True; Assuming all else is equal, long-term securities are exposed to higher interest rate risk than short-term securities.
Long term "refers to how long a person has owned an asset. Depending on the security, a long-term asset may be kept for as little as one year or as long as 30 years or more. There is no hard and fast rule when it comes to long-term investing, although it is generally accepted that it should last at least seven to ten years for an individual.
long term "is one of those expressions that has become so commonplace in the finance world that its exact meaning has become elusive. The phrase "invest for the long term" appears frequently in the media, yet it might be difficult to assess if a particular investment is long-term.
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it is around labor day weekend. us open is in full swing. you know that this time of the year your demand for tennis racquets increases. how do your costs identified in part a change in this situation assuming you are increasing your lot size to meet the anticipated demand?
While the number of orders may stay the same, inventory holding costs rise with an increase in average inventory. As a result, overall costs rise.
The expenses incurred for keeping goods or inventory in a warehouse are known as inventory holding costs. Inventory that is kept on hand is a liability that reduces profit margins and raises operating costs for firms. Inventory holding expenses include rent for the facility, security fees, depreciation costs, and insurance.
An estimation of the worth or quantity of a certain commodity or group of goods over two or more specified time periods is known as average inventory. The median value of the same data set may differ from the average inventory, which is the mean value of an inventory during a specific time period.
About the weekend of Labor Day. US Open is currently underway. You are aware that your need for tennis racquets rises at this time of year so as a result, even if the number of orders may remain constant, inventory holding costs rise as average inventory levels rise. Costs as a whole increase as a result.
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A policy that requires the consumer to explicitly give permission before an organization can share information with another organization is called.
A policy that requires the consumer to explicitly give permission before an organization can share information with another organization is called opt-in. Information sharing inside an organisation occurs between individuals, teams, or departments.
Similar to the private sector, government-related public organisations and government agencies can participate in inter-organizational information exchange. Sharing information consumer promotes efficiency and innovation by preventing repetition and fostering the emergence of fresh concepts. Everyone wins by giving employees the freedom to share their knowledge with others and making their own information simple to locate later. Information can be incorporated into organisational processes, which allows it to have an impact on the culture, structure, and work habits of the organisation.
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In the short run, some costs are fixed and the rest are variable. A firm will continue production only so long as it can cover at least its – costs. Therefore, production will only occur when price, and therefore marginal revenue, – average variable cost. Where that condition is met, the marginal cost curve – the short-run supply curve, because it is only along this line that marginal cost equals marginal revenue.
A firm will continue production only so long as it can cover at least its variable costs.
What is a variable cost and an illustration?Variable costs are those that alter as the volume changes. Raw materials, piece-rate labor, production supplies, commissions, shipping expenses, packing costs, and credit card fees are a few examples of variable costs. The "Cost of Goods Sold" is the name given to the variable costs of production in some accounting statements.
What is the purpose of variable cost?Management frequently uses variable costing to support a range of decisions. For instance, a breakeven analysis could be used to determine the sales level at which a company is profitable at all. Another option is to employ it to determine the lowest price at which a good can be offered for sale.
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when a central bank takes action to decrease the money supply and increase interest rates, it is trying to implement in the hopes of .
A contractionary monetary policy is one in which a central bank reduces the amount of money in circulation while raising interest rates.
What is contractionary monetary policy ?
A type of monetary policy known as a contractionary monetary policy aims to slow down the rate of monetary expansion in order to combat inflation. The main sign of an overheated economy, which can be caused by prolonged periods of economic expansion, is an increase in inflation.
It basically slows growth by increasing interest rates and constricting the money supply. Consumers cut back on their spending as a result of higher interest rates, particularly when using credit cards.
The Federal Reserve's three primary methods for reducing the money supply are
raising interest rates, raising the minimum reserves required of banks, and selling government securities.Read more about contractionary monetary policy
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which of the following would be reported as a liability? demand deposits bank overdrafts travel advances certificates of deposit
Bank overdrafts would be reported as a liability.Hence, Option (a) is correct.
Overdrawing a current account is achievable with a bank overdraft. This implies that even if the account does not have enough money, if an outgoing payment is more than the amount of money remained in the account, the payment can still be made owing to the bank overdraft. Therefore, a bank overdraft is a type of credit.
Different definitions of "liability" may be found in the fields of law, insurance, politics, and finance. A liability in finance and accounting is a debt owing by a person or an organization. Financial liabilities, like a leasing agreement, can also constitute enforceable commitments to make future financial payments.
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The question was incomplete. Check below the full question.
Which of the following would be reported as a liability?
a. demand deposits
b. bank overdrafts
c. travel advances
d. certificates of deposit
sugar sanctions on sugar producing nations are relaxed, allowing the buying and selling of sugar to become an unregulated free market where countries can trade with one another. what is new domestic price?
The prosperity that a country will experience as a result of its comparative advantage is the major justification for economists' opposition to trade restriction policies.
Therefore, a trade limitation would be unpopular among trading nations. If a country's domestic opportunity cost of production is lower than the domestic opportunity cost of other nations, it has a comparative advantage in the production of that good or service. Solving for the cost of one good in trade of another will reveal the opportunity cost of producing that good or service. In contrast to what would have been possible domestically, trade between two agents or countries enables the countries to enjoy a higher total output and level of consumption.
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Wine and roses, incorporated, offers a bond with a coupon of 8. 5 percent with semiannual payments and a yield to maturity of 8. 34 percent. The bonds mature in 17 years. What is the market price of a $1,000 face value bond?.
The market price of a $1000 face value bond is $1,059.32
What is market price?
It is determined using the current interest rate compared to the interest rate stated on the bond. The market price of the bond comprises two parts. The first part is the present value of the bond's face value. The second part is the present value of the bond's interest payment.
How to calculate market price?
Par / Face Value of the bond = $1000
Semi annual coupon payment
= par value * coupon rate * 1 / number of coupon payments per year
= $1000 * 8.5% * 1/2
= $42.5
Number of coupon payments (n)
= Years to maturity * number of coupon payments per year
= 17 * 2
= 34
Semi Annual Yield (YTM)
= yield to maturity / number of coupon payments per year
= 0.0834 / 2
= 0.0417
Now, let's calculate the current market price of bond
Price = Coupon payment *(1-(1+YTM)^-n)/YTM + Face Value / (1+YTM)^n
= 45 * [tex]\frac{(1-(1+0.0417)^{-34})}{0.0417} + \frac{1000}{(1+0.0417)^{34} }[/tex]
= 45 * [tex]\frac{(1-0.2493155798)}{0.0417} + \frac{1000}{4.010980785}[/tex]
= 45 * 18 + 249.31557981
= 810 + 249.31557981
= $1,059.32 (rounded)
So the bond's current market price of wine and roses, Inc. is $1,059.32
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What does a decrease in federal government purchases do to the neo-keynesian model used in class?.
Keynesians believe that, due to the fact expenses are extremely inflexible, fluctuations in any component of spending—consumption, funding, or government fees—purpose output to exchange.
If government spending will increase, as instance, and all different spending additives continue to be consistent, then the output will growth.
It blanketed tax cuts/credit and unemployment benefits for families; it also earmarked expenses for healthcare, infrastructure, and education. those stimulus measures and federal interventions helped America's economy get better, preventing the splendid Recession from turning into any other complete-blown depression.
He argued that uncertainty prompted people and agencies to stop spending and making an investment, and government have to step in and spend cash to get the financial system lower back on course.
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What were two goals of progressive reformers and two methods they used to achieve their goals?.
To protect social welfare, promote moral improvement, create economic reform, and foster efficiency.
Established direct primary elections, direct election of senators (rather than by state legislatures), initiative and referendum, and women's suffrage
What is progressive reformers?The Progressive Movement's primary objectives were to strengthen democracy, get rid of corruption, and defend working people. Introducing new direct democracy procedures was one way the movement made progress in this direction.Progressive reformers aimed to eradicate political corruption, enhance people's quality of life, and step up government protection of the populace.The four main objectives of the progressive movement were: (1) to safeguard social welfare, (2) to advance moral advancement, (3) to bring about economic reform, and (4) to enhance effectiveness.This wave of reforms during the Progressive Era included the suffrage campaign. Leading suffragists were often involved in other progressive causes.Progressivism is a political movement that aims to improve society through social reform based on advances in science, technology, economic growth, and social structure.To learn more about progressive reformers refer to:
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grounded theory is a comparative method produced by constant comparison that to establish themes. the process is iterative and requires that you collect, code, and analyze your data. this process reveals themes that may ultimately generate theory.
The comparative method is ready to look at an object of taking a look at with regard to any other. The item of look at is common as compared across the area and/or time. Comparative techniques may be qualitative or quantitative. often, there's a trade-off: the extra instances to evaluate, the much fewer similar variables available, and vice versa.
The technique includes studying the relationship among variables that might be exclusive or similar to each other. Comparative politics usually uses this comparative method on two or more nations and evaluates a particular variable across those countries, consisting of a political structure, organization, conduct, or coverage.
Comparative methods are trying to find evidence for adaptive evolution by way of investigating how the traits of organisms, together with their length, form, life histories, and behaviors, evolve collectively across species. they're one of evolutionary biology's maximum enduring tactics for trying out hypotheses of models.
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cash flow in a good personal financial plan requires money allocated to personal financial goals to be distributed in which way?
Cash flow in a good personal financial plan requires money allocated to personal financial goals to be distributed in the personal financial plan.
In general terms, financial planning is a comprehensive assessment of an individual's current salary and future financial position by predicting future income, wealth, and recovery plans using currently known variables. to evaluate.
Financial planning can help you reach your financial goals, whether it's buying a family home, saving for your children's education, a comfortable retirement or a dream vacation. It also helps you prepare for the unexpected and emergencies. B. If you get sick, lose your job, or need to renovate your home.
The most important entry point into financial planning is budgeting. Setting a budget is relatively easy. Hard to stick with!
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A researcher conducted a study to analyze the effect of gender bias on company recruitment. Participants were told that the purpose of the study was something different than it actually was. This deception was most likely implemented to avoid.
A researcher conducted a study to analyze the effect of gender bias on company recruitment. Participants were told that the purpose of the study was something different than it actually was. This deception was most likely implemented to avoid Demand Characteristics.
What are Demand Characteristics?Demand features in research serve as cues that may help participants understand the study's goals. Depending on what they believe the research to be about, these cues may cause participants to alter their behaviors or answers.
Demand characteristics can skew your study results, which is an issue. Due to the fact that these experiments and studies include human subjects, they frequently happen in psychology and social science research. To get reliable results, it's crucial to take into account probable demand features in your study design and deal with them effectively.
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what are two advantages of using direct mail and catalogs?
Highly focused There are excellent targeting possibilities for any direct mail campaign. Personal information may be included in each correspondence. two advantages of using direct mail and catalogs.
What is information?Information is a general term for everything with the capacity to inform. Information is most fundamentally concerned with the interpretation of what may be sensed. Any naturally occurring process that is not entirely random, as well as any discernible pattern in any medium, can be said to convey some level of information.
Aim for a certain niche. In general, you'll have more success if your marketing efforts are more specifically targeted. Give thorough information. It's simple to monitor your response rate. Prices may rise. Response times are frequently brief.
Therefore, Personal information may be included in each correspondence. two advantages of using direct mail and catalogs.
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blossom company assembled the following information is completing its march bank reconciliation: balance per bank 16784. outstanding checks 2930. deposits in transit 4700. nsf check 302. bank service charge 90. cash balance per books 16610. as a result fo this reconciliation, blossom will:
Matching the customer record to the bank records is the main goal of creating a bank reconciliation statement. The bank prepares this statement and sends it to customers periodically.
What is the primary goal of creating a statement of bank reconciliation?
The primary objective of a bank reconciliation statement (BRS) is to assist businesses in identifying errors that could have an impact on their financial and tax reporting.
What is the primary objective of a reconciliation of accounts?
Purpose: The validity and accuracy of financial information are guaranteed by the reconciliation procedure. Additionally, a proper reconciliation procedure ensures that no transactions have been altered without authorization during processing.
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Quantas industries sold $325,000 of consumer electronics during july under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4. 5% of the sales price. On november 11, a customer was given $220 cash under terms of the warranty.
Consumer devices with a nine-month warranty were sold for $325,000 by Quanta's Industries during the month of July.
What is Industries?
An industry is a collection of businesses that are connected by their main lines of business. There are numerous classifications of industries in contemporary economies. Sectors are generally used to group together larger categories of industry classifications. Typically, a company's largest revenue sources determine what industry it belongs to. For instance, even though an automaker may have a financing division which contributes 10% to the company's overall revenues, most classification systems would place the business in the automaker industry.
The price of fixing problems covered by a guarantee. Liability for estimated warranties Consumer devices with a nine-month warranty were sold for $325,000 by Quanta's Industries during the month of July. Estimated repair costs for flaws covered by the warranty are 4.5% of the purchase price. A customer received $220 in cash on November 11 in accordance with the warranty's terms.
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information for kent corp. for the year 2021: reconciliation of pretax accounting income and taxable income: pretax accounting income$181,200 permanent differences (14,800) 166,400 temporary difference-depreciation (11,400) taxable income$155,000 cumulative future taxable amounts all from depreciation temporary differences: as of december 31, 2020$12,800 as of december 31, 2021$24,200 the enacted tax rate was 22% for 2020 and thereafter. what should kent report as the current portion of its income tax expense in the year 2021?.
The income tax expense that Kent should report in the year is $34,100
The income tax expense on the income statement is the sum of the current and deferred income tax for the year. The current tax expense is recorded in the Income Tax Payable liability account. The current portion of the income tax expense is part of the total expense that is payable to the IRS on the date the return is filed. It is based on the company's taxable income and its income tax rate for the tax year:
Taxable income $155,000
Income tax rate 22%
Current portion of the income tax expense = $155,000 × 0.22 = $34,100
The temporary differences listed in the book-tax reconciliation are used to calculate the deferred tax portion of the total income tax expense.
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10. When did Lillie allow an external company access to her credit report specifically for an auto loan?
*
1 point
5/10/2015
6/5/2015
12/15/2016
5/10/2017
The question is asking about when Lillie allowed an external company to its credit report.
Lillie has received a request by Toyota Financials for her credit report access on 5/10/2015 date for making an auto loan approval.
She provided an access on 5/10/2017 since the date of removal for this inquiry is 5/10/2017. There is a big delay in providing the access to the financials of about 2 years.
Lillie has allowed access to the external company which is Toyota Financial to her credit reports in order to satisfy the company about her financial position and grant her an auto loan.
So The correct answer is 5/10/2017.
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the degree of complexity, cost, and uncertainty, along with , determine which form of change an organization will implement.
The degree of complexity, cost, and uncertainty determine which form of change an organization will implement Innovative change.
An organization or organization is an entity, such as a company, institution, or association, made up of one or more people and having a specific purpose. The word comes from the Greek word organon, which means tool or instrument, musical instrument or organ.An organization is a group of people working together, such as a neighborhood association, charity, union, or business. The word organization can be used to refer to a group or enterprise or the act of forming or establishing something.
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assuming the apr on your credit card is 24 percent and your average daily balance this month was $8,000, what will your interest or finance charges for the month be
Assuming the APR on your credit card is 18% and your average daily balance this month was $10,000, The interest or finance charges for the month will be $152.876712
Total Finance Fee Due for the Billing Cycle = $10,000 x 0.18%
x 30 ÷ 365
= $152.876712
The cost of using credit or extending credit is known as a finance charge. The most typical finance charge is based on a percentage of borrowings, but it can also be a flat fee. Frequently, a finance charge is an all-inclusive cost that includes the cost of servicing the debt as well as any associated transaction fees, account maintenance fees, or late fees assessed by the lender.
The interest rate is among the more typical finance fees. Due to the current sum that has been given to the borrower, the lender is now able to realize a profit, expressed as a percentage. Depending on the type of financing obtained and the borrower's creditworthiness, interest rates may change.
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in 2015 an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event reflect about the nature of GDP? a. Inputs to GDP are all qualitative, not quantitative. b. Governments are required to change GDP calculations every five years.
c. If the measurement of economic activity evolves, GDP can change. d. Because the GDP is official, its numbers are not subject to interpretation.
Option C. If in 2015 an accounting gimmick gave Ireland a 26% growth rate in GDP, the meaning is that If the measurement of economic activity evolves, GDP can change.
What is GDP?Gross domestic product (GDP) is a monetary indicator of the total market value of all the final commodities and services that nations generate and sell over a given time period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation during a specific time period (say a quarter or a year). It accounts for all the output produced inside a nation's boundaries.
The standard measurement of the value added produced via the production of goods and services in a nation over a specific time period is the gross domestic product (GDP). Consequently, it also accounts for the revenue generated by that manufacturing, or the total amount spent on finished goods and services (less imports).
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a global marketing strategy differs from a multi-domestic marketing strategy in that the global marketing strategy:
This method definitely is not a multidomestic strategy. In spite of the possibility of certain minor product and service modifications in other nations.
A global strategy emphasizes the necessity to achieve economies of scale by offering essentially the same goods or services in every market. For instance, Microsoft makes the same software applications accessible globally in a variety of languages. Like other producers of consumer goods, Procter & Gamble seeks out every chance to establish global brands in order to boost productivity. Global strategy can also be very successful for businesses like silicon chip manufacturer Intel, whose product or service is largely hidden from the customer's view. Local preference variations have little impact on these firms.
The decision to use a global marketing strategy has various advantages.
• A recognized, standardized brand that is used globally
• Operations and procedures become more efficient as a result of economies of scale.
• With a single product line that experiences few changes, it is easier to streamline procedures and scale more quickly.
• Worldwide market competitiveness
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investment may rise when businesses expect improved growth prospects from a fiscal stimulus, even if deficit spending does interest rates.
Investment may increase when companies anticipate stronger growth prospects as a result of a fiscal stimulus, even if this causes interest rates to increase.
Fiscal policy is the word used to describe how the government uses spending and taxation to affect the economy. Governments frequently use fiscal policy to encourage long-term growth and combat poverty. The role and objectives of fiscal policy became more obvious as governments intervened to stabilize financial institutions, spur growth, and lessen the impact of the crisis on vulnerable populations. The leaders of the Group of 20 industrialized and developing market nations stated in the communiqué that they were pursuing "unprecedented and concerted budgetary growth" following their summit in London in April 2009.
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Mr. D is the manager of a local walgreens. His biggest concern is to make sure that his store is always making the most profit possible. He cuts costs by focusing on certain logistical decisions. Every other day walgreens receives shipments from pepsi, evian, hershey, and numerous other manufacturers. Walgreens insists on small shipments every two days, which helps to keep their inventory costs low. What system is mr. D using at walgreens to reduce his costs?.
Mr.D is using just-in-time inventory at Walgreens to reduce his costs.
Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover.
A just-in-time (JIT) inventory system is a management strategy that has a company receive goods as close as possible to when they are actually needed. So, if a car assembly plant needs to install airbags, it does not keep a stock of airbags on its shelves but receives them as those cars come onto the assembly line.
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where y is gdp, c is consumption, i is investment, g is government spending, and there is no international trade, national saving equals:
National saving equals: Y - C - G when Y is GDP, C is consumption, I is investment, and G is government spending and there is no international trade.
In a closed economy, national savings (NS) equals the sum of private and public saves, or GDP - C - G.
The government budget deficit is equal to G - T in cases where Y is GDP, C is consumption, I is investment, G is government expenditure, T is net taxes, and there is no international trade. When there is a surplus in the government budget, public saving is beneficial.
In economics, the total of a nation's private and public savings is its national saving. It is the same as a country's income less its government and consumer spending.
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smith corporation acquired west company by paying $5 million in cash. the total fair value of west's identifiable assets is $8 million and the total fair value of its liabilities is $4 million. the amount of goodwill reported by smith corporation relating to its acquisition of west is:
Smith Corporation reported $1 million in goodwill associated with the purchase of West.
What is acquisition?Real estate acquisition refers to the process of acquiring or gaining possession of property. The public's enthusiasm for the museum's most recent additions is an acquisition. the acquisition of a competing company; mergers and acquisitions; the purchase of one corporate entity by another.The estimated value of a tangible asset to the reporting entity at the end of its useful life is known as salvage value. In general, a tangible item that has been used for its entire economic life will have little to no salvage value (i.e., scrap value).$5,000,000 - ($8,000,000 - $4,000,000) = $1,000,000.Add up the value of all the company's assets, including all of its inventory and equipment. Subtract any liabilities or debts. The balance sheet value of the company is at least a place to start when figuring out how much the company is worth.To learn more about acquisition refer to:
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what could angelas supervisors have done to improve her understanding of the audit strategy for each engagement
An agreement between an auditor and a client to audit the client's financial records and accounting records is known as an audit engagement.
What is audit engagement?The contractual arrangement between a professional firm and its customer is laid forth in an engagement letter. This letter outlines the engagement's terms and conditions, focusing primarily on the engagement's scope and the firm's terms of payment.Typically, the term refers to the two parties' agreement rather than the entire scope of the auditor's auditing responsibilities.Planning internal audit engagements entails prioritizing the risks pertinent to the engagement, deciding the engagement's objectives and scope, and documenting the approach. It also involves taking into account the strategies and objectives of the area or process being examined.The audit process typically consists of four stages: planning (also known as survey or preliminary review), fieldwork, audit report, and follow-up review, although each audit process is distinct.
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two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to
Answer: Even though it's not easy to compete with large firms there are a few advantages to being a small firm
Some of the advantages are
Personal EdgeResponsive to changes in conditionseasier to take risksability to respond quicklyExplanation:
Personal edge:
When the customers find your products meet their needs and like your customer service they're most likely to support the firm.
Knowing the customers face to face can help small firms increase their business when large firms focus on dominating the market
You can get the customers to market the products on social media and other platforms which will help the firm to grow
Responsive to change in conditions:
Small firms are more likely to adapt to the new changes in market conditions since they're closer to their customers and can get their feedback and know their changes in preferences. A small firm can adapt to new conditions more easily, especially when it hasn't invested in infrastructure when compared to larger firms
Easier to take risks:
Small firms can take risks which is not possible for large firms
Small firms can test their products in the market with a small investment to observe the obstacles before trying the idea of large scale
some large firms take the help of small firms to test their ideas for the products
Ability to respond quickly :
The small firms can respond quickly when the customer has an issue with the product and solve it and provide the customer with their service which is slightly difficult as the number of customers increases and the probability of responding decreases
he preemptive right is the right of current stockholders to buy new shares in an amount that will maintain their proportionate ownership in the firm. true or false
The statement 'The preemptive right is the right of current stockholders to buy new shares in an amount that will maintain their proportionate ownership in the firm' is true.
In the field of business, preemptive rights can be described as the rights of the stockholders of a business to buy more shares in a business before those shares are offered to anybody else.
Through the preemptive rights, new shares are brought that will allow the stockholder to maintain proportionate ownership in the business.
A preemptive right allows the correct stockholders to invest more in the same business.
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What type of decision determines whether a project is worth all the effort and investment or should it be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project?.
Go/ No Go decision determines whether a project is worth all the effort and investment or should it be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project.
A feasibility study is an evaluation of the practicality of a project or system. A feasibility study aims to objectively and reasonably clarify the strengths and weaknesses of an existing project or program.
A feasibility study (also known as a feasibility study or feasibility report) is a method of evaluating whether a project plan will be successful. A feasibility study evaluates the feasibility of the project plan to assess whether the project can proceed.
A feasibility study can identify the logistical, financial, and market challenges of a proposed project by evaluating: If the potential trade offers a return on investment. the market for the proposed product or service;
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The go/no-go decision is a key part of a feasibility study, and it can help you determine whether or not your business idea is worth pursuing. Making the go/no-go decision is all about risk assessment.
Feasibility refers to whether or not or not an assignment can be successful and the way to triumph over ability limitations to the project. in case you're in a challenge control position, conducting a feasibility look at assist you to examine a mission from start to completion and making selections earlier than the venture starts offevolved
Technical Feasibility: this consists in determining in case your business enterprise has the technical sources and knowledge to satisfy the undertaking requirements.
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the balances in sanchez accounting services' office supplies account on february 1 and february 28 were $1,200 and $375, respectively. if the office supplies expense for the month is $1,900, what amount of office supplies was purchased during february?
A company's total expenditure on consumables is referred to as its supply expense, which is a category of indirect expense. The cost of manufacturing goods does not include the cost of supplies.
What is the cost of supplies?
The cost of consumables used during a reporting period is referred to as supplies expense. This can be one of the largest costs for a company, depending on the type of business.
What costs for supplies are included?
In accounting, "supplies expense" is the cost of a set of goods that a company used during a particular reporting period. These items may be used frequently by staff members to complete daily tasks. An accountant might, for instance, consider office printer ink cartridges to be a supplies expense.
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