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Jake and Mike decided to go into business together selling T-shirts. Jake was the general partner while Mike was the limited partner. Mike invested $40,000 to help get the business off the ground. Mike loved to play golf every day and was disinterested in management. His only concern was making money and ensuring that the business was profitable. Jake decided to lease an office space in a building near the local mall to capitalize on the busy traffic to hopefully increase sales. Once Mike found out about Jake's decision to lease near the mall, he was outraged! He told Jake that the area was too busy and was not the best option for their t-shirt business. Mike demanded the location be changed to the Plaza near Fifth & Third Street and Jake agreed.
A few weeks later, a customer that purchased a t-shirt from Jake caught poison ivy and sued both Jake and Mike. Please discuss whether Jake, Mike, or both have unlimited personal liability. If so, please clearly articulate their respective liability, if any, applying the applicable law. I.R.A.C.
Monarch State Bank reports total operating revenues of $135 million, with total operating expenses of $121 million, and owes taxes of $2 million.
assume there are two securities. security one is gold and security two is ford. their return and risk is as follows r1
the clinic is supposed to have an average of 100 patients per month. calculate your break-even analysis for the clinc? what is your financial recommendation?
How much would be the payment for a $35,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 8%.
New cost of capital if add 5M in new bonds This assumes we sell enough bonds to realize 5M. Since the price will be net of flotation we need to sell them.
1. Should management investigate only unfavorable variances or favorable ones too? Why so or not?
What is Capital budgeting and assess the conclusions we might make about the wisdom of undertaking this project
Chambers Company has just gathered estimates for conducting a break-even analysis for a new product. Variable costs are $7 a unit. The additional plant will cost $48,000.
The next day, terrible news hits the mortgage markets, and mortgage rates jump to 13%. What is the market value of Oldhat’s mortgages? What is Oldhat’s “market value” capital ratio?
If the company marks up total cost by 0.42, what price would be charged if 68,000 units are expected to be sold.
Prepare a brief review of the reading in a section titled Introduction. This should include the important points to be highlighted in the following sections.
you are working with a company selling building material to builders. you predict the quarterly purchases of customers
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