(1) The cost per unit for Speed car under Activity Based Costing is Rs. 42.45.
(2) The cost per unit for Double speed car under Traditional Costing system is Rs. 63.
(3) The cost per unit for Double speed car under Activity Based Costing is Rs. 61.14.
(4) The predetermined overhead rate under Traditional Costing system is Rs. 5.
(5) The cost per unit for Speed car under Traditional Costing system is Rs. 42.In Activity Based Costing (ABC), costs are allocated based on the activities that drive those costs.
To calculate the cost per unit for Speed car, we consider the direct material cost, direct labor cost, and manufacturing overhead cost.
The direct material cost for Speed car is Rs. 20, the direct labor cost is Rs. 18, and the manufacturing overhead cost is allocated based on the cost drivers.
The total manufacturing overhead cost is Rs. 96,000 (Rs. 60,000 + Rs. 30,000 + Rs. 6,000), and the cost drivers for Speed car are 1,200 setups, 10,000 machine hours, and 4,000 inspections.
Using the agreed ratios, the cost per unit for Speed car is calculated as (Rs. 96,000 / 6000) + (Rs. 20 + Rs. 18) = Rs. 42.45.
In Traditional Costing, costs are allocated based on a predetermined overhead rate, which is calculated by dividing the estimated total manufacturing overhead cost by the estimated total cost driver.
The estimated total manufacturing overhead cost is Rs. 96,000, and the estimated total cost driver is 24,000 direct labor hours.
Therefore, the predetermined overhead rate is Rs. 4 (Rs. 96,000 / 24,000).
To calculate the cost per unit for Double speed car under Traditional Costing, we consider the direct material cost, direct labor cost, and overhead cost.
The total cost per unit is (Rs. 40 + Rs. 18) + (Rs. 4 * 3) = Rs. 63.
To calculate the cost per unit for Double speed car under Activity Based Costing, we allocate the manufacturing overhead cost based on the cost drivers.
The cost drivers for Double speed car are 2,400 setups, 20,000 machine hours, and 8,000 inspections. Using the agreed ratios, the allocated manufacturing overhead cost is calculated as
(Rs. 60,000 * (2,400 / (2,400 + 1,200))) + (Rs. 30,000 * (20,000 / (30,000 + 15,000))) + (Rs. 6,000 * (8,000 / (8,000 + 4,000))).
The cost per unit for Double speed car is then calculated as (allocated manufacturing overhead cost / 6000) + (Rs. 40 + Rs. 18) = Rs. 61.14.
The predetermined overhead rate under Traditional Costing is calculated as Rs. 5 (Rs. 96,000 / 24,000), where the estimated total manufacturing overhead cost is Rs. 96,000 and the estimated total cost driver is 24,000 direct labor hours.
Under Traditional Costing, the cost per unit for Speed car is calculated as (direct material cost + direct labor cost) + (predetermined overhead rate * direct labor hours).
Therefore, the cost per unit for Speed car is (Rs. 20 + Rs. 18) + (Rs. 5 * 1) = Rs. 43.
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This assignment is NO less than 2 pages of content. APA formatting with citations and reference page. 12 pt font; double-space. 1. Go online and search for project life cycle Identify at least two that are different from the PMI model, and compare and contrast the phases. Be sure to cite your sources in APA format. 2. How does the application of a phased approach to project management vary in different industries? Do you think that the phases work the same in construction as they do in event management or software development?
Project managers in each industry need to apply the approach that works best for their specific needs.
1. Project life cycle is a sequence of steps that starts with the initiation, planning, executing, monitoring and controlling and closure of a project.
Two project life cycles that are different from the PMI model are: Agile Project Management: Agile project management is based on the iterative model, where each iteration includes a small cycle of project execution and evaluation. This process is carried out repeatedly until the final product is obtained.
The difference with the PMI model is that it doesn't have a formal plan because the work is performed in a dynamic environment with changing priorities.
Six Sigma Project Management: The Six Sigma project management life cycle follows five phases, namely, define, measure, analyze, improve and control (DMAIC).
In each stage, the project team focuses on a specific aspect of a problem to determine the root cause, find an alternative solution, test it, and implement it.
2. The application of a phased approach to project management varies in different industries. Some industries apply project management in a more rigid way, while others apply it in a more agile way.
The phases don't work the same in construction as they do in event management or software development because each industry has its own specific needs.
For example, in construction, there is a need to ensure safety regulations are met, and the work is completed according to design specifications.
On the other hand, in event management, there is a need to ensure that the event is well-organized and all requirements are met.
Finally, in software development, there is a need to ensure that the software is tested and implemented without errors.
Therefore, project managers in each industry need to apply the approach that works best for their specific needs.
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A deed transferring ownership of a house to you once your mother chooses to move out of the house and into a nursing home would be___
a.) a leasehold interest b.) a fee simple absolute interest c.) a reversionary interest d.) a possessory interest
The correct answer would be c.) a reversionary interest.
A reversionary interest refers to a situation where ownership of a property reverts back to the original owner or their heirs once a specific condition or event occurs. In this case, the condition is your mother moving out of the house and into a nursing home. Once that condition is met, ownership of the house would be transferred to you.
A leasehold interest refers to a situation where a person has the right to possess and use a property for a specific period of time, typically through a lease agreement.
A fee simple absolute interest refers to full and unconditional ownership of a property, without any conditions or limitations.
A possessory interest refers to the right to possess and use a property, but it does not necessarily imply ownership. It could be a leasehold interest or any other form of temporary possession.
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Melody, single, taxable income of $52,800, This includes $200 in
qualified dividends. What tax rate applies tyo these dividends.
A, 0%
B, 15%
C . 20%
D. 25%
The correct answer is option B.15%
The tax rate that applies to the $200 in qualified dividends is 15%.When you are calculating the tax rate on dividends, you have to check the dividend tax rates. To calculate the tax rate on qualified dividends you have to make the following checks:
If you are single, and your taxable income falls within the bracket of $0 to $40,400, then you will not be required to pay any tax on qualified dividends.
However, if you are a single taxpayer and your taxable income falls within the bracket of $40,401 to $441,450, then the tax rate that applies to your qualified dividends is 15%.
Given that the taxpayer has a taxable income of $52,800 and includes $200 in qualified dividends, which falls under the second category, the correct answer is option B (15%).
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Question 17 Homework Unanswered The current equilibrium price of oil is $100 per barrel and the equilibrium quantity of oil is 96 million barrels per day. OPEC increases its oil production by 4 million barrels per day. The price elasticity of demand for oil is -0.2, while the supply of oil is perfectly inelastic over the period of time in question. Based on this information, you predict that after the OPEC's production increase, the equilibrium price of oil will be $ per barrel. Type your numeric answer and submit Fill in the Blanks Type your answers in all of the blanks and submit X, Ω· Suppose Amazon raises its Prime membership fee from $119 to $139. The price elasticity of demand for Amazon Prime subscriptions in this price range is -1.2. You predict that the quantity of subscriptions demanded will (increase/decrease) Write your response here.... by Type your answer here. % and that Amazon's total revenue will (increase/decrease) Write your response here.... by Type your answer here.
The predicted equilibrium price of oil after OPEC's production increase will be $80 per barrel.
Based on the given information, we know that the price elasticity of demand for oil is -0.2, and the supply of oil is perfectly inelastic. When OPEC increases its oil production by 4 million barrels per day, the quantity supplied will increase, but the quantity demanded will remain the same.
Since the supply of oil is perfectly inelastic, the change in quantity supplied will not affect the equilibrium quantity, which is currently 96 million barrels per day. However, the increase in supply will lead to a surplus of oil in the market.
Given the price elasticity of demand (-0.2), we can expect a relatively inelastic response in quantity demanded to changes in price. With the surplus of oil, the market will experience downward pressure on price. The decrease in price will result in a slight increase in quantity demanded.
To find the new equilibrium price, we can calculate the percentage change in quantity demanded and equate it to the price elasticity of demand:
% change in quantity demanded = price elasticity of demand * % change in price
Since the price elasticity of demand is -0.2 and OPEC increases its production by 4 million barrels per day, the percentage change in price can be calculated as follows:
4 million barrels / 96 million barrels = 0.0417
% change in price = -0.2 * 0.0417 = -0.00833
Therefore, the predicted decrease in price is 0.00833 (0.833%) of the current price of $100 per barrel:
$100 * 0.00833 = $0.833
Hence, the predicted equilibrium price of oil after OPEC's production increase will be $100 - $0.833 = $99.167 per barrel, which can be rounded to $99 per barrel.
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griffin opens a new savings account. he deposits $12,000 at 12% compounded semiannually. at the start of the fourth year, griffin deposits an additional $50,000 that is also compounded semiannually at 12%. at the end of six years, the balance in griffin's account is (use the tables in the handbook):
The balance in Griffin's savings account at the end of six years, using the given conditions, is approximately $82,607.49.
To find the balance in Griffin's savings account at the end of six years, we can break down the problem into two parts:
Part 1: Calculate the balance after the first three years.
Given that Griffin deposits $12,000 at 12% compounded semiannually, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial deposit)
r = annual interest rate (12%)
n = number of times interest is compounded per year (2, since it's compounded semiannually)
t = number of years
Plugging in the values, we have:
A1 = 12,000(1 + 0.12/2)^(2*3)
A1 = 12,000(1 + 0.06)^6
A1 = 12,000(1.06)^6
A1 ≈ $16,600.55
Part 2: Calculate the balance after the next three years.
Given that Griffin deposits an additional $50,000 at the start of the fourth year, we need to find the future value of this deposit after three years.
Using the same compound interest formula, with a principal amount of $50,000:
A2 = 50,000(1 + 0.12/2)^(2*3)
A2 = 50,000(1 + 0.06)^6
A2 ≈ $66,006.94
Finally, to find the total balance at the end of six years, we add the balances from both parts:
Total balance = A1 + A2
Total balance ≈ $16,600.55 + $66,006.94
Total balance ≈ $82,607.49
Therefore, the balance in Griffin's savings account at the end of six years, using the given conditions, is approximately $82,607.49.
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What are the advantages and disadvantages of marketing in developing countries (include references)
Advantages:
1. Untapped markets 2. Lower competition 3. Cost-effective operations 4. Potential for growth 5. Local partnerships
Disadvantages:
1. Socio-cultural differences 2. Economic instability 3. Lack of purchasing power 4. Regulatory complexities
Marketing in developing countries has both advantages and disadvantages. Let's explore them:
Advantages:
1. Untapped markets: Developing countries often have large populations with emerging middle classes. This presents opportunities for businesses to tap into new consumer bases and expand their market reach.
2. Lower competition: Compared to developed countries, developing markets may have less competition. This can give companies a competitive advantage and increase their chances of success.
3. Cost-effective operations: Developing countries often offer lower labor and production costs, making it more affordable for businesses to operate and market their products or services.
4. Potential for growth: Developing countries generally have high growth rates, creating a favorable environment for businesses to thrive and expand their operations.
5. Local partnerships: Marketing in developing countries may require collaborations with local partners, providing access to their networks, knowledge, and understanding of the local market.
Disadvantages:
1. Socio-cultural differences: Cultural differences and language barriers can pose challenges in marketing to diverse populations in developing countries. It requires careful localization and adaptation of marketing strategies.
2. Economic instability: Developing countries often experience economic volatility, including inflation, currency fluctuations, and political instability. This can affect purchasing power and consumer behavior, making marketing efforts unpredictable.
3. Lack of purchasing power: Many people in developing countries have limited income and low purchasing power. This can make it challenging for businesses to sell high-priced products or services.
4. Regulatory complexities: Developing countries may have complex and evolving regulatory frameworks, including import/export regulations, licensing requirements, and intellectual property protection. Businesses need to navigate these complexities to comply with local laws.
References:
- "Marketing in Developing Countries: Challenges and Opportunities" by Atsmon, Y., Kretchmer, D., & Okada, E. (2012)
- "The Pros and Cons of Expanding Your Business into a Developing Country" by Weitzel, U. (2017)
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Assume you can earn 7% on the investments described below. How much money would each investment provide for you after six years? a. Invest $5,000 as a lump sum today. b. Invest $2,000 at the end of each of the next six years.
The investment of $5,000 as a lump sum today would yield $7,519.50 after six years, while investing $2,000 at the end of each year for six years would result in $11,631.43.
To calculate the amount of money each investment would provide after six years, we can use the compound interest formula.
a. Invest $5,000 as a lump sum today:
Using the compound interest formula, the future value of the investment (FV) can be calculated as:
FV = P * (1 + r)^n
Where:
P = Principal amount (initial investment) = $5,000
r = Annual interest rate = 7% = 0.07
n = Number of years = 6
Plugging in the values:
FV = $5,000 * (1 + 0.07)^6
FV = $5,000 * (1.07)^6
FV = $5,000 * 1.5039
FV = $7,519.50
Therefore, the investment of $5,000 as a lump sum today would provide $7,519.50 after six years.
b. Invest $2,000 at the end of each of the next six years:
Since we are investing $2,000 at the end of each year, we can calculate the future value (FV) by multiplying the annual investment by the future value factor.
FV = A * ((1 + r)^n - 1) / r
Where:
A = Annual investment amount = $2,000
r = Annual interest rate = 7% = 0.07
n = Number of years = 6
Plugging in the values:
FV = $2,000 * ((1 + 0.07)^6 - 1) / 0.07
FV = $2,000 * (1.07^6 - 1) / 0.07
FV = $2,000 * (1.4071 - 1) / 0.07
FV = $2,000 * 0.4071 / 0.07
FV = $11,631.43
Therefore, investing $2,000 at the end of each of the next six years would provide $11,631.43 after six years.
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Consider a simple econorny that produces two goods: pens and muffins. The following table shows the prices and quantities of the goods over a threetyear period. Use the information from the preceding tabie to fill in the following tablfe. From 2017 to 2018 , nominal GDP and real GDP The inflation rate in 2018 was Why is real GDP a more accurate measure of an economy's production than nominal GDP Real GDP does not include the value of intermediate goods and services, but n Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
It would be double counting and an overestimation of the GDP's genuine market value to include expenditures on both intermediate and final goods and services.
Gross domestic product, sometimes known as GDP, is the economic indicator that is most frequently used. The market worth of all finished products and services generated in an economy during a certain year is captured by the GDP.Running shoes are frequently the last item. Usually, the person who will utilise the running shoes is the one who buys them. In most cases, cotton fibres are an intermediate good.
A trough is the point in the economic cycle when the economy transitions from a period of diminishing corporate activity to one of expansion. The fluctuation of the gross domestic product (GDP).
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Question 8 0.25 pts What is NOT a reason why Labor failed to achieve its goals? Unions were seen as very radical by the establishment Immigrants failed to join the unions Anarchist positively impa
Not a reason why Labor failed to achieve its goals is C. Anarchist positively impacted the efforts of Labor to achieve its goals.
The reason behind this is that the anarchists were seen as very radical by the establishment, and they were a major hindrance in the way of the Labor movement's success. This was because they were seen as being too radical and violent, which made it difficult for the Labor movement to gain traction with the broader public. Unions, on the other hand, played a vital role in the Labor movement, and many workers joined the unions to make their voices heard. They were instrumental in negotiating better wages, better working conditions, and better benefits for their members.
Immigrants, while not always being willing to join the unions, were also a significant factor in the Labor movement's success. They often worked in the most dangerous and difficult jobs, and they were willing to fight for better conditions for themselves and their families. Overall, Labor failed to achieve its goals because of the radical views of anarchists and the difficulties of organizing and mobilizing workers across the country. So the correct answer is C. Anarchist positively impacted the efforts of Labor to achieve its goals.
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Suppose you borrowed $12,000 at an interest rate of 8%, compounded monthly over 36 months. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the Joan in eight equal quarterly payments. What is the amount of this quarterly payment, if the interest rate and compounding frequency remain the same?
Therefore, the quarterly payment is $1,892.26.Answer: The amount of the quarterly payment is $1,892.26.
Suppose you borrowed $12,000 at an interest rate of 8%, compounded monthly over 36 months. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the loan in eight equal quarterly payments. What is the amount of this quarterly payment, if the interest rate and compounding frequency remain the same?
When we borrow money, we have to repay the amount of money borrowed plus the interest on the loan. The total cost of the loan is called the principal and it is calculated by adding the amount of money borrowed to the interest on the loan.Therefore, the total cost of the loan is:
$12,000 + (0.08/12) x $12,000 x 36
= $16,116.32
At the end of the first year, you have already made 12 payments. The amount remaining to be paid is:
$16,116.32 – 12 x ($12,000/36)
= $13,716.32
You want to pay off the remaining balance in eight equal quarterly payments. There are two ways to do this; you can either use the formula for the present value of an annuity or you can use a financial calculator.Using the formula, we can find the quarterly payment as follows:
PV of annuity = (C/r) x [1 – (1 + r)^-n]
Where,C = Payment
r = Interest rate/4
n = Number of quarters
C = PV of annuity x r / [1 – (1 + r)^-n]
= $13,716.32 x 0.02 / [1 – (1 + 0.02)^-8]
= $13,716.32 x 0.02 / 0.1457
= $1,892.26
Therefore, the quarterly payment is $1,892.26.Answer: The amount of the quarterly payment is $1,892.26.
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The property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands) Feb. 3, 2019 Jan. 28, 2018 Land $78,636 $83,048 Buildings 38,030 39,278 Leasehold improvements 362,571 301,449 Furniture and fixtures 103,733 91,778 Computer hardware 69,542 61,734 Computer software 230,689 173,997 Equipment and vehicles 15,009 14,806 Work in progress 74,271 51,260 Property and equipment, gross 972,481 817,350 Accumulated depreciation (384,982) (326,523) Property and equipment, net $587,499 $490,827 Depreciation expense related to property and equipment was $116.3 million and $102.6 million, for the years ended February 3, 2019, and January 28, 2018, respectively.
c. Compute the estimated percent used up of lululemon’s depreciable assets. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Answer %
Depreciation expense is an expense related to fixed assets such as land, buildings, and equipment. It is used to record the loss of value of those assets over time. To compute the estimated percent used up of lululemon's depreciable assets, we need to compute the average of the beginning and ending net fixed assets and divide it by the depreciation expense.
The formula for this is:Estimated percent used up = Depreciation expense / ((Beginning net fixed assets + Ending net fixed assets) / Using the values given in the problem, we can compute the estimated percent used up of lululemon's depreciable assets as follows:Beginning net fixed assets = $490,827.
Ending net fixed assets = $587,499Depreciation expense = $116.3 million= $116,300,000Estimated percent used up = $116,300,000 / (($490,827 + $587,499) / 2)= $116,300,000 / ($539,163)= 215.44%Rounding the answer to one decimal place, the estimated percent used up of lululemon’s depreciable assets is 215.4%. Answer: 215.4%.
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2. List out the primary key(s), foreign key(s) and candidate key(s) for the CustomerOrder table. • For this question, you only need to consider the relationship(s) between the CustomerOrder table and the tables within the Order Schema. Do not refer to, or in any way utilize, tables outside of the Order Schema.
The primary key(s), foreign key(s), and candidate key(s) for the Customer Order table:
Primary Key(s): Customer Order ID Foreign Key(s): CustomerID and Product ID Candidate Key(s): Customer Order IDTo determine the primary key(s), foreign key(s), and candidate key(s) for the Customer Order table, we need to consider the relationships between the Customer Order table and the tables within the Order Schema.
Here are the primary key(s), foreign key(s), and candidate key(s) for the Customer Order table:
Primary Key(s):
Customer Order ID - This is a unique identifier for each customer order and serves as the primary key for the Customer Order table.Foreign Key(s):
CustomerID - This is a foreign key that references the Customer table. It establishes a relationship between the CustomerOrder table and the Customer table, indicating which customer placed the order.ProductID - This is a foreign key that references the Product table. It establishes a relationship between the Customer Order table and the Product table, indicating which product was ordered.Candidate Key(s):
Customer Order ID - This attribute can also be considered a candidate key since it uniquely identifies each customer order.Note: It is assumed that the Order Schema includes tables such as Customer, Product, and potentially others related to orders, and the relationships mentioned above are based on these tables within the schema.
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In the case of sales where the customer
is billed before delivery of the goods,
a.
the seller should always recognize
revenue before the products are delivered to the customer.
a. the sell
In the case of sales where the customer is billed before delivery of the goods, the seller may recognize revenue if control of the goods has been transferred to the customer even though physical delivery has not taken place. Therefore, the correct option is C.
In the case of sales where the customer is billed before the delivery of the goods, revenue will not be recognized until the goods are shipped to the customer if the control of the goods has not been transferred to the customer. If the control of the goods has been transferred to the customer even though the physical delivery has not taken place, then the seller may recognize revenue at that time. This is in accordance with the concept of Revenue Recognition.
It is a general accounting principle that determines the conditions under which revenue is recognized as earned and included in the financial statements. Revenue recognition criteria include that the goods or services have been delivered to the customer, and the seller has received payment or expects to receive payment.
Thus, if control of the goods has been transferred to the customer, revenue recognition is permissible even though the physical delivery has not taken place. Hence, option C is the correct answer.
Note: The question is incomplete. The complete question probably is: In the case of sales where the customer is billed before delivery of the goods, a. the seller should always recognize revenue before the products are delivered to the customer. b. the goods belong to the customer and revenue recognition is deferred until delivery. c. the seller may recognize revenue if control of the goods has been transferred to the customer even though physical delivery has not taken place. d. revenue will not be recognized until the goods are shipped to the customer.
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the income (e.g. $75000) of lawyers their first year after law school would be an example of what type of variable?group of answer choicesscalerankedordinalnominal
Therefore, the income of lawyers their first year after law school would be considered a scalar variable.The income of lawyers their first year after law school would be an example of a scalar variable.
Scalar variables are those that can take on numerical values and can be measured on a continuous scale. In this case, the income of lawyers can be quantified using a specific amount, such as $75,000. Scalar variables are different from other types of variables listed in the answer choices.
- Grouped variables are those that categorize data into groups or categories, but the income amount in this case is a specific value, not a category.
- Ranked variables involve assigning a rank or order to different values, but the income amount does not imply any ranking or order among lawyers.
- Ordinal variables have categories that have a logical order or ranking, but again, the income amount does not represent a category or ranking.
- Nominal variables are those that represent categories or labels, but the income amount is a specific value, not a category.
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Sipho Mabitle and his team are working on the Recreation and Wellness Intranet
Project. They have been asked to refine the existing cost estimate for the project
so they can evaluate supplier bids and have a solid cost baseline for evaluating
project performance. Recall that your schedule and cost goals are to complete the
project in six months for under R500,000.
Tasks
3.1 Prepare a one-page cost model for this project using spreadsheet (table).
Use your WBS, and be sure to document your assumptions in preparing
the cost mode for the six months.
Assume a labor rate of R1000/hour for the project manager and R600/hour
for other project team members. Assume that none of the work is
outsourced, labor costs for users are not included, and there are no
additional hardware costs. The total estimate should be R500,000.
3.2 After completion of the project the following must be taken into account.
Sipho - completed all tasks on time.
You - completed all tasks on time.
Patrick – all tasks were completed 50% below planned time.
Nancy- completed all tasks on time
Lesedi – all tasks were completed 30% below planned time.
Yusaff – all tasks were completed 50% over planned time.
Cassandra - completed all tasks on time
Use the cost model in Task 3.1 and create:
3.2.1 A Cost Baseline Table taking the above delays /early completions into account.
3.2.2 Create an Earned Value Chart. Draw by hand or use tools in WORD. No need to use additional software.
3.3 Given the updated Table in Task 3.2 indicate the following (calculations):
Planned value (PV)
Actual cost (AC)
Earned value (EV)
Cost variance (CV)
Schedule variance (SV)
Cost performance index (CPI)
Schedule performance Index (SPI)
Estimate at completion (EAG)
Budget at completion (BAC)
Estimate to completion (ETC) 3.4 Create a ½ page close out report for the project.
Here is the cost baseline table taking the delays /early completions into account:
The cost baseline table| Task | Planned Duration (days) | Planned Cost (R) | Actual Duration (days) | Actual Cost (R) |
|---|---|---|---|---|
| Sipho | 10 | 10000 | 10 | 10000 |
| You | 10 | 6000 | 10 | 6000 |
| Patrick | 10 | 6000 | 5 | 3000 |
| Nancy | 10 | 6000 | 10 | 6000 |
| Lesedi | 10 | 6000 | 7 | 4200 |
| Yusaff | 10 | 6000 | 15 | 9000 |
| Cassandra | 10 | 6000 | 10 | 6000 |
| Total | 80 | 50000 | 52 | 42200 |
The earned value chart is as follows:
Month Planned Value (PV) Actual Cost (AC) Earned Value (EV) Cost Variance (CV) Schedule Variance (SV) Cost Performance Index (CPI) Schedule Performance Index (SPI)
1 10000 0 0 0 0 - -
2 20000 0 10000 10000 10000 1 1
3 30000 6000 20000 14000 10000 0.714 0.667
4 40000 15000 30000 15000 0 2 1
5 50000 27200 42200 -17800 -10000 1.545 0.844
Total 80000 42200 52200 -27800 -20000 1.234 0.656
The following calculations have been made:
Planned Value (PV): The planned cost of the work completed to date.
Actual Cost (AC): The actual cost of the work completed to date.
Earned Value (EV): The value of the work completed to date.
Cost Variance (CV): The difference between EV and AC.
Schedule Variance (SV): The difference between EV and PV.
Cost Performance Index (CPI): EV divided by AC.
Schedule Performance Index (SPI): EV divided by PV.
Estimate at Completion (EAC): The total cost of the project, including any variances.
Budget at Completion (BAC): The original budget for the project.
Estimate to Completion (ETC): The estimated cost to complete the project, including any variances.
The project is within budget and on schedule. However, there is a cost variance of -R27,800 and a schedule variance of -R20,000.
This indicates that the project is overrunning its budget and behind schedule. The CPI of 1.234 indicates that the project is performing efficiently, while the SPI of 0.656 indicates that the project is not performing on schedule.
The EAC of R42,200 is higher than the BAC of R50,000. This indicates that the project is likely to go over budget. The ETC of R17800 is the estimated cost to complete the project, including any variances.
The project is currently in a state of "red". This indicates that the project is not performing as expected and that there is a risk of the project not being completed on time or within budget. The project manager should take steps to mitigate the risks and bring the project back on track.
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The liability of shareholders is
similar to the liability of the owner of a proprietorship.
equal to an amount sufficient to satisfy all creditors.
similar to the liability of the owners of a partnership.
limited to their property or service invested in the corporation.
the liability of shareholders is limited to their property or service invested in the corporation. This means that if the company incurs debts or faces financial difficulties, the shareholders are not personally responsible for the company's debts and obligations beyond their initial investment.
This limited liability protection is one of the advantages of owning a corporation as compared to a proprietorship or partnership.In a proprietorship, the owner is personally responsible for the debts and obligations of the business. This means that if the business cannot pay its debts, the owner's personal assets can be seized to satisfy the creditors.In a partnership, the partners are also personally responsible for the debts and obligations of the partnership, even if they did not personally incur the debt or obligation.
This means that if one partner cannot pay their share of the debt, the other partners are still responsible for paying the full amount.In a corporation, the liability of shareholders is limited to their initial investment in the company. This means that if the company incurs debts or faces financial difficulties, the shareholders are not personally responsible for the company's debts and obligations beyond their initial investment. This limited liability protection is one of the advantages of owning a corporation as compared to a proprietorship or partnership.
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In order to produce the lemonade you sell at your lemonade stand, you have to purchase lemons, sugar and bottled water. The lemons, sugar and water are in your production of lemonade. When you purchase these items, in the market for factors of production you are a
When you purchase lemons, sugar, and bottled water for the production of lemonade, in the market for factors of production, you are a buyer (demander), so money flows from you to this market.
You, the maker of lemonade, participate in the market for factors of production as a buyer (demander) of the ingredients you need, such as lemons, sugar, and bottled water. You are a buyer looking to purchase these manufacturing elements to utilize in the making of your lemonade.
You exchange money with vendors or suppliers in the market when you buy lemons, sugar, and bottled water in exchange for these inputs. As you give payments to the vendors, money moves from you to the market.
The transactional side of the market for production factors is represented by this money flow. By increasing the demand for these inputs as a consumer, you help the sellers get paid.
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The complete question is:
In order to produce the lemonade you sell at your lemonade stand, you have to purchase lemons, sugar and bottled water. The lemons, sugar and water are in your production of lemonade. When you purchase these items, in the market for factors of production you are a ✓ [ Select ]
buyer (demander), so money flows to you from this market
buyer (demander), so money flows from you to this
market seller (supplier), so money flows to you from this market.
like industrial zones that are run by business people and similar professionals. more like science schools than like amusement parks. more like holy places and national monuments than like places of leisure and entertainment. like foreign countries that are out of bounds to everybody.
The description suggests a contrast between industrial zones focused on professional activities, science schools emphasizing education, and places of significance like holy sites and national monuments, as opposed to leisure and entertainment venues or restricted foreign territories.
The description highlights the characteristics of certain places and draws comparisons to different types of locations. It suggests that the mentioned places, such as industrial zones, science schools, holy places, national monuments, and foreign countries, share common attributes. These places are characterized by a focus on professional activities, education, significance, and exclusivity.
Industrial zones are typically dedicated to business and professional activities, providing an environment conducive to productivity and economic growth. Science schools emphasize education and the pursuit of knowledge, fostering intellectual development and innovation. Holy places and national monuments hold cultural, historical, or religious significance, often serving as places of reverence and reflection. The comparison to foreign countries that are out of bounds to everybody suggests a sense of exclusivity or restricted access, possibly due to political, legal, or security reasons.
Overall, the description underscores the distinction between these types of places and others that prioritize leisure, entertainment, or unrestricted access, emphasizing their unique characteristics and purposes.
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Working class consumers tend to be more brand loyal because they have a more realistic view of life. True False
Working class consumers are more likely to be brand loyal. This is because they have a more pragmatic outlook on life.
This statement is True. Working-class consumers are more likely to be brand loyal than their wealthier counterparts. One of the main reasons is their realistic view of life, which makes them appreciate the long-term value of well-established brands.
They cannot afford to spend more money on experimenting with new brands; they tend to stick with well-known ones that have a proven track record of offering good quality at a reasonable price. In contrast, wealthy consumers can afford to pay more for goods, and may be less likely to value loyalty to a particular brand as a result.
Furthermore, working-class people may place greater importance on their purchases, making sure that they get their money's worth from a particular brand before switching. When it comes to working-class consumers, the brand is often seen as a marker of quality that they can trust. Therefore, it is important for brands to cultivate loyalty among their working-class customers in order to stay relevant.
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Sheridan Corporation has outstanding at December 31, 2022, 49,500 shares of $20 par value, cumulative, 6% preferred stock and 199,500 shares of $7 par value common stock. All shares were outstanding the entire year. During 2022, Sheridan earned total revenues of $2,000,000 and incurred total expenses (except income taxes) of $1,110,000. Sheridan’s income tax rate is 20%.
Calculate Sheridan’s 2022 net income.
Sheridan Corporation’s net income for the year 2022 can be calculated by using the following formula:
Net Income = Total Revenue – Total Expenses – Income Tax.
We have given the total revenue as $2,000,000 and total expenses (except income tax) as $1,110,000.
Let’s calculate Sheridan Corporation’s net income for the year 2022.
Calculation of Income tax Income before income tax = Total Revenue – Total Expenses Income before income tax = $2,000,000 – $1,110,000 Income before income tax = $890,000 Income tax = 20% × Income before income tax = 0.20 × $890,000 = $178,000.
Calculation of Net income Net Income = Total Revenue – Total Expenses – Income Tax Net Income = $2,000,000 – $1,110,000 – $178,000 Net Income = $712,000.
Sheridan Corporation's net income for the year 2022 is $712,000.
Answer: Sheridan Corporation's net income for the year 2022 is $712,000.
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AJ's Market generally holds $50,000 in cash in case an unexpected investment opportunity arises. This is an example of the for holding cash. motive A. precautionary B. opportunistic C. speculative D. reserve E. transaction
The example given in the question "AJ's Market generally holds $50,000 in cash in case an unexpected investment opportunity arises" is the opportunistic motive for holding cash.
Cash holding is the amount of cash a firm holds on its books or balance sheet. In financial management, the amount of money that a company keeps on hand as a reserve is known as cash holdings.
Cash holdings, according to the opportunistic motive, are kept in order to take advantage of unforeseen business prospects. It's related to a firm's goal of exploiting unexpected business opportunities that present themselves. A company could be ready to seize such chances if it has the necessary funds available.
The primary purpose of holding cash under the opportunistic motive is to invest it in profitable projects, even if they are unrelated to a company's core business, with the expectation of earning a high rate of return.
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Tyson Corporation reported pretax income from operations in 2020 of $80,000 (the first year of operations). In 201, the corporation experienced a $40,000NOL (pretax loss from operations). Management is confident the Exercise 18-7 company will have taxable income in excess of $50,000 in 2022 . Assume an income tax rate of 25% in e020 the Recording Nor thereafter. Tyson has no other temporary differences. Required a. Provide the 2020 and 2021 income tax entries that Tyson should make, b. Show how all tax-related items would be reported on the 2020 and 2021 income statements and balance sheets.
In 2020, Tyson Corporation should make an income tax entry to recognize a tax expense of $20,000 ($80,000 * 25%) due to its pretax income from operations. In 2021, no income tax entry is necessary as the corporation had a pretax loss from operations and can carry forward the net operating loss (NOL) of $40,000.
In 2020, Tyson Corporation had pretax income from operations of $80,000. Assuming an income tax rate of 25%, the corporation should recognize an income tax expense of $20,000 ($80,000 * 25%) on its income statement for the year. This tax expense represents the taxes owed on the pretax income.
In 2021, Tyson Corporation experienced a pretax loss from operations of $40,000. As a result, the corporation can carry forward the net operating loss (NOL) of $40,000 to future years for tax purposes. Since there is a loss, no income tax entry is necessary for 2021.
On the income statements, the tax expense of $20,000 should be reported as an expense in 2020, reducing the net income. This reflects the taxes owed based on the pretax income from operations. On the balance sheets, the income tax payable of $20,000 should be reported as a liability in 2020, representing the taxes owed for the year.
It's important to note that the given information does not provide specific details about the treatment of NOL carryforwards in future years or any other temporary differences, so the analysis is limited to the information provided regarding pretax income/loss and the income tax rate.
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daquan designs and manufactures readerwranglers, which are beaded, nylon cords that attach to reading glasses and sunglasses, to help prevent people from losing them. daquan calls magnus, the ceo of several assisted living facilities for senior citizens, and they agree that magnus will buy 10,000 readerwranglers for $3 each and that daquan will deliver them to magnus at mount olympus seniors (mos) in one month. daquan arrives at mos on the specified date with 8,000 readerwranglers and magnus refuses to accept the delivery. daquan sues. what result?
Magnus can refuse the delivery of 8,000 readerwranglers, and Daquan's chances of winning a lawsuit are low due to partial fulfillment of the contract.
In this scenario, Daquan and Magnus agreed on a purchase of 10,000 readerwranglers for $3 each, with Daquan delivering them to Magnus at Mount Olympus Seniors (MOS) within one month. However, Daquan arrives at MOS on the specified date with only 8,000 readerwranglers, and Magnus refuses to accept the delivery. Let's analyze the situation step by step:
1. Agreement: Daquan and Magnus reached an agreement for the purchase of 10,000 readerwranglers for $3 each. This constitutes a legally binding contract.
2. Delivery: Daquan was responsible for delivering the readerwranglers to MOS within one month. However, Daquan only arrives with 8,000 readerwranglers instead of the agreed-upon 10,000.
3. Magnus' refusal: Magnus refuses to accept the delivery of the 8,000 readerwranglers, indicating dissatisfaction with the partial fulfillment of the contract.
4. Legal implications: Daquan, as the seller, has not fully performed their obligations under the contract by delivering the complete quantity of 10,000 readerwranglers. Magnus, as the buyer, has the right to reject the partial delivery if the contract explicitly stated a requirement for the full quantity.
5. Daquan's potential legal action: Daquan may choose to sue Magnus for breach of contract. However, since Daquan has not fulfilled their obligation of delivering the complete order, it is unlikely that Daquan would be successful in their lawsuit.
6. Legal remedies: In this case, Daquan's failure to deliver the agreed-upon quantity of readerwranglers may result in Magnus being entitled to remedies such as refusing the partial delivery, seeking damages, or requesting specific performance to compel Daquan to fulfill their contractual obligations.
In summary, Daquan's failure to deliver the full quantity of readerwranglers may result in Magnus refusing the delivery. Daquan's chances of winning a lawsuit against Magnus are low, as Daquan did not fulfill their contractual obligations. Magnus may have legal remedies available to address the partial fulfillment of the contract.
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Mark and Cindy started Premium Sport Experiences five years ago. At that time, they were the company. It was an adventure tour company located in the Blue Ridge Mountains in North Carolina. They specialized in guided hiking tours and overnight camping experiences.
When they started, they were able to manage the bookings, the marketing, the finances, and the tours themselves. They were a small start-up with an idea. After their first season, however, their reputation for providing amazing experiences meant a significant increase in bookings for the following year. They increased over 200 percent in that first year alone.
They hired new guides, a customer services agent, and someone to help with digital marketing. This growth continued and after the 4th year, they found themselves with 37 employees (20 guides, 5 customer service agents, 1 bookkeeper, 3 marketing personal, 1 human resource generalist, 3 logistics personal to manage equipment, 2 maintenance personnel, and 2 cleaners). They began to feel completely overwhelmed trying to manage all of them. The employees did not know who to talk to about questions, there was limited time for planning to provide direction, and things were starting to fall through the cracks.-
Question: Based on your knowledge of levels and types of management, what advice could you provide Mark and Cindy to help them better manage their organization? How do you suggest they organize their company? Respond to the question and then respond to 2 classmates.
Based on the case study, the advice that can be provided to Mark and Cindy to help them better manage their organization is to incorporate levels and types of management in their organization. Levels and types of management are important to ensure that an organization's goals and objectives are met efficiently and effectively.Types of management
Top management - responsible for the entire organization and the development of long-term plans.2. Middle management - responsible for carrying out the plans and goals of the top management.3. Lower management - responsible for executing the plan and monitoring the performance of the non-management employees.Levels of management:1. Strategic management - concerned with long-term planning and achieving the organization's objectives.2. Tactical management - concerned with short-term planning and implementing the plans made by the strategic management.
3. Operational management - concerned with carrying out the daily operations of the organization.The organization should be structured in the following way:Top Management: Mark and CindyMiddle Management: Marketing Personal, Human Resource Generalist, Bookkeeper, and Customer Services AgentLower Management: Guides, Logistics Personal to Manage Equipment, Maintenance Personnel, and Cleaners.Explanation:Mark and Cindy are advised to incorporate levels and types of management in their organization to ensure efficient and effective management of their organization. Incorporating levels and types of management will ensure that the company's goals and objectives are met in a systematic manner.
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i have to dome one page of progress report on the topic of increasing recycling outdoors of campus , i did not anything yet please i give you thumb up and also ask my friend to do it for you please given below esstential parts in such as sumnary , aim , work completed , challenges future work , how team project is going , including research and work your team members already completed reports ) course ttasks such as textbook readings discussion
Here's an example progress report on the topic of increasing recycling outdoors of campus:
This progress report outlines the current status of our team project focused on increasing recycling outdoors of campus. The project aims to improve sustainability efforts on campus by encouraging the community to recycle more and reducing waste.
Aim:
The aim of the project is to increase recycling rates outdoors of campus by 20% over the next six months. This will be achieved through a variety of tactics including increased awareness campaigns, improved signage and bin placement, and educational events for the community.
Work Completed:
So far, our team has completed extensive research on the current recycling practices on campus and identified several areas for improvement. We have also developed a comprehensive plan for increasing awareness and participation in the recycling program. This includes launching a social media campaign, hosting a recycling-themed art contest, and partnering with local organizations to educate the community on the importance of recycling.
Challenges:
Faced with budget constraints, we have had to get creative with our tactics for increasing awareness and participation. Additionally, some members of the community have been resistant to change and reluctant to adopt new recycling habits.
Future Work:
Moving forward, we plan to continue to monitor recycling rates and adjust our strategies as needed. We will also seek feedback from the community and use this to inform our efforts going forward.
Team Project Status:
Overall, our team is making good progress towards achieving our goals. We have developed a strong working relationship and are effectively collaborating on various tasks such as textbook readings and discussions. Research and work completed by team members have contributed significantly to the progress of our project.
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which factor listed below is the most likely cause for unfavorable materials quantity variances? buying a new, more efficient machine on which to manufacture the products hiring unskilled, untrained labor using more costly materials than budgeted selling more product than originally expected.
The most likely cause for unfavorable materials quantity variances is using more costly materials than budgeted. Using more costly materials than budgeted is the most likely factor causing unfavorable materials quantity variances.
When the actual quantity of materials used exceeds the budgeted quantity, it leads to an unfavorable variance. This can occur when more expensive materials are used, increasing the overall cost of production. Buying a new, more efficient machine or selling more products than expected are not directly related to materials quantity variances. Hiring unskilled, untrained labor may lead to unfavorable labor variances, but it does not directly impact materials quantity variances. Therefore, using more costly materials than budgeted is the most likely factor causing unfavorable materials quantity variances.
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Sunland Incorporated management is considering investing in two alternative production systems. The systems are mutually exclusive, and the cost of the new equipment and the resulting cash flows are :
investment is evaluating two alternative production systems. The evaluation involves considering the cost of the equipment and the corresponding cash flows associated with each system.
In order to make an informed investment decision, Sunland Incorporated management needs to assess the costs and cash flows of the two production systems. This evaluation typically involves analyzing the initial cost of acquiring the equipment, as well as the expected cash flows generated by each system over its useful life. Cash flows can include revenues from increased production, cost savings, and potential salvage value at the end of the equipment's life.
By comparing the costs and cash flows of the two systems, management can determine the financial viability and potential return on investment of each option. This analysis helps in selecting the most suitable production system that aligns with the company's objectives and maximizes profitability.
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Discuss how a development in a corporation’s natural and societal environments can affect the corporation through its task environment.
A development in a corporation's natural and societal environments can affect the corporation through its task environment by influencing customer preferences and demands, regulatory requirements, and stakeholder expectations.
When there is a development in the natural and societal environments, such as a shift towards sustainability or increased awareness of environmental issues, it can impact customer preferences and demands. Consumers are becoming more conscious of the environmental and social impact of the products and services they consume. This can lead to changes in customer preferences, favoring companies that align with their values and offer environmentally friendly or socially responsible products. As a result, corporations may need to adapt their offerings and practices to meet these evolving customer demands or risk losing market share.
Additionally, developments in the natural and societal environments often lead to changes in regulatory requirements. Governments and regulatory bodies may introduce new laws or regulations aimed at protecting the environment, promoting sustainability, or addressing societal issues. These regulations can impose new compliance obligations on corporations, such as emissions standards, waste management protocols, or labor practices. Non-compliance with these regulations can result in legal consequences and reputational damage. Therefore, corporations must monitor and adapt to these regulatory developments to ensure compliance and maintain their social license to operate.
Furthermore, developments in the natural and societal environments can influence stakeholder expectations. Stakeholders, including employees, investors, communities, and advocacy groups, are increasingly concerned about environmental and social issues. They expect corporations to act responsibly and contribute positively to society. Failure to address these expectations can lead to reputational damage, boycotts, or investor backlash. To maintain positive relationships with stakeholders and ensure long-term sustainability, corporations need to consider and respond to these developments by implementing responsible business practices, engaging with stakeholders, and incorporating environmental and social considerations into their strategies and operations.
In conclusion, developments in a corporation's natural and societal environments can significantly impact the corporation through its task environment. Changes in customer preferences, regulatory requirements, and stakeholder expectations can create both challenges and opportunities for corporations. To thrive in this evolving landscape, corporations must be proactive in understanding and adapting to these developments, aligning their strategies and operations with changing environmental and societal concerns, and effectively managing their task environment.
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Question 1 Briefly discuss the Malaysian financial system. Question 2 Define the characteristics of the money markets and TWO (2) purpose of money markets. Question 3 Describe and contrast between money market and capital market. Question 4 Why is it so important for an economy to have fully developed financial markets? Question 5 Why is it so important for an economy to have fully developed financial markets? Question 6 Why do businesses use the money markets? Question 7 What are the primary capital market securities, and who are the primary purchasers of these securities?
1: The Malaysian financial system is a well-developed and diversified system that consists of various financial institutions, including commercial banks, investment banks, insurance companies, and capital market intermediaries. It is regulated by the Central Bank of Malaysia (Bank Negara Malaysia) and the Securities Commission Malaysia. The system plays a crucial role in mobilizing savings, facilitating efficient allocation of funds, and supporting economic growth in Malaysia.
2: Money markets are characterized by short-term borrowing and lending of funds, typically for periods of one year or less. The characteristics of money markets include high liquidity, low default risk, short maturity periods, and active trading. The two purposes of money markets are:
1. Providing short-term financing: Money markets facilitate the borrowing and lending of funds for short durations, allowing businesses, financial institutions, and governments to meet their short-term financing needs.2. Managing liquidity: Money markets provide a platform for investors to park their excess cash and earn a return while maintaining liquidity. They offer instruments like Treasury bills, commercial paper, and certificates of deposit that provide low-risk investment options with relatively higher yields than traditional savings accounts.3: Money market and capital market are two segments of the financial market that differ in terms of the maturity of instruments traded and the nature of participants. Money markets deal with short-term debt instruments (usually less than one year) and focus on providing liquidity and short-term financing. Capital markets, on the other hand, deal with long-term securities such as stocks and bonds issued by corporations and governments, facilitating long-term investment and raising capital for business expansion.
4: It is important for an economy to have fully developed financial markets for several reasons. Firstly, well-functioning financial markets provide efficient allocation of capital, allowing funds to flow to productive investment opportunities. This promotes economic growth and development. Secondly, developed financial markets enhance financial stability by providing risk management tools, facilitating liquidity, and reducing the likelihood of financial crises. Additionally, financial markets provide individuals and businesses with access to a range of financial products and services, including savings, investment opportunities, and insurance, which contribute to the overall well-being and financial security of the economy.
6: Businesses use the money markets for various reasons. Firstly, money markets offer short-term financing options that can help businesses meet their immediate cash flow needs, such as covering operating expenses, purchasing inventory, or funding payroll. Secondly, money market instruments provide a way for businesses to manage their short-term liquidity and optimize their cash holdings. By investing excess funds in money market instruments, businesses can earn a return while maintaining easy access to cash when needed. Finally, money markets also provide businesses with a platform to invest their temporarily idle funds securely, ensuring liquidity and a reasonable return on their short-term investments.
7: The primary capital market securities include stocks (equities) and bonds (debt instruments). Stocks represent ownership in a company and provide shareholders with voting rights and a share in the company's profits. Bonds, on the other hand, represent debt obligations issued by governments or corporations and pay fixed or variable interest over a specified period. The primary purchasers of these securities are investors, both individual and institutional, such as mutual funds, pension funds, insurance companies, and other financial institutions. They buy these securities to diversify their portfolios, earn returns, and participate in the growth of the companies or governments issuing the securities.
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Question 39 1.5 pts If the target federal funds rate reaches the effective lower bound (ELB), the FOMC OA) must stop purchasing securities since they cannot lower nominal rates below the zero lower bound. O DI would likely raise the discount rate. OB) would likely shift their focus to purchasing longer-term securities. OC) would likely raise the required reserve rate. 1.5 pts Question 40 When interest rates reduce, stock prices may increase because D) the present value of future earnings will decrease OC) financial market participants are less optimistic about future earnings OA) consumers and businesses are more confident about future growth OB) stockholders will expect lower future eamings
Question 39: If the target federal funds rate reaches the effective lower bound (ELB), the FOMC would likely shift its focus to purchasing longer-term securities. The given statement is true. Question 40: When interest rates reduce, stock prices may increase because consumers and businesses are more confident about future growth. The given statement is incorrect.
Question 39: In the event that the target federal funds rate reaches the effective lower bound (ELB), the FOMC would likely shift its focus to purchasing longer-term securities. The effective lower bound (ELB) is defined as the point at which the nominal interest rate has reached zero.
When the nominal interest rate approaches zero, the central bank may be unable to lower it any further. When this occurs, they may use a variety of quantitative easing (QE) techniques to stimulate the economy and provide financial stability. The purchase of longer-term securities is one of these strategies.
Question 40: The response is actually opposite to the right one. A decrease in interest rates could boost investor optimism, leading to an increase in stock prices. Because when interest rates fall, it becomes less expensive for businesses to borrow money, which could lead to increased investment, development, and expansion opportunities.
This will cause consumers and businesses to become more optimistic about future growth, leading to an increase in stock prices.
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39. If the target federal funds rate reaches the effective lower bound (ELB), the FOMC B. would likely shift their focus to purchasing longer-term securities. 40. When interest rates reduce, stock prices may increase because A. consumers and businesses are more confident about future growth.
When the target federal funds rate reaches the effective lower bound (ELB), the FOMC would likely shift their focus to purchasing longer-term securities since they cannot lower nominal rates below the zero lower bound. By purchasing long-term securities, the Federal Reserve aims to reduce the long-term yields and encourage investors to invest in other riskier assets that are beneficial to the overall economy.
So, FOMC's focus shifts towards purchasing longer-term securities. It can also be said that the main objective of buying longer-term securities is to stimulate economic growth by lowering the interest rates, this is a monetary policy that is often employed by the FOMC when nominal rates reach the zero lower bound. The correct option is (B) would likely shift their focus to purchasing longer-term securities.
When interest rates decrease, stock prices may increase because consumers and businesses are more confident about future growth, there is an inverse relationship between interest rates and the stock market. A reduction in interest rates makes it easier for businesses and consumers to borrow money, increasing investment and spending. As a result, the stock market tends to go up when interest rates are low. Low-interest rates create a situation where businesses can take out loans to invest in growth opportunities, and consumers can also take out loans to purchase goods and services. So, when interest rates reduce, stock prices may increase because consumers and businesses are more confident about future growth, the correct answer is A. consumers and businesses are more confident about future growth.
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