Answer:
Option b: Similarity of expected customers to current customers
Explanation:
Designing Service Products
This is an essential requirements when developing a new service or changing an existing one. There is this view or notion of how different the new service is compared to the current services offered by the firm. There are three general factors to consider when determining this. It includes:
1. Similarity to current service
2. Current process
3. Financial justification
Characteristics of Product Design Process
It includes:
1. The companies often bring new products to market
2. There is an integral to success
3. It differs significantly depending on the industry etc.
The Major factors in design strategy includes;
1. Cost
2. Quality
3. Time to market
4. Customer satisfaction
5. Competitive advantage
Following is information from Intel Corporation for 2016 ($ in millions). Total revenue $59,387 Projected revenue growth rate 5.0% Net operating profit margin (NOPM) 17.3% Net operating assets (NOA) $83,316 Net operating asset turnover (NOAT) 0.74 Projected net operating profit after tax (NOPAT) for 2017 is:
Answer:
the Projected net operating profit after tax (NOPAT) is $10,788
Explanation:
The computation of the Projected net operating profit after tax (NOPAT) is given below:
= Total revenue × (1 + growth rate) × net operating profit margin
= $59,387 × (1 + 0.05) × 17.3%
= $62,356.35 × 17.3%
= $10,788
Hence, the Projected net operating profit after tax (NOPAT) is $10,788
A network externality occurs when: Select one: A. there is production cost savings from being networked with suppliers B. the usefulness of a good is affected by how many others use the good C. the usefulness of a good is affected by celebrities who use the good D. there is production cost savings from being networked with buyers. Clear my choice Previous page
Answer:
B
Explanation:
Please solve for the value of the following bonds and briefly explain your results:
A) A U.S. Government Treasury Strip is quoted in the Wall Street Journal at a market price of 87:19 (87 and 19/32). If the strip is scheduled to mature in May 2025, what is the annual interest rate for this bond?
B) Xenor Corporation introduced a bond in 2001 that offered a coupon rate of 8 1/2%, resulting in coupon payments of $8.50. The bond is scheduled to mature in 2031. If the current going interest rate in the market is 6 3/4%, what is the market price (please calculate the interest and the principal due to get this value) of this bond today?
C) A bond offers a coupon that makes annual payments of $87.50. The bond was originally set to mature in 17 years. A quote for this bond, obtained 15 years after the original issue date, listed the market price as $1,070.00. What is the YTM for this bond?
Answer:
US Treasury Strip Price of the strip, P = $87 and 19/32 = $87.59375 Face Value of the strip = $100 Maturity, N = 5 years (assuming the quoted price is the current price, i.e., in November 2020, the time to maturity in November 2025 will be 5 years
A buyer has decided to offer $335,000 for a home that she really likes. The bank will loan her 80% of the purchase price for 30 years at 5% interest. What will be the amount of her principal and interest payment if the requirement is $5.68 per thousand of the loan amount?
Answer:
We have:
Amount of principal = $268,000
Interest payment = $1,522.24
Explanation:
These can be calculated as follows:
Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000
Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24
Therefore, we have:
Amount of principal = $268,000
Interest payment = $1,522.24
In 2010 the Federal Reserve Board (the Fed) reported that nonfinancial companies in the United States had around $2 trillion in cash and short-term liquid assets. As the U.S. economy was still struggling, consumer spending remained low, and companies resisted in investing in new projects that would create value for their stakeholders.
As the economy improves, uncertainty in the markets decreases, and companies will start investing in projects. However, the challenge of analyzing and selecting projects that would generate cash flows and returns and add value to the firm would remain.
The assumptions in the analysis about cost of equity and debt—overall and for projects—have a significant impact on the type and the value of investments that a company makes.
According to the Association of Finance Professionals’ report, published in 2011 on current trends in estimating and applying the cost of capital, companies use a discount rate that is usually above or below 1% of the company’s true rate. Using this information and certain inputs from the Fed, Michael Jacobs and Anil Shivdasani estimated that a 1% drop in the cost of capital leads U.S. companies to increase their investment by about $150 million over three years.
Based on your understanding of the concept of cost of capital, which of the following statements are valid?
a. Companies always use the weighted average cost of capital (WACC) as the discount rate to analyze the financial viability of projects.
b. A company’s estimate of cost of capital impacts its application in the analysis of new investments that, consequently, affects the value of the firm and shareholders’ wealth.
c. Investors care about the incremental value addition that new projects are making; they are least concerned with the discount rates that the company uses.
d. Companies incorporate the required rate of return in the cost of capital to compensate investors for the components’ risks.
Answer:
b. A company’s estimate of cost of capital impacts its application in the analysis of new investments that, consequently, affects the value of the firm and shareholders’ wealth. d. Companies incorporate the required rate of return in the cost of capital to compensate investors for the components’ risks.Explanation:
A company's estimate of cost of capital, is serious because it is used in the calculations of the returns from a new investment which is used to calculate the value of the firm and its shareholders. They therefore need to make these estimates as accurate as possible.
Companies also incorporate the required rate of return in the cost of capital so that the investors who provided this capital, can be ensured of a return on their investment because it would be accounted for in analysis of new investments.
Find the next year's net income for XYZ Inc. Next year, the sales grow by 25%. The current sales $300 million, and the current profit margin is 10% and you expect it to remain constant.
Answer: $37.5 million
Explanation:
The next year's net income for XYZ will be calculated as follows:
Current sales = $300 million
Current Profit margin = 10%
Sales Growth rate = 25%
The next year's sales will be:
= Current Year's Sales × (1 + Sales Growth rate)
= $300 million × (1 + 0.25)
= $300 million × 1.25
= $375 million
Next Year's Net Income will then be:
= $375 million × 10%
= $37.5 million
SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce lock show that manufacturing costs total $19.62 per lock. An analysis of this amount indicates that $11.90 of the total cost has a variable cost behavior pattern, and the remainder is an allocation of fixed manufacturing overhead. The normal selling price of this model is $29.00 per lock. A chain store has offered to buy 14,000 ZForce locks from SureLock at a price of $15.75 each to sell in a market that would not compete with SureLock’s regular business. SureLock has manufacturing capacity available and could make these locks without incurring additional fixed manufacturing overhead.
Required:
a. Calculate the effect on SureLock’s operating income of accepting the order from the chain store.
b. If SureLock’s costs had not been classified by cost behavior pattern, is it likely that a correct special order analysis would have been made? Explain your answer.
c. Identify the key qualitative factors that SureLock managers should consider with respect to this special order decision.
Answer:
a. $53900
Explanation:
a. the effect on surelocks operating income
$15.75 - $11.9
= $3.85*14000 zforce locks
= $53900
the operating income has risen by 53900 dolars
b. the correct special order analysis can only come in if the the actual cost that was made on the special order was stated. If not the decison cannot be tken rightly given that the total cost and the fixed manufacturing cost is higher than that of the special order price for selling. the special order is not going to be accepted given this reason. So a correct special order analysis would not be made.
c. the key qualitative factors are
selling cost for each lock for this special order and also the variable costs.
Situation 1: There is a Head of Human Resource (HR) in a recognized Multinational National Company (MNC). You are a marketing executive in that company. You have made a communication with the HR regarding an emergency short time leave in a Critical moment of the Company’s turnover.
In this case how you will communicate with him and convince him to provide you a short-term leave. The things to be aware of.
1. HR is a rudy person.
2. He isn't very familiar with you.
3. Company is now at a Critical Moment and there is a lot of turnovers.
4. HR is about the age of 45+
And also provide an alternative answer if the situation gets negative over you.
Ans.
Answer:
As a marketing executive of the company looking to beg an emergency leave from a HR person who is considered to be rudy, unfamiliar with me, 45+ age and also that the company is experiencing a lot of turnovers, the best way to approach the HR would be to:
1. Write an official letter to him making the intentions clear.
2. Politely ask him to consider your request even though you two are not very familiar with each other.
3. Stress the importance of the emergency and why you have to leave.
A company is concerned about the number of customers that have to wait for service in their customer service department. Assume the rate at which customers arrive is 12 per hour. Using the infinite queuing notion for the models presented in the textbook, which of the following is the mean time between arrivals?
A) 12 minutes
B) 6 minutes
C) 2 Minutes
D) 1 Minute
E) None of these
Answer:
E) None of these
Explanation:
Calculation to determine which of the following is the mean time between arrivals
Using this formula
Mean time between arrivals = 1/Arrival rate
Let plug in the formula
Mean time between arrivals= 1/12
Mean time between arrivals= 0.0833 hours or 5 minutes
Therefore the Mean time between arrivals will be 0.0833 hours or 5 minutes
Required: Monson sells 15 units for $20 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Amounts to be deducted should be indicated with a minus sign. Round cost per units to 2 decimals.)
Answer:
The costs assigned to ending inventory are $11.33 per unit and $340 total cost.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each.
Purchases on December 7 10 units at $ 6.00 cost
Purchases on December 14 20 units at $12.00 cost
Purchases on December 21 15 units at $14.00 cost
Required: Monson sells 15 units for $20 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Amounts to be deducted should be indicated with a minus sign. Round cost per units to 2 decimals.)
The explanation of the answer is no provided as follows:
Periodic inventory refers to an inventory system that is updated on a periodic basis such as monthly, quarterly, or annually.
The weighted average method is a formula that divides the cost of products offered for sale by the number of units available for sales.
Combining these two methods, we have:
Value of Purchases on December 7 = 10 * $6.00 = $60
Value of Purchases on December 14 = 20 * $12.00 = $240
Value of Purchases on December 21 = 15 * $14.00 = $210
Total value of units available for sale = $60 + $240 + $210 = $510
Total units available for sale = 10 + 20 + 15 = 45
Costs assigned to ending inventory per unit = Weighted average cost per unit = Total value of units available for sale / Total units available for sale $510 / 45 = $11.33
Units of ending inventory = Total units available for sale – Number of units sold = 45 - 15 = 30
Total cost of ending inventory = Units of ending inventory * Weighted average cost per unit = $11.33 * 30 = $340
Therefore, the costs assigned to ending inventory are $11.33 per unit and $340 total cost.
Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $7 comma 500 for his CD investment. If the bank is offering a 5 % interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a
Answer:
a. Two year investment period:
Future value = Amount * (1 + rate)^ number of years
= 7,500 * ( 1 + 5%)²
= $8,268.75
b. Five year investment period:
= 7,500 * (1 + 5%)⁵
= $9,572.11
c. Eight-year investment period:
= 7,500 * ( 1 + 5%)⁸
= $11,080.92
An automatic stabilizer:________
a) increases inflationary pressure during expansions.
b) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
c) increases tax revenue relative to government spending throughout the business cycle.
d) decreases tax revenue relative to government spending throughout the business cycle.
e) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
Answer:
E
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Automatic stabilizers contrasts with discretionary fiscal policies.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
How do you feel when you buy a product that is overpriced?
Strack Houseware Supplies Inc. has $889 million in total assets. The other side of its balance sheet consists of $142.24 million in current liabilities, $257.81 million in long-term debt, and $488.95 million in common equity. The company has 29,400,000 shares of common stock outstanding, and its stock price is $88 per share. What is Strack's market-to-book ratio
Answer:
See below
Explanation:
Given the above information,
Market value = Common stock outstanding × Stock price
Market value = 29,400,000 × $88
Market value = $2,587,200,000
Common equity = $488.95 million
Then,
Market to book ratio = $2,587,200,000 / $488,095,000
Market to book ratio = 5.30
Therefore, Strack's market to book ratio is 5.30
Hãy chỉ rõ điểm giống nhau và khác nhau về vấn đề sau đây: Giá trị, giá thành, giá trị cá biệt, giá trị xã hội, giá cả thị trường
In 2020, Susan had interest expense of $58,500 from her investments. Susan's has investment income of $46,500. Of this amount, interest is $15,000, qualified dividends are $9,000, and a net capital gain on the sale of securities is $22,500. What is the maximum amount of Susan's investment interest expense deduction for the current year if she decides to give up the capital gain preferential treatment
Answer:
Susan
The maximum amount of Susan's investment interest expense deduction for the current year if she decides to give up the capital gain preferential treatment is:
= $46,500.
Explanation:
a) Data and Calculations:
Investment interest expense = $58,500
Investment income = $46,500
Makeup of investment income:
Interest = $15,000
Dividends = $9,000
Net capital gain on the sale of securities = $22,500
b) Susan's investment interest expense is the interest amounting to $58,500 that she paid on the money she borrowed to purchase the taxable investments. The amount that Susan can deduct is capped at her net taxable investment income for the year, which totaled $46,500 since she gives up the capital gain preferential treatment. The remaining $12,000 in interest expense can be carried forward to the next fiscal year to reduce her future taxes.
On August 1, Lola Company’s assets are $30,000 and its liabilities are $10,000. On August 4, Lola issues a sustainability report. On August 5, ownership invests $3,000 cash and $7,000 of equipment in Lola. After the investment, what is the amount of equity for Lola?
Answer: $30,000
Explanation:
Before the investment, Equity was:
= Assets - Liabilities
= 30,000 - 10,000
= $20,000
The owner then invested $3,000 and $7,000 therefore making a total of $10,000.
Equity becomes
= 20,000 + 10,000
= $30,000
The equity is $30,000
Lola's company assets are $30,000
The liabilities are $10,000
Equity= $30,000-$10,000
= $20,000
On August 5, ownership invests $3,000 in cash and $7,000 in equipment
= $3,000+$7,000
= $10,000
The amount of equity for Lola is
= $20,000+$10,000
= $30,000
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If a bank has a required reserve ratio of 25 percent and there is $10,000 in deposits, what is the maximum amount of loans that can be made by this bank
Answer: $40,000
Explanation:
Based on the information given in the question, the maximum amount of loans that can be made by this bank will be calculated as:
= Deposit × 1/Reserve ratio
= $10000 × 1/25%
= $10000 × 1/0.25
= $10000 × 4
= $40000
Therefore, the maximum increase in money supply is $40000.
Match each description 1 through 6 with the characteristic of preferred stock that it best describes by writing the letter of that characteristic in the blank next to each description.
A. Callable
B. Convertible
C. Cumulative
D. Noncumulative
E. Nonparticipating
F. Participating
_____ 1. Holders of the stock are entitled to receive current and all past dividends before common stockholders receive any dividends.
_____ 2. The issuing corporation can retire the stock by paying a prespecified price.
_____ 3. Holders of the stock can receive dividends exceeding the stated rate under certain conditions.
_____ 4. Holders of the stock are not entitled to receive dividends in excess of the stated rate.
_____ 5. Holders of this stock can exchange it for shares of common stock.
_____ 6. Holders of the stock lose any dividends that are not declared in the current year.
Answer and Explanation:
The classification is as follows
a. In the callable, the corporation who issued could retired the stock by payoff the mentioned price
b. In the convertible, the stockholders could able to exchange for the common stock shares
c. In the cumulative, the stockholders should received the current as well as the past dividends prior to the common stockholders
d. In the non-cumulative, the stockholders should lose the dividend that not declared in the present year
e. In the non-participating, the stockholders should not received any dividend that more than the stated rate
f. In the participating, the stockholder should received any dividend that more than the stated rate
Joseline waited until December 12, 2019, to file her 2018 Form 1040 return. She did not request an extension. Her balance due for 2018 is $461. What is her failure to file penalty
Answer: $207.45
Explanation:
The latest date that Josephine should have filed her taxes by was April 15th 2019.
She instead waited till December 12, 2019.
9 partial and full months have passed since that time so her penalty will be for 9 months.
Penalty is 5% of the balance due:
= 461 * 5% * 9
= $207.45
Trevor is saving for a down payment to buy a house. The account earns 11.2% interest compounded monthly, and he wants to have $14,000 in 7 years. What must his principal be
Answer:
the principal amount is $6,415.35
Explanation:
The computation of the principal amount is given below:
Amount = Principal × (1 + rate of interest)^time period
$14,000 = Principal × (1 + 11.2% ÷ 12)^7× 12
$14,000 = Principal × (1.00933)^84
So, the principal is
= $14,000 ÷ 2.18227
= $6,415.35
hence, the principal amount is $6,415.35
Skysong Industries borrows $22000 at 5% annual interest for six months on October 1, 2022. Which is the appropriate entry to accrue interest if Skysong employs a December 31, 2022, fiscal year?
Answer and Explanation:
The journal entry is shown below:
Interest Expense [$22,000 × 5% × 3 ÷ 12] $275
To Interest payable $275
[Being accrued interest expense is recorded]
Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liability
Mantle Publications publishes a golf magazine for women. The magazine sells for $4.00 a copy on the newsstand. Yearly subscriptions to the magazine cost $36 per year (12 issues). In December 2016, Mantle Publications sells 4,000 copies of the golf magazine at newsstands and receives payment for 6,000 subscriptions for 2017. Financial statements are prepared monthly.
a. Indicate the accounts increased or decreased to record the December newsstand sales and subscriptions received.
b. Indicate the accounts increased or decreased for the necessary adjustment on January 31, 2017. The January 2017 issue has been mailed to subscribers.
Answer:
Accounting uses the Revenue recognition principle which means that a business should only recognize revenue when it has provided the service for which it was paid for.
a.
Date Account Title Debit Credit
12/31/2016 Cash $16,000
Sales Revenue $16,000
Working
= 4,000 issues sold for December * $4 per copy
= $16,000
Date Account Title Debit Credit
12/31/2016 Cash $216,000
Unearned Subscription Revenue $216,000
Working
= 6,000 subscriptions * $36 per subscription
= $216,000
b.
Date Account Title Debit Credit
12/31/2016 Unearned Subscription Revenue $18,000
Sales revenue $18,000
Working
= 216,000 * 1/ 12 months
= $18,000
Based on this model, households earn income when firms __________ purchase goods and services ___________in markets for factors of production. Suppose Caroline earns $625 per week working as jewelry appraiser for Classy's Jewelry Store. She uses $10 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Antonio $275 per week to wash cars. Antonio uses $150 to purchase a necklace from Classy's Jewelry Store.
Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services.
Event Market for Factors of Production Market for Goods and Services
Caroline spends $10 to get her car washed.
Antonio spends $150 to purchase a necklace from Classy's Jewelry Store.
Antonio earns $275 per week working for Spotless Car Wash.
Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs.
i. The car wash Caroline receives
ii. The $275 per week
iii. Antonio earns working for Spotless Car wash
The $150 Antonio spends to purchase a necklace from Classy's Jewelry Store
The actual economy is more complicated than the one illustrated in the previous circular-flow diagram of a simple economy
True / False
Answer and Explanation:
Market for Factors of Production:
Antonio earns $275 per week working for Spotless Car Wash.
Market for Goods and Services:
Caroline spends $10 to get her car washed.
Antonio spends $150 to purchase a necklace from Classy's Jewelry Store.
Which of the elements of this scenario represent a flow from a household to a firm?
The $150 Antonio spends to purchase a necklace from Classy's Jewelry Store
The actual economy is more complicated than the one illustrated in the previous circular-flow diagram of a simple economy - false
The circular flow of income represents the flow of economic exchanges between economic agents in the economy. If a household provides the labor factor of production, it is paid and uses the same money to purchase from the same firms that produce goods and services. This is a cycle and actually doesn't get more complex than this in real life, only involves alot more firms or economic agents.
A company purchased equipment valued at $66000. It traded in old equipment for a $9000 trade in allowance. The old equipment cost $44000 and accumulated depreciation of $36000. This transaction has commercial substance. What is the recorded value of the new equipment?
Answer:
11000.
Explanation:
Is the answer to this question
Hatch has a standard of 2.2 hours of labor per unit, at $10.70 per hour. In producing 1,640 units, Hatch used 3,900 hours of labor at a total cost of $40,400. What is Hatch's total labor variance
Answer: $1,794.40 Unfavorable
Explanation:
Total labor variance = Actual cost of labor - Standard cost of labor
Actual cost of labor = $40,400
Standard cost of labor = Hours per unit * Cost per hour * Number of units
= 2.2 * 10.70 * 1,640
= $38,605.60
Total labor variance = 40,400 - 38,605.60
= $1,794.40 Unfavorable
Unfavorable because actual cost of labor was greater than the standard cost.
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $60,000; the land at $46,600, and the parking lot at $18,400. Land should be recorded in the accounting records with an allocated cost of
Answer:
$37,280
Explanation:
We use the appraised values to apportion the Purchase Cost of the Property to determine the Cost of Land as follows :
Land Cost = $46,600 / $125,000 x $100,000
= $37,280
Land should be recorded in the accounting records with an allocated cost of $37,280.
đối với những sản phẩm thuộc ô ngôi sao trong ma trận BCG thì lời khuyên dành cho nhà quản trị học là nên tiếp tục hi sinh lợi nhuận ngắn hạn để gia tăng thị phần trong tương lại. đúng hay sai giải thích
Answer:
??
Explanation:
Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:
Bouquet Production Delivery Other
Wages and salaries 60% 30% 10%
Other overhead 50% 35% 15%
Riverside anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year. The cost of wages and salaries and other overhead that would be charged to each bouquet made is closest to:
a. $12.50.
b. $7.15.
c. some other amount.
d. $8.75.
e. $13.75.
Answer:
b. $7.15
Explanation:
Cost of wages & salaries per bouquet = [($180,000*60%) + ($70,000*50%)] / 20,000
Cost of wages & salaries per bouquet = ($108,000 + $35,000) / 20,000
Cost of wages & salaries per bouquet = $143,000 / 20,000
Cost of wages & salaries per bouquet = $7.15
So, the cost of wages and salaries and other overhead that would be charged to each bouquet made will be $7.15.
A local car dealer advertised a late model full-size pickup truck which it had taken as a trade-in on a new vehicle purchase in the newspaper for $21,000.00. However, a salesman learned of a man who was seeking that particular model of truck and arranged for him to come and look at the truck the next day. In the meantime, another person, having seen the advertisement came to the dealership and offered to pay the advertised price. The salesman refused to sell the truck for $21,000.00 because he believed that the other person would pay at least $22,000.00. As explained in chapters 11 and 12, legally the dealership could do this because an advertisement is not an offer. Ads sure look like offers. Why do you think the law has the doctrine that ads are not offers
Answer:
In his article Is an ad an Offer? Why it's, and Why It Matters, Jay M. Feinman and Stephen R. Brill straightaway state that a billboard is a suggestion. The writers cite the instance of the Hornbook's law that contends that an ad isn't a suggestion. This law argues that "if goods are advertised purchasable at a particular price, it's not a suggestion, and no contract is made by the statement of an intending purchaser". The courts, generally, don't consider ads as offers.
Explanation:
Rather ads are a call for participation in business negotiations. This makes practical sense. Consider: if advertisements were offers, someone who saw a commercial for "Delicious Apples" could say: "I accept your offer to get delicious apples, and if they are not delicious, I'll sue!" nobody would be ready to conduct business or advertise products. Courts and students justify the rule on two principal grounds: a typical advertisement is just too general to be a suggestion and there no limitation on what percentage people may accept by trying to shop for it.
I think this law should be changed since it misleads people and their expectations. By seeing a billboard I'm going for purchasing the merchandise whose rate was also given, the dealer says that he has already sold to somebody else who more. during this example, the salesperson just refused to sell the truck against the advertised price of $21,000 since he had the offer of $22,000 isn't only unethical but against the business norms. Either the law should be changed in this regard or there should be a stop to such misleading advertisements.
