To buy a small business, Chelsea signs a written contract that states that she agrees to pay the seller $50,000 within three years. What is she offering?
A) a promissory note
B) collateral
C) terms of trade
D) debt financing
E) commercial paper
Answer: A
Explanation: A) Trade credit can take different forms, but one of the most familiar is the promissory note, a written contract prepared by the buyer, who agrees to pay the seller a certain amount by a certain time.
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Santora Company manufactures two products—toaster ovens and bread machines
The following data are available: Toaster Ovens Bread Machines Sales price $70 $170 Variable costs $50 $70 Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Santora's production capacity is 2,000 machine hours per month, and it can sell as many units of either type as it can produce. Which product and how many units should the company produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.) A) 8,000 bread machines B) 6,000 toaster ovens and 4,000 bread machines C) 8,000 toaster ovens and 6,000 bread machines D) 12,000 toaster ovens
A machine is used in a production process. From past data, it is known that 97% of the time the machine is set up correctly. Furthermore, it is known that if the machine is set up correctly, it produces 95% acceptable (non-defective) items. However, when it is set up incorrectly, it produces only 40% acceptable items
a. An item from the production line is selected. What is the probability that the selected item is non-defective? b. Given that the selected item is non-defective, what is the probability that the machine is set up correctly?