All America Export-Import Corp. (All America) placed an order for several thousand pounds of yarn with A. M. Knitwear (Knitwear). On June 4, All America sent Knitwear a purchase order. The purchase order stated the terms of the sale, including language that stated that the price was F.O.B. the seller’s plant. A truck hired by All America arrived at Knitwear’s plant. Knitwear turned the yarn over to the carrier and notified All America that the goods were now on the truck. The truck left Knitwear’s plant and proceeded to a local warehouse. Sometime during the night, the truck was hijacked, and all the yarn was stolen. All America had paid for the yarn by check but stopped payment on it when it learned that the goods had been stolen. Knitwear sued All America, claiming that it must pay for the stolen goods because it bore the risk of loss. Who wins? A. M. Knitwear v. All America, Etc., 41 N.Y.2d 14, 359 N.E.2d 342, 390 N.Y.S.2d 832, 1976 N.Y. Lexis 3201 (Court of Appeals of New York)
> Provide two reasons why: (a) Tax incentives may have only limited value in stimulating greater investment by business angels. (b) Business angels can be an attractive source of finance to entrepreneurs. (c) Business angels may find it difficult being par
> Gainsborough Fashions Ltd operates a chain of fashion shops. In recent months the business has been under pressure from its suppliers to reduce the average credit period taken from three months to one month. As a result, the directors have approached the
> Fowler Ltd produces ‘Vitex’, a vitamin supplement drink that is sold for £1.20 per bottle. At present the business’s bottling plant is operating at full capacity and it is not possible to expand sales beyond the current level unless there is further inve
> Raphael Ltd is a small engineering business that has annual credit sales revenue of £2.4 million. In recent years, the business has experienced credit control problems. The average collection period for sales has risen to 50 days even though the stated p
> Securitisation is now used in a variety of industries. In the music industry, for example, rock stars such as David Bowie and Iron Maiden have used this form of financing to their benefit. Required: (a) Explain the term ‘securitisation’. (b) Discuss the
> H. Brown (Portsmouth) Ltd produces a range of central heating systems for sale to builders’ merchants. As a result of increasing demand for the business’s products, the directors have decided to expand production. The cost of acquiring new plant and mach
> Plato Pharmaceuticals Ltd has invested £500,000 to date in developing a new type of insect repellent. The repellent is now ready for production and sale, and the marketing director estimates that the product will sell 150,000 bottles a year over the next
> Nimby plc is considering two mutually exclusive projects: Delphi and Oracle. The possible NPVs for each project and their associated probabilities are as follows: Required: (a) Calculate the expected net present value and the standard deviation associa
> Devonia (Laboratories) Ltd has recently carried out successful clinical trials on a new type of skin cream, which has been developed to reduce the effects of ageing. Research and development costs incurred to date for the new product amount to £190,000.
> D’Arcy (Builders) Ltd is considering three possible investment projects: A, B and C. The expected pattern of cash flows for each project is: The business has a cost of capital of 10 per cent and the investment budget for next year is
> Haverhill Engineers Ltd manufactures components for the car industry. It is considering automating its line for producing crankshaft bearings. The automated equipment will cost £700,000. It will replace equipment with a scrap value of Â
> The accountant of your business has recently been taken ill through overwork. In his absence his assistant has prepared some calculations of the profitability of a project, which are to be discussed soon at the board meeting of your business. His working
> C. George (Controls) Ltd manufactures a thermostat that can be used in a range of kitchen appliances. The manufacturing process is, at present, semi-automated. The equipment used cost £540,000 and has a carrying amount of £300,000. Demand for the product
> Davis Travel Ltd specializes in the provision of cheap weekend winter breaks but also organizes cheap weekend summer breaks. You are given the following information: Statement of financial position as at 30 September Year 4 ASSETS £
> Fritz Hoffman and Fritz Frey contacted the Sun Valley Company (Company) about purchasing a 1.64-acre piece of property known as the Ruud Mountain Property, located in Sun Valley, Idaho, from Company. Mr. Conger, a representative of Company, was authorize
> Judith and Donald Eckstein were married and had two daughters. Years later, Judith left the marital abode in the jointly owned Volkswagen van with only the clothes on her back. She did not take the children, who were 6 and 8 years old at the time. She ha
> Conrad Schaneman Sr. had 8 sons and 5 daughters. He owned an 80-acre farm in the Scottsbluff area of Nebraska. Conrad was born in Russia and could not read or write English. All of his children had frequent contact with Conrad and helped with his needs.
> Samuel C. Mazilly wrote a personal check that was drawn on Calcasieu-Marine National Bank of Lake Charles, Inc. (CMN Bank). The check was made payable to the order of Lee St. Mary and was delivered to him. St. Mary indorsed the check in blank and deliver
> Stewart P. Blanchard borrowed $50,000 from Progressive Bank & Trust Company (Progressive) to purchase a home. As part of the transaction, Blanchard signed a note secured by a mortgage. The note provided for a 10 percent annual interest rate. Under the te
> James L. “Skip” Deupree, a developer, was building a development of townhouses called Point South in Destin, Florida. All the townhouses in the development were to have individual boat slips. Sam and Louise Butner, husband and wife, bought one of the tow
> Cole Energy Development Company (Cole Energy) wanted to lease a gas compressor for use in its business of pumping and selling natural gas and began negotiating with the Ingersoll-Rand Company (Ingersoll-Rand) for the lease of a gas compressor. The two pa
> Saber Energy, Inc. (Saber), entered into a sales contract with Tri-State Petroleum Corporation (Tri-State). The contract called for Saber to sell Tri-State 110,000 barrels of gasoline per month for six months. Saber was to deliver the gasoline through th
> Both Allsopp Sand and Gravel (Allsopp) and Lincoln Sand and Gravel (Lincoln) were in the business of supplying sand to construction companies. In March, Lincoln’s sand dredge became inoperable. To continue in business, Lincoln negotiated a contract with
> Executive Financial Services, Inc. (EFS), purchased three tractors from Tri-County Farm Company (Tri-County), a John Deere dealership owned by Gene Mohr and James Loyd. The tractors cost $48,000, $19,000, and $38,000. EFS did not take possession of the t
> John Torniero was employed by Micheals Jewelers, Inc. (Micheals). During the course of his employment, Torniero stole pieces of jewelry, including several diamond rings, a sapphire ring, a gold pendant, and several loose diamonds. Over a period of severa
> Gordon Construction Company (Gordon) was a general contractor in the New York City area. Gordon planned on bidding for the job of constructing two buildings for the Port Authority of New York. In anticipation of its own bid, Gordon sought bids from subco
> Kurt Perschke was a grain dealer in Indiana. Perschke phoned Ken Sebasty, the owner of a large wheat farm, and offered to buy 14,000 bushels of wheat for $1.95 per bushel. Sebasty accepted the offer. Perschke said that he could send a truck for the wheat
> Apricot.com is a major software developer that licenses software to be used over the internet. One of its programs, called Match, is a search engine that searches personal ads on the internet and provides a match for users for potential dates and possibl
> BluePeace.org is a new environmental group that has decided that the internet is the best and most efficient way to spend its time and money to advance its environmental causes. To draw attention to its websites, BluePeace .org comes up with catchy inter
> On Halloween Day, Christine Narvaez drove her automobile onto the parking lot of a busy supermarket. Narvaez had her two-year-old grandchild with her. The youngster was riding, unconstrained, in a booster seat. Narvaez saw a friend and decided to stop fo
> The County of Contra Costa, California, held a tax sale in which it offered for sale a vacant piece of property located in the city of El Cerrito. Richard J. Schultz, a carpenter, saw the notice of the pending tax sale and was interested in purchasing th
> Liz Claiborne, Inc. (Claiborne) is a large maker of sportswear in the United States and a well-known name in fashion, with sales of more than $1 billion per year. Claiborne distributes its products through 9,000 retail outlets in the United States. Avon
> Indiana Tri-City Plaza Bowl (Tri-City) leased a building from Charles H. Glueck for use as a bowling alley. The lease provided that Glueck was to provide adequate paved parking for the building. The lease gave TriCity the right to approve the plans for t
> Adolfo Mozzetti, who owned a construction company, orally promised his son, Remo, that if Remo would manage the family business for their mutual benefit and would take care of him for the rest of his life, he would leave the family home to Remo. Section
> Wells Fargo Credit Corporation (Wells Fargo) obtained a judgment of foreclosure on a house owned by Mr. and Mrs. Clevenger. The total indebtedness stated in the judgment was $207,141. The foreclosure sale was scheduled for 11:00 a.m. on a specified day a
> The United Arab Emirates (UAE), a country in the Middle East, held a competition for the architectural design of a new embassy it intended to build in Washington, DC. Elena Sturdza, an architect licensed in Maryland and Texas, entered the competition and
> City Segway Tours of Washington DC, LLC (CST) operated tours where customers used Segway personal transportation vehicle to tour the city. Norman Mero and his significant other signed up for such a tour. The contract they signed prior to beginning the to
> FFP Operating Partners, L.P. (FFP Operating), operates a number of convenience stores and gas stations. FFP Operating executed 31 promissory notes in favor of Franchise Mortgage Acceptance Company (FMAC). In connection with the notes, FFP Marketing Compa
> Murray Walter, Inc. (Walter, Inc.), was a general contractor for the construction of a waste treatment plant in New Hampshire. Walter, Inc., contracted with H. Johnson Electric, Inc. (Johnson Electric), to install the electrical system in the treatment p
> Holly Hill Acres, Ltd. (Holly Hill), purchased land from Rogers and Blythe. As part of its consideration, Holly Hill gave Rogers and Blythe a promissory note and mortgage. The note read, in part, “This note with interest is secured by a mortgage on real
> Mr. Higgins operated a used car dealership in the state of Alabama. Higgins purchased a Chevrolet Corvette. He paid for the car with a draft on his account at the First State Bank of Albertville. Soon after, Higgins resold the car to Mr. Holsonback. To p
> Martha M. Carr suffered from schizophrenia and depression. Schizophrenia is a psychotic disorder that is characterized by disturbances in perception, inferential thinking, delusions, hallucinations, and grossly disorganized behavior. Depression is charac
> William H. Bailey, MD, executed a note payable to California Dreamstreet, a joint venture that solicited investments for a cattle breeding operation. Bailey’s promissory note read, “Dr. William H. Bailey hereby promises to pay to the order of California
> Joseph Mitsch purchased a used Chevrolet Yukon SUV vehicle from Rockenbach Chevrolet. The Yukon was manufactured by General Motors Corporation (GMC) and had been driven over 36,000 miles. The purchase contract with Rockenbach Chevrolet contained the foll
> W. Hayes Daughtrey consulted Sidney Ashe, a jeweler, about the purchase of a diamond bracelet as a Christmas present for his wife. Ashe showed Daughtrey a diamond bracelet that he had for sale for $15,000. When Daughtrey decided to purchase the bracelet,
> Kent Nowlin Construction, Inc. (Nowlin), was awarded a contract by the state of New Mexico to pave a number of roads. After Nowlin was awarded the contract, it entered into an agreement with Concrete Sales & Equipment Rental Company, Inc. (C&E). C&E was
> Dr. and Mrs. Sedmak (Sedmaks) were collectors of Chevrolet Corvettes. The Sedmaks saw an article in Vette Vues magazine concerning a new limited-edition Corvette. The limited edition was designed to commemorate the selection of the Corvette as the offici
> Connie R. Grady purchased a new Chevrolet Chevette from Al Thompson Chevrolet (Thompson). Grady gave Thompson a down payment on the car and financed the remainder of the purchase price through General Motors Acceptance Corporation (GMAC). Grady picked up
> The Jacob Hartz Seed Company, Inc. (Hartz), bought soybeans for use as seed from E. R. Coleman. Coleman certified that the seed had an 80 percent germination rate. Hartz paid for the beans and picked them up from a warehouse in Card, Arkansas. After the
> Fuqua Homes, Inc. (Fuqua), is a manufacturer of prefabricated houses. MMM, a dealer of prefabricated homes, was a partnership created by two men named Kirk and Underhill. On seven occasions before the disputed transactions occurred MMM had ordered homes
> Big Knob Volunteer Fire Company (Fire Co.) agreed to purchase a fire truck from Hamerly Custom Productions (Hamerly), which was in the business of assembling various component parts into fire trucks. Fire Co. paid Hamerly $10,000 toward the price two day
> Lindsey Stroupes was 16 years old and a sophomore in high school. Anthony Bradley, the manager of a Finish Line, Inc.’s store in a mall, offered Lindsey a position as a sales associate that she accepted. Lindsey signed an employment contract that require
> Numismatic Funding Corporation (Numismatic), with its principal place of business in New York, sells rare and collector coins by mail throughout the United States. Frederick R. Prewitt, a resident of St. Louis, Missouri, responded to Numismatic’s adverti
> Frances Hector entered CedarsSinai Medical Center (Cedars-Sinai), Los Angeles, California, for a surgical operation on her heart. During the operation, a pacemaker was installed in Hector. The pacemaker, which was manufactured by American Technology, Inc
> Alvin Cagle was a potato farmer in Alabama who had had several business dealings with the H. C. Schmieding Produce Co. (Schmieding). Several months before harvest, Cagle entered into an oral sales contract with Schmieding. The contract called for Schmied
> Dan Miller was a commercial photographer who had taken a series of photographs that appeared in The New York Times. Newsweek magazine wanted to use the photographs. When a Newsweek employee named Dwyer phoned Miller, Dwyer was told that 72 images were av
> Mr. Gulash lived in Shelton, Connecticut. He wanted an above-ground swimming pool installed in his backyard. Gulash contacted Stylarama, Inc. (Stylarama), a company specializing in the sale and construction of pools. The two parties entered into a contra
> David Abacus uses the internet to place an order to license software for his computer from Inet.License, Inc. (Inet) through Inet’s electronic website ordering system. Inet’s web page order form asks David to type in his name, mailing address, telephone
> Little Steel Company is a small steel fabricator that makes steel parts for various metal machine shop clients. When Little Steel Company receives an order from a client, it must locate and purchase 10 tons of a certain grade of steel to complete the ord
> Someone secretly took video cameras into the locker room and showers of the Illinois State University football team. Video recordings showing these undressed players were displayed at the website http://univ.youngstuds.com, operated by Franco Productions
> Ernest & Julio Gallo Winery (Gallo) is a famous maker of wines located in California. The company registered the trademark “Ernest & Julio Gallo” in 1964 with the U.S. Patent and Trademark Office. The company has spent more than $500 million promoting it
> Ptarmigan Investment Company (Ptarmigan), a partnership, entered into a contract with Gundersons, Inc. (Gundersons), a South Dakota corporation in the business of golf course construction. The contract provided that Gundersons would construct a golf cour
> Andrew Parente had a criminal record. He and Mario Pirozzoli Jr., formed a partnership to open and operate the Speak Easy Café in Berlin, Connecticut, which was a bar that would serve alcohol. The owners were required to obtain a liquor license from the
> Hawaiian Telephone Company entered into a contract with Microform Data Systems, Inc. (Microform), for Microform to provide a computerized assistance system that would handle 15,000 calls per hour with a one-second response time and with a “nonstop” featu
> California and Hawaiian Sugar Company (C&H), a California corporation, is an agricultural cooperative owned by 14 sugar plantations in Hawaii. It transports raw sugar to its refinery in Crockett, California. Sugar is a seasonal crop, with about 70 percen
> The Trump World Tower is a 72-story luxury condominium building constructed at 845 United Nations Plaza in Manhattan, New York. Before the building was constructed, 845 UN Limited Partnership (845 UN) began selling condominiums at the building. The condo
> Shumann Investments, Inc. (Shumann) hired Pace Construction Corporation (Pace), a general contractor, to build Outlet World of Pasco Country. In turn, Pace hired OBS Company, Inc. (OBS), a subcontractor, to perform the framing, drywall, insulation, and s
> C.W. Milford owned a registered quarter horse named Hired Chico. Milford sold the horse to Norman Stewart. Recognizing that Hired Chico was a good stud, Milford included the following provision in the written contract that was signed by both parties: “I,
> William John Cunningham, a professional basketball player, entered into a contract with Southern Sports Corporation, which owned the Carolina Cougars, a professional basketball team. The contract provided that Cunningham was to play basketball for the Co
> Eugene H. Emmick hired L. S. Hamm, an attorney, to draft his will. The will named Robert Lucas and others (Lucas) as beneficiaries. When Emmick died, it was discovered that the will was improperly drafted, violated state law, and was therefore ineffectiv
> The Phillies, L.P., the owner of the Philadelphia Phillies professional baseball team (Phillies), decided to build a new baseball stadium called Citizens Bank Park (the Project). The Phillies entered into a contract (Agreement) with Driscoll/Hunt Joint V
> Irving Levin and Harold Lipton owned the San Diego Clippers Basketball Club, a professional basketball franchise. Levin and Lipton met with Philip Knight to discuss the sale of the Clippers to Knight. After the meeting, they all initialed a 3-page handwr
> David Brown met with Stan Steele, a loan officer with the Bank of Idaho (now First Interstate Bank), to discuss borrowing money from the bank to start a new business. After learning that he did not qualify for the loan on the basis of his own financial s
> Harun Fountain, a minor, was shot in the back of the head at point-blank range by a playmate. Fountain required extensive lifesaving medical services from a variety of medical service providers, including Yale Diagnostic Radiology. The expense of the ser
> Define the cash-flow statement and explain what it does.
> Define the balance sheet and give two examples of how to increase one’s net worth.
> Give some examples of legal employment rights.
> How does one put a market value on an employee benefit?
> Is college worth the cost? Why or why not?
> Give an example of how inflation affects income and consumption.
> Describe two statistics that help predict the future direction of the economy
> Summarize the phases of the business cycle.
> What is identity theft?
> Distinguish between the APR (annual percentage rate) and the finance charge on a debt.
> The Financial Statements of Harry and Belinda Johnson Suggest Budgeting Problems Harry has worked at a medium-size interior design firm for five years and earns a salary of $4,080 per month. He also receives $3,000 in interest income once a year from a t
> Summarize how financial goals follow from one’s values.
> What is the biggest financial worry of most individuals, and what can they do about it?
> Summarize the content in Figure 3-1, the overview of effective personal financial planning. Figure 3-1: Figure 3-1 Overview of Effective Financial Planning Economic Data Living Еxpenses Advertising Standards of Comparison Earnings Values MANAGERIAL
> What are the building blocks to achieving financial success?
> Summarize what you will accomplish studying personal finance.
> Distinguish among financial success, financial security, and financial happiness
> Explain the five fundamental steps in the financial planning process.
> Summarize your insurance protections when you have funds on deposit in a depository institution as opposed to other financial services providers.
> Give three examples of depository institutions where one could open a checking account.
> Explain the circumstances when it would be appropriate to have funds in a checking account.
> After completing his associate of arts degree four months ago from a community college in Oklahoma City, Oklahoma, Juan Ramirez has answered more than three dozen advertisements and interviewed three times in his effort to get a sales job, but he has had
> Identify the primary goals of monetary asset management.
> Explain why some taxpayers have an effective marginal tax rate as high as 40 percent.
> What is a marginal tax bracket, and how does it impact taxpayers making tax advantaged contributions to their retirement plans?
> Distinguish between a progressive and a regressive tax.
