Pat is pledging a fraternity. As part of his initiation, he must eat a piece of cheese without using his hands. The cheese is on a mousetrap which has been set. While trying to get the cheese off the mousetrap, he accidentally springs the trap, which clamps onto his nose and injures him. Pat files a product liability suit against the hardware store which sold the trap to another fraternity member. Which of the following, if true, would allow the hardware store to avoid liability? a. Any defect in the mousetrap was caused by the manufacturer, not the hardware store.
b. The mousetrap was being misused in a way that was very far from its intended purpose.
c. Pat cannot sue the hardware store without suing the manufacturer and wholesaler at the same time.
d. The store exercised reasonable care in selling the mousetrap.
e. None of these would allow the hardware store to avoid liability.
f. Pat was not the purchaser of the mousetrap and therefore had no standing to sue.

On june 1 of the current year, chad wilson established a business to manage rental property. he completed the following transactions during june: opened a business bank account with a deposit of $28,000 from personal funds. purchased office supplies on account, $2,690. received cash from fees earned for managing rental property, $7,390. paid rent on office and equipment for the month, $3,310. paid creditors on account, $1,230. billed customers for fees earned for managing rental property, $6,130. paid automobile expenses (including rental charges) for the month, $740, and miscellaneous expenses, $370. paid office salaries, $2,330. determined that the cost of supplies on hand was $1,590; therefore, the cost of supplies used was $1,100. withdrew cash for personal use, $2,210. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300) answer

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. the portfolio's beta is 1.25. now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.55. what would the portfolio's new beta be? do not round your intermediate calculations.