Land, labor, and capital are factors of production that can lead to the accumulation of wealth. the needed factor added only by entrepreneurs is knowledge and willingness to take risks to build a business.
What are the factors of production?The resources that make up the economy's foundation and are used as production factors by individuals to create commodities and services The four categories of factors of production that economists distinguish between are land, labour, capital, and entrepreneurialism. Inputs, resources, or components of production are what are utilised in the production process to produce output, which in economics refers to commodities and services. According to the relationship known as the production function, the amounts of the various inputs used influence the amount of output. Businesses should be able to increase output and produce things of greater quality at cheaper costs if they can raise the efficiency of the production elements. Any increase in output results in economic expansion as indicated by the GDP.
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Which Personal Protective Equipment (PPE) and essential paperwork must be worn/carried at all times (select all that apply)? Gloves Safety visibility vest
Driver's license
Medical certificate (for DOT drivers)
It is always necessary to have your driver's license, wear closed-toed shoes, and carry a safety vest.
What does PPE—personal protective equipment—mean?Gloves, safety goggles, shoes, earplugs as well as muffs, hard helmets, respiratory protection, coveralls, vests, and full body suits are a few examples of things that belong to the category of personal protective equipment.
PPE stands for personal protective equipment, which is the term used to describe the protective garments that users wear to shield them from harmful substances or contagious diseases. Medical practitioners and anyone else handling dangerous materials ought to have one of these kits.
Any piece of clothing that offers defense against hazardous diseases or chemicals is included in PPE kits, such as a suit, medical gown, pair of gloves, or other covering.
In an effort to stay healthy, these kits are worn. They serve as a protective shield between the individual and the harmful substance.
It is necessary and safe for an individual to wear closed-toe shoes, the safety visibility vests, and to have a driver's license with them when working with any hazardous substance or disease.
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a house worth $350,000 when purchased was worth $335,000 after the first year and $320,000 after the second year. if the economy does not pick up and this trend continues, what will be the value of the house after 6 years.
The average difference between the sequences is -$15,000, and the house will be worth $275,000 in six years if the economy does not improve.
What is arithmetic sequence ?The arithmetic sequence is one in which the common difference between any two terms that come after it stays the same.
Let a1 be 350000, a2 be 335000, a3 be 320000, and a6 be the house's value six years from now.
So, we find the sequence's common difference:
d = a2 - a1 d = 335000-350000, d = -15000 Using the known values, we determine the house's value six years later.
a6 = a1 + (n-1)d ,
a6 = 350000 + (6-1)-15000 ,
a6 = 350000 + (5)-15000 ,
a6 = 350000 + (-75000) ,
a6 = 275000.
As a result, the common difference between the sequences is -$15000, and the house's value after six years would be $275000 if the economy did not improve.
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the bacb requires ongoing evaluation of the of supervision. a. effort. b. effects. c. essentials. d. none of the above.
The BACB requires ongoing evaluation of the effects of supervision. Option (b) is correct.
What do you mean by Evaluation?Evaluation is the systematic assessment of an initiative's design, implementation, or results for the purposes of learning or decision-making.
The local authority is required by a Supervision Order to "advise, assist, and befriend" the child. It may be necessary for a child to live in a specific location, participate in certain activities, and report to a specific location at a specific time.
Allegations of violations committed by a BCaBA, BCBA, or BCBA-D applicant or certificate must be reported to the BACB. An RBT's alleged violation should be reported to the RBT's Requirements Coordinator or Supervisor in some cases, while the allegation should be reported to the BACB in others.
Therefore, Option (b) is correct.
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assume that two individuals will share consumption of a public good; each individual has the same marginal benefit curve. what is the marginal social benefit from four units of the public good?
Assume that two people will share the consumption of a public commodity, and that each person possesses the marginal benefit curve depicted in the picture.
Why do you use the word consumption?
Through the act of consuming, which can be either final or intermediate, institutional units exhaust products or services. Utilizing goods and services to meet one's own needs and wants as well as those of the community. Tuberculosis, commonly referred to as consumption, was the leading cause of death in the United States at the start of the 20th century. A bacterial infection, it frequently affects the lungs. Definition. or most commonly, consumption, is a bacterial infection
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below is some selected information from the financial statements of xyst, inc: balance as of december 31,2018: total assets ????? total liabilities $49,320 balance as of december 31, 2019: total assets $77,490 total liabilities $53,085 during the year ended 12/31/2019, the firm reported net income of $11,350, issued $2,400 of common stock at par value, and declared and paid $95 in dividends. what is the balance of total assets as of 12/31/2018? none of the other answers are correct $73,725 you answered $67,600 $81,255 correct answer $60,070
The balance of the total assets as of 12/31/2018 is $66,140.
What is an asset?An asset is any resource that business or other economic entity possesses or controls. Everything that could increase economic growth is included in it. The balance sheet of a firm displays the monetary value of the assets it owns. It consists of assets such as cash and other things that belong to a person or business. Two basic categories—tangible and intangible—can be used to categorize assets. The two most common categories of physical assets are current assets and fixed assets. Inventories, cash on hand, and accounts receivable are examples of current assets. The term "fixed assets" refers to things like land, buildings, and machinery. Financial assets like stocks, bonds, and investments are examples of intangible assets. They also include goodwill, copyrights, trademarks, patents, and computer programs.
Balance of total assets= 774490-11350= $66,140
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you are working on a project to develop a new search engine. the project is being developed in sprints. you have a core team of developers located in your head office, but your team consists of several other team members distributed in different continents. you want to make sure that your distributed team members feel included, but their hours make it difficult for them to make the daily stand-up meeting. given the characteristics of the team, which statement is true?
The statement that is true is you are working on project to develop new search engine.
What is a project?Any activity that is meticulously planned to accomplish a certain objective, whether it is done alone or in a group, and may include research or design, is referred to as a project. A project may be a transitory social structure (work system), staffed perhaps by teams to carry out specific duties within a set amount of time. A project could be a component of a larger program management effort or work independently. A project can be cancelled if it is stopped before it is finished, and this usually involves the loss of access to money and other project resources. Cost overruns, timetable delays, budget changes, a change in the project's aim or elimination of that goal, political factors, or any combination of those and other factors may cause a project to be cancelled.
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Why is data-driven analytics of interest to companies?
• define creative solutions to business problems without human intervention
• allows companies to make definitive predictions about the future
• it gives companies the ability to make informed decisions
• it helps data analyst shape the analytics problem from a business problem
The data-driven analytics of interest to companies is it helps data analyst shape the analytics problem from a business problem.
With the aid of data-driven analytics, you would be able to comprehend your rivals and develop more effective marketing plans that will keep you one step ahead of them. Beating the competition entails increasing sales and money.
Making an analytics problem out of a business problem aids data analysts. It enables businesses to make certain future forecasts. Without human assistance, it identifies original answers to commercial challenges.
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recall clocky, the alarm clock that rolls away from you when you push snooze, or snuz-u-luz, the alarm clock that donates money to the organization you hate when you push snooze. both are great examples of:
Both Recall Clocky and Snuz-u-luz alarm clocks are great examples of mast strapping strategies.
Snuz-u-luz is an innovative new alarm clock designed to help people get up on time. It works by donating money to an organization you hate each time you push the snooze button. Alarm clocks are a common household item used to help people wake up at a certain time each day. They come in a variety of shapes and sizes, and can be either digital or analog.
This clever design encourages users to get up on time, as they are motivated by the thought of not wanting to support the organization they despise. Snuz-u-luz is a great way to get up on time and do your part to support the causes you believe in.
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why consumers need to make a choice between competitor needs.
Answer:Perhaps you offer higher quality, a lower price, a superior set of features, or a completely unique offering.
Identify the strongest benefits of your product/service that you have but competitors don’t, or that you do much better than competitors (higher quality, faster, lower cost, etc.). Remember, these have to be things your customers really care about.
One of the most important factors that significantly influences customer choice is “quality”. Seeing a successful brand indicates that it delivers exceptional customer satisfaction; this is not possible without it maintaining the quality of its products and services.
Knowing who your competitors are, and what they are offering, can help you to make your products, services and marketing stand out. It will enable you to set your prices competitively and help you to respond to rival marketing campaigns with your own initiatives.
Explanation:
in doing a market analysis, an appraiser found a recently sold property where the owners had just gone through a divorce. the property had been listed for $260,000 for 3 months but was purchased for $170,000 by one of the spouses. should the appraiser use this as a comparable?
The appraiser didn't accept this as a comparable, though, so because separation meant that deal wasn't really made at arms lengths."
What is meant by the word transaction?A transaction is an agreed upon exchange of goods, services, or financial instruments between a buyer and a seller for cash. In commercial accounting, the expression is also commonly used. In corporate bookkeeping, this simple definition could be difficult.
What sort of deal might that be?Examples of transactions are provided below paying back a supplier for goods or services obtained. the purchase of real estate that the seller previously owned by paying the buyer cash and a note. remunerating an employee for the time they put in.
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mann, inc. had 300,000 shares of common stock issued and outstanding at december 31, year 1. on july 1, year 2, an additional 50,000 shares of common stock were issued for cash. mann also had unexercised stock options to purchase 40,000 shares of common stock at $15 per share outstanding at the beginning and end of year 2. the average market price of mann's common stock was $20 during year 2. what is the number of shares that should be used in computing diluted earnings per share for the year ended december 31, year 2?
335,000 shares should be used to calculate diluted earnings per share (deps) for the fiscal year that ended on December 31.
How many shares must be accounted for in the calculation of diluted earnings per share?The number of shares that must be taken into consideration when calculating diluted earnings per share. is the weighted average amount of shares, which accounts for shares that have recently been issued, shares that have outstanding that since year's beginning, and the fraction of share options that have not paid in cash.
(a). At the start of the year, shares=300,000
half of the year's shares have been issued.=6/12 x 50,000=25000
Because only $15 of the $20 share price would be paid when the share options were exercised, $5, or 1/4 of the share price, would not be paid. As a result, the share options would reduce earnings by 1/4.
shares that DEPS should utilize= 300,000 + 25,000 + (1/4 x 40,000)
appropriate shares for DEPS= 335,000 shares
(b) The number of shares that should be accounted for in the year two diluted profits per share computation must be determined. The first calculation is the weighted-average number of outstanding ordinary shares. The number of shares outstanding increased by 50,000 over the first half of the year, resulting in a weighted average of 325,000 [300,000 + (50,000 6/12)]. For the entire year, there were 300,000 shares in circulation. Second, stock options only increase the number of shares considered in the calculation if they are dilutive. The stock options are diluted since the value of an option is lower than the market value. Therefore, the denominator effect of the options must be determined.
In order to compute diluted earnings per share, 335,000 shares (325,000 plus 10,000) are used.
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use your software to compute the count of states with more than 500,000 us dollars. 9 states calculate the average gdp (in millions of dollars) by taking your answer for the gdp of all 50 states of the united states and dividing by 50 (the number of states). $ 353490 million find the difference between each state's gdp and the average gdp you calculated by subtracting the average gdp from each state's gdp. (round your answers to the nearest integer.)
The GDP per person in Country C is $3,467. Changes in GDP are the most popular indicator of a nation's overall economic health.
How is the GDP determined? Describe GDP:Private consumption, gross domestic product, government investment, and other factors are added together to determine GDP (exports – imports). The official statistical office of the nation frequently calculates GDP using the international standard.
What does GDP actually mean?The total dollar worth of all completed products and services produced in an economy is measured by the GDP. Imagine, for illustration's sake, that Country B solely raises backrubs and bananas. Figure%: Services and Products produced in nation B They produce five bananas, each worth $1, and five backrubs, each worth $6, in the first year.
GDP divided by population yields GDP per capita.
The GDP per person for Country C is $3,640 billion divided by 1,050 million people, or $3,640,000 million divided by 1,050 million people, or $3,467.
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when buyer joey expresses interest in looking at a particular property, sales associate bill told joey that if he wanted bill to continue to represent him, they would need to transition from a single agent relationship to a transaction broker relationship.what is the most likely reason bill said this?
The seller is represented by Bill's brokerage, The only permissible brokerage relationships that Bill might have been referring to are transaction brokerage or single agent.
In a real estate deal, who is the buyer and seller's agent?The same firm is in charge of representing both the bidder and the seller. Any legal instructions given by the owner to the real estate broker employed by the owner to sell a piece of property must be followed.
Is Bill's brokerage claiming to represent the seller?Bill further stated that he would "need" to act as a transaction broker, which meant that a single agent arrangement could not be established with respect to that specific property.
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true/false. personal values take priority over the corporate values where they work. personal values are subservient to the corporate values where they work. personal values align with the corporate values where they work. lives are ruled entirely by their personal values. lives are ruled entirely by the corporate values where they work.
The most successful people are those whose personal values align with the corporate values where they work.so option c is correct.
what are the company's values?Company values, also known as corporate values or core values, are a set of tenets and fundamental ideas that enable a group of individuals to work as a unit and achieve a common objective. These ideals are frequently linked to cooperative working environments, positive customer experiences, and business expansion. Accountability means that we are all accountable for the things we say, do, and achieve. We treat people with respect and professionalism, and we cherish each individual. Integrity: Through moral behaviour and sincere connections, we increase trust. Collaboration and teamwork allow us to accomplish more.
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a landlord is showing a young couple around a multi-family building and is ready to accept their rental application. the landlord finds out the couple is pregnant, and decides to rent the unit to someone else, as he fears a screaming baby will upset neighbors. what is true of this situation?
This situation is likely a violation of the Fair Housing Act, which prohibits landlords from discriminating against potential tenants based on familial status.
What is violation?Violation is an act or omission that breaches a legal duty, obligation or right. It is an infringement or transgression of a law, rule or code of conduct that is designed to protect individuals and society. Violations can range from minor infractions, such as a traffic ticket, to major offences, such as murder. In some cases, violation of a law or policy may result in a criminal penalty or civil liability.
The landlord has likely denied the couple the rental unit based on their pregnancy, which is a form of illegal discrimination.
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an increase in the cash surrender value of a life insurance policy owned by a company would be recorded by a decreasing annual insurance expense. b increasing investment income. c recording a memorandum entry only. d decreasing a deferred charge.
Correct reply is A.
an enlarge in the money lay down price of a existence insurance plan coverage owned by means of a enterprise would be recorded by using decreasing annual insurance expense.
What is the money capitulation price of a lifestyles insurance policy?Cash lay down price refers to the proper amount of money you get hold of when you cancel—or surrender—your existence insurance coverage or annuity, minus lay down expenses or any funds needed to pay off loans or unpaid premiums. In the case of annuities, it can also be known as the annuity lay down value.
Is money give up cost of the insurance plan coverage is an asset?From an accounting perspective, because the cash capitulation fee of a existence insurance coverage represents an asset you can control, accounting standards understand it as an asset on the balance sheet.
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https://brainly.com/question/1373572#SPJ4mainstreet collection is a producer and wholesaler of gift items and soft goods. located in washington, nc, it sells its goods to more than 100 retailers in the united states. to keep the price of goods low, manufacturing is outsourced to facilities in china. what level of international activity best describes mainstreet collection?
In this instance, the business is importing goods. The other choices are inaccurate since franchising is method of expanding a firm by offering its original brand to a select group, this level of international activity best describes mainstreet collection.
International activities are gatherings of young people or youth leaders in Europe that take place on a global scale and have a clear European focus. They support the work of the Council of Europe's youth sector. A work plan shouldn't already include international operations. The grantee organisations may develop outputs as a result of the international gathering, however publications, materials, and websites are not qualified as an international activity per se. Meetings that are required by law or that are held internally (such as Board meetings or General Assemblies) cannot be funded as a one-time international activity.
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a necklace was bought at a 28% discount. if the buyer paid $360, what was the original price of the necklace?
First, divide the percent discount by 100% to get a decimal value. Step 2: Construct the equation P=(1d)x P = (1 d) x to determine the item's original price, where P represents the sale price, d represents the discount in decimal form, and x represents the item's original price.
How are original prices determined?calculate the difference between the original and current prices as a percentage (100%): Price at this time is 100% Minus 25%.
By dividing the current price by 75, you can find 1%.
To determine the original cost (100%) from this 1%, multiply it by 100.
How can the original number be extracted from a percentage?The original value is calculated by multiplying the result by 100 and dividing the amount previously paid by the percentage rate.
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Which of the following is not an economic objective of business Mcq?
A. Social environment
B. Survival
C. Profit
D. Growth
Social environment is not a business Mcq's economic goal.
Economic activity goes through periods of boom and then fall during business cycles. Both the general welfare of society and the welfare of private enterprises are impacted by these developments. Changes in a broad economic measure, such as Real Gross Domestic Product, are generally examined to determine how business cycles have changed through time. Many macroeconomic indicators have widespread upswings and downswings, which are classic examples of business cycle fluctuations. Each expansion/recession episode's duration and intensity change over time. Usually, their periodicity lasts for two to ten years. As in, their mathematical methodology, which employs a Bayesian statistical paradigm, may really include such flexible knowledge about the frequency of business cycles.
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yam is planning her activities for a hot summer day. she would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. this illustrates the basic principle that
The basic principle that time is a finite resource.
What is finite resource?A non-renewable resource is a natural resource that cannot be replenished or replaced in a short amount of time, once it has been used. Examples of non-renewable resources are fossils fuels such as oil and coal, minerals, and metals. These resources are finite, meaning they cannot be produced or created in a short amount of time. Their limited availability makes them a valuable resource, and when they are used up, they cannot be replaced. Therefore, it is important to use non-renewable resources responsibly and sustainably, as they are limited and cannot be replenished quickly.
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understands the role and culture of the organization to be better able to serve clients, to anticipate changes and stay versatile and committed. knows organizational structure, function, realities that allow one to develop solutions that fit with the organization, meet its needs and achieve results through the most effective channels.
An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods using Organizational design, ultimately shaping employee perceptions, behaviors and understanding.
Organizational design is the act of choosing and directing elements of an organization's culture and structure so that it can accomplish its objectives. Identifying problematic components in work flow, procedures, structures, and systems, realigning them to fit current business realities and goals, and then developing strategies to implement the new adjustments are all part of the organisational design strategy. The process strives to enhance both the technological and human resource components of the business.
The design process often produces an organisational structure that is more effective, outputs that are significantly better (profitability, customer satisfaction, internal operations), and empowered employees who are committed to the business. Organizational design is the process of putting organisational structures and processes in place that support a company's core business objectives. Organizational rearrangement is frequently the outcome of a company's need to shrink or expand.
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which type of analysis that a property manager performs includes a review of the demographic, geographic, and governmental environment in which the property is located
The type of investigation that a property manager conducts is known as a "market analysis," and it involves an assessment of the neighborhood's population, geography, and political climate.
What is a market analysis, exactly?The term "market analysis" refers to a thorough assessment of a market within a certain industry. The market dynamics, including volume and value, potential customer segments, purchasing habits, competition, and other critical factors, will be the subject of your investigation.
What resources are available for market analysis?Advertising companies use software tools known as marketing analytics tools to track and forecast the success of marketing campaigns. Marketing analysts can manage attribution modeling, compile marketing information from many channels, and track a variety of metrics like ROAS, ROMI, CPL, and CPC.
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true or false: counterproductive behavior encompasses employee behaviors that intentionally or unintentionally hinder organizational goal accomplishment.
Employee actions that intentionally or accidentally prevent the achievement of organizational goals are referred to as counterproductive behavior. It is true.
Employee conduct that is contrary to an organization's legitimate interests is referred to as counterproductive behavior. These actions may hurt organizations or people who work for them, such as patients, clients, or customers. According to certain theories, there is a link between an individual's psychological and physical capabilities and the demands made on those capacities by their social and physical environments. It is possible to use [clarification needed] to explain a range of unproductive actions. [2] For instance, a worker with a high trait anger score (propensity to feel angry) is more likely to react stressful events at work (such as being treated rudely by a supervisor) with CWB.
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please identify geoffry moore's framework questions when creating a value proposition
We've compiled five questions that might help you develop a value proposition you can be proud of.
What goods or services do you provide? Who is your ideal client? What issue does your product address for your customer? ...What advantages does your product or service offer to the consumer?What is meant by proposition?A business's proposal (or value proposition) is a brief statement that connects your product or service with your target audience by acknowledging consumer problem points, introducing your company, and providing your solution in as few words as possible. The argument put forth for a customer to purchase a good or service from that specific company is known as the proposition. A value proposition ought to be as explicit as possible about how a product meets a need, outline how it adds value, and justify why it is superior to competing goods.An action plan or specific recommendation is referred to as a proposition. After the blizzard, you could think it would be a good idea to start a local snow-shoveling business. This was your friend's suggestion. A item put out for thought is what the noun proposition denotes.To learn more about proposition, refer to:
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An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describe this act?O a legal, if the guaranty association endorses it O b legal, provided that other insurers are paid royalties for the usage of their name O c illegal O d this is legal, provided that the information can be verified
A business has engaged in "defamation," a prohibited commercial practise, when it disparages the financial standing of another business with the intent to cause harm to that business.
What is defamation?A business has engaged in "defamation," a prohibited commercial activity, when it attacks the financial health of another business with the goal of harming that business.
Defamation is typically defined as a false and unprotected statement of fact that is damaging to someone's reputation and is published "with fault," that is, as a consequence of carelessness or malicious intent. Defamation is frequently defined by state law in certain ways. Slander is a verbal defamation, while libel is a written defamation.
A false remark that is presented as fact and damages the reputation of the subject is called defamation. "Tom Smith stole money from his job," as an example. If this is inaccurate, and if saying it hurts Tom's reputation or ability to work, it is defamation.
Therefore, the correct answer is option d) Illegal under any circumstances.
The complete question is:
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
a) Legal, provided that the information can be verified
b) Illegal until endorsed by the Guaranty Association
c) Legal, provided that the other insurers are paid royalties for the usage of their names
d) Illegal under any circumstances
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a(n) is a sign that relates to a product by either conventional or agreed-on associations. question 11 options: a) schema b) icon c) symbol d) index
A c) symbol is a sign that relates to a product by either conventional or agreed-on associations.
What are symbols used for in advertising?The symbols express the graphic identity of a brand or product without the need for accompanying text.
Symbols allow communication to be optimized by reinforcing the relationship between the sign and its meaning. They are important tools to communicate the concept and personality of a brand. In addition, symbols are used as tools to strengthen marketing strategies. Symbols must be used correctly in the message so that it communicates the real objective to the consumer to obtain the desired results.
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what is the pv of a 9-year annuity due (payments at beginning of period, aka annuity in advance) of $912 if the required return is 6.2%
the pv of a 9-year annuity due (payments at beginning of period, aka annuity in advance) of $912 if the required return is 6.2% is $78000.
When one party (such as a person or business) freely offers money, its equivalent, or other assets to another in return for services provided, things obtained, or the fulfillment of a legal duty, that transaction is referred to as a payment. The party receiving the payment is referred to as the payee, whilst the one making the payment is frequently referred to as the payer.Numerous methods of payment exist, including:bartering is the exchange of one good or service for another, or the transfer of anything of value, such as stock, via a check, a debit, credit, or bank transfer, whether by mobile payments or another way.
In most cases, payees are free to select the preferred payment method;
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during the previous year, nightwork co.' net sales was$135,000, cost of goods sold was $60,750, operating expenses were $81,000, and other revenues were $13,550. what was nightwork's gross profit?
Nightwork Co. had net sales of $135,000 the prior year, cost of goods sold of $60,750, operating expenditures of $81,000, and other revenues of $13,550. The gross profit for Nightwork was $74,250.
The value of output sold, which is equal to the number of units times the price per unit, is referred to as revenues (or total revenue). When total revenue is divided by the quantity of product sold, the result is average revenue, or revenue per unit. Price per unit consequently equals average revenue. Revenue, which is determined by dividing the average sales price by the quantity of products sold, is the money generated by doing regular company activities. In order to compute net income, various expenditures and expenses must first be deducted from the total amount of money.
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6. what is the opportunity cost for each country to increase production from 0 lollipops to 1 lollipop? country a country b 7. what is the opportunity cost for each country to increase production from 1 lollipop to 2 lollipops? country a country b 8. what is the opportunity cost for each country to increase production from 2 lollipops to 3 lollipops? country a country b 9. what can you deduce about the costs of production in each country? explain.
A good or service's marginal cost is the opportunity cost of producing one additional unit of it.
What distinguishes trade-offs from opportunity costs?Two economic concepts—the trade-off and opportunity cost—are frequently interpreted incorrectly in this context. A trade-off, however, refers to the choice we forego in order to get what we want. The cost of giving up the second-best option in order to make a decision, on the other hand, is known as the opportunity cost.
How do you calculate the opportunity cost separating two points?Comparing the returns of two options allows an investor to determine the opportunity cost. By projecting future returns, this can be done while making a decision. As an alternative, the opportunity cost can be determined in retrospect by contrasting results since the choice was made.
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insourcing incurs a fixed cost of $1000 and a $5 variable cost. outsourcing incurs a fixed cost of $2000 and a $2 variable cost. what is the indifference point?
Insourcing incurs a fixed cost of $1000 and a $5 variable cost. outsourcing incurs a fixed cost of $2000 and a $2 variable cost. Indifference point is 333 points.
Qind = FCmake-FCbuy / VCbuy-VCmake = $1000-$2000/$2-$5 = -$1000/-$3 = ~333 units
The amount of volume at which total expenses, and thus profits, are the same under both cost structures is referred to as the indifference point. If the company functioned at that volume, the alternative would make no difference because the income would be the same either way.
Total costs (fixed and variable costs) associated with the two alternatives are equal at the cost indifference point.
There may be two ways or options to doing something, such as two techniques of production. At a certain level of activity, one production process may be preferable to another, and vice versa.
It is necessary to know at what stage of production it is beneficial to switch from one manufacturing method to another. This is known as the cost indifference point, and at this point, the overall cost of the two production processes is the same.
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