The value today of the following cash flows is $6,711.35 at an interest rate of 5.9 percent. The value of the year 3 cash-flow is $7,938.44.
For the value of the year 3 cash-flow
PV is the present value
FV is the future value is the interest rate
n is the number of periods
The value of the year 3 cash-flow,
[tex]PV = FV / (1 + r)n\\[/tex]
[tex]FV = PV x (1 + r)n\\[/tex]
[tex]FV = $6,711.35 x (1 + 0.059)3\\[/tex]
[tex]FV = $7,938.44\\[/tex]
Therefore, the value of the year 3 cash-flow is $7,938.44.
Cashflow refers to the movement of money in and out of a business over a specific period, typically a month or a year.
It represents the amount of cash a business generates from its operations, investments, and financing activities, and is essential for managing a company's financial health and stability.
Positive cash flow means that the business is generating more cash than it spends, while negative cash flow means that the company is spending more cash than it is earning.
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what is the present value of a $1,100 payment made in six years when the discount rate is 8 percent?
The present value of a $1,100 payment made in six years when the discount rate is 8 percent is $679.86.
Determine the present value factor using the following formula:
PV Factor = 1 / (1 + i)n where i = discount rate and n = number of years
In this case, i = 8% or 0.08 and n = 6 years
PV Factor = 1 / (1 + 0.08)6
PV Factor = 0.6302
Multiply the present value factor by the future value of the payment:
Present Value = PV Factor x Future Value
Present Value = 0.6302 x $1,100
Present Value = $679.86
Therefore, the present value of a $1,100 payment made in six years when the discount rate is 8 percent is $679.86.
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when manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production, it is called .
When manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production, it is called dumping.
What is dumping?The World Trade Organization defines dumping as when a manufacturer exports a product to another country at a price lower than the price it normally charges in its own domestic market or lower than the cost of production of the product.
Dumping, as a consequence, may harm manufacturers in the importing country who are competing against the low-priced products. Dumping harms domestic producers in the importing country because the market becomes flooded with cheap imports that consumers tend to buy instead of more expensive domestically produced goods.
Furthermore, as domestic manufacturers are forced to decrease prices to compete, they may be forced out of business or to cut back production and lay off workers, harming the economy as a whole.
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an organization of sellers designed to coordinate their supply decisions to maximize joint profits is called a
A organization of sellers designed to coordinate their supply decisions to maximize joint profits is called a cartel.
A cartel is a group of companies that come together to agree on prices and output levels in order to maintain their profits and ensure the stability of the market. The goal of the cartel is to restrict competition and keep prices higher than they would be under perfect competition.
In order to maintain its power, the cartel enforces strict agreements on how much each seller can produce, which creates a monopoly. This helps them to keep prices high and create a large profit. The members of the cartel also monitor each other to ensure that no one breaks the agreement.
Cartels are generally considered to be bad for consumers, as they lead to higher prices. However, they can be beneficial in certain industries. For example, they can help keep prices stable in an industry where the cost of production is high. This could help to ensure the industry's long-term viability, as it could help producers stay afloat in the short term.
Overall, cartels can be beneficial for producers but are usually considered to be bad for consumers. They can help keep prices stable and provide a large profit for their members, but this usually comes at the cost of the consumer.
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Retailing today requires ______, which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
Retailing today requires "omnichannel integration," which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
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Retailing is the method of selling items and services to customers through various channels such as brick-and-mortar stores, online platforms, or mobile applications. It's a dynamic and complex industry that requires careful consideration and planning to stay ahead of the curve in terms of consumer trends and technological advancements.
Omnichannel integration is a concept that has arisen in recent years, in which retailers try to provide a consistent and seamless shopping experience to customers across various channels. This entails not just selling items through various channels but also providing a consistent brand message and user experience across channels. The purpose of omnichannel integration is to improve customer experience by enabling them to shop from anywhere at any time, whether they're in the store, at home, or on the go. Customers can now browse and buy goods online, pick them up at the store, or return them to any location. Retailers who can provide a smooth and integrated experience across channels are more likely to be successful than those who cannot. Therefore, omnichannel integration is critical for retailers today.
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which of the following new businesses is an example of a business with a high operating leverage? question 1 options: personal training business dogwalking service luxury hotel consulting firm
A C: luxury hotel is an example of a business with a high operating leverage.
Operating leverage refers to the extent to which a company relies on fixed costs in its operations. In the case of a luxury hotel, there are high fixed costs associated with maintaining and operating the hotel, such as staff salaries, utilities, property maintenance, and other expenses. This means that the hotel has a high degree of fixed costs relative to variable costs, which can lead to high profits in periods of high occupancy but also high losses in periods of low occupancy.
Therefore, a luxury hotel is an example of a business with high operating leverage.
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a mission statement is a definition of a firm's purpose and should take into consideration what customers want in an exchange. true false
The given statement "a mission statement is a definition of a firm's purpose and should take into consideration what customers want in an exchange" is True.
A mission statement is a declaration of an organization's overall purpose and aims to guide decision-making and strategy development. In order to create an effective mission statement, a company must consider the needs and desires of its customers, as they are the primary reason for the organization's existence.
A well-crafted mission statement will communicate to customers and stakeholders what the company does, why it does it, and how it aims to achieve its goals. It should also reflect the company's values, culture, and unique selling proposition.
By taking into account what customers want in an exchange, a mission statement can help align the company's actions and strategies with its customers' needs, leading to increased customer satisfaction, loyalty, and profitability.
Therefore, a mission statement should not only define the firm's purpose, but it should also consider the customers' perspective in order to ensure that the company is providing value and meeting their expectations.
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Accounting and finance are ______ activities in a firm's value chain.
Accounting and finance are supporting activities in a firm's value chain.
What is a firm's value chain?Value chain is the value-added components in an industry or organization that are created by a series of activities within the organization or industry. A value chain is a collection of activities that lead to an organization's service or product. Primary activities and support activities are the two types of activities that make up a value chain.
What are the primary activities in a firm's value chain?Primary activities are a firm's core business activities that generate profits. Inbound logistics, operations, outbound logistics, marketing and sales, and service are the five primary activities.What are the support activities in a firm's value chain? Support activities are activities that are necessary to the firm's operations but do not contribute to the product or service's value creation. The company's infrastructure, HR, technology development, and procurement are all examples of support activities.
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suppose a new educational technology product makes it easier to obtain a degree online and gain high-paying employment, leading to increased membership in the middle and upper classes. which type of mobility would this best exemplify?
Let's say a new advancement in educational technology makes it simpler to earn a degree online and land a well-paying job, increasing the number of people who belong to the middle and upper classes. This most accurately represents a structural sort of movement.
The existence of unequal opportunities and rewards for various social positions or statuses within a group or community is what is known as social inequality. The unequal distribution of goods, wealth, opportunities, rewards, and punishments are included in structured and recurring patterns.
The system of social standing is referred to by sociologists as social stratification. Social stratification is the division of a population into groups according to wealth, income, educational, family history, and authority in a society.
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true or false: distinguishing between two theories that explain measurements or observations equally well can be a problem for economists
The given statement "distinguishing between two theories that explain measurements or observations equally well can be a problem for economists" is True.
Distinguishing between two theories that explain measurements or observations equally well can be a problem for economists, as there may be no clear evidence that points to one theory as being more accurate than the other.
Economists must take into account all possible factors when determining which theory is most accurate, such as potential bias, the accuracy of data, and the strength of supporting evidence.
This process can be difficult and time consuming, as the two theories may be almost indistinguishable.
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using the aging approach, management estimates that $1,000 of accounts receivable will be uncollectible. the allowance for doubtful accounts has a $100 unadjusted debit balance. the allowance for doubtful accounts on the balance sheet will equal blank . multiple choice question.
Using the aging approach, management estimates that $1,000 of accounts receivable will be uncollectible. The allowance for doubtful accounts has a $100 unadjusted debit balance. The correct answer is option a.
The allowance for doubtful accounts on the balance sheet will equal $900. The aging of accounts receivable approach is an analytical technique used by companies to assess and plan the expense of uncollectible accounts receivable (bad debts).
The aging method is an approach that involves assessing a company's accounts receivable to see how old they are. An accounting professional or department calculates the percentage of each account in various aging buckets (i.e., 30 days, 60 days, 90 days, etc.).
The allowance for doubtful accounts or allowance for doubtful debts is an estimate of the total amount of debt that is expected to become uncollectible.
When the management calculates the allowance, the result is entered into the account as a debit to the provision for bad debts account and as a credit to the allowance for doubtful accounts account.
Here, the unadjusted debit balance is $100, which means that the allowance for doubtful accounts has been understated by $100. As a result, the total amount of the allowance for doubtful accounts will equal $900 ($1000 less $100).Thus, the answer is $900. The correct answer is option a.
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Complete question
Using the aging approach, management estimates that $1,000 of accounts receivable will be uncollectible.
a. the allowance for doubtful accounts has a $100 unadjusted debit balance.
b. the allowance for doubtful accounts on the balance sheet will equal blank
assume your uncle recorded his salary history during a 40-year career and found that it had increased 10-fold. if inflation averaged 4% annually during that period, then over his career, his purchasing power: group of answer choices remained on par with inflation decreased increased about 2% annually increased about 3% annually increased about 1% annually
The purchasing power of the salary increased at a rate of approximately 1% annually, compared to inflation.
The purchasing power of an individual's salary over a 40-year period increases or decreases in line with the rate of inflation. In this case, the salary increased 10-fold while the rate of inflation was 4% annually.
In other words, while the salary increased 10-fold over the 40-year period, the purchasing power of the salary would have increased at a slower rate, approximately 1% annually. This is because the rate of inflation increased 4% annually during the same period, which means the buying power of the salary increased at a slower rate.
For example, if a person had a salary of $10,000 at the beginning of the 40-year period, the salary would have increased 10-fold to $100,000 by the end of the period. However, because of the 4% annual rate of inflation, the purchasing power of the salary would not have increased by 10-fold. Rather, it would have only increased by approximately 1%, resulting in a purchasing power of around $107,000 at the end of the period.
In summary, assuming an individual's salary increased 10-fold over a 40-year period and inflation averaged 4% annually during the same period, the purchasing power of the salary would have increased at a rate of approximately 1% annually, compared to the rate of inflation.
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92 of 120 to be in compliance, which individual will need to become a registered mortgage loan originator and obtain a unique identifier from the registry through nmls?
In order to be in compliance with the requirement that 92 of 120 individuals must become a registered mortgage loan originator and obtain a unique identifier from the registry through NMLS.
NMLS MeaningThe Nationwide Mortgage Licensing System (NMLS) is a centralized online database that’s used by mortgage and finance regulatory agencies to maintain state licensing programs.
A licensed MLO is someone who has completed the professional certification required to originate mortgages and provide home loan advice in at least one state. Both mortgage lending companies and individual MLOs, have to stay in regulatory compliance, which includes renewing their state licenses annually.
Once the MLO test is completed, the individual will need to register with the NMLS system and complete the required MLO licensing forms. Once the forms are completed, the individual will receive their unique identifier from the NMLS registry.
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last-resort laws: a. are rules that require general providers to accept different types of insurances. b. encourage more competition between hospitals and lower prices for care. c. mandate that hospitals treat all patients who enter their emergency rooms. d. mandate that luxury care, such as cosmetic surgery, must be covered under insurance plans.
The correct answer is c. Last-resort laws mandate that hospitals treat all patients who enter their emergency rooms. These laws require hospitals to provide medical care to anyone in need, regardless of their ability to pay or whether they have insurance.
The purpose of these laws is to ensure that individuals who are in need of emergency medical treatment are not turned away due to their inability to pay. While last-resort laws do not address the issue of healthcare affordability, they do provide a safety net for individuals in emergency situations who may not have access to healthcare otherwise.
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the chief benefit of a marketing plan is: a. to anticipate marketing methods that do not yet exist. b. to reduce the number of costly errors you make in your marketing. c. to raise money for the business. d. to identify all potential customers precisely.
The chief benefit of a marketing plan is to reduce the number of costly errors you make in your marketing. A marketing plan helps businesses identify potential customers, anticipate marketing methods, and raise money for the business.
The chief benefit of a marketing plan is to reduce the number of costly errors you make in your marketing. The correct answer is B.
What is a marketing plan?A marketing plan is a strategic document that outlines a company's marketing approach. A marketing plan is a comprehensive document that specifies a company's overall marketing goals, the strategies and tactics to achieve these objectives, and the implementation, assessment, and control methods required to monitor success.
A marketing plan's benefits include the following:
1. Focusing the marketing and business objectives
The marketing plan outlines the company's marketing and business objectives, which are aligned with the company's overall objectives. By setting marketing goals, the company can concentrate on what it needs to do to meet those goals, and ensure that everyone understands the aims and objectives.
2. Establishes the foundation for a marketing budget
The marketing plan lays out the business objectives, the strategies and tactics to accomplish those objectives, and the budget required to implement them. It makes it easier to develop a marketing budget by establishing a roadmap for marketing expenses.
3. Enables the evaluation of progress and performanceIt is possible to track how well the company is meeting its goals and objectives by monitoring progress and performance. The marketing plan specifies the metrics to be used to track progress, and the monitoring period required to evaluate progress
4. Reducing the possibility of costly errors
A well-structured marketing plan helps minimize the risk of costly errors. The plan aids in the identification of potential challenges and opportunities, and the development of contingency plans to mitigate risks.
The chief benefit of a marketing plan is to reduce the number of costly errors you make in your marketing. By identifying potential challenges and opportunities, and developing contingency plans to mitigate risks, the marketing plan helps minimize the risk of costly errors. The correct answer is B.
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the value of -risk securities will be relatively . a. high; high b. high; low c. low; low d. none of these choices are correct.
The value of risk securities will be relatively is High; Low. (B)
The value of risk securities will depend on the perceived riskiness of the securities, which can be higher or lower than the market average. Generally, the higher the perceived risk, the higher the expected return on the security. This means that the value of a -risk security will be relatively high, but its expected return will be relatively low.
In order to evaluate the value of a -risk security, an investor must consider its expected return as well as its associated risk. Investors generally expect a higher return on securities that are riskier, and this is why the value of -risk securities will be relatively high.
However, since there is higher risk associated with these securities, investors also expect a lower return. Thus, the expected return on -risk securities will be relatively low compared to the market average.
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reddick enterprises' stock currently sells for $24.50 per share. the dividend is projected to increase at a constant rate of 5.50% per year. the required rate of return on the stock, rs, is 9.00%. what is the stock's expected price 3 years from today?
The expected price of Reddick Enterprises' stock 3 years from today is $34.31
What is the stock's expected price 3 years from today?To calculate the expected price of Reddick Enterprises' stock 3 years from today, we can calculated as;
A = P(1 + r)^t
A = 24.50(1 + 0.055)^3
P = $28.77
The expected price of Reddick Enterprise stock in 3 years from now is $28.77
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at an annual interest rate of 10 percent, about how many years will it take $100 to double in value?
At an annual interest rate of 10 percent, it will take approximately 7.2 years for $100 to double in value.
To calculate the number of years it will take $100 to double in value at an annual interest rate of 10 percent, we can use the rule of 72. The rule of 72 states that to estimate the number of years it will take to double an investment, divide 72 by the annual interest rate. In this case, dividing 72 by 10 gives us a result of 7.2. This means it will take approximately 7.2 years for $100 to double in value at an annual interest rate of 10 percent.
The rule of 72 is a useful tool for quickly estimating the time it will take for an investment to double in value. However, it is important to note that it is only an estimate and may not be entirely accurate.
It is also important to consider that interest rates may fluctuate over time, which can affect the time it takes for an investment to double in value. Additionally, other factors such as inflation and fees may also impact the growth of an investment.
In summary, at an annual interest rate of 10 percent, it will take approximately 7.2 years for $100 to double in value. However, it is important to remember that this is only an estimate and may not be entirely accurate due to various factors that can impact investment growth.
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true or false? in practice, the estate tax applies to all people who leave inheritance to their beneficiaries, no matter how large or small.
The statement "In practice, the estate tax applies to all people who leave inheritance to their beneficiaries, no matter how large or small" is FALSE because in practice, the estate tax applies to all people who leave inheritance to their beneficiaries, no matter how large or small.
Estate tax is not applied to all people who leave inheritance to their beneficiaries, no matter how large or small. Estate tax is a tax levied on the total market value of the assets of a deceased person after all debts have been paid. It is also known as inheritance tax or death tax in some countries.
It's one of the taxes that the government imposes to raise revenue from citizens. It is necessary to tax the estates of individuals in order to finance government spending in some countries.In general, estate taxes are assessed only on the assets of people who have died, and the taxes are paid by the estate itself rather than by the heirs. Some jurisdictions also offer estate tax exemptions or other forms of relief to estates that are subject to estate taxes.
The estate tax exemption is a specific dollar amount that can be passed on tax-free to heirs. The exemption amount varies depending on the laws in your jurisdiction. The estate tax is calculated based on the market value of the property in the estate above the exemption limit. Estate tax is not applied to all people who leave inheritance to their beneficiaries, no matter how large or small.
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why might the gaap rules generally tend to reflect a company needing to show more expense and less income than under tax law
The Generally Accepted Accounting Principles (GAAP) rules tend to reflect a company needing to show more expense and less income than under tax law because the GAAP follows the accrual basis of accounting, while the tax law follows the cash basis of accounting.
The accrual basis of accounting records revenues and expenses when they are earned and incurred, regardless of when the cash is received or paid. Therefore, expenses can be recognized and deducted before cash is actually paid out. Conversely, the cash basis of accounting only recognizes revenues and expenses when cash is actually received or paid. This means that expenses will only be recognized after cash is actually paid out.
For example, a company may have incurred a $1,000 expense in January under the accrual basis of accounting and must report this expense on their income statement for the month. However, the company may not pay out the cash until March.
Under the cash basis of accounting, the company would not report the expense on their income statement until March. This difference in accounting methodologies can lead to a company reporting higher expenses and lower income when using the accrual basis of accounting for GAAP purposes, compared to the cash basis of accounting for tax law purposes.
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what term is used to describe a situation in which a real estate licensee tells a customer an advertised
In real estate, the term "misrepresentation" is used to describe a situation in which a real estate licensee provides false or misleading information to a customer regarding a property or other real estate transaction. Misrepresentation is a form of fraud and is illegal in most jurisdictions.
The primary intent of a real estate licensee making a misrepresentation is to deceive the customer into making a decision which the licensee believes to be advantageous to them. In some cases, the licensee may simply be careless in providing inaccurate information.
Misrepresentations can take many forms, including inaccurate or incomplete disclosure of material facts, fraudulent claims, or inaccurate or incomplete disclosure of the terms of a transaction. A licensee can also be found guilty of misrepresentation if they fail to disclose material information that is necessary for the customer to make an informed decision.
Misrepresentation may also involve making promises that the licensee knows cannot be kept. If a licensee is found to have committed misrepresentation, the customer can often seek damages from the licensee, including the cost of any repairs that may be necessary as a result of the misrepresentation.
It is important that real estate licensees take care to ensure that all information provided to customers is accurate and complete, and that promises are made with the intent of keeping them.
If a licensee is found guilty of misrepresentation, they may face civil or criminal penalties, including fines, suspension or revocation of their real estate license, or even jail time.
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organization structure is represented primarily by means of a graphic illustration called a(n) .
An organization's structure is depicted primarily through a graphic illustration known as an organizational chart. An organizational chart is a visual representation of the company's formal structure that depicts its hierarchical order of positions, job titles, reporting relationships, and departmentalization.
Organizational charts are beneficial for both managers and employees. The chart clarifies the company's hierarchical order and simplifies the flow of information in the company's system. Employees may use the chart to learn about the organizational structure of the company and how their role contributes to the overall organization.
To put it another way, an organizational chart serves as a company's backbone. It shows the hierarchy of power and authority, defining who reports to whom, and who holds the most significant level of decision-making authority. Organizational charts are classified into various categories depending on the size and nature of the company.
A start-up, for example, may not need a complex organizational chart as compared to an established company. There are several types of organizational charts, and the most common ones are:
Hierarchical organizational chart Flat organizational chart Matrix organizational chartIn conclusion, organizational charts serve as essential tools for companies, allowing them to provide clarity to employees and stakeholders alike. They provide a snapshot of the company's hierarchical structure, who is in charge of whom, and who is responsible for what tasks.
Additionally, they help companies identify opportunities to optimize their structures, streamline decision-making, and improve overall performance.
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in competitive markets, supply and demand cause consumers to divide up products in a way that ensures that each product goes to the person:
In competitive markets, supply and demand cause consumers to divide up products in a way that ensures that each product goes to the person who values it the most.
What is a competitive market?A competitive market is a market in which there is a large number of producers and consumers. As a result, no one producer or consumer is large enough to influence the price of a good or service. Perfect competition, monopolistic competition, oligopoly, and monopoly are the four main types of market structures.
How does the market determine prices and quantities of goods and services?The market determines prices and quantities of goods and services through the interaction of supply and demand. The equilibrium price is the price at which the quantity supplied equals the quantity demanded. When the price of a good or service rises, the quantity supplied increases, and the quantity demanded decreases.
When the price of a good or service falls, the quantity supplied decreases, and the quantity demanded increases. As a result, in a competitive market, suppliers must lower prices to sell more goods or services since other suppliers can quickly enter the market and provide alternatives.
Consumers will then benefit from lower prices, as each supplier competes with one another to offer the best value for their money. Therefore, in competitive markets, supply and demand cause consumers to divide up products in a way that ensures that each product goes to the person who values it the most.
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money that covers the basic living expenses of sales professionals is better known as an advance. question 6 options: true false
The given statement, "money that covers the basic living expenses of sales professionals is better known as an advance" is false because money that covers the basic living expenses of sales professionals is better known as a draw, not an advance.
What is a draw?
A draw is a financial arrangement that is similar to a loan. Sales professionals are usually compensated via commission, which means that their pay is determined by the amount of sales they generate for the company. However, sales may be difficult, and salespeople may not earn enough commission to cover their living expenses.
In this situation, the company may offer the salesperson a draw. A draw is a sum of money that is provided to the salesperson upfront, and it is usually based on the anticipated commissions. The salesperson can then use the draw to cover their basic living expenses until they begin generating enough commission to pay back the draw.
Once the salesperson has generated enough commission, they will begin to receive their normal pay. However, the draw will be deducted from the salesperson's commission until the draw has been paid back in full.
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which of the following are true? (1) average fixed costs never increase with output; (2) average total costs are always greater than or equal to average variable costs; (3) average cost can never rise while marginal costs are declining.
Statement (2) is true: average total costs (ATC) are always greater than or equal to average variable costs (AVC).
This is because ATC includes both the fixed costs and variable costs of production, while AVC only includes the variable costs.
Statements (1) and (3) are not necessarily true in all cases.
Statement (1) is false: average fixed costs (AFC) can increase with output in some cases, particularly when fixed costs are spread over a smaller quantity of output. For example, if a factory produces only a small quantity of goods, the fixed costs of running the factory will be spread over a smaller number of units, resulting in higher AFC.
Statement (3) is also false: average cost (AC) can rise while marginal cost (MC) is declining if the marginal cost is still below the average cost. For example, if a firm is producing at a low level of output where the average cost is high, and then increases its output to a level where the average cost is lower but still above the marginal cost, the average cost will increase with the additional output even though the marginal cost is declining.
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how many properties can i own and manage myself before i have to hire a property management company in savannah, ga.
The number of properties one can own and manage himself before they need to hire a property management company in Savannah, GA varies based on the landlord's management skills, time, experience, and personal preference.
What is property management?Property management is the management, leasing, advertising, and maintenance of a real estate investment owned by someone else. In most cases, the property manager must act on behalf of the landlord, who is the property's owner, to ensure that the property is properly managed, maintained, and rented at all times.
Pricing and marketing of property: The property manager is in charge of determining the appropriate price for the property as well as marketing it to prospective tenants.
Rent collection: The property manager ensures that rent is collected on time from tenants and deposited into the landlord's bank account.
Maintenance and repair: The property manager will manage all maintenance and repair concerns on the property to ensure that it is in good condition and habitable.
Legal responsibilities: Property managers ensure that they follow all state and federal regulations, including zoning, occupancy, and safety regulations. However, the number of properties one can own and manage himself depends on the individual's experience, skills, and time.
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economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations will be
The economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations will be that the more effective and productive the company is, the more financial rewards the managers are likely to receive from the company.
For instance, a state university that attracts a higher number of students to their school would generate more revenue in the form of tuition fees and other contributions. The financial incentive can be seen in the increased salary that the university would pay to their teachers and administrators in addition to the benefits accrued to the college management team such as bonuses, job security, and more.
Government-owned companies such as the post office, on the other hand, receive the majority of their funding from the government, and hence their main incentive is to offer the best services possible while maintaining the lowest costs possible.
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anne is considering two independent projects with 2-year lives. both projects have been assigned a discount rate of 13 percent. she has sufficient funds to finance one or both projects. project a costs $38,500 and has cash flows of $19,400 and $28,700 for years 1 and 2, respectively. project b costs $41,000, and has cash flows of $25,000 and $22,000 for years 1 and 2, respectively. which project, or projects, if either, should you accept based on the profitability index method and what is the correct reason for that decision? group of answer choices neither project is acceptable. you should accept both projects since both of their pis are positive. you should accept both projects since both of their pis are greater than 1. you should only accept project a since it is the only project with a pi greater than 1. you should accept project a since it has the higher pi and you can only select one project.
The correct answer is: You should only accept Project A since it is the only project with a profitability index PI greater than 1.
Project A has a profitability index (PI) of 1.045, whereas Project B has a PI of 0.999. It is recommended that you should only accept Project A because it has the higher PI and you can only choose one project.
How to Calculate Profitability Index (PI)?
The ratio of the present value of an investment's expected cash flows to its initial investment outlay is known as the profitability index (PI).
Here is the formula for the profitability index (PI):
PI = (Present Value of Expected Cash Flows / Initial Investment Outlay)
PV (Project A) = $19,400 / (1 + 0.13)¹ + $28,700 / (1 + 0.13)² = $41,169.43
Initial Outlay = $38,500
Profitability Index = $41,169.43 / $38,500 = 1.045
PV (Project B) = $25,000 / (1 + 0.13)¹ + $22,000 / (1 + 0.13)² = $41,971.35
Initial Outlay = $41,000
Profitability Index = $41,971.35 / $41,000 = 0.999
We can see from the above calculations that Project A's PI is greater than 1, while Project B's PI is less than 1.
Therefore, based on the profitability index method, you should only accept Project A.
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the marketing and sales departments at a local newspaper had conflicting goals, which prevented both teams from being successful. management decided to set complementary goals for both teams. this is an example of:
This is an example of conflict resolution. Conflict resolution is the process of resolving disputes between two parties. By setting complementary goals for both the marketing and sales departments at the local newspaper, management was able to reduce the tension between the two teams and ultimately help them achieve success.
For resolution of a conflict, the management follows the following steps:
Management identifies the conflict between the two teams.
They analyze the situation to understand the needs of both teams.
They then devise a plan to set complementary goals for the two teams that address their individual needs.
The teams then work together to achieve their goals, resolving their conflict in the process.
By taking the time to set complementary goals and resolve the conflict between the two teams, management was able to help both the marketing and sales departments achieve success.
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when developing and assessing strategic alternatives, companies competing in international markets confront which two opposing goals?
Companies competing in international markets must often balance two opposing goals when developing and assessing strategic alternatives.
These goals include profitability and risk. In order to maximize profitability, companies must often invest in high-risk ventures, such as expanding into new markets.
At the same time, they must also manage risk by closely monitoring operations and adhering to predetermined budget restrictions.
The balance between profitability and risk is an important consideration when assessing strategic alternatives. Companies must identify the short-term and long-term risks associated with each option and compare these against the potential returns.
This allows them to determine the best course of action to pursue in order to maximize profitability while minimizing risk.
For example, a company may decide to invest in a new market. This could potentially be profitable, but could also involve considerable risk due to the unfamiliarity with the market, competitors, and local regulations.
To reduce the risk, the company could engage in market research, develop a risk management plan, and take advantage of financial incentives or subsidies available in the target country.
Overall, companies competing in international markets must carefully consider both profitability and risk when developing and assessing strategic alternatives.
They must take into account the potential rewards and risks associated with each option in order to make the best decision for their business.
When developing and assessing strategic alternatives, companies competing in international markets confront two opposing goals, which are global efficiency and local responsiveness.
In international markets, companies face two opposing goals, global efficiency and local responsiveness, when developing and assessing strategic alternatives.
Global efficiency is a goal that focuses on reducing costs and improving the efficiency of global operations.
Standardized products and production processes are emphasized in this approach to achieve economies of scale, such as low-cost manufacturing facilities, to increase efficiency and profitability.
The objective of this approach is to use uniform products and production processes worldwide to achieve economies of scale, reduce costs, and optimize efficiency on a global scale.
The local responsiveness objective, on the other hand, aims to meet the specific needs of local markets.
Multinational corporations are encouraged to tailor their products and processes to the unique tastes and preferences of consumers in each region or country in which they operate.
This is because local demand can be highly varied, and if businesses ignore it, they risk alienating potential customers.
Local responsiveness is an essential goal that emphasizes adapting products and operations to specific regional and national circumstances while maintaining a consistent level of quality and customer experience.
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a manufacturer marketed a new mascara that initial testing revealed could cause an allergic reaction in a small number of people. one of the people found to have this allergic reaction in initial testing suffered significant loss of vision in one eye as a result. when the mascara was released on the market, the manufacturer included a warning of the possibility of an allergic reaction, but did not provide the consumer with any way to test for the allergy and made no mention of the possibility of this allergic reaction causing loss of vision. joan purchased the new mascara from a local drug store and suffered an allergic reaction to the mascara that caused a 90% loss of vision in her right eye. how strong of a case does joan have against the manufacturer for strict product liability? weak, because the manufacturer met its duty to warn by informing consumers that the product could cause an allergic reaction, and therefore users of the mascara assumed the risk. weak, because the manufacturer is not engaged in the business of selling and is therefore not subject to section 402a of the restatement of torts (second). however, joan could sue the local drug store. strong, because the warning by the manufacturer was inadequate, since the risk of harm was foreseeable and could have been reduced by providing a way of testing for the allergic reaction and informing consumers of the potential of vision loss. strong, because the manufacturer was clearly negligent by releasing a product to market that could cause an allergic reaction in anyone.
Joan has a strong case against the manufacturer for strict product liability.
The warning the manufacturer provided about the possibility of an allergic reaction was inadequate because the risk of harm was foreseeable, and could have been reduced by providing a way to test for the allergy, and informing consumers of the potential for vision loss.
Therefore, the manufacturer was negligent by releasing a product to market that could cause an allergic reaction in anyone, and did not meet their duty to warn.
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