A buyer or seller must consider a number of risks when evaluating whether a long-term contract is necessary or even desirable. Three primary questions must be asked when developing a long-term contract and considering the risks:   What is the potential for opportunism? In other words, how likely is the supplier to take advantage of the purchaser (or vice versa)? Is this the right supplier to engage in a long-term contract? C.Is there a fair distribution of risk and gains between the parties involved?

Select the correct option   Whenever the contract is actuarially equitable: Group of answer choices     a. We do not know if a risk-loving individual would fully cover himself against risk. b. The individual will never want to cover from risk.

Rice Corporation offers to sell Sushi Restaurants, Ic., five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade A quality." Without more, their contract is formed according to a. the terms of the original offer. b. none of the terms. c. the new terms of the acceptance. d. whatever is reasonable.

Before 1972, futures trading was dominated by agricultural commodities.  The spectacular growth of financial futures now accounts for approximately 50% of all futures trading.  Why are they so popular?  Is there any risk? Which industry dominates the market?

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Should a party who enters into a contract by mistake be released from their contractual obligations? If yes, should all mistakes be grounds for release, or just certain types of mistakes?

Sara is a homeowner looking to sell her house. She hires James, a licensed Florida broker as the listing agent. Eric is a prospective buyer looking to make an offer on Sara's house. How would you characterize each party's role from the seller's perspective? James is the client, Sara is the customer, and Eric is the agent. James is the agent, Sara is the customer, and Eric is the client. James is the client, Sara is the agent, and Eric is the customer. James is the agent, Sara is the client, and Eric is the customer.

The winning bid for a house at a bank auction was $10.  But the house was not in good condition.  The couple had to pay $65,000 in explicit expenses and spend many months doing the repairs.  The time cost or lost wages are $10,000.  What is the market value of the house after repairs are done?   Explicit expenses = $65,000    Bid =         $10       Time Cost (Lost Wages) =     $  ?  Market Value of House =    Y (after expenses & repairs) Y = ?

When compleling an insurance application, a producer should  A.complete as much of the applicalion as possible before meeting with he applicant to save time B.request hat the applicant review the completed application before signing it C. avoid asking the applicant questions on he application which may be embarrassing D.omit information from he application which may cause the application to be rejected by the insurance company

1. One time your company needs cash and plans to auction off subsidiaries to the highest bidder. Mention the type of auction that will maximize your company's revenue from the sale if:a. Bidder is neutral on risk and has independent personal judgment?b. Bidder is risk-neutral and has an affiliated valuation estimate? 2. A manager will use a business strategy so that in the long run the company's profits will increase. The entry of competitors has an impact on the unfavorable profitability of the company. To deal with the entry of new competitors, a manager can consider the limit pricing strategy.a. Explain what is meant by limit pricing!b. How can the limit pricing strategy be effective? 3. It is known that the demand function of "I like" brand dry food companies in the monopolistic competition market is P = 100 - 2Q, while the cost function is TC = 5 + 2Q. in this case P = price level, Q = output level, and TC = total cost.a. Determine the combination of prices and production levels…