Using the interest of 3% we know that after 5 years we will get back the amount of $12,650.
What is interest?In the fields of finance and economics, interest is the payment of a sum over and above the principal amount to a lender or depositor by a borrower or deposit-taking financial institution at a set rate.
It is not the same as a fee that the borrower might pay to the lender or another entity.
Consider borrowing $1,000 at a 10% interest rate for seven years.
Your interest for the first year would be $100.
Your interest payment for the following year would be made up of the principal amount plus interest, or $1,100.
As a result, your interest for the following year would be $110 ($1,100 multiplied by 0.10).
So, the amount we will get after 5 years:
11000/100 * 3
= $330
5 years: 330 * 5
= $1,650
Then, the amount after 5 years: 1650 + 11000 = $12,650
Therefore, using the interest of 3% we know that after 5 years we will get back the amount of $12,650.
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five years from today, you hope to donate $10,000 to the alumni association. thereafter, you intend for your annual contributions to grow at a rate of 3 percent per year, forever. if you can earn 7 percent per year on your investments, how much must you invest today to fund this donation?
If you can earn 7 percent per year on your investments, $750 must be invested today to fund this donation.
To calculate this, we first need to calculate the future value of the $10,000 donation. 25 years from now, with an annual growth rate of 3%, the donation will be worth $17,497. We can then use the present value of an annuity formula to calculate is the present value of the donation: PV= Fv*(1-(1+r)^-n)/r, where Fv is the future values, r is the interest rate of &%, and n is the number of years (25).
The result is the present value of the donation, which is $7500. therefore, in order to fund the $10,000 donation 35 years from now, $7500 must be invested today .
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If employees do not honestly communicate about business issues, it can lead to..A. Enhanced self-interest.B. Poor financial performance.C. Transparent workplaces.D. Greater personal values.
If employees do not honestly communicate about business issues, it can lead to poor financial performance.
Hence, the correct answer is Option E.
Why is Honest Communication Important in Business?Honest communication is essential for the success of any business. When employees do not communicate honestly about business issues, it can lead to misunderstandings, mistrust, and ultimately poor financial performance.
This is because employees may not have the information they need to make informed decisions, or they may make decisions based on incorrect information. As a result, the business may suffer from decreased productivity, lower sales, and reduced profits.
Therefore, it is important for employees to communicate honestly and openly about business issues in order to ensure the success of the business.
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trey, an agent for uno music corporation, executes an unauthorized contract with variety recording, inc., that is highly advantageous to uno. variety withdraws from the deal before uno ratifies the contract. the contract is valid. variable. void. voidable.
trey, an agent for uno music corporation, executes an unauthorized contract with variety recording, inc., that is highly advantageous to uno. variety withdraws from the deal before uno ratifies the contract. the contract is void.
A void contract is a formal agreement that's effectively illegitimate and unenforceable from the moment it's created.
A void contract differs from a voidable contract, although both may indeed be annulled for analogous reasons.
A contract may be supposed void if it isn't enforceable as it was firstly written.
Void contracts can do when one of the involved parties is unable of completely comprehending the counteraccusations of the agreement, like when a mentally disabled existent or an inebriated person may not be coherent enough to adequately grasp the parameters of the agreement, rendering it void.
Agreements entered into by minors or for illegal conditioning may also be rendered void.
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The form of business ownership best suited to raising large amounts of money for expansion is the: Select one: a. Sole proprietorship. b. partnership c. corporation d. cooperative
c. corporation. The corporation is the type of corporate ownership that lends itself to obtaining substantial sums of money for expansion.
The corporation is the type of corporate ownership that lends itself to obtaining substantial sums of money for expansion. Businesses have the benefit of offering stocks and bonds to investors in return for ownership and funding of the business. This may generate a substantial sum of money that may be utilised to finance development and expansion. Additionally, because there is no cap on the number of stockholders that businesses may have, it is feasible to obtain significant sums of money from a wide range of investors. In contrast to other types of ownership, corporations may be more complexly organised and are subject to greater regulation.
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the buying process usually begins with and ends with . group of answer choices recognition of a need or problem; post-purchase evaluation recognition of a need or problem; purchase decision alternative evaluation; purchase decision information search; purchase decision information search; post-purchase evaluation
The buying process usually begins with recognition of a need or problem and ends with post-purchase evaluation.
Determine the issue The buying procedure begins at this point. A consumer won't start shopping unless they are aware of their needs or wants. A buyer will make a purchasing choice if he feels compelled to acquire a specific product. The buying process is a term used in marketing to describe the typical processes a consumer takes while making a purchasing decision. Learn about the stages of the purchase process and how marketers attempt to influence them. The series of actions a consumer will take to decide what to buy is known as a buying process.
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total revenues equal $25,700, and total expenses equal $17,500. what is the amount of net income or net loss? a.net income of $8,650 b.net income of $25,700 c.net loss of $8,200 d.net income of $8,200
$25,700 total revenue and $17,500 total expenditures. how much you made or lost as net income $8200 in net income.
How is net income determined on a balance sheet?You deduct taxes, interest, selling and administration costs, cost of goods sold (COGS) (if applicable), depreciation, and amortization from the business's gross revenue to arrive at net income. The sum you arrive at is referred to as the company's net income and is the "net" result of those costs.
Is total revenue minus total expenses equal to net income the method for determining net income?The formula for calculating gross income is the first part of the equation, which is revenue less cost of goods sold. (See our easy tutorial on how to determine cost of goods sold.)
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in addition to porter's five forces, another sixth force added in the text is question 18 options: bargaining power of the ceo. bargaining power of other stakeholders. bargaining power of other prospects. bargaining power of the strategic planning team. bargaining power of price.
Option B. Bargaining power of other stakeholders is another force that can be added to Porter's five forces model.
Other stakeholders may include suppliers, customers, employees, and other groups or individuals who have a stake in the success or failure of the organization. These stakeholders can exert influence on the organization by virtue of their bargaining power, which may be related to factors such as their size, their importance to the organization, and the availability of substitutes for their services or products. By considering the bargaining power of other stakeholders, organizations can gain a better understanding of the competitive landscape and develop strategies to address the concerns and needs of these important groups.
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In addition to porter's five forces, another sixth force added in the text is question 18 options:
A. bargaining power of the CEO.
B. bargaining power of other stakeholders.
C. bargaining power of other prospects.
D. bargaining power of the strategic planning team.
E. bargaining power of price.
what is not true about your digital footprint? question 3 options: potential employers can use your history to detemine future employment you can erase your digital footprint online predators look at your personal information college admissions offices are allowed to view your online posts
Option B: you can erase your digital footprint, is not true about your digital footprint.
The data trail you leave behind while you use the internet is referred to as your "digital footprint." Your digital footprint contains information such as a list of all the websites you visit, data from all cookies that services and websites place on your devices, copies of the data you enter online, and even specifics about the hardware and software you are using.
You cannot really delete your digital footprints as they are already recorded once you log in. You can just change the access settings to limit the reach of your content and personal information out on the internet. Thus, option B is not really true about your digital footprints.
Governments, businesses, and even private individuals may see what you do online thanks to the information in your digital footprint. This information is incredibly useful to businesses looking to sell you products, governments looking to spy on your every move, employers looking for ever-greater employee control, and a wide range of crooks looking to steal your identity or access your accounts.
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firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and through effective branding and positioning, are doing so using blank excellence. multiple choice question. product locational customer operational
Businesses that successfully market themselves, position themselves, and offer products and services that give them a competitive advantage do so by [...] exceeding expectations.
What is the position known as?
a thing's or a person's location, frequently in connection to other things: If you want to see where we are on the map, I've located it for you. Since you rearranged the furnishings, the sofa is now in a different location. Positioned horizontally with the face upward. Horizontal position with the face turned downward is known as prone. The right side is pointing downward in a horizontal position known as the right lateral recumbent. Recumbent with the left side down and in a horizontal position.
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carson has been consistently coming in late to work and leaving early. his supervisor has documented this behavior for a month. before taking the issue to hr and the manager, the supervisor sits down with carson and talks to him about her concerns. at the end of the discussion, the supervisor issues carson a(n)
The manager concludes the conversation with Carson by giving him a verbal warning. An employer may use a verbal warning as a method of discipline to deal with an employee's performance or conduct problems.
Often, it is the first stage of a sequential disciplinary procedure. The manager most likely explained to Carson the specific issues with his timeliness and attendance as well as the effects of his actions on the workplace during the conversation. The verbal warning probably included a review of the company's attendance and punctuality rules and expectations as well as a detailed discussion of the repercussions of his behaviour not altering. Carson might have also received a plan for improvement from the supervisor, along with a deadline for follow-up.
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question number 2) there are a number of influences on the buying organization and buying center that can impact how and what is purchased by a business. for eaton's customers, the economic crises in 2008 would be classified as what type of influence?
The economic crisis of 2008 would have had a significant impact on Eaton's customers' purchasing behavior, as it would have forced them to reassess their priorities and make more cautious decisions about how they allocate their resources.
The economic crisis in 2008 would be classified as an external influence on the buying organization and buying center for Eaton's customers. Specifically, it would be considered a macroeconomic influence, which is a factor that affects the overall economy and can have a ripple effect on businesses and consumers.
The economic crisis of 2008 had a profound impact on the global economy, including businesses of all sizes and industries. Many companies, including Eaton's customers, likely experienced a decrease in demand for their products or services, as well as a reduction in their own financial resources. These factors would have influenced the buying organization and buying center's decision-making process by making them more cost-conscious and focused on finding ways to reduce expenses.
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what is the second essential task of management?multiple choice question.diversitysynergyprincipalityorganizing
All of this requires careful planning on the part of someone in a position of leadership. As a result, the second function of management is to organize.
What are the five functions of management?
There is a multiple-choice question. Synergy of diversity trying to organize principality
At its most basic, management is a discipline comprised of five basic functionalities: planning, organizing, staffing, leading, and controlling. These elements comprise are part of a larger set of methods and hypotheses regarding how to become a successful manager.
Which of the three most important managerial abilities?
According to Robert Katz, three different kinds of abilities are necessary for a successful project management:
Knowledge and understanding.
Knowledge of concepts.
Interpersonal or human management abilities.
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which action was implemented in the uruguay round, finalized in december 1993?multiple choiceextension of the gatt to cover consumer productsestablishment of the world trade organizationenhancement of trade barriersreduction in the protection for patents, trademarks, and copyrights
Option B. Establishment of the World Trade Organization (WTO) was the key action implemented in the Uruguay Round, which was finalized in December 1993.
The Uruguay Round was a series of negotiations among member countries of the General Agreement on Tariffs and Trade (GATT), which aimed to reduce trade barriers and increase international trade. One of the main outcomes of the Uruguay Round was the creation of the World Trade Organization, which replaced the GATT as the global organization responsible for regulating international trade. The WTO has a broader mandate than the GATT, covering not only trade in goods, but also trade in services, intellectual property rights, and investment.
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Which action was implemented in the Uruguay round, finalized in December 1993? multiple choice
A. extension of the Gatt to cover consumer products
B. establishment of the world trade organization
C. enhancement of trade barriers
D. reduction in the protection for patents, trademarks, and copyrights
what remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract? choose 3 answers
The buyer has three main remedies when the seller refuses to deliver the goods that are the subject of the contract. The first is to sue the seller for breach of contract. This would mean that the buyer would seek an injunction requiring the seller to fulfill its obligations under the contract.
The second remedy is the demand for specific performance, which is a court order by which the seller is obliged to fulfill his obligations under the contract. Finally, the buyer can claim quantum meruit, which is a legal remedy that compensates the buyer for the value of the goods or services provided by the seller.
In this case, the buyer would request a refund for the goods they expected but did not receive. In all these cases, the buyer must prove that there was a valid contract between him and the seller and that the seller did not fulfill his obligations under the contract.
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which of the following is a key objective of the age discrimination in employment act of 1967 (adea)?group of answer choicesto prevent financially troubled companies from singling out older employees when there are cutbacksto take affirmative action to ensure equal employment opportunity for vietnam-era veteransto give workers up to 12 weeks' unpaid leave each year for birth, adoption, or foster care of a child within a year of the child's arrivalto have employers maintain health insurance benefits and give workers their previous jobs when the workers' leaves are over
The key objective of the Age Discrimination in Employment Act of 1967 (ADEA) is to prevent financially troubled companies from singling out older employees when there are cutbacks.
The ADEA forbids employment discrimination against anyone over the age of 40. Its purpose is to protect older workers from arbitrary age discrimination in the workplace and to encourage the hiring of older people based on their abilities rather than their age. Employers with 20 or more employees, including state and local governments, are subject to the statute.
While other employment-related statutes, such as the Vietnam Era Veterans' Readjustment Assistance Act and the Family and Medical Leave Act, have their own goals, they are not the primary goals of the ADEA.
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mullis company sold merchandise on account to a customer for $825, terms n/30. the journal entry to record this sale transaction would be:
The journal entry to record this sale transaction would be Debit Accounts Receivable $825 and credit Sales $825. In your company's books, a journal entry serves as a record of a business transaction.
Every transaction requires at least two journal entries in double-entry bookkeeping. A bookkeeper keeps track of all the changes that a transaction can bring about in a business by recording them in their journal.
Even today, every journal entry must include an equal number of debits and credits to maintain the balance of the famous equation. Costs are the price paid for goods or services used. Expense The crucial accounting records known as journal entries show the costs incurred by the organisation. The foundation of accounting are journal entries.
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Retailers purchase the goods from ____ and sell them to the customers.
A. manufacturers
B. producers
C. wholesalers
D. farmers
Retailers purchase the goods from wholesalers and sell them to the customers. So, option C is correct answer.
Retailers are businesses that purchase goods from other businesses or individuals and sell them to the end consumers. These goods can be a wide range of products, including food, clothing, electronics, furniture, and more.
Retailers typically acquire their products from manufacturers, wholesalers, or distributors. Manufacturers are the businesses that create or produce the products, while wholesalers are the middlemen that buy products in bulk from manufacturers and sell them in smaller quantities to retailers.
Distributors are similar to wholesalers but may provide additional services such as shipping and storing products.
Once retailers purchase products, they typically sell them in physical or online stores directly to customers. Retailers may purchase products at a wholesale price and sell them at a markup to make a profit. The retail industry is an important part of the economy, providing jobs and offering a convenient way for consumers to access a wide range of products.
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session 01 included a profile video of a couple of our scm alumni, matt and leandra at shell. matt and leandra both manage portfolios worth , and deliver in savings each year. a. they each manage portfolios worth about $50 thousand and deliver $hundreds in savings each year. b. they each manage portfolios worth about $500 and deliver $50 in savings each year. c. they each manage portfolios worth about $500 quadrillion and deliver $trillions in savings each year. d. they each manage portfolios worth $500 million to $3 billion and deliver $millions in savings each year.
As per the data given in the question, Matt and Leandra are portfolio managers and They each manage portfolios worth $500 million to $3 billion and deliver $millions in savings each year i.e. Option D is correct.
A portfolio's significance can be characterized as an assortment of monetary resources and speculation instruments that are held by an individual, a monetary establishment or a trading company. To foster a productive portfolio, getting comfortable with the basics and the elements that impact it is fundamental. According to the portfolio definition, it is an assortment of a great many resources that are possessed by financial backers. The expressed assortment of monetary resources may likewise be assets going from gold, stocks, reserves, subordinates, property, cash counterparts, bonds, and so on. People put their cash into such resources to produce income while guaranteeing that the first value of the resource or capital doesn't dissolve.
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Decide how each cost is treated on an income statement prepared using the variable costing approach. Indicate whether each cost item is treated as a period cost or product cost.1. Direct labor2.Fixed manufacturing overhead3.Variable manufacturing overhead4.Fixed selling and administrative expenses5.Variable selling and administrative expenses
1)Direct labor is indeed a product cost, 2)Fixed manufacturing overhead is a period cost, 3)Variable direct materials is a product cost,4)Fixed general and administrative expenses are a period cost and 5)Variable sales and administrative expenses are a period cost. are really the correct responses.
Whenever the quantity manufactured equals the number of units sold, the net operating profit calculated through using variable costing method equals the net operating revenue calculated utilising absorption traditional costing.
Variable costing methods are ideal for cost benefit analysis.
Whenever the quantity produced exceeds the quantity sold, the net income from operations calculated using the variable accounting system exceeds the operating profit calculated utilising absorption costing method.
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xanex is a new firm that will pay an annual dividend of $1 a share next year. the firm plans to increase its dividend by 20 percent a year from then on for the following two years. then the annual dividend growth rate forever will be 5 percent lower than the constant required rate of return. if the required rate of return is 10.25 percent, what is the closest to how much one share of this stock is worth today?
The correct option is A. The closest to how much one share of this stock is worth today is $33.04.
A firm is a business employer together with an employer that produces and sells items and offerings with the aim of producing revenue and making earnings. Examples of corporations are sole proprietorships, partnerships, restrained legal responsibility corporations, or agencies. The time period is slightly extra typically related to a partnership.
A firm is an enterprise agency that seeks to make a profit thru the sale of goods and offerings. The time period company is synonymous with commercial enterprise or corporation. companies can perform beneath numerous distinct systems, including sole proprietorships and companies. A firm refers to a commercial enterprise concerned with the selling of products and services for earnings, usually expert offerings. alternatively, an employer refers to a business worried about any earnings-producing interest involving the sale of goods and services and includes all business trades and systems.
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Complete Question:
Xanax is a new firm that will pay an annual dividend of $1 a share next year. the firm plans to increase its dividend by 20 percent a year from then on for the following two years. then the annual dividend growth rate forever will be 5 percent lower than the constant required rate of return. if the required rate of return is 10.25 percent, what is the closest to how much one share of this stock is worth today?
a. $33.04
b.$38.19
c.$41.05
d.$31.19
e.$34.81
you just won a lottery that promises to pay you $1 million exactly 10 years from today. because the $1 million payment is guaranteed by the state in which you live, opportunities exist to sell the claim today for an immediate lump-sum cash payment. what is the least you will sell your claim for if you could earn 5.05 % on similar-risk investments during the 10-year period?
we obtained the answer to this question : the minimum price is $434,214.74.
Giving the following information:
Future Value= $1,000,000
Number of periods= 10 years
Discount rate= 5.05%
The minimum price of the prize is the present value of the payment. To ascertain the present value, we need to utilize the following recipe:
PV= FV/(1 + i)^n
PV= 1,000,000/(1.087^10)
PV= $434,214.74
The minimum price is $434,214.74.
Present value expresses that an amount of money today is worth more than a similar amount in the future.
In other words, present value shows that money received in the future is not worth however much an equivalent amount received today.
Unspent money today could lose value in the future by an implied annual rate because of inflation or the rate of return if the money was invested.
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The area of accounting that focuses on reporting information to external users are called: _________
The area of accounting known as financial accounting is concentrated on the creation of financial statements that provide pertinent accounting information to the company's external users, including creditors, suppliers, investors, and the government.
Why Do Investors Need to Understand Accounting?
Accountants' labour is the foundation of today's financial markets. Business executives would lack the transparency they require to manage risks or plan initiatives without accounting, and investors would be unable to rely on up-to-date, accurate financial data. Regulators also rely on accountants for critical jobs like providing auditors' opinions on companies' yearly 10-K reports. In conclusion, accounting is crucial for the smooth running of modern finance, although being periodically overlooked.
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Which of the following is a misconception about marketing?
Marketing focuses on relationships.
Marketing focuses on satisfying the customer.
Marketing is equivalent to sales and advertising.
Marketing involves numbers.
Answer: The misconception is that marketing is equivalent to sales and advertising. While sales and advertising are important components of marketing, they are not the whole picture. Marketing is a broader concept that encompasses a variety of activities aimed at promoting and selling products or services.
Explanation:
Marketing involves researching and understanding customer needs and preferences, developing and promoting products or services to meet those needs, pricing products and services, and distributing them to customers through various channels. It also involves building and maintaining relationships with customers through customer service, after-sales support, and other activities.
So, while sales and advertising are important aspects of marketing, they do not define the whole field. Marketing is focused on relationships with customers and satisfying their needs, and it often involves the use of numbers to track and analyze customer behavior, market trends, and the effectiveness of marketing campaigns.
which of the following statements are true? multiple select question. efficiency in operations is measured by considering a retailer's cost of goods sold. gross margin reflects the ability of a wholesaler to price products. retailers have an entire category of amounts that do not appear on service company income statements. cost of goods sold for a wholesaler includes costs required to sell them, such as salaries of salespeople.
The following statements are true -
Retailers have an entire category of amounts that do not appear on service company income statements. Gross margin reflects the ability of a wholesaler to price products.The term gross margin alludes to a benefit measure that glances at an organization's net benefit contrasted with its income or deals. An organization's gross edge is communicated as a rate. Net is still up in the air by computing gross deals. The higher the gross edge, the more capital an organization holds, which it can then use to pay different expenses or fulfil obligation commitments. The income or marketing projection is gross income or deals, less the cost of goods sold (COGS), which incorporates returns, remittances, and limits.
Gross Margin=Net Sales−COGS
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Correct Question -
which of the following statements is true? multiple select questions.
efficiency in operations is measured by considering a retailer's cost of goods sold. gross margin reflects the ability of a wholesaler to price products.retailers have an entire category of amounts that do not appear on service company income statements. cost of goods sold for a wholesaler includes costs required to sell them, such as salaries of salespeople.refer to the productivity numbers given for the us and canada in the previous 2 questions. assume that both countries specialize and trade. what is the minimum number of bushels that u.s. producers will be willing to accept in trade for a bushel of the product that it chooses to specialize in?
Each country has the chance to specialize in products where it has a competitive advantage over other countries thanks to trade. Minimum bushels to be traded is 10.
In turn, resource waste is reduced and the production process becomes more effective. As a result, nations are able to produce more than they otherwise might have done without trade. Hence, global output rises as a result of trade.
Because there is currently no global framework for decreasing emissions or promoting sustainability, further globalization is likely to increase greenhouse gas emissions, desertification, and a number of other issues that worsen the climate catastrophe.
Although there are lax laws in place, such as the Paris Accords and the Kyoto Conventions, they are insufficient to counteract unsustainable economic growth.
A person who is a citizen of another nation can obtain US citizenship through the legal process of naturalization after fulfilling the standards set forth by Congress.
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Correct question:
Assume the U.S. can produce 10 bushels of wheat or 20 bushels of corn, using all of its available resources. Canada can produce 15 bushels of wheat or 25 bushels of corn, using all of its available resources. Assume that both countries specialize and trade. What is the minimum number of bushels that u.s. producers will be willing to accept in trade for a bushel of the product that it chooses to specialize in?
beach carrier case study what is the nature of the product? what are its strengths and weaknesses? 2. what are the limitations to the assumptions ricci has made in determining the market potential? what risks do these present? 3. how can ricci protect her product design? 4. what are the pros and cons of the mail order marketing strategy? what are the pros and cons of alternative distribution methods? 5. what are some of the manufacturing issues ricci will face? 6. is the financing sufficient to fund the roll out of the beach carrier as planned?
As per the Beach Carrier Analysis (Case Study), the answers to the following questions are mentioned below:
Beach Carriers often come under the Private Carrier Category
Beach Carriers often come under the Private Carrier Category
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the savings equation tells us that to reduce a current account deficit, a country must increase its private savings, reduce domestic investment, or cut its government budget deficit. some people recommend restrictions on imports from china to reduce us current account deficit. how would higher us barriers to imports affect its private savings, domestic investment and government deficit? do you agree that import restrictions would necessarily reduce a us current account deficit?
Raising US import tariffs on Chinese goods might lead to a decline in domestic investment and savings as well as an increase in the budget deficit. It might not always result in a smaller US current account deficit.
Because Chinese imports are less expensive than domestically manufactured items, higher import barriers in the US would limit individual savings. As a result, there would be a rise in the cost of products and a fall in real income, which would reduce private savings. Additionally, because companies would be motivated to make more items domestically rather than importing them from China, increased import barriers would boost domestic investment. The deficit in the government budget would not be impacted by this. As the US current account deficit can also be impacted by other variables such as the value of the US dollar, foreign investment, and international trade rules, it cannot be stated that import limitations will inevitably lower the deficit.
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a positive balance that remains after total expenses are subtracted from total income are called?
A positive balance that remains after total expenses are subtracted from total income is called "Net Income" or "Profit".
What is a Net Income?Income is the total amount of money earned through sales or other revenue-generating activities. Expenses, on the other hand, are the costs incurred in the process of generating that income, such as salaries, rent, utilities, and supplies.
When you subtract the total expenses from the total income, the resulting amount is either positive or negative. If it is positive, then it means that the income earned is greater than the expenses incurred, and you have a net income or profit.
This profit can be seen as a surplus amount of money that is available to the business after accounting for all the expenses incurred during a particular period, such as a month, a quarter, or a year. This surplus can be used in various ways, depending on the goals and needs of the business. It can be reinvested in the business to fuel growth, saved for future expenses, or distributed as dividends to shareholders.
Having a positive net income is generally seen as a good thing for a business, as it means that the business is generating more revenue than it is spending, and is thus in a financially stable position.
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assume jphone, inc., has an equity multiplier of 1.35, total asset turnover of 1.64, and a profit margin of 7 percent. required: what is its roe? (do not include the percent sign (%). round your answer to 2 decimal places (e.g., 32.16).)
ROE ≈ (Profit margin)*(Asset turnover)*(Equity ratio) = 7% x 1.64 x 1.35 = 15.498%
What does the 30% profit margin mean?For instance, a profit margin of 30% means that for every $100 in revenue, $30 is made in net income. In general, the bigger the profit margin, better better, and the sole ways to increase it are by lowering costs and/or raising sales.
What constitutes a favorable profit margin?Industry-specific net profit margins range from 20% to 5%, with 20% being good, 10% being normal or standard, & 5% being low or poor, according to Corporate Institute. Businesses can pay their expenses and make a profit when their profit margins are high.
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Tom, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. Tom later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies ____
if he decides to add new products, small companies can get started more easily and maneuver faster
Making a living or earning money by creating, acquiring, and reselling items is the act of doing business (such as goods and services). Also covered is "any action or operation done for profit."
The owner of the business is responsible and liable for any promises made by the business as the business entity cannot be legally distinguished from the owner by the use of a business name. If a company runs up debt, creditors may seize the owner's personal property. Corporate tax rates are not allowed in a business setup. All business income is subject to personal taxation by the proprietor.
Typically, the phrase is used colloquially to refer to a firm (although not by attorneys or governmental authorities).
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