16. Teresa leased a house from Lawrence for two years, ending on January 31, 2020. She paid a security deposit of $2,000, and they signed a written lease. Teresa took possession, and lived there without incident for the entire period, always paying her rent on time. She left the house in clean condition, on January 31, 2020. Lawrence has not returned the security deposit, and has not responded to Teresa’s multiple requests for the money.

a. Teresa should just forget about the deposit.

b. Teresa has no statutory protection here – just a common-law right to sue her formerlandlord.

c. Teresa has statutory protection, under Washington’s Residential Landlord-Tenant Act. If she sues her former landlord, she will be entitled to get her security deposit back, but that’s all.

d. Teresa has statutory protection, under Washington’s Residential Landlord-Tenant Act. If she sues her former landlord, the court can award Teresa up to twice the amount of her security deposit.

17. An “S-Corporation” can have up to 300 shareholders. True/False

18. True or False General Partners in a General Partnership each have unlimited personal liability for all obligations of the partnership.

Facts for Questions 19 & 20:
Roberto and Maria are general partners in a general partnership. They have entered into a partnership agreement which provides as follows: 1. Roberto is to contribute $100,000 to the partnership. 2. Maria is to contribute $200,000 to the partnership. 3. Roberto is to have a 1/3 ownership interest; and Maria is to have a 2/3 ownership interest. 4. Roberto is to receive 40% of all profits earned by the partnership, and Maria is to receive 60% of all profits. 5. Roberto and Maria are to each be responsible for 50% of all losses or other obligations of the partnership. Roberto has a net worth of about $400,000, all in bank accounts. Maria has a net worth of about $4 Million, all in a stock-brokerage account.

In Year 1 of operations, the company has a disastrous year financially! They lose $500,000. Roberto and Maria each contribute another $250,000, to make up for the loss, reducing Roberto’s net worth down to $150,000, and Maria’s net worth down to $3.75 Million. In Year 2, they lose another $400,000! Roberto pays into the business all that he can - $150,000. Maria pays in the other $250,000, so the company can keep going. In Year 3, the company finally breaks even, but a customer sues for $2 Million in physical harm when the product they sell explodes and results in the customer losing both of his legs. The customer wins in court, and gets a judgment against the partnership for the full $2 Million. The company has virtually no assets left.

19. The customer can take his judgment and:
a. claim $2 Million of Maria’s stocks. Maria will have to seek reimbursement from Roberto for his 50% responsibility.

b.   claim $1 Million of Maria’s stocks. The customer will have to get the rest from Roberto when (and if) Roberto ever gets any more net worth.

c. claim $1 Million of Maria’s stocks. The customer will have a claim on any assets that Roberto gets in the future, until his $1 Million is paid off. In the meantime, the customer can get a portion of Roberto’s monthly paychecks by turning in a “garnishment” order to his payroll office.

20. True or False If Maria and Roberto had set up a corporation or LLC, instead of a general partnership, they could have limited their individual liability for debts of the company, to just what they had invested.

Backward Industries - a US based MNC - projects it will receive 50,000 Brazilian Real (BRZ) from a Brazilian customer in 3 months, however, it is only 50% certain that the money will actually be paid out as the customer is currently in financial distress. Backward wants to reduce its exposure to foreign exchange rate risk. Which of the following is the best option for Backward in this situation?

Question 3 The following table shows the foreign exchange quotation of two different banks

Bank X Bank Y

Bid price of US dollars GH¢5.40 GH¢5.39

Ask price of US dollars GH¢5.45 GH¢5.44

a) Given the above information, briefly explain whether locational arbitrage is possible or not. If it is possible, explain the steps involved in taking advantage of the locational arbitrage, and compute the profit from this arbitrage if you had one million Ghana Cedis (GH¢1,000,000).

b) Calculate the bid/ask spread for each bank and explain any two (2) factors that could account for any difference.

------------------------------------------------End of Paper-------------

Our textbook notes that Congress passed, and President Barack Obama supported, the 2009 American Recovery and Reinvestment Act, also known as the “Federal Stimulus,” in an effort to support the flagging US economy. After reviewing this section of your textbook, research the current level of the federal budget deficit. Compare this to Congressional Budget Office (CBO) projections. Given your findings, evaluate the success of the Federal Stimulus. Discuss the following questions: Did the stimulus package pump enough money into the economy to prevent a complete failure of the economic system? Would the government have reemerged from the recession without the stimulus? Is the US better or worse off, economically speaking?

(a) What do we mean by a “postponement strategy”? Why can it be an effective strategy for a firm engaging mass customization?

(b) Since the 2008 global financial crisis, the B/L (“bill of lading”) of container shipments from Asian factories to the United States (US) has increasingly specified US gateway ports, rather than the local RDCs (regional distribution centers) of final markets, as the stopping points (as opposed to through points). What are the main reasons behind this development, and why?

(c) Following part (b), should the phenomenon happen more often for high-value products or for low-value products? Explain your answer.

1-What are the factors that cause food prices to recently increase? Do you think those prices will continue to increase in the future? Why or why not?

2- Define Macroeconomics. What do you think of the current state of the US economy is? Is it “excellent,” “good,” “fair,” or “poor”. What made them choose excellent, good, fair, or poor? Please justify your answers using data and examples from the real life

3- Define the terms inflation and deflation. What are the negative impacts each can have on an economy? What’s the inflation rate of the US in the past 5 years? Is it good or bad? Does it mean our economy is stable? Why or why not?

(a) What do we mean by a “postponement strategy”? Why can it be an effective strategy for a firm engaging mass customization? (b) Since the 2008 global financial crisis, the B/L (“bill of lading”) of container shipments from Asian factories to the United States (US) has increasingly specified US gateway ports, rather than the local RDCs (regional distribution centers) of final markets, as the stopping points (as opposed to through points). What are the main reasons behind this development, and why? (c) Following part (b), should the phenomenon happen more often for high-value products or for low-value products? Explain your answer.

To test the relationship between gender and ratings of a promiscuous partner, a group of men and women was given a vignette describing a person of the opposite sex who was in a dating relationship with one, two, or three partners. Participants rated how positively they felt about the individual described in the vignette, with higher ratings indicating more positive feelings.

(a) Complete the F-table and make a decision to retain or reject the null hypothesis for each hypothesis test. (Assume experimentwise alpha equal to 0.05.)

To test the relationship between gender and ratings of a promiscuous partner, a group of men and women was given a vignette describing a person of the opposite sex who was in a dating relationship with one, two, or three partners. Participants rated how positively they felt about the individual described in the vignette, with higher ratings indicating more positive feelings.

(a) Complete the F-table and make a decision to retain or reject the null hypothesis for each hypothesis test. (Assume experimentwise alpha equal to 0.05.)