The best estimate for the population mean would be: a) 0.5
The best estimate for the population mean can be calculated by dividing the number of friends who said yes (9) by the total number of friends asked (18).
Population mean = Number of friends who said yes / Total number of friends asked
Population mean = 9 / 18 = 0.5
Therefore, the best estimate for the population mean would be: a) 0.5
Population refers to the entire group of individuals, objects, or events that a researcher or statistician is interested in studying. It represents the complete set of elements that share a common characteristic or feature and is the target of analysis in a research study or statistical analysis.
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Shown below is information relating to the stockholders' equity of Grant Corporation at December 31, Year 1:
5.5% cumulative preferred stock, $100 par value;
authorized, 38,000 shares; issued and outstanding, 19,000 shares $1.900.000
Common stock, $5 par value; authorized, 540,000 shares; issued and outstanding, 324,000 shares : $ 1,620,000
Additional paid-in capital: preferred stock $ 190,000
Additional paid-in capital: common stock $ 2,500,000
Retained earnings $ 1,020,000
Dividends have been declared and paid for Year 1.
The average issue price per share of Grant's preferred stock was:
A) $105.50. B) $55.00 C) $100.00. D) $110.00.
The average issue price per share of Grant Corporation's preferred stock is (C) $100.00.
To calculate the average issue price per share of Grant Corporation's preferred stock, we divide the total amount of preferred stock issued by the number of shares issued. The information provided states that the preferred stock has a par value of $100, and 19,000 shares were issued and outstanding. The par value represents the initial value assigned to each share of preferred stock.
To calculate the total amount of preferred stock issued, we multiply the par value by the number of shares issued:
$100 (par value) * 19,000 (shares issued) = $1,900,000. Since the total amount of preferred stock issued is $1,900,000 and the number of shares issued is 19,000, the average issue price per share of the preferred stock is:
$1,900,000 (total amount issued) / 19,000 (shares issued) = $100.00
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For the following transactions, analyze the accounting
transactions using the accounting equation framework
a) Introduced Rs500000 through a cheque by the Owner as
the Initial capital in the business
The accounting equation framework helps analyze the effect of transactions on the financial position of a business. In this transaction, where the owner introduces Rs500,000 through a cheque as the initial capital, the accounting equation can be used to understand the impact.
The accounting equation is: Assets = Liabilities + Owner's Equity.
Initially, before the transaction, there are no assets, liabilities, or owner's equity in the business. Therefore, the equation is not applicable.
After the transaction, the owner introduces Rs500,000 as initial capital. This increases the owner's equity by Rs500,000.
The accounting equation can now be written as: Assets = Liabilities + Rs500,000 (Owner's Equity).
Since there are no liabilities mentioned in the transaction, we can assume that there are no liabilities at this point. Therefore, the accounting equation becomes: Assets = Rs500,000 (Owner's Equity).
The owner's equity has increased by Rs500,000, and this represents the initial capital invested by the owner. The assets of the business would also increase by Rs500,000 to maintain the equality of the equation.
Hence, the transaction can be summarized as follows:
Assets increase by Rs500,000 (Cash or Bank) and Owner's Equity increases by Rs500,000 (Initial Capital).
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When housing prices of Hong Kong fall, the economic competitiveness of Hong Kong might increase because (1) it might lead to lower production costs. (2) it might lead to more income equality. (3) it might lead to less pollutions. A. (1) & (2) only. B. (1) & (3) only. C. (2) & (3) only. D. (1), (2) & (3)
When housing prices of Hong Kong fall, the economic competitiveness of Hong Kong might increase because it might lead to lower production costs; might lead to more income equality; and might lead to less pollutions. Therefore, the correct option is D. (1), (2) & (3).
Hong Kong is among the most prosperous territories in the world and has a rich capitalist economy with low taxation and free trade. It is one of the most popular investment destinations due to its low taxation, open market policy, and less strict policies regarding financial investments.The fall in housing prices in Hong Kong can lead to the increase in economic competitiveness of Hong Kong in the following ways:
Lower production costs: As housing prices fall, the production costs in Hong Kong fall as well. As a result, the cost of production of goods and services reduces. Lower production costs imply a decrease in the prices of goods and services, making them more affordable to consumers and more profitable to producers.
More income equality: The fall in housing prices would lead to more income equality as it makes affordable housing more accessible to low-income earners. This could reduce income inequality, as low-income earners would have an opportunity to purchase homes in more desirable areas.
Less pollution: The fall in housing prices would encourage more people to live in the city, thus reducing the pollution associated with commuting. This would lead to a cleaner and healthier environment for the residents of the city.
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A) Goodwill Question (5 points) Mario Bakery purchased the net assets of Qameh Bakery for $300,000 on December 31, 2020. The balance sheet of Qameh Bakery just prior to acquisition is Assets Cost Cash $60,300 FMV $60,300 Receivables 35,000 24,700 Inventories 15,700 20,000 Equipment 60,000 65,000 Patent 15,000 Total $171,000 $185,000 Liabilities & Equities Cost FMV $6,000 10,000 Accounts payable Common stock 65,000 65,000 100,000 110,000 Retained earnings Total $171,000 $185,000 Required Answer the following questions and fill-in your answers in the table on the first page. 1) What amount is assigned to goodwill? 2) Assuming the purchase price paid was $135,000. a. What is the difference between the purchase price and FMV of net identifiable 50,000 assets? b. This amount is assigned to which account? c. In which financial statement should this account appear? d. In which section of the financial statement should this account appear? Credit side Borgin on purchase Good Balance sheet "Ässet sich
This account should appear in the balance sheet. d. This account should appear in the section of the balance sheet that is related to assets.
1. $115,000 is assigned to goodwill. Word Count: 8.2. The difference between the purchase price and FMV of net identifiable assets is $85,000. a. $85,000 is assigned to goodwill. b. Goodwill is the account to which this amount is assigned. c. This account should appear in the balance sheet. d. This account should appear in the section of the balance sheet that is related to assets. Credit side Borgin on purchase Good Balance sheet "Ässet sich". 1. $115,000 is assigned to goodwill. Word Count: 8.2. The difference between the purchase price and FMV of net identifiable assets is $85,000. c. This account should appear in the balance sheet. d. This account should appear in the section of the balance sheet that is related to assets.
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1) The amount assigned to goodwill is $115,000. 2) a. The difference between the purchase price of $135,000 and the fair value of the net identifiable assets of $20,000 is $115,000.
1) The amount assigned to goodwill is $115,000.2)a. The difference between the purchase price of $135,000 and the fair value of the net identifiable assets of $20,000 is $115,000.b. This amount will be assigned to the goodwill account.c. The goodwill account should be presented in the balance sheet in the long-term asset section.d. The goodwill account should appear in the noncurrent assets section of the balance sheet. Goodwill is an intangible asset that represents the excess of the purchase price over the fair market value of net identifiable assets of the acquired business. In this scenario, the net assets of Qameh Bakery were purchased by Mario Bakery for $300,000. The fair value of net identifiable assets is $185,000. Therefore, the amount assigned to goodwill is $115,000.When the purchase price is less than the fair value of net identifiable assets, the difference is recorded as a gain from bargain purchase. But in this case, the purchase price is higher than the fair value of net identifiable assets.
Therefore, the excess amount is recorded as goodwill. Goodwill is not amortised but tested for impairment annually. If the value of goodwill is impaired, it is written off as an expense in the income statement. In this scenario, assuming that the purchase price paid was $135,000, the difference between the purchase price and the fair value of net identifiable assets is $115,000. This amount will be assigned to the goodwill account, which is presented in the balance sheet in the long-term asset section and the noncurrent assets section.
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what term describes the phenomenon in which workers become upset after comparing their equity with others?
The phenomenon in which workers become upset after comparing their equity with others is called the "equity sensitivity."
Equity sensitivity is a term used to describe the phenomenon of employees becoming angry after comparing their fairness with that of others. Equity sensitivity is a reaction to the perceived fairness or unfairness of organizational policies and practices, which causes an employee's sense of justice to be challenged.An individual's level of equity sensitivity determines the degree to which he or she is affected by perceived inequities in the workplace. Equity-sensitive individuals are more sensitive to perceived equity or inequity than are less equity-sensitive individuals, and are more likely to react to perceived inequities with negative behavior, such as sabotage or turnover.
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Scenario 29-1 The Monetary Policy of Jaune is controlled by the country's central bank known as the Bank of Jaune. The local unit of currency is the Jaunian dollar. Aggregate banking statistics show that collectively the banks of Jaune hold $220 million of required reserves, $55 million of excess reserves, have issued $5,500 million of deposits, and hold $440 million of Jaunian Treasury bonds. Jaunians prefer to use only demand deposits and so all money is on deposit at the bank. Refer to Scenario 29-1. Assuming the only other thing Jaunian banks have on their balance sheets is loans, what is the value of existing loans made by Jaunian banks? O $4,785 million O $5,225 million $5,435 million O $4,685 million
Based on the information provided in Scenario 29-1, we can calculate the value of existing loans made by Jaunian banks.
First, we need to determine the total reserves held by the banks. The scenario states that the banks of Jaune hold $220 million of required reserves and $55 million of excess reserves. Therefore, the total reserves held by the banks can be calculated as follows:
Total Reserves = Required Reserves + Excess Reserves
Total Reserves = $220 million + $55 million
Total Reserves = $275 million
Next, we need to calculate the total liabilities of the banks, which include deposits and Treasury bonds. The scenario states that the banks have issued $5,500 million of deposits and hold $440 million of Jaunian Treasury bonds. Therefore, the total liabilities can be calculated as follows:
Total Liabilities = Deposits + Treasury Bonds
Total Liabilities = $5,500 million + $440 million
Total Liabilities = $5,940 million
Now, to determine the value of existing loans, we subtract the total reserves from the total liabilities:
Existing Loans = Total Liabilities - Total Reserves
Existing Loans = $5,940 million - $275 million
Existing Loans = $5,665 million
Therefore, the value of existing loans made by Jaunian banks is $5,665 million.
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ABC and XYZ have entered into a stock swap merger agreement whereby ABC will pay a 30% premium over XYZ's pre-merger price. If ABC's pre-merger price per share was $15 and XYZ's was $30, then the exchange ratio that ABC will offer is closest to:
In the stock swap merger agreement between ABC and XYZ, where ABC will pay a 30% premium over XYZ's pre-merger price, the exchange ratio that ABC will offer can be calculated based on the given prices. The closest exchange ratio that ABC will offer can be determined by comparing the pre-merger prices of ABC and XYZ.
To calculate the exchange ratio, we need to consider the 30% premium that ABC will pay over XYZ's pre-merger price.
ABC's pre-merger price per share is $15, and XYZ's pre-merger price per share is $30. With a 30% premium over XYZ's price, ABC's offer will be $30 + (30% of $30) = $30 + $9 = $39 per share.
To determine the exchange ratio, we divide ABC's pre-merger price by the offer price per share: $15 / $39 ≈ 0.3846.
This means that ABC will offer approximately 0.3846 shares for each share of XYZ in the stock swap merger.
In summary, the exchange ratio that ABC will offer in the stock swap merger agreement, considering a 30% premium over XYZ's pre-merger price, is closest to 0.3846 shares of ABC for each share of XYZ.
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If a company pays each camera PAT member a base wage of $20,250, thereby resulting in base wages of $81,000 per 4-person PAT, and if camera PATS work an average of 2,000 hours per year to assemble 3,000 cameras annually, it follows that o the base wage cost for a PAT to assemble a camera would be $28.00 and that the labor cost of assembling a camera at overtime would be $42.00 per PAT the hourly base wage cost for a PAT to assemble a camera would be $10.50 and that the labor cost of assembling a camera at overtime would be $15.75 per PAT. the base wage cost for a PAT to assemble a camera would be $24.00 and that the labor cost of assembling a camera at overtime would be $36.00 per PAT. o the base wage cost for a PAT to assemble a camera would be $27.00 and that the labor cost of assembling a camera at overtime would be $40.50 per PAT. the base wage cost of assembling a camera would be $27.00 and that the labor cost of assembling a camera at overtime cannot be determined from the available information due to the lack of information about compensation payments for assembly quality incentives, perfect attendance bonuses, and the cost of fringe benefit packages. Conving redistributing or website posting is expressly prohibited and constitutes copyright violation
Based on the information provided, the base wage cost for a PAT to assemble a camera would be $27.00 per camera, but the labor cost of assembling a camera at overtime cannot be determined due to the lack of relevant information.
Based on the information provided, we can calculate the base wage cost and labor cost of assembling a camera by a camera PAT (Production Assembly Team) member.
Given:
Each camera PAT member is paid a base wage of $20,250.
A camera PAT consists of 4 members, resulting in base wages of $81,000 ($20,250 x 4) per 4-person PAT.
Camera PATs work an average of 2,000 hours per year.
The PAT assembles 3,000 cameras annually.
To calculate the base wage cost for a PAT to assemble a camera, we divide the total base wages by the number of cameras assembled:
Base wage cost per camera = Total base wages / Number of cameras assembled
Base wage cost per camera = $81,000 / 3,000
Base wage cost per camera ≈ $27.00
To calculate the labor cost of assembling a camera at overtime, we need to know the overtime pay rate. Unfortunately, the provided information does not specify the overtime pay rate, compensation payments for assembly quality incentives, perfect attendance bonuses, or the cost of fringe benefit packages. Therefore, we cannot determine the labor cost of assembling a camera at overtime from the available information.
In summary, based on the information provided, the base wage cost for a PAT to assemble a camera would be $27.00 per camera, but the labor cost of assembling a camera at overtime cannot be determined due to the lack of relevant information.
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firm x has a tax rate of 32. the price of its new preferred stock is 67 and its flotation cost is %3.15. The cost of new preferred stock is 12%. What is the firm's dividend?
The firm's dividend is $14.96.
Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders have priority over common shareholders when it comes to dividends and liquidation, but they typically don't have voting rights like common shareholders do. The dividend on preferred stock is typically calculated as a fixed percentage of the par value of the stock, so in this case, the dividend would be:
Dividend = Preferred stock price * Dividend rate
The dividend rate can be calculated using the cost of new preferred stock and the flotation cost. The cost of new preferred stock is 12%, and the flotation cost is 3.15%, so the total cost of the preferred stock is:
Total cost = Cost of new preferred stock + Flotation cost
Total cost = 12% + 3.15%
Total cost = 15.15%
The dividend rate can be calculated as the cost of the preferred stock divided by (1 - tax rate). The tax rate is given as 32%, so:
Dividend rate = Total cost / (1 - Tax rate)
Dividend rate = 15.15% / (1 - 0.32)
Dividend rate = 22.31%
Finally, the dividend can be calculated using the preferred stock price and the dividend rate:
Dividend = Preferred stock price * Dividend rate
Dividend = $67 * 22.31%
Dividend = $14.96
Therefore, the firm's dividend is $14.96.
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Part 3 Question A:
Reportable Standard:
Directions: Study stimulus material #5 (Fig. 3) located in the stimulus package and then answer the following question.
Prompt: "With reference to the ‘Three Economic Questions’ diagram, describe the potential benefits and costs involved in the decision process and identify the winners and losers involved in answering each question. Include the impact ‘wealth’ may have on the process.
The Economic expenses and increase productivity, while the losers may be producers who fail to adopt cost-effective production techniques.
The expenses could be incurred as a result of scarce resources and trade-offs between various goods. Consumers who acquire the desired commodities in this decision are the winners; others whose preferences are not given priority may be the losers.
In response to the query selecting effective production techniques that maximise output while minimising costs. Increased productivity and economic expansion may result from this. Changing production methods, however, might come at a cost or have unfavourable externalities. In this case, producers who can cut expenses .
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Because of corona pandemic, many oil producers have experienced a decrease in their production and the government in this economy has decreased tax on consumption simultaneously. Assume that the economy is initially in long run equilibrium and holding everything else constant, use the AD / SRAS diagram to explain the following:
1. What will happen to this economy in short run? Explain. (3 points)
2. What will happen to this economy in long run? Explain. (2 points)
3. What will happen to real GDP per capita in long run? Explain. (2 points)
4. Let assume that you are hired as a consultant to fix this economy. Use all what you have learned in Econ 103 to provide convincing recommendations to interested parties. (4 points)
Hint: Answer shouldn¶t exceed four lines.
1. In the short run, due to the decrease in production and the decrease in tax on consumption, the aggregate demand (AD) curve will shift leftward. This is because lower production reduces income and consumer spending, leading to a decrease in aggregate demand.
2. In the long run, the decrease in production will lead to adjustments in the economy. In response to the lower output, firms will reduce their prices and wages, causing a leftward shift of the short-run aggregate supply (SRAS) curve. This adjustment process will continue until the economy reaches a new long-run equilibrium. As a result, both real GDP and price levels will decrease, returning the economy to its potential output level.
3. In the long run, real GDP per capita will decrease as a result of the decrease in production. This is because real GDP per capita is determined by dividing real GDP by the population. As real GDP decreases while the population remains constant, real GDP per capita will also decline.
4. As a consultant, I would recommend a combination of fiscal and monetary policies. To stimulate the economy in the short run, the government could implement expansionary fiscal policies, such as increasing government spending or implementing tax cuts, to boost aggregate demand. The central bank could also use expansionary monetary policies, such as lowering interest rates, to encourage borrowing and investment. Additionally, policies to support and incentivize oil production and consumption could be implemented to help restore production levels.
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Your answers are saved automatically Remaining Time: 54 minutes, 52 seconds. Question Completion Status: Moving to another question will save this response Question 1 The three matrices of [11] [11] and [..] are linearly independent in M2.2 True False Moving to another question will save this response.
The answer to the question: "The three matrices of [11] [11] and [..] are linearly independent in M2.2 True or False." is False.
The three matrices of [11] [11] and [..] are linearly dependent in M2.2.A set of vectors is said to be linearly independent if there is no vector in the set that can be represented as a linear combination of the other vectors in the set. However, the three matrices in this question [11] [11] and [..] are linearly dependent since the matrix [..] can be expressed as a linear combination of the other two matrices.
Therefore, the answer to the question is False as the three matrices of [11] [11] and [..] are linearly dependent in M2.2.Therefore, the three matrices of [11] [11] and [..] are not linearly independent in M2.2.
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A factory is considering purchasing a lathe machine for the production. Each machine will cost $90.000 and have an operating and maintenance cost that of $20,000 each year. Assume the salvage value is $21.000 at the end of 5 years and the interest rate is 11%. What is the annual equivalent cost of owning and operating each machine?
Select one:
a. 25000
b. 35175
c. 55000
d. 40979
e. 44644
f. 1.31370
The annual equivalent cost of owning and operating each machine is approximately $13,936.26 (rounded to the nearest dollar).
To calculate the annual equivalent cost of owning and operating the lathe machine, we need to consider the initial cost, annual operating and maintenance costs, salvage value, and the interest rate. The annual equivalent cost can be determined using the concept of the Present Worth (PW) or the Annual Worth (AW).
First, let's calculate the present worth of the costs:
Initial cost: -$90,000 (negative because it's an outflow)
Operating and maintenance cost per year: -$20,000 (for 5 years)
Salvage value: +$21,000 (positive because it's an inflow)
Using the Present Worth (PW) formula:
PW = A * (P/A, i, n) + S * (P/F, i, n)
where A represents the annual cost, S represents the salvage value, i is the interest rate, n is the number of years, and (P/A, i, n) and (P/F, i, n) are the present value factors.
Using the given values:
PW = (-$20,000) * (P/A, 11%, 5) + $21,000 * (P/F, 11%, 5)
Now we need to find the values of (P/A, 11%, 5) and (P/F, 11%, 5) from the present value factor tables.
(P/A, 11%, 5) = 3.240 + (0.310 * 0.485) = 3.38735
(P/F, 11%, 5) = 0.593 + (0.310 * 0.798) = 0.82398
Substituting these values into the PW formula:
PW = (-$20,000) * 3.38735 + $21,000 * 0.82398
PW = -$67,747 + $17,285.58
PW = -$50,461.42
The negative sign indicates an outflow of cash.
To find the Annual Equivalent Cost (AW), use the following formula:
AW = PW * (A/P, i, n)
(A/P, i, n) is the annual worth factor.
Using the given values, find (A/P, 11%, 5) from the annual worth factor table.
(A/P, 11%, 5) = 0.276
Substituting this value into the AW formula:
AW = -$50,461.42 * 0.276
AW = -$13,936.26
Therefore, the annual equivalent cost of owning and operating each machine is approximately $13,936.26 (rounded to the nearest dollar).
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The financial statement that is organized in three sections (operating, investing and financing activities) is the:
a) statement of financial position
b) statement of cash flows
c) statement of comprehensive income
d) statement of changes in shareholder's equity
The financial statement that is organized in three sections (operating, investing, and financing activities) is the (B) statement of cash flows.
The statement of cash flows is a financial statement that provides information about the cash inflows and outflows of a company during a specific period. It is organized into three sections: operating activities, investing activities, and financing activities.
Operating Activities: This section of the statement of cash flows includes cash flows resulting from the primary operations of the company. It includes cash receipts and payments related to the core revenue-generating activities, such as sales, purchases, and operating expenses.
Investing Activities: This section accounts for cash flows related to investments in long-term assets and other investments not considered part of the core operations. It includes cash flows from buying or selling property, plant, and equipment, investments in securities, and loans made to other entities.
Financing Activities: This section covers cash flows related to the company's financing activities. It includes cash receipts and payments associated with issuing or repurchasing shares, issuing or repaying debt, and payment of dividends.
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Norway extracts 1 million barrels of oil and sells this oil for 100 million US dollars. This money is used to buy shares in a foreign company.
A) How does the extraction of oil affect BNP in Norway?
B) How does the driving of shares abroad affect Norway's savings?
The extraction of oil in Norway has a positive impact on the country's Gross Domestic Product (GDP) as it contributes to economic output. However, the driving of shares abroad using the revenue from oil sales affects Norway's savings by reducing the domestic accumulation of financial assets.
A) The extraction of oil in Norway has a positive impact on the country's Gross Domestic Product (GDP). GDP measures the total value of goods and services produced within a country's borders. Oil extraction involves economic activities such as drilling, refining, and transportation, which generate income and contribute to economic output. As a result, the revenue generated from oil sales contributes to the overall GDP of Norway. B) When the revenue from oil sales is used to buy shares in a foreign company, it affects Norway's savings. Savings represent the portion of income that is not consumed and is set aside for future use. By driving shares abroad, Norway is effectively investing its financial resources in foreign assets rather than accumulating domestic savings. This reduces the amount of savings available within the country and shifts financial assets to the foreign market. The impact on Norway's savings depends on the magnitude of the share purchases and the proportion of the revenue allocated to such investments.
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1.) Total Physical Product and Marginal Physical Product
Total physical product is the amount of output the firm obtains in total from a given quantity of inputs. Marginal revenue product is the increase in total output that results from a one-unit increase in the input quantity. First, discuss the relationship between total physical product and marginal physical product. Then, define marginal revenue product and discuss it relationship to marginal physical product. Lastly, give one example of each from a recent news article.
2.) Input Quantities
The most desirable output quantity for the firm clearly depends on how costs change as output varies. First, discuss the three types of cost curves economists use to display and analyze this information. Then, discuss the marginal product relationship. Lastly, give one example of how costs change as output varies for the firm from a recent news article.
3.) Price, Output and Profit
It is a common misperception that the firm selects a price and a quantity of output that maximize profit. First, discuss why this is a common misperception. Then, discuss the impact activities of other firms in the market competing for a share of total market demand have on a firm. Lastly, give one example of the firm maximizing its profit from a recent news article.
1) MRP is related to MPP because the value of an additional unit of input depends on the additional revenue it generates. 2) As more input is added, initially, marginal product increases, but eventually, it diminishes, leading to higher marginal costs. 3) The common misperception is that firms select a price and quantity to maximize profit.
1) Total Physical Product (TPP) represents the total output obtained from a specific quantity of inputs. Marginal Physical Product (MPP) measures the additional output gained from an extra unit of input. The relationship between TPP and MPP is that MPP initially increases due to specialization and efficient resource utilization, reaches a maximum when diminishing returns set in, and eventually declines. Marginal Revenue Product (MRP) reflects the change in total revenue resulting from an additional unit of input. MRP is related to MPP because the value of an input depends on the additional revenue it generates. For example, if a news article mentions a company increasing its production by hiring more workers, the MPP and MRP can be analyzed to understand the relationship between input quantity and output. Total Physical Product (TPP) represents the total output obtained from a given quantity of inputs, while Marginal Physical Product (MPP) is the additional output gained from one additional unit of input. The relationship between TPP and MPP is that MPP initially increases, reaches a peak, and then starts to decline as more units of input are added. Marginal Revenue Product (MRP) measures the change in total revenue resulting from an additional unit of input.
2) Economists use three cost curves to analyze costs: Total Cost (TC), which represents the overall cost of producing a given output level; Average Total Cost (ATC), which calculates the cost per unit of output by dividing TC by the quantity produced; and Marginal Cost (MC), which measures the change in TC resulting from producing one additional unit of output. The marginal product relationship shows how costs change as output varies. Initially, as output increases, marginal product rises, leading to economies of scale and lower costs. However, beyond a certain point, marginal product decreases, causing diminishing returns and higher costs. For instance, a news article may describe a company experiencing higher production costs as it expands its operations or faces supply chain disruptions. Economists use three types of cost curves: Total Cost (TC), Average Total Cost (ATC), and Marginal Cost (MC). TC represents the total cost of producing a given quantity of output, ATC is the cost per unit of output, and MC measures the change in total cost resulting from producing one additional unit of output. The marginal product relationship shows how changes in input quantity affect output.
3) The common misperception is that firms select a price and quantity to maximize profit independently. In reality, firms consider market conditions and the activities of other firms competing for market share. Pricing decisions depend on factors like demand elasticity, competitive landscape, and production costs. If competitors lower their prices, a firm may need to adjust its pricing strategy to remain competitive and maintain profitability. An example from a news article could involve a company adjusting its pricing and output levels in response to a competitor's new product launch or a market consolidation effort. The firm's profit-maximizing strategy takes into account the dynamic nature of the market and the actions of other players.
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1.
2.
3.
4. A borrower takes out a 30-year mortgage loan (with monthly
payments)for $400,000 with an interest rate of 6%The lender
requires 4.0 points to be paid at the time the loan is originated.
Please match the loan balance at maturity with the associated type of constant payment mortgage. Fully amortizing [Choose ] Partially amortizing [Choose ] Interest only [Choose ] Negative amortizing �
The loan balance at maturity for a borrower who takes out a 30-year mortgage loan for $400,000 with an interest rate of 6% and pays 4.0 points at loan origination would be associated with a fully amortizing constant payment mortgage.
In a fully amortizing mortgage, the borrower makes regular monthly payments that include both principal and interest, gradually paying down the loan balance over the loan term until it is fully paid off.
A fully amortizing mortgage is designed to ensure that the loan balance is fully repaid by the end of the loan term. In this case, the borrower takes out a 30-year mortgage, which means they have 30 years to repay the loan. The monthly payments are calculated to be consistent over the entire loan term, with each payment comprising a portion that goes towards paying off the principal amount borrowed and another portion that covers the interest charges. As the borrower continues to make these monthly payments, the loan balance gradually decreases until it reaches zero at the end of the 30-year period. This type of mortgage structure is commonly used for long-term financing of homes and properties.
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The prisoner's dilemma has all of these characteristics EXCEPT it is a sequential game. O there is no communication between players. O there will be inferior results for both players. O it is a noncooperative game.
Answer:
The correct answer is: it is a sequential game.
Explanation:
The prisoner's dilemma is a noncooperative game that involves two players who have the option to cooperate or betray each other. The key characteristics of the prisoner's dilemma include:
Noncooperative game: The players make their decisions independently, without any formal agreement or communication.
Lack of communication: The players cannot communicate or coordinate their strategies.
Inferior results for both players: In the prisoner's dilemma, both players have a dominant strategy to betray each other, leading to a Nash equilibrium where both players end up with inferior outcomes compared to if they had cooperated.
However, the prisoner's dilemma is not a sequential game because the players make their decisions simultaneously, without observing each other's choices. In a sequential game, players take turns making decisions, and the order of their actions can impact the outcomes.
Given that Prisoner 2 will almost always choose to confess in the second stage, Prisoner 1's best course of action is to confess as well. So, whether the game is played concurrently or in order, the result is the same. Finding a means to punish those who do not collaborate is the solution to a prisoner's conundrum.
According to game theory, a scenario known as a prisoner's dilemma occurs when two selfish players are forced to make a decision that is not in their best interests. As inmates are unable to speak and will (allegedly) make their decisions simultaneously, this situation is seen as a simultaneous game that may be examined.
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suppose the firm notices that consumers tend to buy both good A and good B. as a results, the firm considers practicing bundling. the information below shows consumer 1:
maximum price for good A = R 160
maximum price for good B = R250
consumer 2:
maximum price for good A = 400
maximum price for good B = 100
1.1 what is the maximum amount of revenue that the firm can generate if it sells good A and good B separately ( (without bunding)?
1.2 calculate the profit maximising bundle
price
1.3 calculate the total revenue that the optimal bundled price will generate for the firm?
1.1 The maximum amount of revenue that the firm can generate if it sells good A and good B separately (without bundling) can be calculated using the given information for each consumer:
Consumer 1:Maximum price for good A = R 160
The maximum price for good B = R 250
Total revenue for good A and good B if sold separately = R 160 + R 250 = R 410
Consumer 2:Maximum price for good A = R 400
Maximum price for good B = R 100
Total revenue for good A and good B if sold separately = R 400 + R 100 = R 500
Therefore, the maximum amount of revenue that the firm can generate if it sells good A and good B separately is R 410 + R 500 = R 910.1.2 To calculate the profit-maximizing bundle price, we need to calculate the consumer surplus for each consumer at different bundle prices and then subtract the total cost of production and marketing from the revenue generated by the sales.
Consumer 1:Maximum price for good A = R 160
Maximum price for good B = R 250Total revenue for good A and B if sold separately = R 410
Consumer surplus for good A at different bundle prices:
Bundle price Consumer surplus = (Maximum price - Bundle price) * Quantity purchased
R 200 160 - 200 = -40 * 1 = -40R 180 160 - 180 = -20 * 2 = -40R 170 160 - 170 = -10 * 3 = -30R 165 160 - 165 = -5 * 4 = -20R 162.50 160 - 162.50 = -2.50 * 5 = -12.50R 161.25 160 - 161.25 = -1.25 * 6 = -7.50R 160 160 - 160 = 0 * 7 = 0
Consumer surplus for good B at different bundle prices:
Bundle price Consumer surplus = (Maximum price - Bundle price) * Quantity purchased
R 240 250 - 240 = 10 * 1 = 10R 220 250 - 220 = 30 * 2 = 60R 210 250 - 210 = 40 * 3 = 120R 205 250 - 205 = 45 * 4 = 180R 202.50 250 - 202.50 = 47.50 * 5 = 237.50R 201.25 250 - 201.25 = 48.75 * 6 = 292.50R 200 250 - 200 = 50 * 7 = 350
The total revenue for different bundle prices can be calculated as follows:
Bundle price Total revenue = (Bundle price * Quantity sold) - Total cost of production and marketing
R 200 (1 + 7) * 200 - C = 1600 - CR 180 (2 + 6) * 180 - C = 2160 - CR 170 (3 + 5) * 170 - C = 2040 - CR 165 (4 + 4) * 165 - C = 2310 - CR 162.50 (5 + 3) * 162.50 - C = 2531.25 - CR 161.25 (6 + 2) * 161.25 - C = 2701.25 - CR 160 (7 + 1) * 160 - C = 2680 - C
Therefore, the profit-maximizing bundle price is R 162.50.1.3 The total revenue that the optimal bundled price will generate for the firm can be calculated using the quantity purchased by each consumer at the optimal bundle price, which is 5 for good A and 5 for good B:
Total revenue = Quantity sold * Bundle price = 5 * R 162.50 = R 812.50. Therefore, the total revenue that the optimal bundled price will generate for the firm is R 812.50.
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Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.8 million. Its depreciation and capital expenditures will both be $300,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $47,000 over the next year. Its tax rate is 25%. If its WACC is 8% and its FCFs are expected to increase at 6% per year in perpetuity, what is its enterprise value? The company's enterprise value is $ (Round to the nearest dollar.)
The enterprise value of victoria enterprises is approximately $65,150,000..
to calculate the enterprise value (ev) of victoria enterprises, we need to use the free cash flow to the firm (fcff) approach. the formula for calculating the enterprise value is:
ev = fcff / (wacc - g)
where:
fcff = free cash flow to the firm
wacc = weighted average cost of capital
g = growth rate of fcff
first, let's calculate the fcff for the next year:
fcff = ebit * (1 - tax rate) + depreciation - capital expenditures - increase in working capital
= $1,800,000 * (1 - 0.25) + $300,000 - $300,000 - $47,000
= $1,350,000 + $0 - $47,000
= $1,303,000
next, let's calculate the growth rate of fcff (g) using the given information that fcff is expected to increase at 6% per year in perpetuity:
g = 0.06
now, we have all the necessary values to calculate the enterprise value (ev):
ev = fcff / (wacc - g)
= $1,303,000 / (0.08 - 0.06)
= $1,303,000 / 0.02
= $65,150,000
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Choose a concept (or a theory, model, table, typology…etc) that has been introduced in the course (organization design and development). Then, provide the following:
- A definition/description of the concept.
- Why is your chosen concept important for today’s organizations/companies.
The concept that has been introduced in the course (organization design and development) is "Contingency Theory". It is a leadership theory that highlights the importance of matching a leader's style to suit the nature of the task and the situation at hand.
Contingency Theory, also known as situational theory, proposes that the best course of action for a leader is contingent (dependent) on the situation at hand. This implies that, in different situations, different leadership styles may be required to be used to ensure the success of the task at hand.The Contingency Theory is important for today's organizations and companies because it provides a framework for leaders to understand the importance of matching their leadership style to the situation at hand. This framework enables them to effectively respond to various situations they may encounter while leading a team or an organization.It emphasizes that the same leadership style may not be effective in all situations, and therefore leaders must be flexible and adapt to different situations, tasks, and contexts. By doing this, leaders are more likely to be effective in their role, which can ultimately benefit the organization as a whole.Contingency theory is important for organizations today because it provides a framework that enables leaders to be more effective by understanding that their leadership style must be adapted to the situation.
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Q.1.2 Discuss the resources you would need to start your
business as entrepreneurs. (10)
Consider the following scenario and then answer the questions that follow. You and two friends have identified a gap in the market in your hometown for work-from-home business clothing. This clothing
The resources needed to start a work-from-home business clothing venture include capital, a business plan, market research, manufacturing facilities, supply chain management, design and development expertise, marketing and advertising strategies, an e-commerce platform, logistics and shipping services, and a qualified team.
Determine how to start a business as entrepreneurs in the work-from-home business?To start a work-from-home business clothing venture, sufficient capital is crucial to cover various expenses, including manufacturing, marketing, and operational costs. A well-defined business plan is necessary to outline the objectives, target market, pricing strategy, and marketing approach.
Conducting comprehensive market research helps identify opportunities and understand customer preferences. Access to or arrangements with clothing manufacturers or suppliers is necessary to produce the work-from-home clothing. Efficient supply chain management ensures a steady flow of materials and inventory.
Skilled designers and developers are required to create appealing and comfortable clothing that meets customer needs. Marketing and advertising strategies, including digital marketing and social media, help promote the brand and products.
An e-commerce platform or website is essential to showcase and sell the clothing online. Reliable shipping and logistics services ensure prompt delivery to customers. Lastly, a qualified team and workforce are needed to manage different aspects of the business, including operations, marketing, customer service, and finance.
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Gross investment minus depreciation is equal to:
a. the change in capital stock.
b. the value of durable goods.
c. gross national product.
d. non-residential investment
Gross investment minus depreciation is equal to the change in capital stock. Option a is correct.
Gross investment refers to the total amount of investment in an economy, including both the purchase of new capital goods and the replacement of depreciated capital goods. Depreciation, on the other hand, represents the decline in the value of existing capital goods over time. When we subtract depreciation from gross investment, we are essentially accounting for the reduction in the value of capital due to wear and tear or obsolescence.
The result of subtracting depreciation from gross investment gives us the net investment, which represents the change in the capital stock of an economy. The capital stock refers to the total amount of physical capital, such as machinery, equipment, and buildings, available in an economy at a given point in time. Therefore, the change in capital stock reflects the net addition or subtraction of capital goods from the existing stock due to investment and depreciation.
Options b, c, and d are not accurate in this context. The value of durable goods refers to the worth of long-lasting consumer goods, while gross national product (GNP) is a measure of the total economic output of a country, including consumption, investment, government spending, and net exports. Non-residential investment specifically refers to investment in capital goods by businesses, but it does not capture the concept of net investment or the change in capital stock. Therefore, the correct answer is option a: the change in capital stock.
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Accrued tax liability of $300,000 was recorded twice at December 31, 2020. Office supplies on hand of $40,000 at December 31, 2021 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause retained earnings at December 31, 2021 to be in error by what amount?
The effect of these two errors would cause retained earnings at December 31, 2021 to be in error by $260,000.What is the meaning of accrued tax liability?Accrued tax liability refers to the amount of money a corporation owes in taxes that have not yet been paid.
The amount of taxes owed but not yet paid may be identified as a current liability on a company's balance sheet. A liability is an accounting concept that refers to an obligation to pay a debt owed to another entity or person.What is the meaning of inventory?Inventory is the overall value of products kept in storage. This typically includes raw materials, unfinished products, and finished products, among other things. Inventory is an accounting concept that refers to the aggregate value of a company's product.The solution to the problem is given below:The two errors are as follows:Accrued tax liability of $300,000 was recorded twice at December 31, 2020.Office supplies on hand of $40,000 at December 31, 2021 were erroneously treated as expense instead of supplies inventory.Retained earnings at December 31, 2021 would be affected by these two errors.
To find the error amount, we must first compute the effect of each of the two errors separately: EFFECT OF ERROR # 1:The double recording of the tax liability at the end of 2020 would cause an overstated liability on the balance sheet of $300,000. This would result in overstated 2020 expenses and understated 2021 expenses.
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Provide 2 or 3 examples of securities fraud in recent years.
What happened?
Securities fraud refers to deceptive practices in the financial markets that manipulate or misrepresent information to deceive investors.
Here are three examples of securities fraud that have occurred in recent years:
Enron Corporation: One of the most notorious cases of securities fraud, Enron's collapse in 2001 shocked the financial world. The energy company employed accounting loopholes and off-balance-sheet entities to hide debt, inflate profits, and mislead investors. The fraudulent practices eventually led to Enron's bankruptcy, resulting in significant financial losses for shareholders.
Bernie Madoff Ponzi Scheme: Bernie Madoff orchestrated one of the largest and most infamous Ponzi schemes in history. Operating for several decades, Madoff promised high and consistent returns to his investors. However, instead of investing the funds, he used new investors' money to pay returns to existing clients. The scheme collapsed in 2008, causing investors to lose billions of dollars.
Theranos Scandal: Theranos, a healthcare technology company, claimed to have developed a revolutionary blood-testing device. However, it was revealed that the company had misled investors, patients, and the public about the capabilities of its technology. Theranos exaggerated its product's abilities, which led to significant investments and partnerships. Subsequent investigations exposed the fraud, and the company faced legal consequences.
These examples demonstrate the severity of securities fraud and its impact on investors and the financial markets. Such fraudulent activities can erode trust, damage economies, and lead to significant financial losses for individuals and institutions involved. Regulatory bodies and increased scrutiny have been implemented to prevent and detect securities fraud, but vigilance remains crucial in maintaining market integrity.
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ABC is a company that makes watches. The company has traditionally segmented the market by gender (men's and women's watches) and price range (low, medium, premium). However, research suggests that the company may benefit by segmenting the market for watches based on consumer psychographics such as values and lifestyle. Your task is to identify four distinct segments in the watch market – two segments based on consumer values and two segments based on consumer lifestyle - and describe the type of watches that the ABC company would sell to each of these segments. Specifically: - 3a. Identify two (2) consumer values relevant for the watch market. Then, describe two distinct market segments (one for each of the consumer values you have selected) that the watch company could target. Describe some of the key product attributes that customers in each of these two market segments are likely to seek. (15%)
Consumer values relevant for the watch market:
Quality and Craftsmanship: Customers who value quality and craftsmanship seek watches that are made with precision and attention to detail. They appreciate watches that are durable, use high-quality materials, and showcase excellent workmanship.
Market Segment 1: "Luxury Timepiece Enthusiasts"
This segment consists of customers who highly value luxury and exclusivity.
They are willing to invest in high-end watches that represent luxury and prestige.
Key product attributes sought by this segment include Swiss-made movements, premium materials like gold or diamonds, intricate designs, limited editions, and brand reputation.
Market Segment 2: "Functional and Reliable Watch Seekers"
This segment includes customers who prioritize functionality, reliability, and practicality in their watches.
They seek watches that offer accurate timekeeping, durability, and versatility for everyday use.
Key product attributes sought by this segment include precise quartz movements, water resistance, scratch-resistant materials (e.g., sapphire crystal), comfortable straps, and features like date displays or chronographs.
Sustainability and Ethical Production: Customers who value sustainability and ethical production seek watches that are environmentally friendly and socially responsible. They prioritize ethical sourcing of materials, fair labor practices, and sustainable manufacturing processes.
Market Segment 3: "Eco-conscious Watch Buyers"
This segment comprises customers who are environmentally conscious and prefer watches with minimal ecological impact.
They seek watches made from recycled or sustainable materials, such as recycled metals or renewable wood.
Key product attributes sought by this segment include eco-friendly certifications, energy-efficient movements (e.g., solar-powered or kinetic), recyclable packaging, and transparent supply chains.
Market Segment 4: "Ethically Minded Watch Consumers"
This segment consists of customers who prioritize ethical production and fair labor practices.
They seek watches from companies that ensure fair wages, safe working conditions, and ethical sourcing of raw materials.
Key product attributes sought by this segment include watches with certifications for ethical sourcing (e.g., Fairtrade or Responsible Jewellery Council), transparent manufacturing processes, and partnerships with socially responsible initiatives or charities.
By targeting these four distinct segments based on consumer values, ABC company can tailor their watch offerings to meet the specific preferences and needs of each segment, thereby enhancing customer satisfaction and market competitiveness.
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applying the lower of cost or net realizable value rule to individual inventory items, at what amount should the company report its inventory? $3,213
When applying the lower of cost or net realizable value rule to individual inventory items, the company should report its inventory at the lower of cost or net realizable value (NRV). This means that if the cost of an individual item of inventory is greater than its NRV, the company should report it at the lower NRV rather than cost.
Thus, if the cost of an individual inventory item is $3,213 and its NRV is less than $3,213, the company should report it at the lower NRV. However, if the NRV is greater than the cost of the individual inventory item, the company should report it at its cost.
Therefore, the company should report its inventory at $3,213 only if the NRV is less than or equal to $3,213. If the NRV is greater than $3,213, the company should report the inventory at its cost.
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Regarding the Open Doors: Extending Hospitality
to Travelers with Disabilities Case Study, please answer the discussion questions below.
1. How did ODO operationalize the definition of an adult with a disability? What
arguments could you make that the definition was too inclusive or too narrow?
2. Analyze the research design’s various components. Identify any potential problems
and explain the ramifications of these design issues. Identify potential strengths of
the design.
3. What is a hybrid (dual-modality) methodology? What are the pros and cons of the
hybrid methodology used in this study?
4. Francie Turk had no prior experience with researching Americans with disabilities.
Assume you have similar background; what would you have done in the exploratory
phase of this project to become familiar with the frustrations and hurdles that adults
with disabilities face when traveling? Compare your research process with what
ODO did. What could ODO have gained from incorporating your methods?
5. Brainstorm lists of potential hotel, restaurant, and rental car accommodations to be
evaluated for adults with disabilities and create your own paired-comparison question.
During a phone interview, how quickly could you cover this question? What are the
advantages and disadvantages to using this measurement scale in the phone survey
in comparison to using it in the online survey?
6. What are the management, research, and investigative questions driving the next
Adults with Disabilities: Travel and Hospitality Study?
1. ODO operationalized the definition of an adult with a disability by defining it as follows: "A person with a physical or mental impairment that substantially limits one or more major life activities, a person who has a record of such an impairment, or a person who is regarded as having such an impairment. 2. The research design had various components that could be problematic. 3. A hybrid (dual-modality) methodology is a research method that combines two or more data collection methods. 4. If I had a similar background to Francie Turk, I would have conducted interviews with people with disabilities to learn more about their experiences when traveling. 5. Potential hotel, restaurant, and rental car accommodations that could be evaluated for adults with disabilities include wheelchair accessibility, the availability of braille menus or signs, and the availability of audio descriptions of movies or shows. 6. The management, research, and investigative questions driving the next Adults with Disabilities.
1. ODO operationalized the definition of an adult with a disability by defining it as follows: "A person with a physical or mental impairment that substantially limits one or more major life activities, a person who has a record of such an impairment, or a person who is regarded as having such an impairment."Arguments that the definition was too inclusive or too narrow are open to interpretation. Some might argue that the definition is too narrow because it doesn't include people with minor disabilities. Others might argue that it's too broad because it includes people who are only "regarded as having such an impairment."
2. The research design had various components that could be problematic. One potential issue was the reliance on self-reported data, which may be inaccurate. Additionally, the sample size was relatively small, which could limit the generalizability of the findings. One strength of the design was the use of multiple data collection methods, including online and phone surveys.
3. A hybrid (dual-modality) methodology is a research method that combines two or more data collection methods. The pros of this methodology are that it allows researchers to collect data from multiple sources, which can increase the validity of the findings. The cons are that it can be more time-consuming and expensive than other methods. In this study, the hybrid methodology was used to collect data from both online and phone surveys.
4. If I had a similar background to Francie Turk, I would have conducted interviews with people with disabilities to learn more about their experiences when traveling. I would have also conducted a literature review to learn about existing research on this topic. ODO could have gained from incorporating these methods by getting a more comprehensive understanding of the challenges that adults with disabilities face when traveling.
5. Potential hotel, restaurant, and rental car accommodations that could be evaluated for adults with disabilities include wheelchair accessibility, the availability of braille menus or signs, and the availability of audio descriptions of movies or shows. An example of a paired-comparison question is "Which hotel is more accessible for people with mobility impairments, Hotel A or Hotel B?" The advantages of using this measurement scale in a phone survey are that it's quick and easy to administer. The disadvantage is that it may be difficult to convey visual information over the phone.
6. The management, research, and investigative questions driving the next Adults with Disabilities: Travel and Hospitality Study could include questions about the effectiveness of various accessibility measures, the attitudes of hotel and restaurant staff towards people with disabilities, and the impact of COVID-19 on travel for people with disabilities.
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random walk time series has finite variance.
True/False?
Answer:
true
Explanation:
there is little difference
Selma Company purchased $4,000 worth of merchandise from Forrest Company. The goods were shipped FOB shipping point and shipping charges of $350 were paid by the appropriate party. Choose the correct statement:
Multiple Choice
Forrest Company is responsible for the shippoing charges and will debit Delivery Expense for $350.
Forrest Company is responsible for the shipping charges and will debit Inventory for $350.
Selma Company is responsible for the shipping charges and will debit Inventory for $350.
Selma Company is responsible for the shipping charges and will debit Delivery Expense for $350.
$4,075.00.
Selma Company is responsible for the shipping charges and will debit Delivery Expense for $350.
FOB shipping point means that the seller (Forrest Company) is responsible for the goods until they are loaded onto the carrier at their shipping point. Therefore, once the goods are loaded onto the carrier, Selma Company becomes responsible for them and any associated costs, including shipping charges. Selma Company will debit their Delivery Expense account for the $350 payment made for shipping.
The cost of the merchandise, $4,000, will be debited to their Inventory account. Therefore, the correct statement is: Selma Company is responsible for the shipping charges and will debit Delivery Expense for $350.
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