Reed, a 15-year-old, has run out of money while on a trip away from home. Martha gives him food, a place to sleep, and his bus fare home, in exchange for Reed's promise to pay $200 after he got home. Is Reed's promise enforceable?
Food, clothing, housing, and medical care are necessaries. The bus fare would probably be considered a necessary as well, although it may be debatable depending on how far the minor is away from home. The rule for necessaries is that a minor must pay for the value of the benefit received. In other words, Reed may be able to disaffirm the contract, but he is liable for whatever benefit he obtained from Martha.
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Fireside, Inc. uses accrual basis accounting. Its balance sheets reported Accounts Receivable of $12,000 at the end of its first year and $18,000 at the end of its second year. Its income statement reported Sales Revenue of $120,000 in its second year. What would Fireside's revenues have been if it had used cash basis accounting?
A. $120,000 B. $12,000 C. $114,000 D. $126,000
Simulation has numerous applications in modern business, but few of these are in the area of operations
Indicate whether the statement is true or false
Which of the following statements is true of a company's business plan?
A. It emphasizes operational planning more than strategic planning. B. It is a money-raising tool to attract venture capitalists when the owner wants to assume more control over the company. C. It provides a detailed design of activities to be carried to finance the business and market products. D. It usually provides big entrepreneurs a greater chance of success than the small business owners.
The research design specifies:
A. follow-up procedures for the research B. the information that will be found C. how the final report will be written D. how the information gathered will be used to predict external environmental changes E. the research questions to be answered