Zounds Sounds,a Music Store,ordered 20 Cases of Blank Cassette Tapes

question 65

Essay

Zounds Sounds,a music store,ordered 20 cases of blank cassette tapes from Polymuse Inc.Each case costs $100,so that the total contract price was $2000.In fact,Polymuse delivered 23 cases of tapes to Zounds.Is Zounds required to accept some or all of those cases? If so,what price will it be required to pay?

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Definitions:

Optimal Asset Allocation

The mix of assets that is expected to provide the highest return for a given level of risk or the lowest risk for a given level of expected return.

Security Selection

The process of choosing individual securities for investment in order to achieve the best possible return.

Keogh Plans

Retirement plans for self-employed individuals and unincorporated businesses, allowing for tax-deferred savings.

Taxable

Subject to taxation by governmental authority, referring to income or financial transactions that can be taxed.