, such as employees, customers, investors, and the general public. These goals are typically expressed in official documents like mission statements, vision statements, and strategic plans. Stated goals are important for setting a direction for the organization and shaping the perceptions and expectations of its stakeholders.
The purpose of stated goals is to provide a clear and coherent message about the organization's intentions and aspirations. They are often designed to inspire confidence, attract support, and guide decision-making within the organization. However, stated goals may not always align with the authentic or real goals of the organization. While organizations may publicly state certain goals, the actual goals and priorities pursued by the organization may differ due to various factors, such as internal dynamics, external pressures, or changing circumstances. Therefore, it is important to consider both the stated goals and the actions of the organization to gain a comprehensive understanding of its true intentions and objectives.
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royston inc is a large chemiocal company. it processes 150,000 pounds of ore at a cost of
Answers
Royston Inc. is a large chemical company that processes 150,000 pounds of ore at a cost of $100,000.
During the year, it manufactured and sold 12,000 units of its primary product. The company had $50,000 in fixed manufacturing overhead costs that were not allocated to products. In addition, it incurred $150,000 in selling and administrative expenses. The company is contemplating the addition of a new product line that will require an investment of $300,000 in equipment. The equipment will have no salvage value but is expected to have a useful life of 15 years. The company estimates that it will manufacture and sell 4,000 units of the new product annually for the next five years. The new product will sell for $300 per unit and require $100 per unit in variable costs and $20 per unit in direct fixed costs. The company’s tax rate is 30%.How long will it take for the new product to begin generating positive net income for Royston Inc.? In the situation provided above, let's begin by computing the income statement for Royston Inc. as it stands now: Sales: 12,000 × $1,200 = $14,400,000 Cost of goods sold: Direct materials: 12,000 × $100 = $1,200,000 Direct labor: 12,000 × $200 = $2,400,000 Manufacturing overhead: $50,000 × 12,000/150,000 = $4,000 Selling and administrative expenses: $150,000 Net income before taxes: $6,650,000 Taxes (30%): $1,995,000 Net income: $4,655,000Now, let's determine the new product's contribution margin per unit: Contribution margin per unit = Selling price per unit − Variable cost per unit − Direct fixed cost per unit = $300 − $100 − $20 = $180The company's total fixed costs are: $50,000 + $300,000 = $350,000. Therefore, its net income formula for the new product is: Net income = (Sales × Contribution margin percentage) − Fixed costs Sales = 4,000 × $300 = $1,200,000 Contribution margin percentage = Contribution margin per unit/Selling price per unit = $180/$300 = 0.6 Net income = ($1,200,000 × 0.6) − $350,000 = $80,000Now, we can determine how long it will take for the new product to begin generating positive net income for Royston Inc. by using the following formula:Break-even point (in units) = Fixed costs/Contribution margin per unit Break-even point (in units) = $350,000/$180 = 1,944 units (rounded up)We can see that Royston Inc. needs to sell 1,944 units of the new product to break even. Therefore, it will begin generating positive net income after the break-even point has been reached. To determine how long it will take to reach this point, we can divide the number of units that need to be sold to break even by the number of units sold per year:Break-even point (in years) = Break-even point (in units)/Units sold per year Break-even point (in years) = 1,944/4,000 = 0.486 (rounded up to one decimal place)Therefore, it will take approximately 0.5 years, or 182.5 days, for the new product to begin generating positive net income for Royston Inc.Conclusion:Therefore, it will take approximately 0.5 years, or 182.5 days, for the new product to begin generating positive net income for Royston Inc.
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The unit costs per pound for products A, B, and C are as follows:
Unit Cost per pound for Product A = $1.38
Unit Cost per pound for Product B = $1.38
Unit Cost per pound for Product C = $2.00
To compute the unit costs per pound for products A, B, and C, we need to allocate the joint costs using the Net Realizable Value (NRV) method. Additionally, since product C is considered a byproduct, we will use the production method to allocate the joint costs.
Step 1: Calculate the joint cost per pound.
Joint Cost = Total Cost - Cost of Product C
Total Cost = Cost of processing ore + Cost of processing product A
= $180,000 + $26,500
= $206,500
Cost of Product C = 1,500 pounds * Cost per pound
= 1,500 pounds * $2
= $3,000
Joint Cost per pound = (Total Cost - Cost of Product C) / Total pounds of ore
= ($206,500 - $3,000) / 150,000 pounds
Step 2: Calculate the unit costs per pound for products A and B.
Unit Cost per pound for Product A = Joint Cost per pound
Unit Cost per pound for Product B = Joint Cost per pound
Step 3: Calculate the unit cost per pound for product C using the production method.
Unit Cost per pound for Product C = Cost of Product C / Total pounds of product C
Now, let's calculate the unit costs per pound for products A, B, and C:
Unit Cost per pound for Product A:
Unit Cost per pound for Product A = Joint Cost per pound
= ($206,500 - $3,000) / 150,000 pounds
= $1.38 (rounded to 2 decimal places)
Unit Cost per pound for Product B:
Unit Cost per pound for Product B = Joint Cost per pound
= ($206,500 - $3,000) / 150,000 pounds
= $1.38 (rounded to 2 decimal places)
Unit Cost per pound for Product C:
Unit Cost per pound for Product C = Cost of Product C / Total pounds of product C
= $3,000 / 1,500 pounds
= $2.00
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Royston, Inc., is a large chemical company. It processes 150,000 pounds of ore at a cost of $180,000 to yield 12,000 pounds of product A, 65,000 pounds of product B, and 1,500 pounds of product C.
■ Product A is processed further at a cost of $26,500. It yields 12,000 pounds of A', which are sold for $12 per pound.
Product B is sold without further processing at $3 per pound.
Product C is considered a byproduct and is sold for $2 per pound.
Required:
Compute unit costs per pound for products A, B, and C, treating C as a byproduct (Note: these are the products at the splitoff point).
Use the NRV method for allocating joint costs. Use the production method for byproduct.
1. unit costs per pound for products A = $_ (keep 2 decimal places)
2. unit costs per pound for products B = $_ (keep 2 decimal places)
3. unit costs per pound for products C = $_ (keep 2 decimal places)
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true or false: income tax expense may be disclosed either on the income statement or in the notes to the financial statements. true false question. true false
Answers
It is true that income tax expense may be disclosed either on the income statement or in the notes to the financial statements.
What is income statement?An income statement can be described as the financial statement that is been used by the company to show the revenues as well as the expenses that has been acquired over some period of time.
Therefore, the statement above is correct because the income tax expense can be show on other line in the income statement, however the income statement should be able to disclose all that is required such as the expenses that will be needed in the company record.
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North Side, Inc. has no debt outstanding and a total market value of $175,000. Earnings before interest and taxes, EBIT, are projected to be $16,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 30 percent higher. If there is a recession, then EBIT will be 70 percent lower. The company is considering a $70,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 2,500 shares outstanding and the tax rate is 34 percent. What will be the percentage change in EPS if the economy has a strong expansion?
Answers
if a claim is made on a policy during the grace period an insurer is allowed to deduct
Answers
If a claim is made on an insurance policy during the grace period, an insurer is generally allowed to deduct any unpaid premiums from the claim amount.
The maximum allowed interest rate for deducting overdue premiums during the grace period in an insurance policy can vary depending on the specific insurance regulations in each jurisdiction. The interest rate is typically set by regulatory authorities and may differ across different types of insurance policies and regions.
It is important to consult the relevant insurance laws and regulations applicable to the specific policy and jurisdiction to determine the maximum allowed interest rate for deducting overdue premiums during the grace period. Insurance regulatory bodies or insurance departments within government agencies are reliable sources to obtain accurate information regarding the maximum interest rate allowed in such situations.
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The complete question is:
"If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?"
In what circumstance would a property insurance claim be rejected?
Answers
• The cause of property damage falls under an exclusion condition in your policy.
•You haven’t been paying your insurance premiums.
• The damage isn’t sufficiently documented
•The insurance adjuster finds anything suspicious or false in the claim.
•You didn’t take precautions to prevent further damage after the initial loss.
strong metals inc. purchased a new stamping machine at the beginning of the year at a cost of $1,425,000. the estimated residual value was $75,000. assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. actual annual production was as follows:
Answers
Depreciation cost per unit = Annual depreciation expense / Estimated productive life, Depreciation cost per unit = $270,000 / 300,000, Depreciation cost per unit = $0.90 per unit. The depreciation cost per unit is $0.90.
Strong Metals Inc. purchased a stamping machine for $1,425,000 with an estimated residual value of $75,000. The machine has an estimated useful life of five years and an estimated productive life of 300,000 units. To determine the annual depreciation expense, we need to calculate the machine's depreciable cost, which is the initial cost minus the residual value.
Depreciable cost = Initial cost - Residual value
Depreciable cost = $1,425,000 - $75,000
Depreciable cost = $1,350,000
Next, we divide the depreciable cost by the estimated useful life to find the annual depreciation expense.
Annual depreciation expense = Depreciable cost / Useful life
Annual depreciation expense = $1,350,000 / 5
Annual depreciation expense = $270,000
Since the machine's actual production varies each year, we need to allocate the annual depreciation expense based on the number of units produced. Divide the annual depreciation expense by the estimated productive life to find the depreciation cost per unit.
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Different sub-sectors and categories within wholesale or retail industry
Answers
The sub-sectors within the wholesale industry include merchant wholesalers, agents and brokers, and manufacturers' sales branches and offices. The retail industry, on the other hand, is divided into various categories such as department stores, discount stores, specialty stores, supermarkets, convenience stores, and e-commerce retailers.
The different sub-sectors and categories within the wholesale or retail industry include:
1. Food and beverage: This sub-sector comprises businesses that sell groceries, beverages, fresh produce, meat, and other food items.
2. Apparel and accessories: This category includes businesses that sell clothing, footwear, jewelry, and other fashion accessories.
3. Electronics and appliances: This sub-sector consists of businesses selling electronic devices, such as smartphones, computers, and household appliances.
4. Health and personal care: This category includes businesses selling pharmaceuticals, beauty products, and personal care items.
5. Home furnishings and furniture: This sub-sector consists of businesses selling furniture, home decor, and other household items.
6. Sporting goods, hobby, and music: This category includes businesses that sell sports equipment, musical instruments, and hobby supplies.
7. Building materials and garden equipment: This sub-sector includes businesses selling construction materials, hardware, and garden equipment.
8. Gasoline stations: This category comprises businesses that sell fuel and other automotive products.
9. Nonstore retailers: This sub-sector includes businesses that sell products online, through catalogs, or via direct sales methods.
These sub-sectors and categories represent the various segments within the wholesale or retail industry, offering a wide range of products and services to consumers.
In conclusion, the wholesale and retail industry is vast and diverse with various sub-sectors and categories. Understanding these sub-sectors and categories is essential for businesses and consumers alike to make informed decisions and succeed in the market.
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i have a few questions about finance. PLease answer correctly and completely! thx
Which product is an example of perfect competition?
A.
food grains where products are homogeneous
B.
computers, where there are many competitors with slightly differentiated products
C.
aerated cold drinks, where there are two competitors
D.
bicycles, where buyers and sellers have some control over the price
E.
gold where there is only one seller
The database of Aster Corp. was hacke.d and confidential data was leaked to its competitors. This resulted in a huge financial loss and a loss of goodwill for the company. What is this business risk known as?
A.
operational risk
B.
exchange risk
C.
political risk
D.
expansion risk
E.
survival risk
Answers
Answer 1:
B is the answer.
Computers where there are many competitors with slightly differentiated products.
Explanation:
A market is characterized as a Perfect Competition where there are many buyers, many sellers and the products are either homogenous or slightly differentiated. There is also perfect knowledge about all the products and the nonexistence of monopoly. That is, no player in the market has leverage over which they can manipulate prices in their favor.
Answer 2:
A is the correct answer.
Operational Risk.
Explanation:
When there is the possibility for a loss arising from a dysfunctional internal process(es), inefficient employee(s), or even from external events, with a link to the internal dynamics of a company, the business is said to be exposed to Operational Risks.
Answer 3:
When there is an increase in interest rate, the following takes place:
Businesses shy way from borrowing from the bank(due to the loss of leverage or increased cost of borrowing when they do) Production Cost increasesWhen production costs increase prices of finished goods increasesthe above leads to a decrease in demand for finished goodsand ultimately Consumer spending goes downCheers
Sally jones had a policy with a $250 deductible which paid 80% of her covered charges less deductible. She had medical expenses of $18,240. 0. What is the 20% co-payment?.
Answers
Consequently, we will subtract $250 from $18,240. You left with 17,290, therefore we may subtract 80% of $17,090 to get 14,392, bringing the total cost of Sally's expenses to $14,392.
Explain what expenses are.Expenses are simply another word for cost. Expenses are the term used in accounting to describe the operational costs incurred to produce business revenues. In this statement, the idea of exchanging money for products or services is alluded to. The total cost of all actions that typically incur expenditures may also be referred to as expenses.
What exactly does an accounting cost mean?Costs are the costs incurred by a business to operate. Rent, depreciation, salaries, taxes, and administrative fees are a few examples of expenses. Profit is calculated as revenue less expenses.
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Identify and explain two reason why the primary sector is relatively more important to Botswana than India?
Answers
Answer:
There is labour abundance in primary sector in India. Also, most of the people are employed in the primary sector because enough jobs are not provided by the secondary and tertiary sector. Employment growth is less in the secondary and tertiary sector. About 63% of the country are absorbed in the primary sector
Should the Minimum Wage increase to $11 an hour instead of $15? Why?
Answers
Answer:
I think you mean increase to $15 instead of $11.
In one recent poll, 67 percent of small business owners support the minimum wage increase to $15 an hour. They say it would spark consumer demand, which would enable them to retain or hire new employees. And raising the wage doesn't seem to compel employers to cut jobs.
It would help 900,000 people out of poverty. Raise income for 17 million people (one in 10 workers), to the tune of $509 billion over 10 years. Potentially increase wages for another 10 million people.
1.3 Sketch the typical customer profile (and his or her needs),
who could benefit or find value from purchasing your product or
service. (30 Marks)
Answers
To sketch the typical customer profile for a product or service, it is important to understand the target market and identify their needs and preferences. Here is an example of sketching a typical customer profile:
Customer Profile:
Name: Sarah
Age: 35
Occupation: Marketing Manager
Income: $80,000 per year
Location: Urban area
Interests: Fitness, healthy lifestyle, technology
Needs and Preferences:
Convenience: Sarah values convenience and seeks products or services that make her life easier and save her time.
Quality: Sarah looks for high-quality products or services that provide value for her money.
Health-conscious: Sarah is health-conscious and prefers products or services that align with her healthy lifestyle choices.
Tech-savvy: Sarah is comfortable with technology and appreciates products or services that leverage technology to enhance user experience.
Customization: Sarah appreciates personalized experiences and products tailored to her specific needs.
Value from the Product or Service:
Time-saving: The product or service helps Sarah save time in her busy schedule, allowing her to focus on other priorities.
Health benefits: The product or service supports Sarah's healthy lifestyle by providing nutritious options or promoting physical activity.
Enhanced convenience: The product or service offers convenient features or functionalities that simplify Sarah's daily routines.
Personalization: The product or service can be customized to meet Sarah's specific preferences or needs, providing a personalized experience.
Technological innovation: The product or service utilizes advanced technology to provide unique features or improve efficiency.
By understanding the typical customer profile and their needs, businesses can tailor their marketing strategies, product development, and customer experience to effectively target and satisfy their target market.
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objective, constraints, alternatives, and linearity are what? part 2 a. used by airlines to determine queueing probabilities b. used by strategic sourcing agents for purchasing c. the four pillars of operations management d. the four requirements of a linear programming problem
Answers
Objective, constraints, alternatives, and linearity are the four requirements of a linear programming problem (D).
Linear programming is a mathematical modeling technique which utilize a linear function t maximized or minimized subjects to various constraints. Linear programming is believed to be an usefull tool in guiding quantitative decision in business planniing and decision making.
Linear programming problems (LPP) are problems that could be analyzed by linear programming method. However there are 4 pillars that a problem must have to be able to use linear programming method, suc:
Linearity relationship between variablesClear objective functionNon-negative Constraints or restrictionAlternative courses of actionVariables are options or candidates that are competing for sharing the given limited resources. The relationship between the variables should be linear.
A well-defined objective function is important in linear programming. The objective function is needed to decide which the best scenario to choose.
Limitation or constraints of the available resources should be present in a linear programming problem. These constraints must be represented in terms of variables. These contraints are important because the aims of linear programming is to satisfy these constraints.
Alternative courses of action has to be present to allows linear programming to make the best selection between various combinations of the productive factors.
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Give (2) examples how we deal with "Scarcity"
Answers
Answer:
Either increasing supply or lowering demand
Explanation:
increasing supply:
e.g. when less developed countries (LDCs) experience a famine or drought, other countries can supply food and/or water to them
lowering demand:
finding alternative solutions of the product (that have the same effect as the original product) or reducing the reasons for why there is a high demand
- e.g. crops not growing well due to weather/crop disease going around -> find a crop that is more resistant to the disease (reducing reasons for demand)
- e.g. rice field has an infestation -> not yielding enough rice to feed the population -> population feels hungry and other foods cannot help them feel full/sustain them -> find another crop to substitute, like yam or potatoes that are equally filling (alternative solutions)
but these two are pretty much the same so
also please note I don't take any courses on supply and demand other than geography so I might be completely wrong
I attached a pic of my question, pls help.
Answers
Farmer raising sheep.
Who decides the business ethics for a company?
Answers
Answer:
Four groups of people are generally responsible for the success of a business:Employees,customers,the community and shareholders.
Explanation:
ethical companies need to balance their responsibilities to these groups, especially when they have conflict
Language is the most complex challenge global marketers face.
True
False
Answers
Answer: False
Explanation:
why is freshness of ingredients important in salad preparation
Answers
The fresher the ingredients of the salad the better and more authentic the taste of the ingredients. This is because fresh ingredients provide the most flavour compared to ingredients contained with preservatives.
Fresh ingredients are also better for your health. Because there aren’t any preservatives and extra chemicals and oils, it fulfills the purpose of the salad.
Although fresh ingredients may not be cheap to buy, in the long run it will be better for you body because it won’t be filled with processed foods. Instead it will be filled with fresh ingredients that are beneficial to your health.
Using demand curves, what would happen if the price of pop increases?
o. Demand for pop will increase
b. The demand curve will shift to the right
c. Demand for pop will decrease
The demand curve will shift to the left
Answers
Using demand curves, if the price of pop increases, then, the demand for pop will decrease. The Option
How does demand for product change in response to a change in price?According to demand law , as the price of a product increases, the quantity demanded of that product will decrease. This inverse relationship between price and quantity demanded is illustrated graphically by a downward-sloping demand curve.
Therefore, if the price of pop increases, the demand for pop will decrease. This can be shown by a movement up along the demand curve, resulting in a lower quantity demanded at each price point.
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if you pay a price exactly equal to your marginal benefit, then your consumer surplus is: group of answer choices $0. less than the producer surplus. impossible to determine. greater than the opportunity cost of the good.
Answers
Consumers do not receive any further benefits from a transaction when they pay a price that is exactly equal to their marginal benefit. Their consumer surplus is therefore zero.
Does marginal benefit equal consumer surplus?A marginal advantage is also the extra satisfaction a customer experiences after buying the extra commodity or service. The marginal benefit often declines with rising consumption. It's referred to as consumer surplus.
What does it signify when the excess of consumers equals the surplus of producers?Overall economic surplus, which is the advantage brought about by producers and consumers interacting in a free market as opposed to one with price controls or quotas, is the sum of a producer surplus and a consumer surplus.
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Which balance sheet line item will help explain a difference between net income on the income statement and cash from operating activities on the statement of cash flows?.
Answers
Accounts receivable will help explain a difference between net income on an income statement and cash from operating activities on the statement of cash flows.
What is an income statement?An income statement refers to a financial document which is typically used to record the amount of money (income or revenues) that are entering into a business.
Generally, accounts receivable is a balance sheet line item which can be used by an entrepreneur or business firm to explain a difference between net income on an income statement and cash that were collected from customers (operating activities) on the statement of cash flows.
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Question 3 of 10
How might human resources best make use of a set of
questionnaires completed during job analyses?
A. They might use them to develop a plan to sell the
company.
B. They might use them instead of conducting employee
evaluations.
OC. They might use them to recruit workers with additional
experience.
O D. They might compare the level of responsibilities required in
different jobs at the same level.
Apex learning help as fast as possible please
Answers
Option B is the correct answer. The questionnaires answered during job analyses are best used by human resources. They might choose to use them in place of employee reviews.
What is human resources management?Human resource management (HRM or HR) is a strategic and well-coordinated approach to the effective and efficient management of people in a company or organisation so that they contribute to the organization's competitive advantage. It is created to maximize employee performance in support of an employer's strategic goals. Managing people inside businesses is the main focus of human resource management, which also concentrates on systems and policies. HR departments are in charge of supervising employee benefits design, hiring, training, development, performance reviews and reward management, including pay and benefits administration. HR is also concerned with organizational change, labour relations and reconciling organisational requirements with those imposed by collective bargaining agreements and governmental regulations.
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Answer:it’s D
Explanation:O D. They might compare the level of responsibilities required indifferent jobs at the same level.
as of the end of the fiscal year, a capital projects fund has material balances of supplies inventory. which fund balance classification would reflect the inventory of supplies?
Answers
The fund balance classification that would reflect the inventory of supplies in a capital projects fund at the end of the fiscal year is the nonspendable fund balance.
This is because the supplies inventory cannot be spent or utilized in the fund's operations and must be carried over to future periods. Nonspendable fund balance is a category of fund balance that includes amounts that are not in a spendable form, such as inventory or prepaid expenses.
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what is the main function of ac
Answers
You have checked model income statements and estimate your payroll expense will be 28% of revenue. You expect sales to be $312,112 per year. What should you budget MONTHLY for payroll?
Answers
Answer:
$7,282. 61
Explanation:
Payroll is 28% of revenue.
sales or revenue are expected to be $312,112 per year.
Payroll per year will be
=28% of $312, 112
= 28/100 x $312,112
=0.28 x 87,391.36
The monthly payroll budget should be
= $87,391.36 / 12
=$7,282.61
Expliquen la siguiente frase:
El mero crecimiento económico no es suficiente para terminar con la pobreza y preservar el medio ambiente
Answers
Answer:
Efectivamente, el mero crecimiento económico no es suficiente para terminar con la pobreza y preservar el medio ambiente, sino que dicho crecimiento debe ir acompañado de un desarrollo estructural que contemple el acceso igualitario a los distintos servicios por parte de la sociedad, así como también el establecimiento de controles sanitarios y medioambientales que preserven el bienestar de los individuos en el marco del desarrollo de las actividades económicas.
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
A computer game that can be purchased online and played right away has good _____utility.
A. Form
B. Information
C. Value
D. Time
Answers
The pipe located underneath Jiro’s kitchen sink was leaking and he did not know how to fix it. He called a plumber who agreed to come fix the leaking pipe in exchange for $125 plus the cost of any parts. The plumber went to Jiro’s home, removed the old pipe that was leaking, and replaced it with a new pipe that the plumber brought with her. When the plumber was finished, she told Jiro that the total cost was $140 and Jiro promptly paid her. Was this a voluntary exchange? Why or why not?
A
Yes, because both parties willingly entered the exchange and benefited from it.
B
Yes, because one party exchanged money with another party for a good or service.
C
No, because Jiro was not aware of the final cost before he agreed to the exchange.
D
No, because the plumber’s service was not equal in value to the money paid by Jiro.
Answers
Answer:
A
Explanation:
It’s not b
The given statement clearly states that it was a voluntary exchange because both parties willingly entered the exchange and benefited from it. Hence, Option A is correct.
What is a voluntary exchange?
Buyers and sellers engaging in market exchanges voluntarily and freely is known as voluntary exchange. A basic tenet of both classical and neoclassical economics, which serve as the foundation for modern mainstream economics, is voluntary exchange.
A transaction when two persons freely exchange products or services is referred to as a voluntary exchange. This happens in a market economy, a form of economy where both parties to an interaction benefit from it and come out ahead than they did before.
Given that both parties entered the voluntary exchange and benefited from it, it is apparent that the transaction was voluntary.
Therefore, Option A is correct.
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