If the $398 cost of each laptop sold represents the store's sole expense, Eddie's Electronics has a monthly revenue of $146,250 and a monthly profit of $16,900.
Eddie's Electronics sells 325 laptops per month at a price of $450 each, which results in monthly revenue of:
Revenue = Price x Quantity Sold = $450 x 325 = $146,250
The store incurs a cost of $398 for each laptop sold, so the total monthly cost is:
Total Cost = Cost per Laptop x Quantity Sold = $398 x 325 = $129,350
To calculate the monthly profit, we can subtract the total cost from the total revenue:
Profit = Revenue - Total Cost = $146,250 - $129,350 = $16,900
Therefore, Eddie's Electronics has a monthly revenue of $146,250 and a monthly profit of $16,900, assuming that the cost of $398 for each laptop sold is the store's only cost.
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cafe refrez, a coffee shop, has signed an agreement with a popular tv show to feature its beverages in various episodes. this is an example of .
Cafe Refrez, a coffee shop, has signed an agreement with a popular TV show to feature its beverages in various episodes. This is an example of product placement.
What is product placement?Product placement refers to the placement of commercial products in popular TV shows, movies, and other media. A product placement strategy seeks to integrate brands, goods, or services into the storyline of a program, allowing companies to connect with viewers in a more subtle way.
The purpose of product placement is to increase brand awareness and brand recall by integrating the product into the viewer's consciousness. Product placement is more likely to work because it appeals to consumers on a subconscious level, making it an effective advertising strategy for businesses.
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a company as an eps of $4.00, a book value per share of $28, and a market/book ratio of 1.2. what is its p/e ratio?
P/E ratio of a company with EPS of $4.00, book value per share of $28, and a market/book ratio of 1.2 would be 42.00. What is the price-earnings ratio?
The price-earnings ratio (P/E ratio) is a fundamental analysis measure that compares a company's current stock price to its per-share earnings. It is a calculation of a company's stock price divided by its earnings per share (EPS). The P/E ratio formula is given by:
P/E ratio = Market price per share / EPS
Where EPS is the earnings per share of the company and Market price per share is the current price of the stock divided by the number of outstanding shares.
The company has an EPS of $4.00, a book value per share of $28, and a market/book ratio of 1.2. Therefore, the market price per share is calculated as follows:
Market price per share = Market/book ratio × Book value per share
Market price per share = 1.2 × $28
Market price per share = $33.6
The P/E ratio of the company is calculated as:
P/E ratio = Market price per share / EPS
P/E ratio = $33.6 / $4.00
P/E ratio = 8.4
Hence, the P/E ratio of the company is 8.4.
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how can it be that when wages increase from 25 to 30, hours worked increase, but when wages then increase from 30 to 35, hours worked decrease? you may suppose that the typical graduate student has 40 hours of time for work or leisure in a week.
In the scenario where a typical graduate student has 40 hours of time for work or leisure in a week, this means that if the wage increases from 25 to 30, the student may choose to work more hours, say 30 hours, and spend 10 hours on leisure.
Graduate refers to a person who has successfully completed a course of study at a college or university and has earned a degree or diploma. This typically means that they have completed a Bachelor's degree or higher, although the specific requirements may vary depending on the institution and the program of study.
Graduates have usually acquired a deep understanding of their chosen field of study and have developed a range of skills and knowledge that can be applied in a variety of contexts. They may have specialized in a particular area of study, such as business, engineering, or the arts, or may have pursued a more general program of study that has provided them with a broad range of skills and knowledge.
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fix-it-quik, inc., offers gina a job as a plumber. no time for acceptance is specified in the offer. the offer will terminate
Fix-it-Quik, Inc. offered Gina a job as a plumber. There was no time specified in the offer for her to accept it, so the offer will terminate if she does not accept it within a reasonable time. Generally, an offer should be accepted within a few days, unless otherwise specified.
Automatically after a reasonable length of time. A job offer is a document that outlines the terms and conditions of a job that a company is willing to provide to an employee. A job offer letter typically includes a brief job-summary, as well as information on the hiring company, benefits, and compensation.
It will be concluded with an acceptance deadline. It must be accepted within a certain amount of time. Furthermore, the offer may be withdrawn or expired. In the case of an indefinite time, the offer will end automatically after a reasonable period of time.
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In the long run, the real interest rate is determined by ______ and, in the short run, the Reserve Bank can control the real interest rate by setting the nominal interest rate if inflation adjusts _____.
A. saving and investment; slowly
B. saving and investment; quickly
C. the Reserve Bank; to equal the increase in the money supply
D. the Reserve Bank; slowly
In long run, the real interest rate is determined by factors of saving and investment, including the supply of and demand for loanable funds, and technological progress.
What are loanable funds?Loanable funds refer to the total amount of money that is available to be loaned out by financial institutions such as banks, credit unions, and other lenders. These funds come from various sources such as deposits made by individuals and businesses, investments made by institutional investors, and borrowing from other financial institutions. The demand for loanable funds comes from individuals and businesses that require funds to finance their investments, such as purchasing a home, starting a business, or expanding operations. Interest rates play a crucial role in the supply and demand of loanable funds as they affect the willingness of lenders to lend and borrowers to borrow. The availability of loanable funds and the level of interest rates can have a significant impact on economic growth and investment activity in an economy.
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which of the following must be true if average total costs are rising? group of answer choices average fixed costs must be rising. total fixed costs must be rising. average variable costs must be falling. marginal costs must be greater than average total costs.
The marginal cost must be higher than the total cost on average. The average price is the sum of all prices.
when the overall average cost is increasing?Marginal cost is lower than average cost when typical cost is falling as output rises. Marginal cost is higher than average cost when average cost is growing. Marginal cost is equal to average cost when average cost is neither increasing nor decreasing (at a minimum or maximum).
If marginal cost is increasing, will average cost follow suit?Average costs will rise if marginal costs are growing. The average cost of all the goods produced must increase when the cost of the following item produced increases.
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instructing the bank to automatically move a fixed amount of money to your savings account every month is a proven strategy to reaching financial freedom and growing your wealth. true false
markets multiple choice encourage specialization. increase government intervention. support closed economies. create unacceptable prices.
Markets multiple-choice questions encourage specialization. This statement is valid because markets are essential in allowing people to buy and sell goods and services. These markets bring buyers and sellers together to help them exchange goods and services that meet their needs, preferences, and desires.
Specialization in markets refers to the division of labor in the production process. In this process, different workers specialize in performing specific tasks, which leads to a better allocation of resources and increased productivity. Thus, specialization helps increase efficiency and output in the production process, which helps markets operate more efficiently.
Moreover, markets help to create competition among producers, which leads to the production of quality goods and services at reasonable prices. When firms compete for market share, they are forced to innovate, develop better products, and reduce costs. As a result, this helps to create a better allocation of resources and helps to create acceptable prices.
In conclusion, markets multiple-choice questions encourage specialization, and this helps to increase efficiency in the production process. Specialization leads to the division of labor, which helps to improve productivity and lead to a better allocation of resources. Additionally, markets promote competition among producers, which helps to create quality products at reasonable prices. Therefore, markets play an essential role in economic development, and they encourage economic growth and prosperity.
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an asset's book value is $72,000 on january 1, year 6. the asset is being depreciated $1,000 per month using the straight-line method. assuming the asset is sold on july 1, year 7 for $52,000, the company should record:
The asset's book value on January 1st, year six, is $72,000. The straight-line approach is being used to depreciate the asset at a rate of $1,000 per month. if the asset is sold for $52,000 on July 1st of year 7, the company should record income statement.
The asset was held for 18 months from January 1, Year 6 to June 30, Year 7. The total accumulated depreciation over this period would be:
$1,000/month x 18 months = $18,000
The asset's net book value on June 30, Year 7 (the end of the accounting period) would be:
$72,000 (book value on Jan. 1, Year 6) - $18,000 (accumulated depreciation) = $54,000
Since the asset was sold for $52,000, there is a loss on the sale of $2,000:
$52,000 (sale price) - $54,000 (net book value) = -$2,000
The company should record this loss as an expense on its income statement.
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Fill in the blank: In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $______.
In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $1,000.
This was due to a number of factors, including a lack of infrastructure, limited access to foreign markets, and a heavy reliance on export of raw materials. The absence of capital and technology limited the ability of local firms to produce goods and services of higher value.
In addition, political instability and corruption in many African countries hindered economic growth and development. Furthermore, the burden of the foreign debt servicing resulted in the diversion of funds from the productive sectors of the economy.
In response to these challenges, many African countries have been investing in infrastructure, technology, and education in order to develop their productive capacity. They have also been implementing policies to increase access to foreign markets, promote foreign direct investment, and attract more private capital.
In addition, the International Monetary Fund and the World Bank have provided debt relief to many African countries, enabling them to use the freed-up funds to finance social services and development projects.
These initiatives are starting to pay off. Many African countries have seen an improvement in their economic situation in the last decade, with an increase in GDP per capita and a reduction in poverty. This is a positive development, but there is still much work to be done in order to raise the standard of living in Africa.
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keeps records of its customers and notifies them when it is time for an oil change. this is an example of . group of answer choices smart marketing data mining url marketing database marketing
The given statement "keeps records of its customers and notifies them when it is time for an oil change" is an example of a marketing database.
Marketing database is an electronic record of all relevant information regarding customers and potential customers that is used by a company for marketing purposes.
It is a centralized data store that houses and maintains all relevant data used in marketing campaigns. Marketing databases are designed to give a comprehensive view of each customer to marketers. It collects customer data through various channels, including websites, social media, customer support tickets, and email campaigns.
The data collected from these channels include Customer demographics, Purchase history, Behavioral data, interests, etc.
A company that maintains an up-to-date marketing database can use it to create targeted and personalized marketing campaigns that increase customer engagement, loyalty, and retention.
Therefore, the database keeps track of its customers and sends notifications when it is time for an oil change, indicating that it utilizes a marketing database as part of its customer outreach and retention strategies.
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you are looking at figures and trying to understand the overall message weight for your client's shaving cream ads. you remind yourself that some people who watched the ad on a tv program may have also seen it in a magazine. this is called:
After analyzing the scenario, you remind yourself that some people who watched the ad on a tv program may have also seen it in a magazine. this is called: cross-platform viewing.
Cross-platform viewing refers to the phenomenon of people interacting with advertising content across different media platforms. This could mean that someone who viewed a shaving cream ad on a TV program may have also seen the same ad in a magazine. Understanding cross-platform viewing is crucial for marketers trying to determine the effectiveness of their advertising campaigns.
By taking into account how consumers engage with content through various channels, marketers can gain a more comprehensive understanding of their target audience's behaviors and preferences. This, in turn, can help them craft more effective advertising strategies in the future.
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Economists believe that the best decisions are made at the margina. Trueb. False
The given statement, "Economists believe that the best decisions are made at the margin," is true (a) because making decisions at the margin involves considering the additional or incremental benefit and cost of a decision.
Which allows for more efficient allocation of resources and maximization of utility.
Making decisions at the margin involves analyzing the incremental cost and benefit of a decision, which allows for more informed and efficient resource allocation. For instance, a firm can decide to increase production if the marginal cost of producing one additional unit is less than the marginal revenue it generates.
Similarly, a consumer can choose to consume an additional unit of a good if the marginal benefit of consuming it exceeds the marginal cost. By making decisions at the margin, individuals and firms can make more informed and efficient choices, leading to better outcomes for themselves and society as a whole.
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true or false: the coupon rate of a treasury inflation protection security will adjust at a rate consistent with the rate of inflation.
Answer:
True
Explanation:
the implied warranty of merchantability shifts the burden of proof from multiple choice producers to consumers. suppliers to consumers. producers to suppliers. consumers to producers.
The implied warranty of merchantability shifts the burden of proof from multiple-choice producers to consumers.
What is an implied warranty? An implied warranty is a type of warranty in which it is not necessary to provide a written guarantee. It is also referred to as an unwritten guarantee. The implied warranty exists under the terms of a sale, and it is made by operation of law rather than by explicit written guarantee. When goods are sold, the implied warranty of merchantability may be an element of that sale.
What is the implied warranty of merchantability? The implied warranty of merchantability is a guarantee made by the seller that the goods being sold are in good working order, fit for use, and free of any defects that would make them unusable. An implied warranty of merchantability, like an express warranty, provides consumers with protection against defective goods. This means that if a product fails to meet its reasonable intended purpose, a consumer can make a claim. This warranty assures that the product will be used for its intended purpose.
The burden of proof is shifted from producers to consumers by the implied warranty of merchantability. Producers are not required to prove that their product is free of defects if a consumer makes a claim. Rather, it is up to the consumer to demonstrate that the product is defective, which puts the burden of proof on the consumer.
Therefore, it can be concluded that the implied warranty of merchantability shifts the burden of proof from producers to consumers.
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werner chemical, inc., leased a protein analyzer on september 30, 2021. the five-year lease agreement calls for werner to make quarterly lease payments of $355,655, payable each september 30, december 31, march 31, and june 30, with the first payment at september 30, 2021. werner's incremental borrowing rate is 16%. amortization is recorded on a straight-line basis at the end of each fiscal year. the useful life of the equipment is five years. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) required: 1. determine the present value of the lease payments at september 30, 2021. 2. what pretax amounts related to the lease would werner report in its balance sheet at december 31, 2021? 3. what pretax amounts related to the lease would werner report in its income statement for the year ended december 31, 2021? 4. what pretax amounts related to the lease would werner report in its statement of cash flows for the year ended december 31, 2021?
The present value of the lease payments at September 30, 2021 is $1,262,747.
What is Lease Payment?
A lease payment is a recurring payment made by a lessee to a lessor in exchange for the right to use an asset, such as property, equipment, or vehicles, for a specified period of time. The terms of lease payments are typically outlined in a lease agreement, which may include the amount and frequency of payments, as well as other terms and conditions of the lease.
To determine the present value of the lease payments at September 30, 2021, we can use the present value of an annuity formula.
PMT = $355,655
i = 4% (16%/4 quarters)
n = 20 (5 years * 4 quarters)
Using the PV of an annuity table, the present value of the lease payments is $1,262,747.
At December 31, 2021, Werner would report the following amounts related to the lease in its balance sheet:
Right-of-use asset: $1,133,398 ($1,262,747 PV of lease payments - $129,349 lease payment made on September 30, 2021)
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an economic system based on complete freedom of trade and little, if any, government control is known as:
An economic system based on complete freedom of trade and little, if any, government control is known as a free market economy or capitalism.
What is Economy?
Economy refers to the system of production, distribution, and consumption of goods and services within a society. It includes all the activities and transactions involved in the production, distribution, and consumption of goods and services by individuals, businesses, and governments.
In a free market economy, prices are determined by the forces of supply and demand, with buyers and sellers free to make their own choices without interference from the government. Businesses are motivated by profit and competition to produce goods and services that meet consumer demand, and the allocation of resources is determined by market forces rather than government planning. The role of government in a free market economy is typically limited to providing a legal and regulatory framework that protects property rights, enforces contracts, and ensures fair competition.
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suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425). the interest rate on this loan is about:
The interest rate on this loan is about 15%.
Determine the interest rateIf you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made, giving the borrower only $425, then the interest rate on this loan is about 15%.
This can be calculated by taking the interest of $75 and dividing it by the original loan amount of $500.
Mathematically, this looks like:
Interest rate = Interest / Principal x 100
So, for this example:
Interest rate = $75 / $500 x 100 = 15%
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Orchid spa has spent the last year focusing on reducing absenteeism and turnover. It is critical to the business that clients are able to see the same massage therapist or skin specialist every time they come. Which of the following strategies do you think they should try?
Group of answer choices
Limit the number of employees that each supervisor has.
Offer employee benefits, such as flexible work hours.
Wait to provide onboarding until the employee has stayed two months.
Have prospective employees take an intelligence test.
Evaluate employee performance weekly.
The following strategies that you think they should try: Offer employee benefits, such as flexible work hours. The correct option is B.
The following strategy should be tried by the spa:Offer employee benefits, such as flexible work hours. Benefits to workers improve motivation, help maintain loyalty, and decrease turnover rates. Employers who provide benefits, such as flexible work hours, can increase the loyalty of their employees.
By being able to have flexible work hours, employees can find time to do what they need to do while still maintaining their work-life balance. Employers can gain loyalty and appreciation from their employees by offering these advantages.
Additionally, the lowered costs of having to employ new workers or pay overtime to fill in open shifts can be a cost-effective way to save the company money. Thus, the company should try this strategy.
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Complete question:
Orchid spa has spent the last year focusing on reducing absenteeism and turnover. It is critical to the business that clients are able to see the same massage therapist or skin specialist every time they come. Which of the following strategies do you think they should try?
Group of answer choices:
A. Limit the number of employees that each supervisor has.
B. Offer employee benefits, such as flexible work hours.
C. Wait to provide onboarding until the employee has stayed two months.
D. Have prospective employees take an intelligence test.
E. Evaluate employee performance weekly.
one mistake companies make when preparing segmented income statements is arbitrarily assigning fixed costs to segments. (enter only one word per blank.) need help? review these concept resources.
When preparing segmented income statements, one common error that businesses make is to arbitrarily assign common fixed costs to segments.
What happens if you assign segments their common cost erroneously or arbitrarily?Affects how profitable segments are. could affect the company's overall profits. imposes responsibility on managers for expenses they cannot control.
Can costs that can be attributed to one segment be fixed costs of another segment?It is essential to understand that the detectable fixed expenses of one fragment might be a typical fixed cost of another portion. For instance, the landing fee paid to land an airplane at an airport can be traced back to the specific flight, but it cannot be traced back to passengers in first, business, or economy class.
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in the typical agency relationship in corporate finance theory, what constituent of the firm is known as the agent? managers creditors shareholders government society
The typical agency relationship in corporate finance theory is when the constituent of the firm is known as the agent.
The agent is the manager. They act as an agent of the owners (shareholders) of a firm because they are hired by them to manage the company's day-to-day operations. The owners give up control to the manager with the expectation that the manager will act in the owner's best interests. However, the manager's interests may not always be aligned with those of the owners.
Hence, the agent has a conflict of interest, which creates an agency problem in corporate finance. In addition, the typical agency relationship in corporate finance theory involves shareholders, who are the owners of the firm. The creditors provide funds to the firm to finance its operations. The government and society play a role in regulating and monitoring the actions of the firm and ensuring that it operates within the legal framework.
Agency costs arise because of the agency relationship between the owners and the manager. These costs can take many forms, including monitoring costs, bonding costs, and residual losses. The owners can reduce these costs by aligning the manager's interests with their interests. This can be done through various means, such as performance-based compensation, stock options, and ownership stakes in the firm.
In conclusion, the agent in the typical agency relationship in corporate finance theory is the manager. The owners (shareholders), creditors, government, and society also play a role in this relationship. The agency relationship creates a conflict of interest that leads to agency costs, which can be reduced by aligning the manager's interests with those of the owners.
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A reduction in the real interest rate will increase investment spending, other things equal, because firms will make an investment purchase if the expected return is O equal to or less than the real interest rate at which it can borrow O equal to the real interest rate at which it can lend Ogrowing at the same rate as inflation. O greater than or equal to the real interest rate at which it can borrow
A reduction in the real interest rate will increase investment spending, other things equal, because firms will make an investment purchase if the expected return is greater than or equal to the real interest rate at which it can borrow. Therefore the correct answer is option d.
When the real interest rate falls, it becomes cheaper for firms to borrow money to finance investments. As a result, the expected return on investment needs to be greater than or equal to the real interest rate at which it can borrow, so that firms can make a profit on their investment. Therefore, option d is the correct answer.
Option a is incorrect because if the expected return is less than the real interest rate at which it can borrow, it would not be profitable for the firm to make the investment purchase.
Option b is also incorrect because the real interest rate at which a firm can lend is typically lower than the rate at which it can borrow, and so it would not make sense for the expected return on investment to be equal to this rate.
Option c is irrelevant because the question is about the relationship between the real interest rate and investment spending, and inflation is not directly related to either of these variables.
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true or false: the revenue cycle is the overall process of monitoring and controlling revenue production to create cash inflows from the provision of services.
The given statement, "the revenue cycle is the overall process of monitoring and controlling revenue production to create cash inflows from the provision of services," is true (T) because the revenue cycle is a process of tracking, recording, and controlling revenue from services provided by an organization.
It is designed to ensure that all revenue is recorded accurately and to create a system for cash inflows.
The revenue cycle encompasses all the steps involved in generating revenue, including capturing patient data, verifying insurance eligibility, submitting claims, and collecting payments, ultimately resulting in cash inflows.The revenue cycle is a critical process for healthcare organizations as it directly impacts their financial health. By effectively managing the revenue cycle, healthcare providers can improve their cash flow, reduce denials and rejections, and enhance their bottom line.
The revenue cycle begins with pre-registration and ends with the collection of payments, and it involves various stakeholders, including patients, healthcare providers, payers, and billing companies. Effective revenue cycle management requires collaboration, communication, and continuous improvement to optimize revenue production and minimize revenue leakage.
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riley company borrowed $32,000 on april 1, year 1 from the titan bank. the note issued by riley carried a one year term and a 8% annual interest rate. riley earned cash revenue of $980 in year 1 and $1,300 in year 2. assume no other transactions. the amount of total liabilities that would appear on riley's december 31 balance sheets for year 1 and year 2, respectively, would be:
On December 31 of Year 1, the total liabilities on Riley Company's balance sheet would be $32,000 (the amount borrowed from Titan Bank plus accrued interest of $2,560).
On December 31 of Year 2, the total liabilities on Riley Company's balance sheet would be $33,860 ($32,000 plus accrued interest of $1,860).
Total liabilities are the combined debts that an individual or company owes. They are generally broken down into three categories: short-term, long-term, and other liabilities. On the balance sheet, total liabilities plus equity must equal total assets.
A balance sheet summarizes a company's assets, liabilities and shareholders' equity at a specific point in time . It is one of the fundamental documents that make up a company's financial statements.
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As part of a plan to emphasize a dynamic corporate culture at the Gagnier and Morris advertising company, Deborah has done away with traditional cubicles and replaced them with open-area, nonterritorial workspaces, or "hot desks."
A) Nonterritorial offices
B) Heightened global competition
C) Emphasis on Ethics
Deborah's plan to replace traditional cubicles with open-area, nonterritorial workspaces, or "hot desks," is an example of nonterritorial offices (A)
Nonterritorial offices refer to workspaces that are not assigned to any particular employee, but rather are available for anyone to use on a first-come, first-served basis. In other words, employees do not have their own dedicated workstations or cubicles, but instead work at a shared desk or table that is available for use by anyone in the office.
This approach is often associated with open-office designs, which are meant to facilitate collaboration and communication among employees by removing physical barriers that can impede interaction. By eliminating cubicles and individual workstations, nonterritorial offices create a more open and flexible work environment that is intended to encourage greater interaction and collaboration among employees.
The use of nonterritorial offices is a way to promote a dynamic corporate culture, which emphasizes the importance of innovation, flexibility, and adaptability. By encouraging employees to work together in a more open and collaborative way, nonterritorial offices can help to foster a sense of community and teamwork that can be beneficial for achieving business goals.
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a corporation must present details about contributed capital in the a.first year of operation. b.management discussion and analysis section. c.notes to the financial statements or parenthetically adjacent to each capital stock account. d.footnotes.
In the first year of operation, a corporation must present details about contributed capital in the Management Discussion and Analysis section, Notes to the Financial Statements, or parenthetically adjacent to each capital stock account. This information may also be provided in the footnotes.
About capital corporation notesThe Management Discussion and Analysis section should include the total contributed capital amount and describe any differences between the contributed capital amount and the amount shown in the financial statements.
The Notes to the Financial Statements should include a description of the contributions made to the corporation, the total contributed capital amount, and any differences between the contributed capital amount and the amount shown in the financial statements.
The contributed capital account should also be broken down into sub-accounts and parenthetically adjacent to each capital stock account, showing the total contributed capital amount, the amount of each type of capital stock, and any differences between the contributed capital amount and the amount shown in the financial statements.
Lastly, footnotes should provide the details of the contributed capital, including the amount of each type of capital stock, the dates of contributions, and any differences between the contributed capital amount and the amount shown in the financial statements.
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Suppose the population of small children in Vermont grows rapidly because of families moving in from other states. Place the statements below in the proper order to tell the story of how the invisible hand leads the teddy bear market back to long run equilibrium. Assume the market for teddy bears is perfect, or purely, competitive and initially at its long run equilibrium. Not all statements will be used. Families with small children move to Vermont. Market equilibrium is once again restored. Answer Bank The price of teddy bears increases. Teddy bear firms earn economics losses. New teddy bear producers enter the market. The price of teddy bears decreases. Teddy bear firms earn positive economic profits. Teddy bear producers leave the market. Demand for teddy bears decreases. Demand for teddy bears increases.
The story of how the invisible hand leads the teddy bear market back to long run equilibrium starts with the influx of families with small children moving to Vermont. This increase in population leads to an increase in demand for teddy bears, causing the price to rise. With the rise in price, teddy bear firms start earning positive economic profits.
As the market attracts more firms to enter, competition intensifies, leading to an increase in supply. With the increased supply, the price of teddy bears begins to decrease, and the economic profits of teddy bear firms start to decline.
Some teddy bear producers will leave the market due to the reduced profitability, and the competition will continue until the market equilibrium is restored. At this point, the supply and demand are equal, and the price of teddy bears is back to its long run equilibrium.
The invisible hand is at work here because the market forces lead to a natural adjustment towards the long run equilibrium. As the population increased, demand for teddy bears also increased, which led to an increase in price and profits. However, this attracted new entrants into the market, which then led to increased competition and supply, ultimately leading to the price declining and restoring equilibrium.
A company called Vermont Teddy Bear made and sold teddy bears and other stuffed animals. In 2010, the company's handcrafted, premium-priced, high-quality teddy bears were its main product.
A niche market was indicated by Vermont Teddy Bear's position as a high-end supplier of superior teddy bears. A business that specialises in serving a certain, well-defined group of consumers, frequently by providing a specialised good or service, is said to operate in a narrow market.
In the instance of Vermont Teddy Bear, the business catered to consumers ready to pay a premium for handmade, high-quality teddy bears. The company was able to set itself apart from other sellers of stuffed animals and teddy bears who frequently concentrated on lower prices and mass-market appeal. The company Vermont Teddy Bear was simultaneously positioned as a high-cost provider in the market because to its premium rates and high-quality items.
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the services provided by a bank help business control cash by . multiple choice question. restricting access and providing documentation and independent verification restricting access, providing imprest and petty cash systems, and independent verification restricting access and preparing bank reconciliations
Answer:
restricting access and providing documentation and independent verification
Explanation:
Banks provide important services to help businesses control their cash. By restricting access to cash, banks help businesses manage their funds more securely.
Banks can also provide documentation of transactions, allowing businesses to track their cash flow more accurately. Furthermore, banks can provide independent verification of transactions, safeguarding businesses against fraud and errors.
Banks also offer imprest and petty cash systems, which allow businesses to quickly access the funds they need for day-to-day operations. Finally, preparing bank reconciliations is an important part of managing cash, as it helps businesses to ensure accuracy in their accounts. All of these services can help businesses to gain better control over their cash flow.
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what annual rate of return is earned on a $1,000 investment when it grows to $2,000 in six years? (do not round intermediate calculations. round your answer to 2 decimal places.)
The annual rate of return that is earned on a $1,000 investment when it grows to $2,000 in six years is 11.61%.
Step-by-step explanation:
We are required to determine the annual rate of return that is earned on a $1,000 investment when it grows to $2,000 in six years. Let us denote the annual rate of return as r.
Therefore, we can say that $1,000 grows to $2,000 in six years with an annual rate of return r if,$$2,000=1,000(1+r)^6$$
On simplification of the above equation, we get,$$(1+r)^6=2$$
Now, taking the logarithm on both sides, we have,$$6 \log(1+r)= \log(2)$$$$\Rightarrow
r = \frac{\log(2)}{6}$$$$\Rightarrow
r = \frac{0.693}{6}$$$$\Rightarrow
r = 0.1151$$
Therefore, the annual rate of return that is earned on a $1,000 investment when it grows to $2,000 in six years is 11.61% (rounded to 2 decimal places).
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allison has returned to school after five years out of the work force. she is taking one course at the local university for a cost of $1,420. to minimize her taxes, should she take a tuition and fees deduction or an education credit? (assume a 15 percent tax rate.) (assume the education credit will equal the entire cost of the course.)
Allison should take an education credit to minimize her taxes because the education credit reduces the taxes directly. However, the tuition and fees deduction reduces the taxable income amount by the course cost.
In Allison's case, the tuition and fees deduction will only decrease her taxable income by $1,420. However, she'll save only 15 percent on the $1,420 as that is her tax rate, so she'll only save $213.
In comparison, the education credit, as mentioned, is equal to the course's entire cost, i.e., $1,420. Hence, the education credit is the better option in Allison's case.
What is an education credit?
An education credit is a dollar-for-dollar reduction in the amount of tax you owe. The education credit directly reduces the tax liability, unlike deductions, which lower the amount of taxable income. The American Opportunity Credit and the Lifetime Learning Credit are two of the most common education credits.
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