Option (b), Cause marketing is a tactic used to connect a business brand with a social cause in order to advance both the business and societal goals.
What is involved in cause marketing?Cause marketing is a collaborative effort between a for-profit business and a nonprofit group to accomplish a common objective. Initiatives run by for-profit businesses that are social or altruistic are another name for cause marketing. If a brand is connected to a nonprofit, its corporate social responsibility will normally rise.
Why is cause marketing so important?According to the experience of numerous firms, cause marketing may help companies achieve many of their important marketing objectives, such as increasing brand visibility, customer engagement, and sales, while also keeping their ethical convictions.
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April and Wayne are the buyer and seller of a condo, respectively. April is represented by Steve. Wayne is represented by Wanda. Name the principal(s) in this transaction.O April and Wayne
O Wayne only
O Wanda only
O Steve and Wanda
The principal(s) in this transaction are Steve and Wanda. Thus Steve and Wanda's option is the correct answer.
A principal is a person or organization that initiates and carries out a transaction, they are the main parties who are involved in the transaction.
In this case, April is the buyer and Wayne is the seller of the condo. They are the main parties involved in the transaction, and they are the ones who enter into a legally binding agreement. Steve and Wanda are the agents representing April and Wayne, respectively, they act on behalf of their clients (April and Wayne), but they are not considered principals.
They help them to negotiate, execute and close the transaction by providing expert advice and services. They are not the main parties in the transaction. Therefore, the correct answer is O) Steve and Wanda.
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3)Show how the prices of supplements and complements goods can affect the demand on a
certain good
Answer: If the price of one good increases, demand for both complementary goods will fall.
Explanation: In marketing and business, this can be a trade-off. If the price of a good or service increases, no one wants to buy it, (because the price is too high) resulting in a decrease in demand. This is why complementary goods hurt business. I hope this helps!
n the integrative framework for the implementation of task redesign, the step that follows selection of task redesign is a. diagnosis of the work system and context. b. go/no-go decision. c. none of these are correct. d. recognition of a need for a change. e. cost-benefit analysis of proposed changes.
The integrative framework for task redesign implementation, the phase that follows task redesign selection is diagnostic of the work system and context. The correct answer is (a) diagnosis of the work system and context.
What exactly is a work system?Many places have used the term "work system" loosely. This article focuses on its use in understanding IT-reliant systems in enterprises. The word was originally used in 1977 in the inaugural edition of MIS Quarterly in two papers by Bostrom and Heinen. Later, Sumner and Ryan used it to describe challenges with CASE adoption. A number of socio-technical systems academics, including Trist and Mumford, used the phrase on occasion but did not define it thoroughly. In contrast, the work system method thoroughly defines the work system and uses it as a fundamental analytical notion.
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how will a gauge visualization provide impressive one-glance information on your company's sales for the year?
The percentage of salespeople who are on track to meet the sales target might be displayed. It can demonstrate how each salesman is "measured" against the others.
What is sales target?By measuring sales, you can determine the revenue from current sales and compare it to a goal or previous results.
It may be specified as the quantity of units sold, the dollar amount, or the total number of accounts. Any sales management strategy's central tenet is to track how well sales are performing relative to goals.
The quantity of goods that must be sold in order to break even or turn a profit in a specific time frame is known as a sales target. Your business plan's forecasts should be met by these goals.
Your sales staff has targets that they must achieve. These goals are frequently linked to overall corporate goals and are centered on a particular sales KPI.
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you are managing a project that involves installing a new generator in the local power station. the project has been scheduled to take five weeks. the total cost of the project is set at $780,000. at the three week mark of the project, it has been determined that the project is one week behind schedule, and the cost so far is $390,000. which option represents the schedule performance index of this project?
The process of determining the impact of the modification on the project is called the impact assessment stage. It should be possible to capture the necessary information.
What two steps can a project manager take to overcome the planning fallacy?Discuss potential dangers with your teammates. Up the project's budget. Identifying the tasks needed to fulfil the project deliverables forms the basis for creating a project schedule. Iteratively breaking down the WBS work packages into smaller jobs that take between 40 and 80 hours to accomplish is part of this procedure.The main goal of integrated change control is to assess how changes affect all project constraints. During the course of the project, particularly during the project execution and monitoring and control phases, changes to any aspect of the project may be requested.They first add a new entry to the changelog, noting whether they accepted or rejected the change request. The decision is then relayed to the pertinent parties.To learn more about process refer to:
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when a company is reported to have engaged in corruption, the department of justice and the securities and exchange commission will look closely at it and at other companies in the industry and related industries, and the travel and expense claims of their agents. this process is called
Anti-Corruption and Compliance is the name of this procedure. Any sort of corruption or buying influence is unacceptable.
What could be the consequences if an employee commits an act of corruption?Anyone who violates this policy will be subject to legal disciplinary action, which may include dismissal from employment and the risk of criminal prosecution under applicable laws.
All individuals working for the Company or even under its control are accountable for the prevention, detection, and reporting of bribery as well as other types of corruption. Every employee must refrain from any action that could result in a breach of this policy or even just raise suspicions of one. In the countries where the Company conducts business, including India, bribery is a severe criminal offense that carries hefty fines.
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Suppose That Shen, An Economist From A Research Institute In Texas, And Valerie, An Economist From A Public Television Program, Are Arguing Over Budget Deficits. The Following Dialogue Shows An Excerpt From Their Debate: Valerie: Most People Recognize That The Budget Deficit Has Been Rising Considerably Over The Last Century. We Need To Find The Best Course
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Suppose that Shen, an economist from a research institute in Texas, and Valerie, an economist from a public television program, are arguing over budget deficits. The following dialogue shows an excerpt from their debate:
Valerie: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation.
Shen: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits.
Valerie: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.
The two economists have different views on how to remedy the rising budget deficits.
What do you mean by budget?
Budget is an amount of money allocated for a particular purpose. It is a plan for saving, borrowing and spending that is created to achieve a goal over a period of time. A budget is also a financial document used to project future income and expenses.
Shen suggests cutting income tax rates in order to boost economic growth and raise revenue. Valerie, on the other hand, suggests that raising the top income tax rate would be more effective in reducing the budget deficit. The disagreement between the two economists reflects the debate over the effectiveness of taxation in reducing budget deficits.
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the demand curve for canned peas is downward sloping. if the price of canned peas, an inferior good, rises, then a. the income effect which causes you to reduce your canned peas purchases is smaller than the substitution effect which causes you to increase your purchases, resulting in a net increase in quantity demanded. b. the income effect which causes you to increase your canned peas purchases is smaller than the substitution effect which causes you to reduce your purchases, resulting in a net decrease in quantity demanded. c. both the income and substitution effects reinforce each other to decrease the quantity demanded. d. the income and substitution effects offset each other but the price effect of an inferior good leads you to buy more canned peas.
The right answer is B. There is a net drop in quantity requested because the income effect, which lets you buy more canned peas, is less effective than the supply curve, which makes you buy less.
Describe the demand curve.The link between the amount of a product or service that customers are willing and capable of purchasing and the pricing of that item or product is represented graphically by a demand curve. The average slope is down, meaning that as the cost of a commodity or service rises, more people will buy it. The demand law is referred to as such. The demand curve may also slant towards the west or left based on variables such shifting customer tastes and income.
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question mode multiple choice question accounting professionals: multiple choice question. are in high demand are rarely employed outside the accounting field have limited opportunities outside accounting
Accounting professionals are in high demand are rarely employed outside the accounting field have limited opportunities outside accounting.
What is Accounting professionals?
An accountant is a person who works in the accounting industry and carries out tasks including financial statement analysis, audits, and account analysis. Accountants are employed by accounting firms or internal accounts divisions of big businesses. Additionally, they are free to establish their own, unique practices.
What are the five accounting principles?
Revenue recognition, asset classification, permitted techniques for depreciation, what is deemed depreciable, lease classifications, and outstanding share measurement are some specific instances of accounting rules.
Forensic accounting, which entails checking financial records for suspicious activity and other abnormalities, is one of the most lucrative accounting professions.
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true or false: the companies dominating the book publishing industry focus exclusively on book publishing, and tend not to be large conglomerates with interests in other media.
It is accurate to say what it says. Large conglomerates with holdings in other media are uncommon among the businesses that dominate the book publishing industry because they exclusively focus on one sector.
What is meant by companies dominating?Top-tier companies including Honeywell International, 3M, Raytheon Technologies, and Siemens were edged out by Reliance Industries in the ranking of the global conglomerates with the largest market value for 2022. Each of these companies owns numerous subsidiaries. Conglomerate is a term used in petrology to describe lithified sedimentary rocks with rounded particles bigger than 2 millimeters (0.08 inch) in diameter. To contrast it, breccia, which consists of angular particles, is frequently used. They are now performing much better. The stock market capitalization of the top 50 firms by value increased by $4.5 trillion in 2020, bringing their total value to nearly 28% of the world's GDP. The corresponding number was lower than 5% thirty years ago.To learn more about companies dominating, refer to:
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Development is distinguished from training, in that:
Enhancing an employee's knowledge, abilities, and capacity for performing a task is done through training.
Employee advancement is referred to as their overall development. These are training exercises designed to develop staff members. The management and operation of human resources must include employee training and development. Both programs aim to raise workers' efficiency and effectiveness. A company may set up a training program to enhance employees' knowledge and abilities in line with employment needs. On the other side, development is a planned action in which the organization's workforce develops and learns; it is a self-evaluation act. Throughout the training, which is aimed at enhancing each employee's competencies, employees receive technical knowledge and skills related to their profession. On the other hand, development is a form of educational process that emphasizes the development and maturity of management professionals.
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for steak and cheese sandwiches and grilled chicken sandwiches, the table contains the values of the marginal utility (mu) and marginal utility per dollar (mu/p) for mabel jarvis. mabel has $14 to spend on steak and cheese sandwiches and grilled chicken sandwiches. which of the following statements is false? a. the price of steak and cheese sandwiches is $4. the price of grilled chicken sandwiches is $2. b. if mabel maximizes her utility she will buy three grilled chicken sandwiches. c. if mabel maximizes her utility she will buy two steak and cheese sandwiches. d. we do not have enough information to determine how many sandwiches mabel will buy to maximize her utility.
According to the question, the given option d - We do not have enough information to determine how many sandwiches Mabel will buy to maximize her utility.
Which definition of "information" is the best?information shared or received regarding a specific fact or circumstance; information about a crime; news. knowledge attained by investigation, instruction, communication, and other means; actual facts: His knowledge of general topics is astounding.
Why is information so crucial?Information aids in preventing study duplication. Information stimulates users' cognitive processes, especially researchers. Information helps keep researchers, scientists, and other professionals abreast of the most recent advancements in their professions.
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a. maryann company's august 31 bank reconciliation shows deposits in transit of $2,250. the general ledger cash in bank account shows total cash receipts during september of $86,050. the september bank statement shows total cash deposits of $87,000 (and no credit memos). what amount of deposits in transit should appear in the september 30 bank reconciliation?
The amount of deposits in transit that should appear in September 30 bank reconciliation is $84,750.
What is bank reconciliation?A bank reconciliation statement compares the cash balance on the balance sheet of a business with the corresponding amount on the bank statement. The two accounts can be reconciled to see if any accounting adjustments are required. To maintain the accuracy of the company's cash records, bank reconciliations are carried out on a regular basis. They also aid in the detection of cash manipulation and fraud. In virtually all cases, when banks give businesses bank statements that include the company's beginning cash balance, transactions for the period, and ending cash balance, the bank's ending cash balance and the company's finishing cash balance are different. Checks that the business has issued to creditors but have not yet been paid for are referred to as outstanding checks.
Amount= 87000-2250= $84750
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If economists examine the relationship between the price of a good and sales of that good while ignoring other related factors, or assuming those other factors are equal, they are using which of the following
The approach economists are using is a ceteris paribus analysis.
Why do economists use the ceteris paribus assumption?Economists use the ceteris paribus assumption to isolate the effects of one specific change in the economy. This assumption allows economists to isolate the effect of one change and observe how it affects the economy without having to consider any other factors that may be influencing it. This helps to provide a more accurate and precise analysis of the economic impact of the change in question.
They are using ceteris paribus analysis, which is Latin for "all other things being equal." Ceteris paribus analysis is a technique economists use to isolate and analyze the relationship between two variables, such as the price of a good and sales of that good, without the influence of other related variables. This allows economists to better understand how changes in one variable affect the other.
Therefore, ceteris paribus analysis is the answer.
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what is an important element of the marketing mix that ms. robinson includes but notes is often overlooked?
It describes the carefully crafted combination of tactics that a business does to promote its products and drive commerce.
What is the core tenet of the marketing mix?Definition: The term "marketing mix" refers to a group of procedures, or techniques, that a business use to sell its goods or services. Price, Product, Promotion, and Place are the 4Ps that make up a conventional marketing mix.
The importance of marketing mix:Marketing Mix: Its Importance
aids customers in understanding the benefits that your product or service can provide. aids in formulating a lucrative product offering. aids in the creation, development, and implementation of successful marketing strategies. helps firms utilize their strengths and cut back on unneeded expenses.
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organizational culture is related to the polc function of: question 4 options: planning organizing leading controlling
The organising polc function is connected to organisational culture. The success of an organisation is built on its organisational culture.
What do you mean by Organizational culture?
Organizational culture refers to the values, beliefs, attitudes, and behaviors shared by the members of an organization. It is the personality of an organization, shaped by its history, mission, and values. It is reflected in the organization's practices, policies, language, symbols, and working environment. It is also the product of the interactions between employees, and the sum of the collective behaviors and attitudes of the organization. Organizational culture can be seen in the way decisions are made, how people interact with each other, and the level of risk that is accepted. It can also be seen in the way work is organized, how resources are allocated, and how employees are motivated and rewarded.
So, The correct answer is Organizing.
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3. what problems did farmers face throughout the 1920s? a. widespread drought and crop failure b. increasing demand and rising prices c. government interference and lower demand d. crop surpluses and dropping prices
Government interference and lower demand were the problems that the farmers face throughout 1920s.
What is demand?The ability and willingness of a consumer to purchase an item or service is referred to as "demand" in the economics field. It is the primary force advancing the country's economy. Without it, other economic activity will no longer be relevant. Business spends a significant amount of time and money in order to fully understand this demand description. Lack of demand, which is what propels an economy, will cause businesses to suspend manufacturing and other economic operations. The amount of demand decreases when a company asks for a higher price for its products, which has a detrimental effect on sales and profits. Other factors that affect demand besides this include the appeal of the good or service, its reliable supply, the existence of competing products, and the accessibility of financing options.
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marahhas started a software development firm. she does not have the resources to package and market the software, so she partnered with zenith llc. what is the financial relationship between marah and zenith?
Marah established a business that develops software. Since she lacked the means to package and advertise the software, she formed a strategic collaboration with Zenith l l c.
What are the four types of strategic alliances?Strategic alliances can be of three different types: joint ventures, equity strategic alliances, and non-equity strategic partnerships. A cooperative venture that strengthens a primary business strategy, develops a distinct competitive edge, and prevents rivals from invading a market. It enables many businesses to collaborate and accomplish more than they could have done separately. In other words, co-existence.
With the help of strategic alliances, a company can expand its customer base without spending more resources. Creating a strategic alliance gives a franchise firm the chance to expand its clientele and attract new potential clients. Franchise businesses are continuously looking for fresh, innovative methods to do this. An equity strategic alliance, a non-equity strategic alliance, and a joint venture are the three primary forms of strategic alliances.
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a city ordered goods at an estimated cost of $4,500. when the goods were received, 30 days after the order was placed, they were accompanied by an appropriate invoice in the amount of $4,800. what amount will be recognized as an adjustment to encumbrances when the goods are delivered?
The amount recognized as a charge adjustment when the product is delivered is $300. This is calculated by subtracting the estimated cost of $4,500 from the bill of $4,800.
What does heavy load mean?A burden is a burden on property by a party that does not own the property. A burden affects the transferability of property and limits its free use until the burden is removed. Land is the most common burden. These include mortgages, easements and property tax liens.
Given the,
$4,800 (billed amount) - $4,500 (estimated cost) = $300 (adjusted fee)
Therefore, the price adjustment amount is $300.
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which of these questions can be answered by reviewing a firm's balance sheet? multiple select question. how much debt is used to finance the firm? how much of the firm's net income was paid out in dividends? how much net income has the firm earned this period? what is the total amount of assets the firm owns?
The total amount of assets the firm owns . questions can be answered by reviewing a firm's balance sheet.
What is a company's balance sheet?
The assets, liabilities, and owner's equity of a company are listed on a balance sheet as of any particular date. A balance sheet is often created at the conclusion of predetermined periods (e.g., every quarter; annually). Two columns are present on a balance sheet. Assets for the company are listed in the column on the left.
What queries are answered by a balance sheet's data?
The balance sheet can assist users in determining the company's net worth, whether it has enough cash and short-term assets to cover its obligations, and whether it is heavily indebted in comparison to its competitors.
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us-mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. fixed costs are $96,800, and the contribution margin per composite unit is $121. what number of each type of product is sold at the break-even point?
Break-even point (units) = $96,800/121 per unit = $800
Tablets = 4/(4+2)× 800 =533 units
Smartphones = 2/(4+2) × 800 = 267 units
What two sorts of break-even points are there?There are two approaches to determine a firm's break-even point (B.E.P.). It can be calculated in terms of physical units, such as output volume, or it can be calculated in terms of monetary value, such as sales value.
Why is it referred to as break-even?Break-even (or break even), often known as the point of equilibrium or B/E in finance, is the point of balance where there is neither a profit nor a loss. Any value below the break-even mark represents a loss, whereas any value above it represents a gain.
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Bob and Jim enter into a contract where Jim will custom make curtains for Bob’s living room. Bob picks out the fabric and Jim makes the curtains. He delivers them to Bob, and Bob refuses to pay and says he does not like them. On what basis can Jim enforce?
1- Duress
2- Custom made goods exception
3- Good faith
4- Fair dealings act
A genuine offer and acceptance, sufficient consideration, capability, and legality are the fundamental components needed for an agreement to constitute a binding contract with legal standing.
What is good faith and fair dealing exception?An agreement between Bob and Jim states that Jim will create Bob's living room drapes to order. Jim makes the curtains while Bob chooses the material. Bob accepts them from him but refuses to pay, claiming he doesn't like them. Jim's landlord, Bill, employs Bob to mow the yard where Jim resides. contracts according to an objective theory.
In general, the obligation of good faith and fair dealing entails that parties cannot, for instance, violate the letter or spirit of the agreement, show negligence or procrastination, intentionally perform incorrectly, abuse their position of authority when defining the terms of a contract, interfere with or obstruct the performance of the other party, or evade the spirit of the agreement altogether.
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which statement(s) below correctly describe(s) the relationship of cost of goods sold and ending inventory? (check all that apply.) multiple select question. cost of goods sold plus ending inventory will equal the total goods available for sale. cost of goods sold will equal total ending inventory. cost of goods sold plus goods available for sale will equal total goods in ending inventory. cost of goods available for sale must be allocated between cost of goods sold and ending inventory.
The entire amount of items available for sale is equal to the cost of goods sold + ending inventory. Cost of products available for sale must be split between ending inventory and cost of goods sold.
How are ending inventory and cost of goods sold related?The remaining sellable inventory you have at the end of an accounting period is referred to as ending inventory. In order to calculate the value of your ending inventory at the conclusion of a specific accounting period, start with your beginning inventory, add net purchases, and subtract cost of goods sold (COGS). The cost of every item of inventory that was sold during the accounting period should be included in COGS, in theory. In reality, however, businesses frequently are unsure of the precise inventory units that were sold.
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selected information from the separate and consolidated year-end balance sheets and income statements of pare, inc. and its subsidiary, shel co., on december 31, year 4, is as follows: pare shel consolidated balance sheet accounts accounts receivable $ 52,000 $ 38,000 $ 78,000 inventory 60,000 50,000 104,000 income statement accounts revenues 400,000 280,000 616,000 cogs 300,000 220,000 462,000 gross profit $100,000 $60,000 $154,000 sales between pare and shel use the same terms as third-party sales. the amount of unrealized intercompany profit in year 4 is closest to
Unrealized earnings are essentially the earnings that had been blanketed in the fee of stock when such inventory was offered by way of one employer of the team to another, but this stock may want to not be sold in addition through the receiving entity within the given year.
What is unrealized profit in establishing inventory?Answer and Explanation: If there is unrealized income in the commencing inventory balance, we debit retained salary because the income from the prior duration is overstated. This is because, with unrealized profit in the beginning inventory balance, the ending stock of the prior length used to be overstated.
Subtract your unrealized income on the remaining inventory. In the example, the income contained in the $500 discern assumes a 25 percentage income margin. That potential you have $125 in unrealized income in your unsold inventory (500 instances 25 percent equals 125).
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https://brainly.com/question/25671575#SPJ4Most macroeconomists believe it is a good thing that taxes act as automatic stabilizers and lower the size of the multiplier. However, a smaller multiplier means that the change in government purchases of goods and services, government transfers, or taxes necessary to close an inflationary or recessionary gap is larger. How can you explain this apparent inconsistency?
When you criticize someone for being inconsistent, you are referring to the fact that they don't act consistently when a comparable circumstance arises.
How do macroeconomists work?Macroeconomics is the branch of economics that focuses on large-scale or general economic issues and how those interact in economies. It is the study of entire economies.
Macroeconomics is a subfield of economics that focuses on the behavior of the economy as a whole, including the markets, firms, customers, and governments. Macroeconomics studies trends in the economy as a whole, including inflation, price levels, economic growth rates, national income, GDP, and changes in unemployment.
In contrast to studying individual issues, macroeconomics focuses on the factors that have an impact on the economy or society as a whole. Aggregate economics is another name for it.
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you have been assigned to a new project that was requested by your organization's project management office to meet a new government regulation. they have provided you with a number of different documents to help you develop the initiation documentation required for this project. you want to understand the relationship between the product being created and the business need before you begin defining the high-level scope of the project. which document would you review first?
The project benefits management plan is the document that you would review first.
What is benefits management?Benefits management is the process of identifying, defining, planning, monitoring, and achieving benefits. Making sure that benefits originate from outputs and outcomes is a strategy known as benefits realization. The fulfillment of stakeholder needs is a key component of a project's success, which is determined by the success criteria established at project inception. Benefits management is necessary as an additional activity to translate needs that have been presented in terms of benefits in order to promote benefits realization during the prolonged project period. Typically, benefits have a measurable value that is, ideally, stated in monetary terms to support the investment. The sponsor is responsible for ensuring that the advantages are realized because they are frequently realized after the transition into use.
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which of the following are outputs of the aggregate planning process? multiple select question. projected levels of inventory projected levels of employment projected levels of subcontracting projected levels of output total cost of a plan demand for level b inventory items demand for level c inventory items projected levels of capital needs
Projected levels of subcontracting, Projected levels of employment., Projected levels of inventory, Total cost of a plan, Projected levels of output are outputs of the aggregate planning process
The aggregate planning approach examines, develops, and maintains a manufacturing plan with a focus on consistent, dependable output. The majority of the time, aggregate planning is centred on production levels, inventory control, and targeted sales estimates for the next three to eighteen months. The act of creating, evaluating, and maintaining a rough timeline for an organization's entire operations is known as aggregate planning. The overall plan typically includes customer backlogs, production levels, sales volumes, and targeted sales predictions.
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how would a decrease in real income in the united states affect the u.s. current account balance? explain. suppose china financed a huge program of infrastructure spending by borrowing. how would this borrowing affect the u.s. balance of payments? explain.
Increases in the current account would be impacted by real income decline. The financial account and the current account often have equal balances.
Current account deficit: what are the causes?When imports (of products, services, and income from investments) exceed exports in value, a current account deficit results. Imports will cost less and be purchased in greater numbers if the currency is overvalued.
What causes current account deficits while the economy is growing strongly?When there is a significant increase in imports during an economic expansion, the current account will be in deficit if exports are unable to rise at the same rate. If imports increase during a recession, however, the current account will show a surplus.
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assume a system of flexible exchange rates. suppose that a country has a trade deficit of 50 billion
The appropriate mix is a monetary expansion to lessen the value of the currency (and thereby to
improve the trade balance) and a fiscal contraction to prevent output from increasing.
What is a trade deficit?When an international transaction account has a negative net amount or negative balance, a trade imbalance exists. All economic transactions involving a change in ownership between residents and non-residents are documented in the balance of payments (international transaction accounts).
Different categories within an international transaction account might be used to compute a trade deficit or net amount. Among them are products, services, goods and services, current account balances, and the total of the current and capital account balances.
Net lending/borrowing is the total of the current and capital account balances.
This is also equivalent to the account's balance plus a statistical inaccuracy. Unlike purchases and payments in the current and capital accounts, the financial account measures financial assets and liabilities.
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If a country has an open economy and a flexible exchange rate system. An increase in the country's government trade deficit will cause an increase in the real interest rate and a decrease in net exports.
What is a trade deficit?A trade deficit is a situation where the imports of a country are higher than the exports of a country.
How does a system of flexible exchange rates get affected by an increase in the trade deficit?In an open economy with a flexible exchange rate system, the crowding-out mechanism becomes stronger. So here the fiscal expansion causes both a rise in the interest rates as well as a fall in the exchange rate. Thus, this leads to a reduction in both domestic expenditure and net exports.
The growing trade deficit and increasing imports will eventually create a negative effect on the foreign exchange rate of a country. It means an increasing trade deficit leads to a fall in the exchange rate of a country which leads to a decrease in net exports.
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the president of real time inc. has asked you to evaluate the proposed acquisition of a new computer. the computer's price is $40,000, and it falls into the macrs 3-year class. purchase of the computer would require an increase in net operating working capital of $2,000. the computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. the computer is expected to be used for 4 years and then be sold for $25,000. the firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. what is the operating cash flow in year 2?
The computer costs $40,000 and is categorized as a 3-year purchase. The cash flow from operation for the second year is $9,667.
Describe cash flow.The balance of money coming into and going out of an organization at a particular period is referred to as cash flow. A firm constantly receives and expends cash. For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
What makes cash flow crucial?A certain amount of readily available cash is required to keep your firm operating. Cash flow is really the balance between a company's income and expenses during a given period. You can plan the flow of your income for your upcoming financial term of business by using a statement of cash flows.
depreciation expense = $40,000 x 33.33%
= $13,333.
Operating cash flow 2 = $20,000 - $5,000 - $13,333 - $2,000
= $9,667
operating cash flow = $9,667
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