Assume that television broadcasts are nonrival and nonexcludable (some TV stations, such as those on cable TV, are excludable, but many are not) and that there are no live TV recording devices (such as VCRs or DVRs like Tivo) How can advertising solve the free rider problem? a. Advertising acts in a method similar to a fee. People who watch TV O broadcasts must watch ads (which theyd rather not do). TV stations turn this into money by selling airtime to advertisers. b. Advertising solves the free rider problem only for TV stations such as cable O television stations that must be paid for since people will be unwilling to pay money for station and then not watch that station. c. Advertising cannot solve the free rider problem since people don't have to buy the products being advertised. d. Advertising prevents too many people from watching the broadcast, which would make the broadcast signal weaker for everyone else

Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.

Royal motor corp. generates a major portion of its revenues by manufacturing luxury sports cars. however, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. which of the following terms best describes royal motor corp.? a. aconglomerate b. a subsidiary c. adominant-businessfirm d. a single-business firm