Beef Burgers, Inc contracts to buy five hundred head of cattle from Calf & CowFarms. Before Calf & Cow delivers, an outbreak of disease causes a quarantine of the farm. In this circumstance, the perfect tender rule
A) applies to both parties
B) no longer applies.
C) applies only to Beef Burgers.
D) applies only to Calf & Cow.
B
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Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to
record this transaction in the accounting records? A) $107,000 B) $115,000 C) $120,000 D) $122,000
Which of the following statements about the various types of risks is true?
A. A firm's default risk is a nondiversifiable risk. B. Interest rate risk is an unsystematic risk. C. Inflation risk is a systematic risk. D. Economic risk is a firm-specific risk. E. Political risk is a diversifiable risk.
Which of the following arguments on social responsibility states that pursuing social goals hurts a business's economic productivity?
A. image B. dilution of purpose C. costs D. lack of skills
What is the marginal investment in accounts receivable under the proposed plan?
Fizzy Animators, Inc. currently makes all sales on credit and offers no cash discount. The firm is considering a 3 percent cash discount for payment within 10 days. The firm's current average collection period is 90 days, sales are 400 films per year, selling price is $25,000 per film, variable cost per film is $18,750, and the average cost per film is $21,000. The firm expects that the change in credit terms will result in a minor increase in sales of 10 films per year, that 75 percent of the sales will take the discount, and the average collection period will drop to 30 days. The firm's bad debt expense is expected to become negligible under the proposed plan. The bad debt expense is currently 0.5 percent of sales. The firm's required return on equal-risk investments is 20 percent. (Assume a 360-day year.) A) $22,500 B) $40,000 C) $62,500 D) $100,000