For Firm C, continuing to pollute and pay taxes will be more cost-effective. Therefore, business C won't make any emission reductions. 2 tons of pollutant removal will cost Firm C $1,300. Insurance deductibles are designed to help insurance companies with their moral hazard issue.
What is tax? what does tax mean?A tax is a necessary fee or financial charge that any government imposes on a person or a business in order to raise money for public projects that fund the greatest services and infrastructure.
Why do we pay taxes?Taxes give the federal, state, and local governments the money they need to pay for basic services that all residents rely on but are unable to adequately supply for themselves, such as defense, roads, police, and the judicial system.
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the internal revenue service plans to examine an srs of individual federal income tax returns. the parameter of interest is the proportion of all returns claiming itemized deductions. which would be better for estimating this parameter: an srs of 20,000 returns or an srs of 2000 returns? justify your answer.
The Internal Revenue Service would be better for estimating this parameter:
1. Precision increases as the sample size increases.
2. 20,000 SRS
The Internal Revenue Service (IRS) is the income administration for the US national government, which is answerable for gathering U.S. government burdens and regulating the Inner Revenue Code, the primary body of the administrative legal duty regulation. It is an organization of the Branch of the Depository and drove by the Magistrate of Interior Income, who is selected to a five-year term by the Leader of the US. The obligations of the IRS incorporate giving duty help to citizens; seeking after and settling cases of wrong or fake assessment filings; and regulating different advantages programs, including the Reasonable Consideration Act.
Inner Income Administration Expanding on Constitution Road in Washington, D.C.
IRS Working in Washington D.C.
IRS area sign on Constitution Road, Washington, D.C.
The IRS begins from the Commissioner of Internal Revenue, a government office made in 1862 to evaluate the country's most memorable personal expense to support the American Nationwide conflict. The transitory measure gave over a fifth of the Association's conflict costs prior to being permitted to lapse 10 years after the fact.
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if the economy is experiencing a $2 trillion dollar contractionary gap and has an mpc of .8, a) how much government spending must be provided to close the gap
The government must provide $2.5 trillion in additional spending to close the contractionary gap.
The contractionary gap is the difference between what the economy is producing and what it could produce with full employment. The marginal propensity to consume (MPC) is the amount of extra consumption that is generated by an additional unit of income.
To close the gap, the government must increase spending by the size of the gap, which in this case is $2 trillion. The additional spending will generate an additional $1.6 trillion in income, which is equal to $2 trillion multiplied by the MPC of 0.8.
Since the gap is $2 trillion and the additional income generated is $1.6 trillion, an additional $0.5 trillion must be provided in government spending to close the gap. Therefore, the government must provide $2.5 trillion in additional spending to close the gap.
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a company has been forced to reduce its number of employees. today the company has fewer employees than it did a year ago. if there are currently employees, how many employees did the company have a year ago?
In response to an oil shock, the short-run aggregate supply curve is left-shifted.
The overall decrease in supply raises prices and increases unemployment. High inflation in the economy is accompanied by high unemployment. This situation is known as stagflation. Overall prices rise as a result of the oil shock, while overall output declines. This condition is referred to as stagflation. To counteract the supply shock, the government may adopt an expansionary fiscal or monetary policy. The aggregate demand curve shifts to the right as a result of expansionary monetary or fiscal policy. As a result, the real GDP increases and full employment is achieved. The aforementioned chart shows that the economy is in long-term equilibrium with real GDP at If and prices at PL.
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which statement is true about location extensions? location extensions can provide a messaging button that nearby potential customers can use for inquiries. location extensions provide potential customers with the distance to your business location along with your ad. location extensions replace traditional ads with photos/images of your business locations. location extensions replace traditional ads with a delivery focused on location-specific promotions.
The statement which is true is location extensions can provide potential customers with the distance to your business location along with your ad.
Location extensions lets you show a business address, phone number or a map along with your advertisement text. There are mainly two types of location extensions: ads location extensions and affiliate location extensions. The ads location extensions help users find their locations by showing ads with the address, a phone number, a map of the location. This type is useful to draw customers to the exact locations. Whereas, on the other hand, affiliate location extensions help users find nearby retail stores of a retail chain that usually sells their products. This type of extension is useful if people sell their products through retail chains and want customers and consumers when they decide whether to buy or not to buy a specific product.
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what is the value of a bond that makes annual coupon payments of $35, with a par value of $1,000 that matures in 12 years, if the discount rate is 5%?
The value of a bond that makes annual coupon payments of $35 is $867.05
What is the bond?Generally, To calculate the present value of a bond, you can use the formula:
PV = C / r * (1 - (1 + r)^-n) + F / (1 + r)^n
Where:
PV is the present value of the bond C is the annual coupon payment r is the discount rate (expressed as a decimal) n is the number of coupon payments until maturity F is the face value or par value of the bondPlugging in the given values, we have:
PV = 35 / 0.05 * (1 - (1 + 0.05)^-12) + 1000 / (1 + 0.05)^12
PV = 35 / 0.05 * (1 - 0.69) + 1000 / 1.69
PV = $867.05
So the value of the bond that makes annual coupon payments of $35, with a par value of $1,000 that matures in 12 years, if the discount rate is 5%, is $867.05
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your new client is looking to buy a home. she will need to get a mortgage, and she's hoping to limit the amount of extra fees to pay and rules to follow regarding use of her property. which type of property will you recommend to her, and why?
A mortgage is a type of loan used to buy or keep up a house, land, or other real estate.
A mortgage is a contract between you and a lender that grants the lender the right to seize your property in the event that you are unable to repay the loan amount plus interest.n plain English, a mortgage refers to a transaction between a borrower and a lender. Mortgage loans assist people in financing the purchase of real estate by taking a small portion of the property's overall value as payment.A loan is the amount of money lent to you by a financial institution.To know more about mortgage here
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peter is being harassed by bill collectors. his friend francis tells him that he might want to consider the protections afforded by the federal bankruptcy laws. as such, peter may be filing a case in which court?
The U.S. Bankruptcy Court. The U.S. Bankruptcy Code specifies the procedures that must be followed in all bankruptcy cases, which are heard in federal courts.
What are bankruptcy's two main objectives in the US?Three main goals of bankruptcy law include: the provision of a "new start" to individual debtors who are overburdened by debt, the resolution of a situation involving collective action among creditors in dealing with an insolvent debtor, and the preservation of the going-concern value of struggling businesses through reorganisation.
The US Bankruptcy Court's mandate is to what end?Every one of the 94 federal judicial districts has jurisdiction over bankruptcy proceedings, and in practically every district, bankruptcy cases are filed in the bankruptcy court. People who are unable to pay their creditors might start again with the help of bankruptcy laws.
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What three questions would a visionary organization seek to answer?
Why is it there? How will it act? How will it accomplish that? These are the three issues a visionary organization would look to resolve.
What is a visionary company?A forward-thinking company exists in two worlds: the world of profit and the world of purpose. This kind of company honors history cherishes the present and is driven by the future. It is a company that is not constrained by the past or its customs and is prepared to forgo organizational conventions in order to fulfill its corporate objectives.
Organizations with a vision often have a "roadmap to radical change." Every successful visionary organization is aware that dramatic transformation cannot happen unless an organization has a plan for getting there. There are six components to building an effective transformation blueprint in order to become a visionary organization.
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the leadership team asks you to diagnose the aspects of the international environment with which it has struggled the most. what is your diagnosis?
According to the given statement, the diagnosis is understanding the cultural environments in the respective country markets.
What do you mean by the leadership team?An organization's leadership team is a collection of managers and executives who are in charge of many of the decision-making processes within the company.
They are crucial traits to possess because a competent leader can inspire his or her team to work together toward a common objective by bringing out the best qualities in each person.
Organizations can be transformed, value creation can be increased, efficiencies can be created, and personnel can be engaged to provide greater results.
Therefore, according to the given statement, the diagnosis is understanding the cultural environments in the respective country markets.
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1. Use Goal Seek to achieve a $0 balance by changing the Ticket Price per Person.
2. Beginning in cell E3, complete the series of substitution values ranging from 200 to 500 at increments of 20 students vertically down column E.
3. Enter cell references to the Total Income, Total Expenses, and Balance formulas (in that order) for a one-variable data table in cells F2, G2, and H2 respectively.
1.You must have a formula in place that figures the amount based on the cost per person of the tickets in order to use Goal Seek to attain a balance of $0.
2. Put the value 200 in cell E3, then put the value 220 in cell E4. Now left click on cell E3 and while holding down the left button move cursor to cell E4.
3. Hello everyone. For the first problem we say open Jeff nick workbook located in Axl forward and case one folder included with include er with you that tough files you data files and then save workbook and then save workbook as definitely budget.
What is goal seek?When you have that calculation, you can use the Goal Seek tool to determine the ticket price which will result in a balance of $0.
To create a one-variable data table, you need formulas for overall revenue, total expenses, and balance. Then, in cells F2, G2, and H2, correspondingly, you can enter cell references to all those formulas. The data table will then use the values in column E to calculate the total revenue, actual costs, and balance for every value in the series.
You can utilize the data table to quickly assess the effects of changing the per-person ticket price on the overall revenue, total expenditure of funds, and balances once it has been created. This might help you choose the most affordable ticket price.
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Put 200 in cell E3 and 220 in cell E4, respectively. Now left-click on cell E3 and then drag the pointer to cell E4 while continuing to hold down the left button.
What is goal seek?When you have that calculation, you can use the Goal Seek tool to determine the ticket price that will result in a balance of $0.
To create a one-variable data table, you need formulae for total revenue, total spending, and balance. Then, in cells F2, G2, and H2, correspondingly, you can enter cell references to those formulae. The data table will then use the values in column E to calculate the total income, total costs, and balance for each value in the series.
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eli makes custom-made leather handbags and wallets in a small shop. he is known for his fine leather products and hand stitching, as well as the lifetime warranty he offers on his products. his items are expensive, and he has no desire to increase the size of his shop. what has eli developed within his shop? a. threats to the environment b. organizational opportunities c. cost leadership strategy d. distinctive competence e. product life cycle
Eli has developed cost leadership strategy within his shop.
What is cost leadership?By having the lowest operational expenses in the industry, a company can gain a competitive edge through cost leadership. Cost leadership is typically based on a company's efficiency as well as its size, scope, and experience. A growing number of companies have chosen a strategic blend in recent years in an effort to gain market leadership. Offering first-rate customer service, cost leadership, and product leadership all at once is one of these patterns. The company has eliminated waste at every stage of production, allowing it to provide customers high-quality products at affordable prices. Cost leadership is distinct from price leadership. Even if a company has the lowest production costs, it may not always provide the most affordable products or services. If so, this type of firm would be more successful than average.
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When changing lanes: Check your side mirror and look over your shoulder to make sure the lane is clear.
Verify the rearview mirror on the inside. Remain calm. Explained Before changing lanes, make sure it's safe to do so by checking your side mirrors and looking behind you.
What should you see in your side mirrors?The driver should make sure that the side mirror only shows a very small portion of the automobile and the road. The road next to you should appear in the mirror. Remove any blind spots by making slight modifications as needed. Each time a lane change. Before changing lanes, check your mirrors, your blind area, and your backside. Before changing lanes on a motorway, wait at least five seconds. You still can't see what's behind the automobile even after checking your mirrors, and that space can be home to a motorcycle or car! Check your mirrors, then look over your right shoulder to make sure you didn't miss anything.
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Predict the number of computers with defects in a shipment of 15,000 computers. Round your answer to the nearest whole number.
For the provided experiments, there may be 113 faulty items discovered.
Probability is an area of mathematics that deals with numerical representations of how probable an event is really to occur or how likely a statement is to be true. The probability of an occurrence is just a number between 0 - 1, where 0 denotes the event's impossibility and 1 represents certainty. The greater the likelihood of an occurrence, the more probable it will occur. Tossing a fair (unbiased) coin is a basic example.
In everyday life, probability theory is used in risk assessment and modelling. Actuarial science is used by the insurance sector and markets to calculate pricing & make trading choices. Environmental control, entitlement analysis, & financial regulation all use probability methodologies.
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The Sarbanes-Oxley Act set up the Public Company Accounting Oversight Board with the responsibility for all of the following except
Multiple Choice
O internal controls within companies.
O controlling the quality of audits.
O certifying the competence of financial executives.
O setting rules and standards for the independence of auditors.
The concept here is the Sarbanes-Oxley Act, this is a federal law that mandates certain record-keeping and financial reporting practices for businesses. The answer is option C, certifying the competence of financial executives.
The Sarbanes-Oxley Act of 2002 is a federal law that establishes many financial and auditing regulations for public companies. Lawmakers created rules to protect shareholders, employees, and the public from corporate accounting errors and fraudulent financial practices, scandals that rocked the early 2000s.
The law now makes CEOs responsible for the financial statements of their companies. Employees are always protected.
Stricter control standards followed. This includes the control environment, risk assessment, control activities, information and communication, and monitoring.
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when hud pursues actions that are designed to end homelessness and promote the health and housing stability of vulnerable populations, which of its goals is it supporting? build strong, resilient, and inclusive communities. meet the need for quality affordable rental homes. strengthen the housing market to bolster the economy and protect consumers. use housing as a platform for improving quality of life.
D) Support Use housing as a platform for improving quality of life when hud pursues actions designed to end homelessness and promote the health and housing stability of vulnerable populations.
Which best describes a mortgage with purchase money?
It could be a junior mortgage, a junior wrap-around mortgage, or a first mortgage. The buyer is the mortgagor and the seller is the mortgagee in a purchase money mortgage. It's possible that this mortgage will be a junior, junior wrap-around, or first mortgage.
What is a Mcq mortgage loan?
Immovable property as security for a bank loan. movable property as security for a bank loan. For a bank deposit, immovable property serves as security.
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A country's gross domestic product (GDP) is $73 billion and its money supply (MS) is $18.25 billion.
The country's velocity of money( VM) Is 4.0
. If the MS stays at the same level next year while the velocity of money "turns over" 4.5 times, $22.5 billion be the level of GDP
What is gross domestic product?a comprehensive measure of US business growth. The country's manufactured commodities and services are valued using the GDP. The market worth, stated in dollars, of all the finished goods and services that nation produces and sells over a certain time period is that nation's gross domestic product (GDP). This measurement must undergo numerous analyses before it can be regarded as a trustworthy indication due to its complicated and subjective nature. The gross domestic product, or GDP as it is more commonly called, is one of the most significant.
VM = $20 billion/$5 billion = 4.0
b. GDP = $5 billion x 4.5 = $22.5 billion
c. MS = $22 billion/4 = $5.5 billion
% increase in MS = ($5.5 billion - $5
billion)/$5 billion = 10%
The complete question is,
A country's gross domestic product (GDP) is $20 billion and its money supply (MS) is $5 billion.
a. What is the country's velocity of money (VM)?
b. If the MS stays at the same level next year while the velocity of money "turns over" 4.5 times, what would be the level of GDP?
c. Assume that the VM will turn over 4 times next year. If the country wants a GDP of $22 billion at the end of next year, what will have to be the size of the money supply? What percentage increase in the MS will be necessary to achieve the target GDP?
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in the text of capital budgeting, the wacc would be the after-tax cost of debt if the firm plans to use only debt to finance its capital budget during the coming year. true or false? group of answer choices true false
The WACC as used in capital budgeting would be simply the after-tax cost of debt if the firm plans to use only debt to finance its capital budget .
A WACC tells you what?The return that investors and lenders anticipate receiving in exchange for their capital investments in a firm is shown by the cost of capital (WACC). A company's WACC, for instance, is 15% if shareholders want a 20% return and lenders demand a 10% return.
Is WACC higher or lower?A firm with a higher WACC ratio is often a riskier investment, whereas a corporation with a lower WACC tends to be a more stable one. The investor can feel confident in the investment and content with the pace at which they will get a return with a solid WACC.
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to make your business messages more readable, you can do which of the following? a. add footnotes. b. include a bibliography at the end. c. eliminate white space. d. incorporate numbered and bulleted lists.
You can Incorporate numbered and bulleted lists to make your business messages more readable.
In business composing, records with slugs and numbers make the rundown things more straightforward for perusers to see and grasp. List things that are embedded into sections become jumbled in a knot of words. Nonetheless, the text doesn't have a perceived gathering of components.
This clarification incorporates guidance that will help you in deciding if to separate business composing into passages and when to utilize bulleted or numbered records. Notice these three activities: In your business composing, give each segment a title that contains a term or expression that best depicts everything on the rundown.
Hence option (D) is correct.
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bill once had a blue car that was in the shop more than it was out. since then he will not even consider owning blue- or green-colored cars. bill's aversion to green cars is an example of:
Bill once had a blue car that was in the shop more than it was out. since then he will not even consider owning blue- or green-coloured cars. bill's aversion to green cars is an example of generalization.
Which of coming up next is an illustration of negative support?
This is an ideal illustration of negative support. Negative support happens when something undesirable or awkward is eliminated or removed to improve the probability of the ideal way of behaving.
Which of coming up next is an unconditioned reaction?
A few additional instances of unconditioned reactions include Heaving in torment in the wake of being stung by a honey bee. Yanking your hand back subsequent to contacting a hot plate on the broiler. Hopping at a boisterous commotion.
Which of this is an illustration of uplifting feedback?
As indicated above, uplifting feedback alludes to presenting a helpful improvement (i.e., a prize) to support the way of behaving that is wanted. An illustration of this is giving a youngster a treat when the individual is courteous to an outsider.
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how the average rate of change of a function on a given interval and the slope of a related line are connected
The average rate of change of a function on a given interval and the slope of a related line are connected as the function's output (y-value) changes as its input (x-value) changes over that interval.
It is calculated by taking the difference between the function output at the endpoints of the interval and dividing it by the difference between the function's input at the endpoints of the interval. The slope of a related line, also called the "rise over run", is a measure of how steep the line is. It is calculated by taking the difference in the y-coordinates of two points on the line, and dividing it by the difference in the x-coordinates of those same two points. Both the average rate of change and the slope of a line are measures of how quickly the output of a function is changing as the input changes. The average rate of change of a function is specific to a given interval, while the slope of a line is specific to a particular pair of points on the line. In general, the slope of a line is the average rate of change of the function over an interval which contains the two points.
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they are often used to hide certain employment issues b. they present work and educational history in inconsistent formats c. they emphasize work history and experience rather than career goals d. they often highlight impressive previous employers and hide relevant work experience
They emphasize work history and experience rather than career goals.
What is career goals?Career goals are ambitions that an individual has for their profession. Setting career goals helps provide direction and motivation in one's professional life. Examples of career goals include gaining a leadership position, improving performance metrics, earning a degree or certification, advancing within a company, starting a new business, developing a new skill set, and making a set amount of money. Achieving these goals can help individuals remain motivated and feel a sense of accomplishment. Career goals should be specific, measurable, attainable, realistic, and timely. Setting and achieving career goals can lead to greater job satisfaction and career success.
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an investor is in a 35% combined federal plus state tax bracket. if corporate bonds offer 8.00% yields, what yield must municipals offer for the investor to prefer them to corporate bonds?
The corporate bonds' after-tax yield is 0.0925 (1 - 0.35) = 0.0601 or 5.20%. The municipals must thus provide yields of at least 5.20%.
A sort of financial product offered to investors is a corporate bond, which is issued by a business. The investor receives a predetermined amount of interest payments at either a fixed or variable interest rate in exchange for providing the firm with the money it requires. The bond "reaches maturity" when it stops making payments and the initial investment is refunded. The capacity of the corporation to repay the bond often serves as its security, and this ability is based on its expectations for future sales and profitability. Physical assets of the corporation may occasionally be utilised as collateral.
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you are putting the project management plan together for a large project that you are managing for your organization. which activities will you need to focus on while creating the project management plan?
Establishing configuration management levels, determining resource and talent requirements, and creating technical and management specifics are the activities we need to focus on while creating the project management plan.
You complete the following tasks using expert judgment:
Establishing resources and skill levels, defining configuration management levels, specifying documents subject to change control procedures, prioritizing the task to guarantee optimal scheduling and resource allocation, and customizing processes.
Project management is the process of overseeing a team's activity to complete all project objectives within the established parameters. The project documentation that is prepared at the start of the development process often include descriptions of these information. The three main restraints are budget, time, and scope. Optimizing the distribution of essential inputs and using them to achieve pre-established goals is the secondary problem.
The goal of project management is to provide a finished product that meets the goals of the customer. The goal of project management is frequently to modify the client's brief in order to more effectively achieve the client's goals.
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On December 31, Hawkin's records show the following accounts. Cash$ 9,100 Accounts Receivable1,500 Supplies2,100 Equipment15,900 Accounts Payable8,000 Common stock13,700 Retained earnings, December 16,000 Dividends2,900 Services Revenue18,000 Wages Expense8,000 Rent Expense3,500 Utilities Expense2,700
The statement that lists revenues and costs is the income statement. It either has a net profit or loss. Consequently, we may say that the net income is $5,800.
What does "net income" mean?What's left over after taxes and other withholdings have been taken out of your paycheck is known as your take-home pay, or net income. The money left over after all business expenses have been covered is referred to as net income.
What are net income and gross income?The amount of an employee's income that remains after payroll deductions for expenses like taxes, benefits, and other charges is known as gross pay. After all withholdings have been taken out, what is left over is referred to as net pay or take-home pay.
Service revenue $18,000
Less:
Wages Expense $8,000
Rent Expense $3,500
Utilities Expense $2700
Total expenses $10,200
Net income $5,800
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manufacturing plants with low labor costs that give special privileges to their american owners in return for employing mexican citizens are known as
Maquiladoras are manufacturing plants with low labor costs that give special privileges to their american owners in return for employing mexican citizens.
Maquiladoras are businesses with operations in Mexico that produce goods for businesses in the United States and benefit from the cheaper labour costs and tax breaks provided by the North American Free Trade Agreement (NAFTA). Maquiladoras have operated under this arrangement since the 1960s and are generally found close to the U.S.-Mexico border to speed up the exportation process.
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a bank is operating in an economy in which the required reserve ratio is 5% and the bank keeps no excess reserves. if it sells $20 million worth of government bonds to the central bank, what will be the impact on the money supply? (5 points)
The wisest course of action is to take a $100 million cut to the available finances. E is the ideal choice.
Is it wise to invest in government bonds?If you want security and a fixed interest rate that is paid semiannually until the bond's maturity, Treasury bonds can be a good investment. Because of their steady return, bonds are an important part of an investment portfolio's asset allocation because it helps offset the volatility of equity prices.
How do government bonds function?Governments can sell bonds to investors when they need to raise funds for operations (like paying government employees or paying interest on existing debt) or projects (like building federal highways). In the United States, bonds represent debt held by bondholders and are sold through the Treasury.
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tania earns $16 per hour at the glendale forrest. she regularly works 40 hours per week. she is paid time-and-a-half for each hour of overtime work. last week she worked 43 hours. what was her gross pay for the week?
$640 is how much she will make in in regular hours. Step-by-step explanation: Create an equation from the word problem and solve.
What does regular hour mean?According to the Fair Labor Standards Act (FLSA), "nonexempt" workers are limited to 40 regular hours per workweek. A work week is described as a consistent seven-day, 168-hour period of time that is agreed upon and understood by both the employer and the employees. It can start on any day and at any time of the day, but it never varies from one week to the next. A nonexempt worker must receive compensation at a rate of 1.5 times their regular hourly wage for any overtime they put in during a workweek.
Calculation:
The time for Tania work overtime is,
43-40=3
The pay for the overtime work for an hour is,
2×16=32
Determine the gross pay of the week.
=40×16+3×32
=640+96
=736
So gross pay for the week is $736
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crimes against the person are those committed while doing business, such as cheating on taxes, bribery, and embezzling funds from a company. question 2 options: true false
False,crimes against a person are those done when they are conducting business, such as filing false tax returns, accepting bribes, and stealing money from a corporation.
What is the most accurate definition of crime?A premeditated act that harms another person physically or psychologically, damages or destroys property, or violates the law is referred to as a crime. Nearly everyone will face a crime at some point in their lives. There are many distinct sorts of crime. People of various ages, backgrounds, and locations are impacted by crime. Crime is any unlawful act or omission that has a legal penalty.
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a business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:
A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a Limited Liability Company (LLC).
An LLC is a type of business structure that combines the limited liability protection of a corporation with the tax benefits of a partnership or sole proprietorship. This means that the owners of an LLC, called members, are not personally liable for the company's debts or liabilities, and they are only responsible for the company's obligations up to the amount they have invested in the LLC.
LLCs are also pass-through entities, which means that the income and losses are passed through to the members and reported on their personal income tax returns. This is different from a corporation, which is taxed as a separate legal entity. The LLC members will pay taxes on their share of the LLC's income, regardless of whether the money was actually distributed to them.
LLCs are popular among small business owners because they offer the protection of limited liability and the flexibility of a partnership or sole proprietorship. It also offers the ability for different profit and loss allocations among the members and also can have multiple classes of membership.
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if the yield curve shows 9% at year 1 and 10% at year 2 and the subsequent cashflows are $1,000 at the end of the first year and $2,000 at the end of the second year, the present value of these cashflows is:
The present value of these cash flows is equal to $917.35 + $1,735.12, or $2,652.47. In this case, the present value of the first cash flow is $1,000 divided by 1 plus 9% to the power of 1, or $917.35.
The present value of the second cash flow is equal to $2,000 divided by 1 plus 10% to the power of 2, or $1,735.12. Therefore, the present value of these cash flows is equal to $917.35 + $1,735.12, or $2,652.47. To calculate the present value of each cash flow, we must use the concept of the time value of money. Therefore, the present value of the cash flow is equal to the future value of the cash flow divided by 1 plus the interest rate to the power of the number of periods.
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