To what extent can our legal system ensure order and stability in society and particularly, in the business world? Give a recent example from your research concerning any alleged failure of the legal system that led to instability in business and society. How would you explain the importance of stability and predictability in our legal system in the context of the recent problems in the financial services industry (e. g. "sub-prime mortgages", Bernie Madoff)?

Salvador county issued $25 million of 5% demand bonds for construction of a county maintenance building. the county has no take-out agreement related to the bonds. it estimates that 20% of the bonds would be demanded (called) by the buyers if interest rates increased at least 1%. at year-end rates on comparable debt were 7%. how should these demand bonds be reported in the government-wide financial statements at year-end? a) $25 million in the long-term liability section of the governmental activities column. b) $5 million in the current liability section of the governmental activities column and $20 million in the long-term liabilities section of the governmental activities column. c) $5 million in the governmental activities column and $20 million would be reported in the schedule of changes in long-term debt obligations. d) $25 million in the current liability section of the governmental activities column

Franklin painting company is considering whether to purchase a new spray paint machine that costs $4,800. the machine is expected to save labor, increasing net income by $720 per year. the effective life of the machine is 15 years according to the manufacturer’s estimate. required determine the unadjusted rate of return based on the average cost of the investment.

Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?