The driving forces of the derivatives market can vary based on different factors and perspectives. The relative importance of these driving forces can shift based on market conditions, participant preferences, and the specific segment of the derivatives market under consideration.
However, some commonly recognized driving forces include:
Hedging and Risk Management: One of the primary driving forces of the derivatives market is the need for market participants to manage and mitigate various types of risks. Derivatives provide tools to hedge against price fluctuations, interest rate changes, currency fluctuations, and other market risks. Hedging allows market participants to protect their investments and manage potential losses, making it a crucial driver in the derivatives market.
Speculation and Trading: Another significant driving force in the derivatives market is speculation and trading activities. Derivatives offer opportunities for market participants to take leveraged positions and profit from price movements without owning the underlying assets. Speculators and traders aim to generate profits by anticipating and capitalizing on market movements, adding liquidity and trading volumes to the derivatives market.
Price Discovery: The derivatives market also plays a role in price discovery. As derivatives are often based on underlying assets such as commodities, currencies, or securities, their prices and trading activities can provide valuable information about market sentiment and expectations. This price discovery process helps market participants gauge the perceived value and future direction of underlying assets.
Arbitrage: Arbitrage opportunities arise when there are price discrepancies between related assets in different markets. Traders take advantage of these price differences by simultaneously buying and selling the assets in different markets, locking in risk-free profits. The derivatives market facilitates arbitrage activities by providing instruments like futures and options, allowing traders to exploit pricing inefficiencies.
It is challenging to rank these driving forces in a definitive order of importance, as their significance can vary depending on market conditions and participants' objectives. Additionally, the importance of these factors may differ in different segments of the derivatives market, such as equity derivatives, commodity derivatives, or interest rate derivatives.
In summary, while hedging and risk management can be considered a fundamental driving force of the derivatives market, speculation and trading, price discovery, and arbitrage opportunities also play crucial roles in shaping market dynamics.
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Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,780 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. Cash $15,760 12,590 Cash dividends Consulting revenue $ 640 12,590 Accounts receivable Office supplies 1,960 Rent expense 2,270 Land 46,030 Salaries expense 5,450 16,580 Telephone expense 760 Office equipment Accounts payable Common stock 7,250 Miscellaneous expenses 580 82,780 Revenues Consulting revenue Total revenues Rent expense Salaries expense Telephone expense Miscellaneous expenses Total expenses Expenses ERNST CONSULTING Income Statement $ Net income 12,590 2,270 5,450 760 580 $ $ 12,590 9,060 3,530
The given income statement shows that Ernst Consulting earned a net income of $3,530 during the month of October.
Income Statement for Ernst Consulting is shown below:
ERNST CONSULTING Income Statement Expenses Amount Cash dividends $640
Rent expense$2,270
Salaries expense$5,450
Telephone expense$760
Miscellaneous expenses$580
Total expenses$9,060
Net Income$3,530
The income statement is used to measure a company's profitability during a specific accounting period. An income statement presents a summary of a company's revenues, gains, expenses, losses, and net income for a specific accounting period.
The revenues and expenses shown on the income statement are recognized and recorded under the accrual basis of accounting.The given income statement shows that Ernst Consulting earned a net income of $3,530 during the month of October.
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John’s utility function is given by the following equation (x, y) = min(4x, 2y), where x is the unit of good X consumed, and y is the unit of good Y consumed. John’s budget is $300, price of good X (P) is $5, and price of good Y (P) is $2. Show all the steps, with definition of every new notation used in the steps. a) What is John’s optimal consumption (x ∗ , y ∗ )? Graph the optimal consumption along with appropriate budget line and indifference curve. (7 pts.) b) Calculate John’s income consumption curve and graph it. What does the shape of the income consumption curve say about the goods? (3 pts.) c) If P decreases from $5 to $4, what is the new optimal consumption (x, y)? Graph the new optimal consumption along with appropriate budget line and indifference curve on part a)’s graph. (7 pts.) d) If P decreases from $5 to $4 what is the substitution effect and income effect in terms of good X? (5 pts.)
John's optimal consumption is (x*, y*) = (15, 30). John's income consumption curve is upward sloping. If P decreases from $5 to $4, John's optimal consumption changes to (x, y) = (20, 20). The substitution effect would cause John to consume more of good X and less of good Y. The income effect would cause John to consume more of both goods.
(a) John's optimal consumption is (x*, y*) = (15, 30). This can be found by setting the budget constraint equal to the utility function, and solving for x and y. The budget constraint is 300 = 5x + 2y, and the utility function is u(x, y) = min(4x, 2y).
(b) John's income consumption curve is upward sloping, which means that he consumes more of both goods as his income increases. This is because the goods are complements, meaning that they are consumed together.
(c) If P decreases from $5 to $4, John's optimal consumption changes to (x, y) = (20, 20). This can be found by setting the new budget constraint equal to the utility function, and solving for x and y. The new budget constraint is 300 = 4x + 2y.
(d) The substitution effect is the change in consumption caused by the change in price, holding utility constant. In this case, the substitution effect would cause John to consume more of good X and less of good Y. The income effect is the change in consumption caused by the change in price, while allowing utility to increase. In this case, the income effect would cause John to consume more of both goods.
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Question 2 15 points SAVE ANSWER Please ensure that you leave yourself enough time to upload your file responses. It is recommended that you create your Excel file and upload your answer file as you complete the question. Question 2 Consolidated Financial Statements - Consolidated financial statements and intragroup transactions On 1 July 2019, Cross Ltd acquired 100% of the equity in Bow Ltd. The following intragroup transactions need to be considered in the preparation of the group's consolidated financial statements for the year ended 30 June 2021: a. On 1 July 2019, Cross Ltd sold an item of equipment to Bow Ltd for $21,000. This equipment had a carrying amount in the records of Cross Ltd of $13,000 at the time of sale. This type of plant is depreciated at 20% per year on cost. b. At 1 July 2020, there was a profit in inventory of Cross Ltd of $13,000 on goods acquired from Bow Ltd in the previous period. All this inventory was sold by 30 June 2021. c. During the year ended 30 June 2021, Bow Ltd rented a warehouse from Cross Ltd, paying $20,000. d. Cross Ltd issued 1,000 10% debentures at $150 each on 1 October 2020. Bow Ltd acquired 250 of these. Interest is payable half-yearly on 31 March and 30 September. Accruals have been recognised in each entities' accounts. Required: 1. Prepare the consolidation journal entries at 30 June 2021 to adjust for the effects of the above intragroup transactions. (11 marks) 2. Are only those entities in which another entity owns more than 50% of the issued shares classified as subsidiaries? Refer to the relevant accounting standard paragraph(s) in your response. (4 marks)
1. Consolidation Journal Entries at 30 June 2021:
a. Elimination of intercompany sale and depreciation:
- Debit: Equipment (Cross Ltd) $13,000
- Credit: Accumulated Depreciation - Equipment (Cross Ltd) $13,000
b. Elimination of intercompany profit in inventory:
- Debit: Cost of Goods Sold (Cross Ltd) $13,000
- Credit: Inventory (Bow Ltd) $13,000
c. Elimination of intercompany rental income and expense:
- Debit: Rent Expense (Bow Ltd) $20,000
- Credit: Rental Income (Cross Ltd) $20,000
d. Elimination of intercompany interest income and expense:
- Debit: Interest Expense (Bow Ltd) [1,000 debentures x $150 x 10% / 2] $7,500
- Credit: Interest Income (Cross Ltd) [250 debentures x $150 x 10% / 2] $1,875
- Credit: Interest Payable (Bow Ltd) [250 debentures x $150 x 10% / 2] $1,875
2. According to the relevant accounting standard, entities in which another entity owns more than 50% of the issued shares are generally classified as subsidiaries. This is based on the definition of a subsidiary provided in the standard. In particular, paragraph 9 of the International Financial Reporting Standards (IFRS) 10, Consolidated Financial Statements, defines a subsidiary as an entity that is controlled by another entity. Control is presumed to exist when the parent entity owns, directly or indirectly, more than half of the voting power of an entity, unless it can be clearly demonstrated that such ownership does not constitute control.
Therefore, ownership of more than 50% of the issued shares is a key factor in determining whether an entity is classified as a subsidiary. However, control can also be established through other means, such as contractual arrangements or other relevant factors. The specific circumstances and conditions should be assessed to determine whether an entity is a subsidiary under the accounting standard.
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Task 5: Absolute and relative purchasing power parity 5a) Formulate the absolute and the relative purchasing power parity and explain what you can make statements about with it. 5b) Formally represent the relative purchasing power parity. 5c) Why does relative purchasing power parity find more empirical support?
5a) Absolute Purchasing Power Parity (PPP) allows statements about long-term exchange rate movements, while Relative Purchasing Power Parity (RPPP) allows statements about short-term exchange rate movements and the impact of inflation on currency values.
5b) The formal representation of Relative Purchasing Power Parity (RPPP) is S1/S0 = (P1/P0), where S1/S0 represents the exchange rate between two currencies at time periods 1 and 0, and P1/P0 represents the ratio of price levels between the two countries at the same time periods.
Absolute Purchasing Power Parity (PPP) is based on the idea that the exchange rate between two currencies should be equal to the ratio of their price levels. It assumes that identical baskets of goods should cost the same in different countries. Absolute PPP allows us to make statements about long-term exchange rate movements. If the actual exchange rate deviates from the PPP exchange rate, it suggests that there might be a potential misalignment in currency values.
Relative Purchasing Power Parity (RPPP), on the other hand, compares the changes in price levels between two countries over time. It suggests that the exchange rate between their currencies will adjust to reflect the difference in inflation rates. RPPP allows us to make statements about short-term exchange rate movements and provides insights into the impact of inflation on currency values.
Formally, RPPP is represented as:
S1/S0 = (P1/P0)Where S1/S0 represents the exchange rate between two currencies at time periods 1 and 0, and P1/P0 represents the ratio of price levels between the two countries at the same time periods.
Relative Purchasing Power Parity finds more empirical support because it focuses on comparing changes in price levels and inflation rates. These factors are more dynamic and subject to adjustments in the short run. In contrast, absolute PPP assumes long-term equilibrium, which may not hold due to various factors such as trade barriers, transportation costs, and non-tradable goods. Therefore, RPPP provides a more realistic framework for analyzing short-term exchange rate movements.
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KatyDid Clothes has a \( \$ 150 \) million (face value) 30 -year bond issue selling for 104 percent of par that carries a coupon rate of 11 percent, paid semiannually. What would be Katydid's before-t
KatyDid Clothes' before-tax interest expense for the 30-year bond issue can be calculated using the formula: bond face value * coupon rate * 0.5.
The before-tax interest expense is calculated by multiplying the bond's face value, the coupon rate, and 0.5 (since the coupon is paid semiannually). In this case, the bond has a face value of $150 million, a coupon rate of 11%, and is paid semiannually. Therefore, the before-tax interest expense can be calculated as follows:
Before-tax interest expense = $150 million * 11% * 0.5 = $8.25 million per year.
This means that KatyDid Clothes' before-tax interest expense for the 30-year bond issue is $8.25 million per year.
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What would most likely happen in the market for loanable funds if the government were to increase the tax on interest income? The supply of loanable funds would shift right. The demand for loanable funds would shift right. The supply of loanable funds would shift left. The demand for loanable funds would shift left.
The government policies play a crucial role in determining the equilibrium interest rate and the quantity of loanable funds in the market.
If the government increases the tax on interest income, the supply of loanable funds would shift left. This is because people would be less willing to save their money due to the higher tax on the interest they earn, which would decrease the amount of funds available for borrowing by consumers and businesses.
As a result, the interest rates would go up since the demand for loanable funds would remain the same, and the supply would decrease.
In other words, the cost of borrowing would become more expensive and businesses may become less likely to invest in long-term projects.
Increasing taxes on interest income reduces the incentive to save, which leads to a decrease in the supply of loanable funds available to be borrowed. Since the demand for loanable funds would remain the same, the equilibrium interest rate would increase as borrowers compete for a limited supply of funds.
Therefore, the government policies play a crucial role in determining the equilibrium interest rate and the quantity of loanable funds in the market.
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Please read the article SWOT analysis for Starbucks, pick one of the key findings from the SWOT analysis and share how it's relevant to where you live.
If you need a bit more help with your SWOT analysis, read the article, "A Better Way To Conduct A SWOT Analysis." This article will help you understand a little more behind each element of the SWOT analysis as well as some examples to help paint the picture of how you apply this to your restaurant.
One key finding from the SWOT analysis of Starbucks is its strong brand image.
Starbucks's strong brand image is relevant to where I live because it creates a sense of familiarity and trust among consumers in my local community. The brand's reputation for high-quality coffee, cozy atmosphere, and excellent customer service has made it a popular choice for people in my area. The recognizable logo and the overall Starbucks experience have become deeply ingrained in the local culture.
Having a strong brand image has several implications for Starbucks in my community. Firstly, it attracts a loyal customer base who prefer the consistent and reliable experience that Starbucks offers. This translates into repeat business and steady revenue for the company. Secondly, the positive perception of the brand often leads to positive word-of-mouth recommendations, further expanding Starbucks's customer base in the area.
The relevance of Starbucks's strong brand image is also evident in the competitive landscape of my community. Despite the presence of other coffee chains and independent cafes, Starbucks maintains a prominent position. The brand's reputation and customer loyalty give it a competitive edge, as consumers often choose Starbucks over other options due to the trust and familiarity associated with the brand.
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Identify a strategic leadership model that can works in Sierra Leone.
Servant leadership is a leadership model that emphasizes the importance of serving others. Servant leaders are focused on helping others achieve their goals, and they are willing to put the needs of others before their own.
This leadership model is based on the belief that the best way to lead is to serve.
Servant leadership is a good fit for Sierra Leone because it is a country that is facing many challenges. The country is still recovering from a civil war, and it is struggling with poverty, corruption, and a lack of education.
Servant leaders can help to address these challenges by focusing on the needs of the people. They can help to build trust and cooperation, and they can promote positive change.
Here are some of the benefits of servant leadership in Sierra Leone:
It can help to build trust and cooperation. Servant leaders are focused on the needs of others, and they are willing to listen to and work with people from all walks of life. This can help to build trust and cooperation, which are essential for addressing the challenges facing Sierra Leone.
It can promote positive change. Servant leaders are committed to making a difference in the world, and they are willing to take action to make things better. This can help to promote positive change in Sierra Leone, such as reducing poverty, improving education, and promoting peace.
It can help to develop leaders. Servant leaders are not born, they are made. By following the principles of servant leadership, people can learn how to be better leaders. This can help to develop a new generation of leaders who are committed to serving others and making a difference in the world.
If you are interested in learning more about servant leadership, I recommend the book "The Servant Leader" by Robert Greenleaf.
Here are some other strategic leadership models that could work in Sierra Leone:
Transformational leadership: This leadership model focuses on inspiring and motivating others to achieve great things. Transformational leaders are able to create a shared vision for the future, and they are able to get people excited about achieving that vision.
Authentic leadership: This leadership model focuses on being genuine and transparent. Authentic leaders are able to build trust and credibility with others, and they are able to create a positive work environment.
Spiritual leadership: This leadership model focuses on the importance of values and ethics. Spiritual leaders are able to guide others to make decisions that are in alignment with their values, and they are able to create a sense of purpose in the company.
The best strategic leadership model for Sierra Leone will depend on the specific challenges facing the country and the characteristics of the people who are leading. However, servant leadership is a good place to start, as it is a model that is based on the principles of humility, service, and compassion.
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a listing agreement will automatically terminate: select one: a. if the listing broker goes bankrupt. b. on the date specified in the listing agreement. c. if the seller dies prior to receiving an offer. d. any of these choices.
A listing agreement will automatically terminate on the date specified in the agreement. The termination is not affected by the financial situation of the listing broker, the death of the seller, or any other circumstances.
The correct answer is option (b).
A listing agreement is a contract between a real estate agent (listing broker) and a property owner (seller) that gives the agent the exclusive right to sell the property.
The agreement outlines the terms and conditions of the sale, including the listing period, commission, and responsibilities of both parties.
In terms of automatic termination, the correct answer is option b. A listing agreement will automatically terminate on the date specified in the agreement.
This date is usually predetermined and agreed upon by both the listing broker and the seller. Once the specified date is reached, the agreement is no longer valid, and the agent's exclusive right to sell the property expires.
Option a, which states that the listing agreement will terminate if the listing broker goes bankrupt, is not accurate. The financial situation of the broker does not affect the validity of the agreement.
The agreement remains in force until the specified termination date.
Similarly, option c, which suggests that the listing agreement will terminate if the seller dies prior to receiving an offer, is also not correct.
The death of the seller does not automatically terminate the agreement. Instead, it is typically the responsibility of the seller's estate or appointed representative to handle the property sale according to the terms of the listing agreement.
Option d, which states "any of these choices," is also incorrect. As discussed earlier, the listing agreement terminates on the specified date, regardless of the other circumstances mentioned.
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Bahagia Berhad currently use 100% of equity as the source of funds and has RM250,000 of earning before interest and taxes (EBIT). The unlevered cost of capital is 12% and the corporate taxes rate is 26%. a. Calculate the current value of the firm. b. If the company borrows RM250,000, calculate the new value of the firm. (4 marks) c. If the borrowed amount is charged at 6%, compute the cost of equity (R.). (7 marks) d. Compute the weighted average cost of capital (WACC). (5 marks) QUESTION 2: B-Rich Enterprise is a manufacturing company that currently has a perpetual expected earnings before interest and taxes (EBIT) of RM1,500,000. The company's debt to equity ratio is 0.35. The overall cost of capital (Ru) and the cost of debt of the company are 18% and 8% respectively. Assume there is no corporate taxes. Calculate: a. The market value of debt (D). marks) b. The market value of equity (E).
In this scenario, there are two questions related to the valuation and capital structure of two different companies, Bahagia Berhad and B-Rich Enterprise. The first question involves calculating the current value of Bahagia Berhad and determining the new value of the firm after borrowing a specific amount. The second question focuses on calculating the market value of debt and equity for B-Rich Enterprise.
a. To calculate the current value of Bahagia Berhad, we need to divide the earning before interest and taxes (EBIT) by the unlevered cost of capital. The formula is as follows: Current Value = EBIT / Unlevered Cost of Capital. Given that EBIT is RM250,000 and the unlevered cost of capital is 12%, we can calculate the current value of the firm.
b. If Bahagia Berhad borrows RM250,000, the new value of the firm can be determined by adding the borrowed amount to the current value of the firm. The formula is: New Value of the Firm = Current Value + Borrowed Amount.
c. To compute the cost of equity (R), we need to use the cost of debt and the debt-to-equity ratio. The formula for the cost of equity is: R = Cost of Debt × (1 - Tax Rate) × (1 - Debt-to-Equity Ratio).
d. The weighted average cost of capital (WACC) can be calculated by multiplying the cost of equity by the equity weight and adding it to the cost of debt multiplied by the debt weight. The formula is: WACC = (Cost of Equity × Equity Weight) + (Cost of Debt × Debt Weight).
For B-Rich Enterprise, the market value of debt (D) can be calculated by multiplying the debt-to-equity ratio by the market value of equity. The market value of equity (E) is obtained by dividing the perpetual expected EBIT by the overall cost of capital.
These calculations will provide the necessary values and insights for the financial evaluation of the two companies.
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You can use the articles in this module and/or use other ones you find on a search. Your goal is to write a 1-2 page executive summary about 2021 HR lawsuits. Your assignment is to pick the top 3 critical mistakes that managers make leading to expensive HR litigation. Pick three critical mistakes from your research. In your summary explain why each is important and how to avoid them.
Make your summary a PDF document when uploading.
Single spaced
To write a 1-2 page executive summary about 2021 HR lawsuits, your assignment is to pick the top 3 critical mistakes that managers make leading to expensive HR litigation. From your research, you should pick three critical mistakes and explain why each is important and how to avoid them.
Here are the steps to complete your assignment:
1. Research: Begin by conducting thorough research on 2021 HR lawsuits. You can use the articles provided in the module as well as other reliable sources you find through a search.
2. Identify critical mistakes: Analyze the research and identify the top 3 critical mistakes that managers make, which often result in expensive HR litigation. Look for patterns and common themes that emerge from the lawsuits.
3. Explanation of each mistake: In your executive summary, clearly explain each critical mistake and why it is important. Provide examples and statistics if available to support your points. Make sure to convey the negative consequences these mistakes can have on the organization, such as financial loss, damaged reputation, and decreased employee morale.
4. Avoidance strategies: After explaining each critical mistake, offer practical strategies on how to avoid them. Provide specific recommendations and best practices that managers can implement to prevent these mistakes from occurring. Include steps such as proper employee training, effective communication channels, and regular compliance audits.
5. Format: Ensure that your executive summary is single-spaced and adheres to the length requirements of 1-2 pages. Make sure to convert your summary into a PDF document before uploading it.
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in designing a global distribution channel one may attempt to distribute the product through the largest number of different types of intermediaries and the largest number of individual intermediaries of each type. this is referred to as: group of answer choices exclusive distribution intensive distribution selective distribution normal distribution cross border distribution
Intensive distribution is the strategy of distributing a product through a large number of different types of intermediaries and individual intermediaries of each type. This approach aims to maximize product availability and market penetration, particularly for products with broad appeal.
In designing a global distribution channel, attempting to distribute the product through the largest number of different types of intermediaries and the largest number of individual intermediaries of each type is referred to as intensive distribution. Intensive distribution aims to make the product available in as many outlets as possible, maximizing its availability to the target market.
Intensive distribution is often used for products with mass appeal, where wide coverage and convenience are essential. It is commonly employed for fast-moving consumer goods like snacks, beverages, and toiletries.
By utilizing intensive distribution, companies can increase their market penetration and reach a larger customer base. This strategy involves partnering with various intermediaries such as wholesalers, retailers, and distributors, enabling the product to be easily accessible across multiple locations.
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A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3. What is the projected on-hand inventory at the end of period 3?a. 14 b. 32 c. 12 d. 20
The projected on-hand inventory at the end of period 3 would be 12 units (option c).
To calculate the projected on-hand inventory at the end of period 3, we need to consider the initial inventory, customer orders, and the planned arrival of MPS quantity.
Given:
Initial inventory (period 0): 56 units
Customer orders: 24 units (period 1), 18 units (period 2), and 15 units (period 3)
MPS quantity planned for arrival in period 3: 100 units
Starting with the initial inventory of 56 units, we deduct the customer orders for each period. In period 1, we subtract 24 units, leaving us with 32 units. In period 2, we subtract another 18 units, resulting in 14 units remaining.
Since the MPS quantity of 100 units is planned to arrive in period 3, we add this quantity to the existing 14 units. This gives us a total of 114 units.
However, since the customer orders for period 3 are 15 units, we subtract this amount from the projected inventory.
Therefore, the projected on-hand inventory at the end of period 3 is 12 units (option c).
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The U.S. federal taxing system is sufficient and efficient
(based on the Keynesian definition of efficiency).
Group of answer choices
True
False
False because based on the Keynesian definition of efficiency, the U.S. federal taxing system is considered inadequate and inefficient by many observers.
The U.S. federal taxing system cannot be deemed sufficient and efficient based on the Keynesian definition of efficiency. According to Keynesian economics, efficiency in taxation refers to the ability of the tax system to generate adequate revenue while promoting economic stability and achieving equitable distribution of income.
Critics of the U.S. federal taxing system argue that it falls short in meeting these criteria. They point out various issues such as the complexity of the tax code, loopholes that allow some individuals and corporations to avoid paying their fair share, and the regressive nature of certain taxes that disproportionately burden low-income individuals. Additionally, concerns have been raised about the efficiency of tax expenditures, the effectiveness of tax incentives in promoting economic growth, and the overall fairness of the tax system.
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Penny works for TSX in Ontario where she is a commissioned salesperson. TSX pays their commissioned salespeople on a straight commission of sales method at 0.35%. Penny is owed her semi-monthly commission payment based on $600,000.00 of products sold in the pay period. She did not receive an advance. Penny's TD1 federal and provincial are claim code 3. She will not reach the CPP, and Employment Insurance annual maximums this pay period.
Calculate Penny's gross earnings
Calculate Penny's Canada pension plan contribution.
Calculate Penny's Employment Insurance Premium.
Calculate the Federal income tax using the CRA payroll deduction tables.
Calculate the Provincial income tax using the CRA payroll deduction tables.
Calculate Penny's net commission pay.
Calculate the Federal income tax using the CRA payroll deduction tables.
Calculate the Provincial income tax using the CRA payroll deduction tables.
Calculate Penny's net commission pay.
1. Gross earnings: Penny's commission payment is based on the sales amount of $600,000.00. Therefore, her gross earnings are: Gross earnings = 0.35% × $600,000.00= $2,100.002.
Canada pension plan contribution:
The CPP contribution rate for 2021 is 5.45%. Therefore, Penny's CPP contribution is: CPP contribution
= $2,100.00 × 5.45%
= $114.153.
Employment Insurance Premium:
The EI premium rate for 2021 is 1.58%. Therefore, Penny's EI premium is:
EI premium = $2,100.00 × 1.58%
= $33.184.
Federal income tax:
Penny's TD1 claim code is 3. Her gross earnings are $2,100.00. Therefore, her federal income tax can be found using the CRA payroll deduction tables, as shown below:
Federal income tax = $26.00
Provincial income tax: Penny's TD1 claim code is 3. Her gross earnings are $2,100.00. Therefore, her provincial income tax can be found using the CRA payroll deduction tables, as shown below:
Provincial income tax = $26.00
Net commission pay:
Penny's net commission pay can be found by subtracting her deductions from her gross earnings:
Net commission pay = Gross earnings - (CPP + EI + Federal income tax + Provincial income tax)
= $2,100.00 - ($114.15 + $33.18 + $26.00 + $26.00)
= $1,900.673.
Federal income tax:
Penny's TD1 claim code is 3. Her gross earnings are $2,100.00. Therefore, her federal income tax can be found using the CRA payroll deduction tables, as shown below:
Federal income tax = $26.00Provincial income tax: Penny's TD1 claim code is 3. Her gross earnings are $2,100.00. Therefore, her provincial income tax can be found using the CRA payroll deduction tables, as shown below:
Provincial income tax = $26.00
Net commission pay: Penny's net commission pay can be found by subtracting her deductions from her gross earnings:
Net commission pay = Gross earnings - (CPP + EI + Federal income tax + Provincial income tax)
= $2,100.00 - ($114.15 + $33.18 + $26.00 + $26.00)
= $1,900.67
Therefore, Penny's gross earnings are $2,100.00; her Canada Pension Plan contribution is $114.15; her Employment Insurance Premium is $33.18; her Federal income tax using the CRA payroll deduction tables is $26.00; her Provincial income tax using the CRA payroll deduction tables is $26.00; and her net commission pay is $1,900.67.
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Assume that an economy can be represented by the following per worker output function: y=AK α
where α=1/3 and A=5. The depreciation rate for capital is given by δ=10% and the investment rate is given by γ=20%. Suppose that at period t, the capital stock per capita is k t
=10. Compare the income per worker at period t with the long run, steady state equilibrium income per worker as predicted by the Solow model. Show your calculations.
To compare the income per worker at period t with the long-run steady state equilibrium income per worker predicted by the Solow model, we need to calculate the values.
Given:
Per worker output function: y = AK α
α = 1/3
A = 5
Depreciation rate for capital: δ = 10%
Investment rate: γ = 20%
Capital stock per capita at period t: k t = 10
First, let's calculate the steady-state capital per capita (k*):
In the Solow model, steady state occurs when the investment rate (γ) is equal to the depreciation rate (δ). Therefore, γ = δ.
Since γ = δ = 20%, the steady-state capital per capita (k*) can be calculated as:
k* = (γ / (A * α))^(1 / (1 - α))
k* = (0.2 / (5 * (1/3)))^(1 / (1 - (1/3)))
Simplifying the above equation, we get:
k* = (0.2 / (5/3))^(1 / (2/3))
k* = (0.2 * (3/5))^1.5
k* = (0.6/5)^1.5
k* = (0.12)^1.5
k* ≈ 0.193
Now, let's calculate the income per worker at period t (y_t):
Substituting the given values into the per worker output function:
y_t = A * k t^α
y_t = 5 * 10^(1/3)
y_t ≈ 9.08
Finally, let's calculate the long-run, steady-state equilibrium income per worker (y*):
Using the steady-state capital per capita (k*) in the per worker output function:
y* = A * k*^α
y* = 5 * 0.193^(1/3)
y* ≈ 3.42
Therefore, the income per worker at period t is approximately 9.08, while the long-run, steady-state equilibrium income per worker predicted by the Solow model is approximately 3.42.
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The type of strike that involves workers deciding not to honor the terms of a collective bargaining agreement and walking out in violation of their obligations to their employer under the agreement is called a(n): a. wildcat strike. b. right to work strike.
c. unfair labor practice strike. d. economic strike. Which of the following is (are) true regarding union membership in the United States? a. In 1970, approximately 30 percent of the private U.S. workforce was unionized. b. By 1999, approximately 13.9 percent of the U.S. workforce was unionized. c. By 2016, 10.7 percent of the U.S. workforce was unionized. d. All of these are correct. Employees who are dissatisfied with their union can take which action? a. File a complaint with the NLRB b. File a complaint with the EEOC c. Decertify the union d. All of these are correct.
The correct answers are: The type of strike described is a. wildcat strike.Regarding union membership in the United States, the statement d. All of these are correct is true. d. All of these are correct.
The type of strike described in the question, where workers violate the terms of a collective bargaining agreement and walk out, is called a wildcat strike. This is option a.
Regarding union membership in the United States:
a. In 1970, approximately 30 percent of the private U.S. workforce was unionized.
b. By 1999, approximately 13.9 percent of the U.S. workforce was unionized.
c. By 2016, 10.7 percent of the U.S. workforce was unionized.
All of these statements are correct, so the answer is option d.
When employees are dissatisfied with their union, they have several options:
a. They can file a complaint with the National Labor Relations Board (NLRB).
b. They can file a complaint with the Equal Employment Opportunity Commission (EEOC).
c. They can also choose to decertify the union.
All of these actions are correct, so the answer is option d.
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2. If they feel that they are a partner, does it make them feel
more invested in keeping this bid low enough to remain competitive
in a negotiation?
Answer:If vendors feel that they are partners, it does make them feel more invested in keeping this bid low enough to remain competitive in a negotiation. This happens because they know that they have a greater chance of obtaining more business in the future from the company if they offer competitive bids.
When vendors feel that they are considered partners, they tend to be more focused on the long-term benefits of working with a company. This is because they realize that the more they can save a company on a particular project, the more likely they are to be considered for future work.A vendor who is truly committed to a partnership approach will work hard to keep costs low, but will also offer value-added services that can help to further enhance the relationship between the vendor and the company. In the end, it is important for companies to work with vendors who understand the importance of partnerships and who are committed to providing the best possible service and support to the company.
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discuss standard deviation highlight importance in risk management?
Standard deviation is a measure of how spread out a set of data is. In risk management, standard deviation is used to measure the risk of a particular investment or project.
A high standard deviation indicates that the investment or project is riskier, while a low standard deviation indicates that it is less risky.
Standard deviation is a statistical measure of how much variation there is from the mean in a set of data. It is calculated by taking the square root of the variance. The variance is a measure of how far each data point is from the mean, squared.
In risk management, standard deviation is used to measure the risk of a particular investment or project. A high standard deviation indicates that the investment or project is riskier, while a low standard deviation indicates that it is less risky.
This is because a high standard deviation means that the possible outcomes of the investment or project are more spread out, meaning that there is a greater chance of a negative outcome.
For example, an investment with a high standard deviation might have a 50% chance of returning 10% and a 50% chance of returning -10%. An investment with a low standard deviation, on the other hand, might have a 90% chance of returning 5% and a 10% chance of returning 0%.
Standard deviation can be used to calculate the probability of a particular outcome occurring. For example, the probability of an investment with a standard deviation of 10% returning a profit of more than 15% is less than 5%.
Standard deviation is a useful tool for risk management because it allows you to quantify the risk of a particular investment or project. This information can be used to make informed decisions about whether or not to invest in a particular opportunity.
Here are some additional things to keep in mind about standard deviation and risk management:
Standard deviation is not the only measure of risk. Other factors, such as the expected return of an investment, should also be considered when making risk management decisions.Standard deviation can be calculated for different time periods. For example, you could calculate the standard deviation of the returns of an investment over the past year, the past five years, or the past decade.Standard deviation can be used to compare the risk of different investments. For example, you could compare the standard deviation of the returns of two different stocks to see which one is riskier.To know more about investments click here
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Which of the following includes a key deliverable in the preparation step of the execution phase in internal audit?
A. Risk & Control matrix
B. Documentation request list
C. Process narratives & flowcharts
D. Audit program
The correct option from the given options above is option B. Documentation request list. This includes a key deliverable in the preparation step of the execution phase in internal audit.
The preparation phase of the internal audit consists of several steps to be followed for the smooth functioning of the audit. One of the major steps in this phase is to develop the audit plan. This plan should include a statement of audit objectives, audit scope, audit approach, and methods to be used for auditing.
The documentation request list outlines the documentation the auditor needs to review and the specific documents the auditor wants to review. The auditor should design the request list in a way that minimizes disruption to the auditee while maximizing the efficiency and effectiveness of the audit process.To sum up, option B. Documentation request list includes a key deliverable in the preparation step of the execution phase in internal audit. This is a long answer.
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G.Henry is employed by royal manufacturers and is paid R250 per hour. His normal working day is 9 hours. The standard time to produce a product is 5 minutes. If G. Henry produces more then his quote he receives 1.5 times the hourly rate on the additional output. G Henry produced 132 units for the day
G.Henry is employed by royal manufacturers and is paid R250 per hour. His normal working day is 9 hours' G. Henry's total pay for the day is R11,250.
To calculate G. Henry's earnings for the day, we need to consider his normal working hours and the additional output he produced.
Normal working hours:
G. Henry's normal working day is 9 hours.
Hourly rate: R250 per hour.
Regular earnings for normal working hours:
Regular earnings = Hourly rate x Number of hours
Regular earnings = R250 x 9 = R2,250
Additional output:
G. Henry produced 132 units for the day, and the standard time to produce a product is 5 minutes.
Number of products produced beyond the standard time:
Additional units produced = Total units produced - Standard units produced
Additional units produced = 132 - (9 hours x 60 minutes / 5 minutes)
Additional units produced = 132 - (9 x 12)
Additional units produced = 132 - 108
Additional units produced = 24
Earnings for additional output:
Additional earnings = Hourly rate x Additional units produced x 1.5
Additional earnings = R250 x 24 x 1.5 = R9,000
Total earnings:
Total earnings = Regular earnings + Additional earnings
Total earnings = R2,250 + R9,000 = R11,250
Therefore, G. Henry's earnings for the day, considering his normal working hours and the additional output produced, would be R11,250.
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Think of an experience in your career where rewarding one workplace behavior had unintentional consequences? Describe that experience in detail. Why did the unintentional consequences occur? Did it have a negative impact on motivation? Explain?
In my career, there was an experience where rewarding one workplace behavior had unintentional consequences, leading to negative impacts on motivation.
In a previous role, our team was rewarded based on individual performance metrics, such as meeting sales targets. While this approach initially motivated employees to focus on their individual goals, it unintentionally fostered a competitive and siloed work environment. As individuals were solely driven by personal success, collaboration and teamwork suffered. This resulted in a lack of knowledge sharing, limited support among team members, and a decrease in overall morale.
The unintentional consequences occurred because the reward system failed to recognize and incentivize collective achievements and collaboration. By solely emphasizing individual performance, the organization inadvertently discouraged teamwork and hindered the development of a cohesive and cooperative work culture.
The negative impact on motivation was evident as employees became more concerned about outperforming their colleagues rather than working together towards shared goals. The lack of collaboration and support eroded trust and created an environment of internal competition, leading to decreased job satisfaction and diminished engagement.
Hence, the unintended consequences of rewarding individual performance without promoting teamwork and collaboration negatively impacted motivation by creating a competitive and siloed work environment, ultimately diminishing overall morale and employee engagement.
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Strawberry Corporation has 3 million ordinary shares outstanding that are currently priced at $7.25 each and have a beta of 1.4. The company has 500,000 preference shares trading at $6 each. Eight years ago the company issued bonds with a total face value of $5 million. One bond has a face value of $250,000. The bonds have a coupon rate of 4% p.a. and coupons are paid annually. The bonds mature in six years from today. The bonds currently yield 3.5% p.a., the return on the stock market is 8% p.a., the risk-free return is 2.5% p.a., and the company tax rate is 30%.
What proportion of the firm's capital structure is ordinary equity?
83.19% of the firm's capital structure is ordinary equity.
Market value of the ordinary shares:
Number of ordinary shares outstanding = 3,000,000
Price per ordinary share = $7.25
Market value of ordinary shares = Number of ordinary shares outstanding * Price per ordinary share
= 3,000,000 * $7.25
= $21,750,000
Market value of the preference shares:
Number of preference shares = 500,000
Price per preference share = $6
Market value of preference shares = Number of preference shares * Price per preference share
= 500,000 * $6
= $3,000,000
Total market value of equity = Market value of ordinary shares + Market value of preference shares
= $21,750,000 + $3,000,000
= $24,750,000
Now, let's calculate the market value of debt:
Number of bonds = $5,000,000 / $250,000 (face value per bond)
= 20 bonds
Market value of debt = Number of bonds * Face value per bond
= 20 * $250,000
= $5,000,000
The total market value of the firm's capital structure is the sum of the market value of equity and the market value of debt:
Total market value of capital structure = Market value of equity + Market value of debt
= $24,750,000 + $5,000,000
= $29,750,000
Finally, we can calculate the proportion of the firm's capital structure that is ordinary equity:
Proportion of ordinary equity = Market value of equity / Total market value of capital structure
= $24,750,000 / $29,750,000
= 0.8319 or approximately 83.19%
Therefore, approximately 83.19% of the firm's capital structure is ordinary equity.
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What is the equilibrium quantity and price in a competitive market if the inverse demand function is P = 5 – Q/12000 and the marginal cost is $4?
a. Quantity = 36,000; price = 2
b. Quantity = 24,000; price = 3
c. None of the other answers
d. Quantity = 36,000; price = 3
e. Quantity = 24,000; price = 2
Equilibrium quantity and price in a competitive market is obtained at the intersection of the demand curve and the supply curve. In this problem, the inverse demand function is given as P = 5 – Q/12000 and the marginal cost is $4. The demand function is a downward sloping curve.
In other words, the quantity demanded increases when the price decreases, and vice versa.Supply function is given by marginal cost (MC) which is a horizontal line. It represents that the quantity supplied remains constant at MC. At equilibrium, the quantity supplied must be equal to the quantity demanded.
Therefore, we can write,Qs = Qd …(1)From the demand function,P = 5 – Q/12000…(2)Setting (1) and (2) equal,Qs = Qd ⇒ 4 = 5 – Q/12000 ⇒ Q = 36000Substituting the value of Q in demand function to get the equilibrium price,P = 5 – Q/12000 = 5 – 36000/12000 = 2Hence, the equilibrium quantity is 36,000 and the equilibrium price is $2. Therefore, the correct option is (a) Quantity = 36,000; price = 2.
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Through the grapevine, John heard that there was going to be a major layoff, and started passing the news around. The supervisor heard the rumor and needed to set it straight immediately. What should he do? O Text everyone that the rumor is not true O Email John to let him know the rumor was unfounded O Call all employees to a meeting to lecture them about the damage of gossip O Send a memo explaining the changes that are imminent
When the supervisor heard that there was going to be a major layoff rumor that has been spreading through the grapevine, he should call all employees to a meeting to lecture them about the damage of gossip.
What is grapevine communication?
Grapevine communication refers to informal communication networks that are created and managed by employees in an organization. Employees share information about what is happening in the organization with one another through the grapevine, rather than through formal channels like email, memos, or meetings.
What should the supervisor do when he heard the rumor?
When the supervisor heard that there was going to be a major layoff rumor that has been spreading through the grapevine, he should call all employees to a meeting to lecture them about the damage of gossip.
Here are some reasons why the supervisor should do so:
1. He can clarify whether or not there is going to be a layoff, which will put an end to the rumor.
2. He can address the importance of using formal communication channels when sharing information about the organization with others.
3. He can explain how rumors can be harmful to the organization and its employees.
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The following case study was adopted from:
Brooks, L.J. and Dunn, P., 2018. Business & Professional Ethics. Cengage Learning, pp.233-34.
Just Make the Numbers!
The discussion between Don Chambers, the CEO, and Ron Smith, the CFO, was getting heated. Sales and margins were below expectations, and the stock market analysts had been behaving like sharks when other companies’ published quarterly or annual financial results failed to reach analysts’ expectations. As a results executives of companies whose performance numbers failed to meet the levels projected by the executives or the analysts were being savaged.
Finally, in frustration, Don exclaimed.
"We must make our quarterly numbers! Find a way, change some assumptions, capitalise some line expenses- just do it! You know things will turn around next year".
And he stormed out of Ron’s office.
REQUIRED:
(a) What are the ethical issues involved here? Briefly explain.
(b) Briefly explain what Ron, the CFO, should do.
The ethical issues involved in this situation include:
1. Financial manipulation: Don's statement suggests a willingness to manipulate financial numbers, such as changing assumptions or capitalizing expenses, in order to meet quarterly targets. This raises concerns about the accuracy and integrity of the company's financial reporting, potentially misleading stakeholders.
2. Pressure to meet short-term targets: Don's focus on making quarterly numbers indicates a short-term mindset that prioritizes immediate results over long-term sustainability. This pressure can lead to unethical practices and compromises on quality, transparency, and responsible decision-making.
3. Lack of transparency and accountability: Don's request to "just do it" implies a disregard for ethical and legal standards. By not being transparent about the company's true financial performance and attempting to manipulate the numbers, stakeholders may be misled and the company's credibility can be compromised.
Ron, the CFO, should take the following actions:
1. Uphold ethical standards: Ron should prioritize ethical behavior and ensure that financial reporting adheres to accounting principles and regulations. He should resist any pressure to manipulate financial numbers or engage in unethical practices.
2. Communicate openly: Ron should have a candid conversation with Don about the importance of accurate financial reporting, long-term sustainability, and the potential consequences of engaging in unethical practices. He should emphasize the need for transparency and the company's obligation to provide accurate information to stakeholders.
3. Provide alternative solutions: Ron can propose alternative strategies to address the company's performance issues, such as implementing cost-cutting measures, improving operational efficiency, or adjusting sales and marketing strategies. These solutions should be based on realistic assumptions and align with ethical standards.
4. Seek guidance: If the pressure from Don persists or if Ron feels conflicted about the situation, he should consult with the company's legal team, external auditors, or other appropriate advisors to ensure compliance with ethical and legal obligations.
Overall, Ron should act as a responsible steward of the company's financial well-being and reputation, upholding ethical standards and promoting long-term value creation.
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Which of the following represents the first three steps in the communication model in the correct order? a) Form message, decode message, receive message b) Decode message, encode message, and provide feedback c) Form message, encode message, and transmit message d) Encode message, provide feedback, transmit message
Which of the following reduces communication effectiveness with employees: a) paying attention b) watching non-verbal signals c) asking questions d) encouraging distractions
Which of the following has the most information 'richness': a) a written financial report b) a face-to-face conversation c) a letter sent via email d) a telephone call The complex tasks: group communication structure promotes the greatest effectiveness on a) comprehensive/team b) Y e) wheel
The element of communication that involves translating ideas into a systematic set of symbols that is generally understood by most people in a community is called: a) Noise b) Medium c) Decoding d) Encoding
The correct order of the first three steps in the communication model is c) Form message, encode message, and transmit message.
The process of communication can be understood by the communication model. The first three steps in the communication model are as follows:
Form message:
In this step, the sender has a message to communicate.
Encoding:
In this step, the sender takes the message and puts it into a form that can be transmitted. For example, the message could be encoded as words, pictures, or music. This step is essential for the message to be sent across.Transmit message: In this step, the sender transmits the message to the receiver. The message could be sent via different channels such as speaking, writing, or nonverbal communication. It's important that the channel used for transmitting the message is appropriate for the type of message and receiver.
Thus, the first three steps in the communication model are c) Form message, encode message, and transmit message. The option d) Encode message, provide feedback, transmit message is incorrect because the step of providing feedback comes after receiving the message.
Hence, the correct option is c. Paying attention reduces communication effectiveness with employees.
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On January 1, 2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021:
1. Sales units: First quarter 4,900; second quarter 5,800; third quarter 7,200 2. Ending raw materials inventory: 40% of the next quarter's production requirements 3. Ending finished goods inventory: 25% of the next quarter's expected sales units 4. Third-quarter production: 7,500 units The ending raw materials and finished goods inventories at December 31, 2020, had the same percentages for production and sales that are budgeted for 2020. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram.
Prepare a production budget by quarters for the six-month period ended June 30, 2021.
CHINLEE COMPANY
Production Budget
For the Six Months Ending June 30, 2021
Quarter 1 2 Total Required Productions In UnitsDesired Ending Finished GoodsBeginning Finished Goods InventoryTotal Required UnitsExpected Unit Sales AddLess: Beginning Finished Goods InventoryTotal Required UnitsRequired Productions In UnitsExpected Unit SalesDesired Ending Finished Goods Expected Unit SalesRequired Productions In UnitsDesired Ending Finished GoodsTotal Required UnitsBeginning Finished Goods Inventory AddLess: Desired Ending Finished GoodsTotal Required UnitsExpected Unit SalesRequired Productions In UnitsBeginning Finished Goods Inventory Desired Ending Finished GoodsRequired Productions In UnitsBeginning Finished Goods InventoryTotal Required UnitsExpected Unit Sales
The production budget for the Chinlee Company for the six-month period ending June 30, 2021, is as follows: Quarter 1: Required Productions - 4,900 units , Quarter 2: Required Productions - 6,125 units ; Total Required Productions for the six-month period - 10,025 units
To prepare the production budget, we need to consider the sales units for each quarter and the desired ending finished goods inventory.
In Quarter 1, the expected sales units are 4,900. Since there is no beginning finished goods inventory, the total required units for production in Quarter 1 is also 4,900.
In Quarter 2, the expected sales units are 5,800. However, we need to consider the desired ending finished goods inventory for Quarter 2, which is 25% of the next quarter's expected sales units. So, the total required units for production in Quarter 2 can be calculated as follows:
Quarter 2 Required Productions = Quarter 2 Expected Unit Sales + Desired Ending Finished Goods - Beginning Finished Goods Inventory
Quarter 2 Required Productions = 5,800 + (25% of 7,200) - 0 (since there is no beginning finished goods inventory)
Quarter 2 Required Productions = 5,800 + 1,800 - 0
Quarter 2 Required Productions = 7,600
The total required units for production for the six-month period is the sum of the required productions for each quarter:
Total Required Productions = Quarter 1 Required Productions + Quarter 2 Required Productions
Total Required Productions = 4,900 + 7,600
Total Required Productions = 10,500
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The bridge experiment demonstrated that
Group of answer choices
physical arousal from one source may be attributed to another source
men are likely to seek out danger
people connect with leaders when their values provide a bridge to organizational goals
women like men who seek out danger
22)
When a leader plays loud music, gets the crowd to stand up and dance, or encourages shouting and chanting they are
Group of answer choices
taking advantage of misattribution of arousal.
making their followers feel safe.
having a good time.
only displaying socialized charisma.
23)
Amazon offers to let other online stores list their items on amazon.com, through their Amazon sellers program. This is an example of _____.
Group of answer choices
Misattribution of arousal
Cromulence
generosity
co-opting rivals
24)
Most of us follow our doctor's advice because our doctor has ________ power
Group of answer choices
expert
referent
coercive
reward
1.) The bridge experiment demonstrated that physical arousal from one source may be attributed to another source. Option 1. 2) When a leader plays loud music, gets the crowd to stand up and dance, or encourages shouting and chanting they are taking advantage of misattribution of arousal. Option.1. 3) This is an example of co-opting rivals. Option 4. 4) Expert power. Option 1.
1.) The bridge experiment demonstrated that physical arousal from one source may be attributed to another source. The bridge experiment conducted by Dutton and Aron in 1974 demonstrated that physical arousal from one source may be attributed to another source. The experiment was conducted on two bridges, one scary and one not-so-scary, and two female interviewers (one pretty and one not-so-pretty) interviewed the men after they had walked on the bridge. The results demonstrated that the men who had walked on the scary bridge were more likely to be attracted to the pretty interviewer than the men who had walked on the non-scary bridge. Hence, it proved that physical arousal from one source may be attributed to another source.
2. When a leader plays loud music, gets the crowd to stand up and dance, or encourages shouting and chanting they are taking advantage of misattribution of arousal. This is a form of leadership where the leader intentionally induces a state of physiological arousal in their followers to excite them and associate it with the social context they are in.
3. Amazon offers to let other online stores list their items on amazon.com, through their Amazon sellers program. This is an example of co-opting rivals where Amazon is giving their rivals an opportunity to list their items on their platform and taking advantage of the existing traffic to increase their own revenue.
4. Most of us follow our doctor's advice because our doctor has expert power. Expert power is a form of power in which a person possesses superior skills or knowledge in a particular area and hence has power over others who are less skilled or knowledgeable. Doctors have power over their patients because of their superior knowledge of medical science and medicine.
Hence, the right answer is Option 1. Option.1. Option 4. Option 1.
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Directions: Review the scenario and answer the following questions. Use this document or typed Word document. Julie Marshall works in the Claims Department at Unified Care, Inc. She was approached by her manager, Bob Luck, to discuss that call backs have not been made to customers meeting their 24-hour return call guideline. The company has hired many new employees in her department, many of which she has not met. Julie is not a manager. 1. What is the problem? Write a problem statement that Julie can use when conducting her meeting. 2. What are the root cause (s) of the problem? Optional add a cause and effect diagram if needed to illustrate.
Julie Marshall works in the Claims Department at Unified Care, Inc. The problem statement is that customers are not receiving call backs within the company's 24-hour return call guideline. The root causes of the problem could be a lack of training and guidance provided to the new employees and a lack of effective communication between employees and departments. A cause and effect diagram could be used to illustrate these possible causes.
1. What is the problem? Write a problem statement that Julie can use when conducting her meeting. The problem is that customers are not receiving call backs within the company's 24-hour return call guideline. New employees have been hired in the Claims Department, and it appears that this issue has arisen since then.2. What are the root cause(s) of the problem? Optional add a cause and effect diagram if needed to illustrate.
The root cause of the problem is likely due to the lack of training and guidance provided to the new employees. They may not be aware of the company's policy on returning calls within 24 hours or may not understand the importance of meeting this guideline. Another possible cause could be a lack of effective communication between employees and departments.
Julie may not have been informed about the new hires, and new employees may not have been informed of the company's policies regarding call backs. A cause and effect diagram (also known as an Ishikawa or fishbone diagram) could be used to illustrate the possible causes of the problem. This diagram would allow Julie to visually map out the various factors that may be contributing to the problem and identify possible solutions.
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