d. The largest asset is typically capital intensive Property, Plant and Equipment. All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except d.
for usage as medications given to patients (or self-administered). [1] [2] Pharmaceutical firms may sell both brand-name and generic drugs as well as medical equipment. They must abide by a number of laws and rules that control the marketing, testing, safety, effectiveness, and patenting of medicines. In 2020, the worldwide pharmaceuticals industry will have produced therapies worth $1,228.45 billion, with a 1.8% compound annual growth rate the pharmaceutical business finds, develops, manufactures, and promotes medicines or pharmaceutical drugs
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a company needs a way to convert 10 years of shipping records currently on paper into files that can be saved to its private cloud storage. t/f
A business requires a method to transform 10 years' worth of shipping records that are currently on paper into files that can be uploaded to its personal cloud storage. Hence, the given statement is true.
A data deposit paradigm known as "cloud storage" is one in which digital data, including documents, images, and other types of media, is kept on virtual or cloud servers that are maintained by outside parties.
One can move data and access it whenever they need to using an offsite storage system. Private cloud storage is often referred to as internal or business cloud storage. In this situation, the intranet of the business or organisation houses the data.
The organization's firewall safeguards this information. For businesses with pricey data centres and internal data privacy management capabilities, private cloud storage is a fantastic alternative.
Therefore, the given statement is true.
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these advances in travel and transport helped drive settlement in the western regions of north america
These railroad and steam-powered locomotive advances in travel and transport helped drive settlement in the western regions of North America.
A locomotive is a rail transport vehicle that provides the motive power for a train. If a locomotive is capable of carrying a payload, it is usually rather referred to as a many units.
America's economic transformation in the early was lined to dramatic change in transportation networks. Construction of roads, canals and railroads led to the expansion of markets, facilitated the movement of peoples and altered the physical landscape.
Railroads became a major industry, stimulating other heavy industries such as iron and steel production.
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the measure of money that best fulfills the medium of exchange function because it is most liquid is:
M1 is the most liquid because it includes only cash and checking account balances. The other measures include other assets that are less liquid than cash or checking accounts balances.
Cash, securities, and fixed assets make up the three primary categories. Fixed assets are normally nonliquid, securities have varying levels of liquidity, and cash is typically thought of as the most liquid asset.
What unit of currency is there?
M1 is made up of the total amount of coins and bills in circulation plus demand deposits that can be checked. M2 is equal to M1 plus certificates of deposit, money market funds, savings accounts, and other time deposits.
The broadest measurement of a country's money supply is the M3 category. Due to the emphasis on money as a store of value rather than a medium of exchange, M3 includes less liquid assets.
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When agents do not act in the best interest of their principals, the cost is borne by which of the following? a. Only the agent b. Only the principal c. Both the principal and agent d. There is no cost of an agent not acting on behalf of their principal.
When agents do not act in the best interest of their principals, the cost is borne by both the principal and agent.
A person who has been given the authority to act on behalf of another person or entity is referred to as an agent in the legal community. A customer may hire an agent to act on their behalf in discussions and other interactions with third parties. A decision-making role for the agent is conceivable.
Lawyers who represent their clients in court and stockbrokers who are employed by investors to help them make investment decisions are two frequent sorts of agents. In these cases, the agent's principal is the person being represented by the agent. It is a term used in finance to describe a fiduciary relationship when an agent is given permission to act on behalf of and in the best interests of the client.
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antitrust enforcement of vertical relationships is generally focused on preventing: group of answer choices dominant firms using vertical contracts to extend market power to other levels of the supply chain vertical contracts that increase the intensity of competition vertical contracts that reduce costs all of the above both a
The correct answer is A and C
The antitrust enforcement of vertical relationships was typically focused on lowering competition among the firms and the price war (changing the price when another firm changes the price) and that could be able to reduce costs.
Vertical relationships are used by dominant companies to extend their marketing influence to other supply chain levels.
The businesses will agree to the terms and conditions without there being any competition. Some businesses might rely on one sector while using another.
Choice b
Vertical agreements that up the level of competition
This choice is incorrect. Antitrust vertical relationships were primarily concerned with enhancing the likelihood of agreement and limiting competition between the firms.
Choice c
Vertical agreements that cut costs.
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a taxpayer should include which of the following when figuring their federal gross income? commissions. federal income tax refunds. gifts and inheritances. alimony after 12/31/18.
A taxpayer should include federal income tax refunds when figuring their federal gross income.
Though federal income tax refunds are not required by law, the IRS does encourage taxpayers to claim them. A tax refund is simply money that is owed to the taxpayer by the government. Taxpayers can receive refunds for overpaid taxes, underpaid taxes, and even taxes that were never owed in the first place.
While most taxpayers are eager to receive their refunds, there are some who would rather not receive one. This is because a tax refund means that the taxpayer has overpaid their taxes for the year and essentially gave the government an interest-free loan.
Hence, the correct option is "SECOND".
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Expansionary monetary policy can have immediate real short-run effects; initially, no prices have adjusted. But as prices adjust in the long run:a. the real impact of monetary policy is multiplied.b. the real impact of monetary policy is unknown.c. the real impact of monetary policy is cut in half.d. the real impact of monetary policy is negative.e. the real impact of monetary policy dissipates completely.
Expansionary monetary policy can have immediate real short-run effects; initially, no prices have adjusted. But as prices adjust in the long run, the real impact of monetary policy dissipates completely. The Option E is correct.
What is achieved with an expansionary monetary policy?An expansionary monetary policy is also known as a loose monetary policy, which helps to increases the supply of money and credit to generate economic growth. A central bank usually deploy an expansionist monetary policy to reduce the unemployment and boost growth during hard economic times.
Generally, the Federal Reserve has 3 expansionary monetary policy methods including lowering interest rates, decreasing banks' reserve requirements and buying of government securities.
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turquoise associates bought a machine at the beginning of the year at a cost of $25,000. the estimated useful life was five years and the residual value was $3,000. required: complete a depreciation schedule for the straight-line method. prepare the journal entry to record year 2 depreciation.
In order to forecast a company's fixed asset value (balance sheet), depreciation expense (income statement), and capital expenditures, a depreciation schedule is necessary (cash flow statement).
An economic asset depreciates when it is used up. Different types of property, plant and equipment are economic assets (PP&E). The assets start to deteriorate and lose value as soon as they are used. Different assets depreciate at various rates. Calculating the differences is made easier with a depreciation schedule.
The schedule will include a list of the various asset classes, the depreciation methods they employ, and the total depreciation they have accumulated over time. Historic and anticipated capital expenditures could also be included in the depreciation schedule (CapEx).
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TRUE/FALSE. amortization is the amount by which intangible assets like goodwill, patents, license, copyrights, and trademarks are written down in any period that they are utilized by the firm to generate benefits
False, amortization is the amount by which intangible assets like goodwill, patents, license, copyrights, and trademarks are written down in any period that they are utilized by the firm to generate benefits.
Why do you use the term "amortization"?
Amortization is the process of repaying a debt in a series of regular payments. Each payment has a principle portion that goes toward the loan balance and an interest portion. The amount allocated toward principle increases steadily month by month as the debt amortizes, starting out little at first.
How Is a Loan Amortized?
Calculating the monthly payment due throughout the loan's life is how a loan is amortized. The next step is to create an amortization plan that specifies exactly how much of each monthly payment goes toward principle and how much goes toward interest.
The amount of interest paid each month will decrease since a portion of the payment will presumably be used to reduce the remaining principle debt. Since your payment should ideally remain constant each month, more of it will go toward principle each month, thereby reducing the amount you borrowed.
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Assume that the operation of your business resulted in sales of $730,000 last year. Year-end receivables are $100,000. You are considering factoring the receivables to raise cash to help fi- nance your venture’s growth. The factor imposes a 7 percent discount and charges an additional 1 per- cent for each expected ten-day average collection period over thirty days.
Estimate the dollar amount you would receive from the factor for your receivables if the collection period were thirty days or less.
Estimate the dollar amount you would receive from the factor for your receivables if the average col- lection period were sixty days.
Show how your answer in Part B would change if the factor charges an 8 percent discount and charges an additional 0.5 percent for each expected fifteen-day average collection period over thirty days.
If the $730,000 in sales last year were evenly distributed throughout the year, an average $100,000 in receivables outstanding would imply what average collection period? Given the original terms stated in the problem, what dollar amount would you expect to receive for your receivables?
It plays a crucial role in determining the Accounts Receivable Turnover. It is calculated by dividing the sum of the starting and ending balances of the accounts receivable by 2.
The average accounts receivable is calculated by dividing the beginning and ending receivables over a specified time period (typically monthly, quarterly, or annually) by two. The accounts receivable turnover ratio is used to forecast the balance sheet in financial modeling.
What is a good ratio for accounts receivable?
Companies should aim for a ratio of at least 1.0 to ensure that they collect the full amount of average accounts receivable at least once per period. In general, a higher accounts receivable turnover ratio is advantageous.
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the labor markets in some countries outside the united states are attractive because____ .
Because of they may offer workers with high skills they may offer low wages, some non-American countries' labor markets are desirable.
Low-paid workers are primarily benefited by an increase in the minimum wage because they are the ones most likely to reinvest their extra income into the economy, sparking a positive feedback loop that results in increased demand for goods and services, employment growth, and higher productivity.
Low-level employees typically carry out decisions that upper-level employees make and implement. The people who put together goods, provide food, and deal with customers are low-level workers. Although they are paid the least, low-level workers are crucial to the success of an organization.
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persuasive claim or complaint messages may involve damaged products, mistaken billing, inaccurate shipments, warranty problems, limited return policies, insurance snafus, or faulty merchandise. t/f
Persuasive claim or complaint messages may involve damaged products, mistaken billing, etc. - True
Customers typically make persuasive claims or complaint messages when they have problems like damaged items, incorrect deliveries, or any other errors that may be the fault of the company in the issue. Thus, a persuasive claim or complaint message involves a damaged product, mistaken billing, inaccurate shipment, or warranty problem. It is important to use clear and concise language that effectively communicates the issue and the desired outcome.
One should begin the message by stating the issue and providing any relevant details or evidence to support their claim. The effect of the issue and why it needs to be resolved must also be stated. The persuasive claim message should be concluded by reiterating the main points of the argument and expressing willingness to work with the recipient to resolve the issue.
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The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: The cash payback period for this investment is O 5 years O 4 years O 3 years O 20 years
The cash payback period for this investment is 4 years
How is the time frame for cash payback determined?To find the payback period, divide the investment amount by the annual cash flow. Account and fund managers take the payback period into account when determining whether to move further with an investment.
What is a payback period?The payback period in capital budgeting is the length of time it takes for your company to recover the cost of acquiring one customer. The payback period, for instance, is 13.9 months for a customer who costs $350 to acquire and contributes $25 monthly or $300 year.
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2. the results of a study conducted as part of a yield-improvement effort at a semi-conductor manufacturing facility of a supplier to ford provided data on two quality control approaches. the data are on the tab defects. do the two approaches obtain equal quality output. (15 points)
The null hypothesis can be rejected at an alpha level of 0.05, and you can conclude that there is a relationship between the presence of particles and the quality of the wafer.
To determine if there is a relationship between the presence of particles and the quality of the wafer, you can use a chi-square test of independence. The null hypothesis for this test is that there is no relationship between the presence of particles and the quality of the wafer. The alternate hypothesis is that there is a relationship between the two variables.
Once you have calculated the expected counts, you can then calculate the chi-square statistic using the following formula:
chi-square = sum((observed count - expected count)^2 / expected count)
Plugging in the observed and expected counts from the contingency table, you get:
chi-square = (14 - 148)^2 / 148 + (36 - 186)^2 / 186 + (320 - 186)^2 / 186 + (80 - 148)^2 / 148
= 134^2 / 148 + 150^2 / 186 + 134^2 / 186 + 68^2 / 148
= 18156 / 148 + 22500 / 186 + 18156 / 186 + 4624 / 148
= 122.61
Next, you will need to determine the degrees of freedom for the test. In this case, the degrees of freedom is equal to (number of rows - 1) * (number of columns - 1) = (2 - 1) * (2 - 1) = 1.
Finally, you can use a chi-square table or a chi-square calculator to determine the p-value for your test. If the p-value is less than the alpha level you have chosen (in this case, 0.05), you can reject the null hypothesis and conclude that there is a relationship between the presence of particles and the quality of the wafer.
The complete question is shown below.
The results of a study conducted as part of a yield-improvement effort at a semiconductor manufacturing facility provided defect data for a sample of 450 wafers. The following contingency table presents a summary of the responses to two questions: "Was a particle found on the die that produced the wafer?" and "Is the wafer good or bad?" Use an alpha of 0.05. Quality of Wafer Bad Particles Good Totals Yes 14 36 50 No 320 80 400 Totals 334 116 450. show main answer and calculation
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percentage returns: i. are easy to understand. ii. relay information about a security more easily than dollar returns do. iii. are not affected by the amount of the investment. iv. can be easily separated into dividend yield and capital gain yield.
Percentage returns are easy to understand, relays information about a security more easily than dollar returns do, are not affected by the amount of the investment and can be easily separated into dividend yield and capital gain yield. Therefore, option (e) is the correct answer.
The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR). We determine the percentage change from the start of the period to the end when computing the rate of return.
Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR). Any asset can be used with the RoR as long as it is purchased once and generates cash flow at some point in the future. The attractiveness of various investments can be determined, in part, by comparing their historical rates of return to those of comparable assets. A needed rate of return is frequently chosen by investors before making an investment decision.
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Complete question:
Percentage returns:
I. are easy to understand.
II. relay information about a security more easily than dollar returns do.
III. are not affected by the amount of the investment.
IV. can be easily separated into dividend yield and capital gain yield.
A. II and III only
B. I and III only
C. I, II, and III only
D. I, II, and IV only
E. I, II, III, and IV
The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.
a. cost-plus
b. marginal
c. breakeven
d. incremental-cost
Cost-plus pricing is a method of determining a product's selling price by increasing the unit cost of the product by a predetermined set percentage (referred to as a "markup").
the markup % is a strategy for achieving a specific targeted rate of return. Value-based pricing is an alternative pricing strategy. Cost-plus pricing has frequently been applied to government contracts (also known as cost-plus contracts), but it has come under fire for decreasing suppliers' incentives to manage direct costs, indirect costs, and fixed costs, whether or not they are connected to the creation and sale of the good or service. To guarantee they have a thorough picture of their overall expenditures, businesses implementing this technique need to meticulously document all of their costs.
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if squid roe inc.'s p/e ratio is 12 and bagel's is 20, then investors expect blank . multiple choice question. bagel's stock price to fall squid roe's earnings to increase at a slower rate than its price bagel's earnings to grow at a faster rate than squid roe's squid roe's stock price to fall
if squid roe inc.'s p/e ratio is 12 and bagel's is 20, then investors expect Bank overdrafts may be offset against other cash accounts when certain conditions are met.
How Does an Overdraft Work?When a transaction or withdrawal is authorised by the bank even if there isn't enough money in the account to support it, this is known as an overdraft. The financial institution essentially extends credit when an account balance reaches zero. Even if there are no funds in the account or not enough cash to meet the withdrawal amount, the overdraft facility enables the account user to make additional withdrawals.
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Joe Henry's machine shop uses 2470 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual Demand: 2470 Holding Cost per bracket per year: $1.30 Order cost per order: $18.75 Lead Time: 2 days Working days per year: 250 a.) Given the above information, what would be the economic order quantity (EOQ)? b.) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost? c.) Given the EOQ, how many orders would be made each year? What would be the annual order cost? d.) Given the EOQ, what is the total annual cost of managing the inventory? e.) What is the time between orders? f.) What is the reorder point (ROP)
Based on the factual information provided on Joe's Machine Shop, we calculated the following answers to the five questions.
a.) The economic order quantity (EOQ) for the brackets is 767.
b.) The average inventory for the brackets would be 383.5 and the annual inventory holding cost would be $492.45.
c.) The number of orders that would be made each year would be 4, and the annual order cost would be $75.00.
d.) The total annual cost of managing the inventory would be $567.45.
e.) The time between orders would be 62.5 days.
f.) The reorder point (ROP) for the brackets would be 767.
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an impairment loss for intangible assets with indefinite lives is calculated as the book value less the
An impairment loss for intangible assets with indefinite lives is calculated as the book value less the Fair value.
Intangible assets are the sources a business owns that cannot be moved, like a system, or deal with, like bodily property. those intangible properties consist of goodwill, patents, logos, copyrights, and greater. They preserve lots of price on your business, even though they are not physical objects you could contact.
An intangible asset does no longer have a physical lifestyle however it possesses an economic value. It occupies an essential position within the company's stability sheet and may shore up its basic valuations for a long time. A tangible asset has a finite fee and a physical life.
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in the face of a flattening growth rate and dropping profitability, one of the tools pitney bowes turned to was a(n) to hold on to its best customers and create a better relationship with other customers by giving members discounts and incentives for frequent patronage.
In the face of a flattening growth rate and dropping profitability, one of the tools Pitney Bowes turned to was a(n) loyalty program to hold on to its best customers and create a better relationship with other customers by giving members discounts and incentives for frequent patronage.
A loyalty/reward program refers to prizes, limits and different motivations that organizations give to their clients as craft of an procedure to urge them to keep purchasing their items or administrations. Three key viewpoints that an organization should consider while fostering an effective loyalty/reward program are:
Exclusivity on the grounds that the client needs to feel that it is extraordinary to be essential for the program and not that everybody gets similar advantages as the program will not offer any benefit for the client.Client knowledge since you want to comprehend your clients to ensure that the program would be applicable to them by speaking to their requirements and wants.Commitment to the brand since you need to put forth certain that every one of the attempts support your image as that is your picture and the motivators offered need to offer some benefit to it.Know more about Loyalty Programs - https://brainly.com/question/17087458
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which of the following is not a key direct benefit from effective internal or external scheduling? group of answer choices lower cost greater use of assets higher quality more dependable delivery added flexibility
The following is not a key direct benefit of effective internal or external scheduling added flexibility. Option D.
Effective scheduling internally means moving goods and services through facilities faster and making better use of assets. The result is more capacity per dollar invested, leading to lower costs. The focus is on staffing rather than supplies.
Due to the importance of work in planning services behavioral and social issues, wage and hour laws and union contracts complicate the planning process. First, peptides are fragmented, followed by sequencing and assembly of peptide fragments.
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A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best-fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of ________. 87) A) risk-free rate B) alpha C) beta D) volatility
As the slope of the line is between General Motors' stock returns and the market's return, the slope of this line is the estimate of C) beta.
In the field of business, when two variables are studied together in order to know how one variable affects the other variable in a business, then such a type of analysis is referred to as linear regression.
In the regression analysis, the beta can be described as a standard coefficient that shows the best line in the analysis that can be made when two variables are compared.
In the question above, the relation between the general motor's stock and the return is being studied. The line in regression analysis that will be the best fitting based on these two variables will be the representation or estimation of the beta value. Hence, the correct option is C) beta.
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The U.S. dollar is currently trading for 1.10 Australian dollars (AUD) per dollar. If the exchange rate adjusts to 1 Australian dollar per 1 U.S. dollar thenthe AUD has depreciated.the U.S. dollar has appreciated.the U.S. dollar has depreciated.both the AUD and the U.S. dollar have appreciated.both the AUD and the U.S. dollar have depreciated.
If the exchange rate adjusts to 1 Australian dollar per 1 U.S. dollar then c) the U.S. dollar has depreciated.
Increased exports from the United States are more likely to result from the dollar's depreciation. The reason for this is that when a currency depreciates, domestic goods are more in demand abroad since they are now more affordable there.
When referring to the U.S. dollar, currency depreciation is a drop in the value of the dollar in comparison to other currencies.
The Fed's loose monetary policy can cause investment capital to leave the United States in quest of higher yields, which will devalue the dollar. Investors may move their capital to alternative markets as a result of declining company profitability and economic growth.
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Answer:
the U.S. dollar has depreciated.
Explanation:
Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following data:net income $332,800 depreciation expense 79,000 loss on disposal of equipment 36,300 increase in accounts receivable 28,500 increase in accounts payable 10,400Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Cash flow is the movement of money into and out of a business or individual. It is the net amount of cash and cash-equivalents being transferred into and out of a business or individual.
What is Net amount?
The net amount is the amount that remains after taxes, discounts, and other deductions have been deducted from the total amount.It is the amount that is due to be paid or received.The accounting definition is a little more complicated, referring to a company's profit after deducting the cost of doing business and all other expenses, both tangible and intangible.
Cash Flows from (used for) Operating Activities:
Net Income $332,800
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation Expense -79,000
Loss on Disposal of Equipment -36,300
Increase in Accounts Receivable (28,500)
Increase in Accounts Payable (10,400)
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market research concerns what aspects of your target market:; according to the reading, this is the first step in market research:; you are counting your competitors in town. this number is a(n):; you receive a report that demand for lawn care services; demand for electrical services in your area is $12 million per year; knowledge matters; you plan to be at least 5 miles; small business near me
What parts of your target market are covered by market research: Any of the choices mentioned traits, spending patterns, location, and requirements.
The reading claims that defining the research question is the first stage in doing market research.
Identification of the problem entails determining the issue at hand, its goals, and any research-related queries. The planning of the research it contains. The necessary details, the research techniques, and the parties in charge
Research being done: It covers the gathering of the original data, reviewing the secondary data, and the procedures and techniques used. Analyze, then present your findings, It involves data analysis, interpretational findings, a report, and recommendations.
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in considering purchasing products, what are some good guidelines to follow? choose all that apply. group of answer choices it is okay to max out your credit card if it is something you want but don't need. make sure you know what the final price will be, including any extended warranty plans and fees. get opinions from friends and relatives who have bought similar products. don't travel far to save a few cents on the exact same product. shop around comparing different deals for the same item. if you think the price is lower, but it rings up higher --too bad! carefully read and make sure you understand any contract you sign. buy when you want to, even if it is a bad time financially because of debt. any deal advertised on the internet or tv is a good deal. make sure you know the policies for returns and refunds.
No interest or fees are assessed on credit cards.
If you have no money left over for emergencies, that is not good.
Which factor most influences a customer's decision to purchase a certain good?When buying a new product, buyers are primarily motivated by seven fundamental variables. Along with security, FOMO, identity and belonging, pricing, peer recommendations, obligation, anxiety, price, and enjoyment, our motivations also include necessity and convenience.
What is the most effective credit card use method to prevent paying high interest rates?Every month, pay off your balance.
By paying the entire balance each billing cycle, you can avoid incurring interest on your credit card transactions. You'll enjoy the benefits more if you resist the urge to spend more than you can afford to each month.
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To immunize your portfolio, you should: A. avoid callable bonds. B. match bond maturity dates to your target dates. C. match bond durations to your target dates D. purchase only par value bonds E, purchase only high-coupon bonds
Bond durations should be matched to your target dates in order to immunize your portfolio. A bond is less likely to be volatile the shorter its duration is.
How long do bonds have ratings?
The length of the bond can be used to estimate how much a change in interest rates will likely impact bond prices. To be more specific, bond duration is a measure of interest rate risk. Understanding bond length helps investors determine how bonds fit into a bigger investment portfolio.
How do the length and maturity of bonds compare?
Duration is not the same as a bond's maturity date even if it is measured in years. Having stated that, the issue date and maturity date of a bond are crucial components in calculating duration
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which of the following would not be considered personal property under a typical homeowner's insurance policy?
House and other structures will not be considered as personal property under a typical homeowner's insurance policy. Hence, option (b) is the relevant answer choice.
Give a brief account on Homeowner's insurance.Home insurance, often known as homeowner's insurance or commonly referred to as HOI in the US real estate sector, is a category of property insurance that protects a private residence. It is an insurance policy that combines different types of personal insurance coverage, such as losses to one's home, its contents, loss of use (additional living costs), loss of other personal belongings of the homeowner, and liability insurance for accidents that may occur at the home or at the hands of the homeowner within the policy's coverage area.
Homeowner's insurance also offers financial security from disasters. The home and the belongings inside are both covered by a typical home insurance policy.
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Now suppose that the government decides not to take any action in response to the short-run economic impact of the severe weather.In the long-run, when the government does nothing, the output in the economy will be $110 billion billion and the price level will be $110
Severe weather, which raises manufacturing costs, will restrict aggregate availability. The aggregate supply curve will move to the left as a result. As a result, the price level will rise but actual GDP will fall.
A decrease in RGDP raises unemployment because companies will recruit fewer people to create the same amount of production. This short-run economic outcome is known as Stagflation, because inflation is high, economic growth is slowing, and unemployment is high.
If the government does nothing, the economy will eventually reach the long run equilibrium, where output is $110 billion and the price level is $110 billion.
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Which of the given statements is the most direct result of the correct monetary policy from the first question?
a. increasing reserves to decrease interest rates.
b. increases in investment, aggregate demand, and long‑run growth
The correct answer (b) increases in investment, aggregate demand, and long‑run growth.
What is monetary policy?
The central bank's macroeconomic policy is known as monetary policy. It is a demand-side economic strategy used by a nation's government to achieve macroeconomic goals like inflation, consumption, growth, and liquidity. It involves managing the money supply and interest rate.
What are the 3 monetary policies?
The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations.
What is the goal of monetary policy?
The Federal Reserve Act mandates that the Federal Reserve conduct monetary policy "so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
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