Patrick borrowed his friend John’s car to impress a young lady he was dating. It was a
new luxury car that John had saved four years
to purchase. The paint on the car turned colors
under various climatic and light conditions.
While on the date, Patrick drove the car down a
public road that had just been repaved with hot
oil and gravel. The result was streaks of hot oil
glued to the sides of the car and several nicks in
the paint from flying rocks. Patrick then parked
in front of his favorite restaurant, a sports pub
on the far side of town. While in the restaurant,
Patrick heard a special weather report that a
thunderstorm with large hail was sweeping
across the area and would arrive over the restaurant in ten minutes. Unfortunately for John’s
car, the date was going too well to break off
and move the car under cover. Consequently,
the hail left a multitude of pock marks on the
top of the car. Is Patrick legally responsible for
the damage done by the gravel, oil, and hail?
Why or why not?

The balance sheet contains the following major sections: current assets long-term investments property, plant, and equipment intangible assets other assets current liabilities long-term liabilities contributed capital retained earnings accumulated other comprehensive income required: the following is a list of accounts. using the letters a through j, indicate in which section of the balance sheet each of the accounts would be classified. if an account does not belong under one of the sections listed, select "not under any of the choices" from the classification drop down box. for all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no". account classification contra or deducted (yes/no) 1. cash 2. bonds payable (due in 8 years) 3. machinery 4. deficit 5. unexpired insurance 6. franchise (net) 7. fund to retire preferred stock 8. current portion of mortgage payable 9. accumulated depreciation 10. copyrights 11. investment in held-to-maturity bonds 12. allowance for doubtful accounts 13. notes receivable (due in 3 years) 14. property taxes payable 15. deferred taxes payable 16. additional paid-in capital on preferred stock 17. premium on bonds payable (due in 8 years) 18. work in process 19. common stock, $1 par 20. land 21. treasury stock (at cost) 22. unrealized increase in value of available-for-sale securities

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.

Describe a real or made-up but possible example of a situation where an employee faces a conflict of interest. explain at least two things the company could do to make sure the employee won't be tempted into unethical behavior by that conflict of interest. (3.0 points)