which of the following is not identified by porter as one of the five forces that explains competition in an industry? a) threat of new entrants b) threat of substitute products or services c) bargaining power of suppliers d) bargaining power of competitors e) the competitive rivalry among current members

Answers

Answer 1

Bargaining power of competitors is not identified by porter as one of the five forces that explains competition in an industry.

Which of the following is not one of the 5 competitive forces?

These forces are used to estimate profitability, competitive strength and attractiveness of a market. As per the stated facts, the threat of substitute buyers is not considered as the part of the Porter Five Forces model because the Porter model describes threat substitutes of products, not buyers.

Which of the following is not one of Porter's competitive forces model's five key forces or threats?

Political influence is not one of Porter's five driving forces. The Porter's Five Forces Analysis is a straightforward yet effective method for assessing the influence of business. According to Porter's Forces Analysis, there are significant forces that affect a company's ability to compete.

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Related Questions

a seller did not deliver notice that a property is subject to a mello-roos bond before signing the sales contract. this gives the buyer how many days to rescind the contract

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3 days. By signing their sales agreement, a seller failed to convey notification that a lot is covered by a Mello-Roos bond. This specifies how many days the buyer has to cancel the agreement.

Why did you use the word "contract"?

A contract is a contract among both parties that establishes legal obligations for both parties. The fundamental components necessary for such agreement to be a genuine offer and acceptance, adequate consideration, capacity, and legality are: mutual assent, indicated through a contract-compliant offer,

What does a contract mean legally?

A contract is a written document outlining the terms and conditions of an arrangement between two. A contract may be given verbally or in writing. Consideration must be supplied by both parties for one contract to be enforceable and enforceable. In the event of a contract breach, the parties are protected.

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on the income statement, which of the following would be classified as a period cost? A) Direct Labor B) Direct Material C) Promotion Expense D) Inventory Carry Expense

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On the income statement, the statement that would be classified as a period cost is: C) Promotion Expense.

What is period cost?

Period cost can be defined as those cost that is excluded in a product cost  and this occur because the cost are  non production cost or because the cost are not related to factors of production or what is needed for production to take place.

Promotion expense has to do with the expense a company incurred as a result of promoting their product or brand.

Therefore the correct option is C.

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which of the following is an appropriate guideline for companies selecting independent distributors in international markets? a) select distributors; don't let them select you. b) look for distributors capable of developing markets. c) treat local distributors as long-term partners. d) maintain control over marketing strategy from day one. e) all of the above are appropriate guidelines.

Answers

An appropriate guideline for companies selecting independent distributors in international markets are select distributors; don't let them select you, look for distributors capable of developing markets, treat local distributors as long-term partners, maintain control over marketing strategy from day one.

Hence, the answer is option e) all of the above are appropriate guidelines.

Independent distributors are in charge of overseeing the interaction between customers and vendors. They always ensure a positive brand image and keep good connections with both clients and manufacturers. Independent Distributors are knowledgeable about their products and have a sharp eye for business opportunities.

Many businesses are more inclined to use independent distributors, so it's critical to know how to assess one to make sure it aligns with your organization's aims, needs, and ambitions.

Independent distributors have evolved into companies' emergency response teams during the past two years. Open market sources have been able to relieve enterprises from the pressures of rising fixed costs, excessive inventory levels, halted or delayed production lines, and bottlenecks across the supply chain by helping to stop the lack of materials from impacting lines.

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the auditor sends out positive accounts receivable confirmations for a client. assuming a second confirmation is sent out to a major customer who still fails to respond, which action should the auditor take?

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The auditor should send out a third confirmation request and, if there is still no response, carry out alternative processes if a second confirmation is made to a significant customer who still doesn't answer.

What should an auditor do if they don't get a confirmation response?

The auditor should use alternate processes to the nonresponses when they have not been responded to positively in order to gather the evidence required to lower audit risk to an acceptable level.

The initial step would be to submit a second or third confirmation request if the audit team doesn't hear back regarding the confirmations that were sent. The audit team will be compelled to take alternative measures, such as liquidating the receivable, if the customer still doesn't respond.

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a company had $14 missing from petty cash that was not accounted for by petty cash receipts. the correct procedure is to:

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The correct procedure would be to debit cash over and short for the difference of $43.

A debit is an accounting transaction that lowers liabilities or increases assets.All debits are made on the left side of the ledger in double-entry bookkeeping, and these debits must be balanced by corresponding credits on the right side of the ledger.A balance sheet credits negative balances and debits positive values for assets and expenses.In a typical journal entry, all debits are listed on the top lines, followed by all credits on the line below the debits. A debit is on the left side of the chart when using T-accounts, and a credit is on the right. The trial balance and adjusted trial balance both use debits and credits to make sure that all entries balance.

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arian is a sole proprietor and owes a great deal of money to a number of business creditors. the business creditors may sue to:

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Arian is a sole proprietor and owes a number of business creditors. The business creditors may sue to: - only take Arian's business assets.

Sole proprietors:

A sole proprietor is a person who owns a business that is not incorporated. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you choose to treat the LLC as a legal entity.

What is the difference between a sole proprietorship and an owner?

A sole proprietorship owner is called an owner and a partner is a member and legal owner of a partnership company. Sole proprietor registration is not required, but shareholders are free to register the company or not.

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kalil believes that alison's would benefit most from smaller shipments of accessories from their chosen supplier. which supplier would result in the lowest total cost using this criterion?

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Minimum Total annual cost in this case would be Sum of all the Cost incurred.

How does this occur?

Talking about the  smaller shipments, the order quantity would approximately be large while the average inventory would be half the price.The sum of the regular cost and the supplemental yearly cost is referred to as the total annual cost.To figure up the annual cost: To calculate the comparable annual cost, multiply the purchase price by the number of years the item will be in use.

The  total annual cost would be the sum of

Supplies + Price/Unit Carrying Cost + Freight Costs + Admin Costs    + Purchase cost + Carrying Cost    + Total cost.

Hence, by the given formula we can determine the total annual cost.

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a data analyst wants to demonstrate a trend of how something has changed over time. what type of chart is best for this task?

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The line chart is used to show trends or changes over time.

A line chart is a graphical illustration of an asset's historic charge action that connects a series of facts and factors with a continuous line. this is the maximum fundamental type of chart utilized in finance, and it generally most effectively depicts a security's final fees over time.

A line chart or line graph or curve chart is a kind of chart that displays statistics as a series of information points referred to as 'markers' linked through direct line segments. it is a basic sort of chart common in many fields. it is similar to a scatter plot besides that the size points are ordered (typically by means of their x-axis fee) and joined with straight line segments. A line chart is regularly used to visualize a trend in records over durations of time – a time collection – for that reason the road is regularly drawn chronologically. In those cases, they may be known as run charts.

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A client, age 55, takes a $3,000 distribution from his rollover IRA to pay for a semester of college tuition for his 21-year-old son. Which one of the following correctly explains the tax consequences for the father?

Answers

The entire distribution is exempt from the 10% early withdrawal penalty, but it is subject to income tax. When funds are withdrawn to pay for higher education, there is no 10% early withdrawal penalty.

Which three kinds of retirement are there?

The majority of us undoubtedly believe that we are retirement experts. Isn't that simple? You no longer go to work every day so that you can relax at home, spend time with your grandchildren, or go on vacation. It ought to be a wonderful life, at least!

But did you know there are other choices for retirement? It exists. In point of fact, there are three distinct types of retirement:

standard retirement

Semi-retirement

Extremely durable retirement

Each type has a few critical qualifications, especially as far as your assumptions and the readiness standards you'll have to satisfy.

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Question-

A client, age 55, takes a $3,000 distribution from his rollover IRA to pay for a semester of college tuition for his 21-year-old son. Which one of the following correctly explains the tax consequences for the father?

a) The entire distribution is free from penalties and income taxes.

b) The entire distribution is subject to income tax, but it is free from the 10% early withdrawal penalty.

c) The entire distribution is subject to the 10% early withdrawal penalty, but it is free from income tax.

d) The entire distribution is subject to income tax as well as the 10% early withdrawal penalty.

fast call inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. unlike many other pharmaceutical companies, fast call has a relaxed work environment where employees are free to discuss projects with each other. employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. in this scenario, fast call inc. is most likely an organization that is

Answers

Fast name inc. is a pharmaceutical employer that has many breakthroughs in medicinal drugs to its credit score. not like many other pharmaceutical businesses, the short call has an easy work surrounding wherein employees are unfastened to talk about initiatives with every other is natural.

Organizational systems are crucial because they assist groups to implement efficient decision-making processes. by way of assigning specialized roles to lower-stage personnel, businesses could make higher decisions quicker.

McDonald's established approach is cost leadership, which builds competitive advantage through cost minimization. The enterprise has standardized strategies designed to maximize performance, reduce charges, and make certain profitability notwithstanding using competitive promoting fees.

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elaine's original basis in the hornbeam partnership was $40,000. her share of the taxable income from the partnership since she purchased the interest has been $70,000, and elaine has received $80,000 in cash distributions from the partnership. elaine did not recognize any gains as a result of the distributions. in the current year, hornbeam also allocated $1,000 of tax-exempt interest to elaine. calculate elaine's current basis in her partnership interest. $fill in the blank 1

Answers

Elaine's original basis in the Hornbeam partnership was $40,000. Her share of taxable income has been $70,000 and her cash distribution from the partnership is $80,000. Hornbeam allocated $1,000 of tax-exempt interst to Elaine. Elaine's current basis in her partership interest is $31,000.

Partnership interest is the percentage of a parternship owned by a member or individual. The interest represents each partner's right to make business decisions.

The basis of a partnership interest is the amount of cash plus the adjusted basis of any contributed property.

In Elaine's case, her original basis is $40,000. Her share of the taxable income is $70,000 and she has received $80,000 in cash distributions. Elaine then receive $1000 of tax-exempt interest. Then, Elaine's current basis in her partnership interest is:

Partnership interest basis = Original basis + Taxable income - Cash distributions + Tax-exempt interest

Partnership interst basis = $40,000 + $70,000 - $80,000 + $1,000

Partnership interest basis = $31,000

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A Six Sigma program has how many defects per million? O 2700 O 6 times the standard deviation O 34 O 1000 O 3.4 approaches while goods made to forecast are typical of Goods made to order are typical of and and approaches. process, mass customization; repetitive, product product, mass customization; repetitive process repetitive, process; mass customization, product product, process; repetitive, mass customization repetitive, product; mass customization, process

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The fault rate in a Six Sigma program is 3.4 per million. The remaining ones, however, are inappropriate in this situation.

Process, mass customization, repetitive, product. Goods made to order are typical of process and mass customization approaches while goods made to forecast are typical of repetitive and product approaches.

A collection of methods and equipment for process improvement is called Six Sigma. While employed by Motorola in 1986, American engineer Bill Smith introduced it.

The process of disseminating and exchanging information with large populations through mass media is known as mass communication. Since its technologies are employed for the spread of information, of which journalism and advertising are a component, it is typically believed to relate to numerous forms of media.

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which of the following is not required in an individual health benefit plan? a if terminated, the carrier must offer another plan offered by the carrier b it guarantees coverage for a dependent on a modified community rated basis c the renewability is at the option of the carrier d the plan may be terminated if the person moves out of state

Answers

If a person moves out of state while enrolled in an individual health benefit plan, it is not necessary for the plan to continue.

Finding new health insurance may be necessary if you move to a different state because certain policies may expire or stop providing coverage when you do.

It is still advisable to check the system of in-network providers even if coverage transfers. An extension of coverage may be available under the Consolidated Omnibus Budget Reconciliation Act (COBRA) program if health insurance coverage expires due to an interstate move.

Finding health insurance is now simpler according to the Affordable Care Act of 2010.

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the last two steps of the accounting cycle deal with

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The last two steps of the accounting cycle deal with closing the books at the end of the financial year.

What comprises the final four steps in the accounting cycle?

The accounting cycle is the method used to accept, record, group, and credit payments made and received within a company during a specified accounting period. Although the accounting cycle may appear difficult, lengthy, but, it is actually rather straightforward and simple. The process consists of four fundamental steps: transaction analysis, transaction recording, adding journal entries to the general ledger, and running an unadjusted trial balance report.

Making closing entries at the conclusion of the accounting period involves settling expenses, revenues, and temporary accounts. In order to do this, temporary accounts like expenses and revenue must be closed out, and the net income must be transferred to long-term accounts like retained earnings.

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We use a time-series graph to show O A. the downward trend in inflation in industrial countries over the last 25 years OB. the relationship between tuition at a university and the enrollment OC. the relationship between the number of children in a family and the weekly grocery bill OD. the distribution of income among various age groups

Answers

The correct option is A. the downward trend in inflation in industrial countries over the last 25 years.

Inflation is an ascent in costs, which can be deciphered as the decay of buying control over the long haul. The rate at which buying power drops can be reflected in the normal cost increment of a crate of chosen labor and products over some timeframe. The ascent in costs, which is many times communicated as a rate, implies that a unit of cash successfully purchases short of what it did in earlier periods. Inflation can be stood out from collapse, which happens when costs decline and buying power increments.

An expansion in the supply of cash is the base of Inflation, however this can work out through various components in the economy. A country's cash supply can be expanded by the money related specialists by:

Printing and offering more cash to residentsLawfully cheapening (decreasing the worth of) the legitimate delicate moneyAdvancing new cash into reality as save account credits through the financial framework by buying government securities from banks on the optional market (the most well-known strategy)

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ashley is a 15-year-old. she most likely to yield to peer pressure when trying to decidequestion 54 options:a) what kind of clothes to buyb) whether to go to collegec) whether to shopliftd) what religious services to attend

Answers

When making a decision, she is most likely to succumb to peer pressure if she is not cognitively flexible and able of logic.

Why is business flexibility important?

It promotes achievement. When flexibility gives people liberty, freedom, and balance, people perform better. Higher productivity, loyalty, and satisfied workers are the results.

How is a company flexible?

A business that is highly adaptable can swiftly meet customer requests, foresee changes, and alter its business processes to stay profitable and preserve its competitive advantage. Flexibility in the workplace refers to creating an environment where employees can succeed. Flexibility in the workplace embraces the notion that workers may be effective regardless of how or when they do their tasks.

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Which of the following is the best definition of managerial economics managerial economics is Mcq? a. a distinct field of economic theory.
b. a field that applies economic theory and the tools of decision science.
c. a field that combines economic theory and mathematics.
d. none of the above.

Answers

The best definition of managerial economics managerial economics is a distinct field of economic theory.

The definition of economics

Economics is the study of scarcity and its effects on the use of resources, the production of products and services, the growth of production and welfare through time, and a wide range of other complicated issues of essential significance to society.

The importance of economics

Economics education aids in a person's comprehension of their environment. It enables individuals to comprehend others, organizations, markets, and governments, enabling them to better adapt to risks and opportunities that arise as circumstances change.

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Which fiscal policy would be the most expansionary ? A. A $40 billion increase in government spending
B. A $20 billion tax cut and $20 billion increase in government spending
C. A $10 billion tax cut and $30 billion increase in government spending
D. A $40 billion tax cut

Answers

Increased public spending or tax reductions are used to accomplish this. The most expansionary fiscal strategy would therefore be one that would boost government spending by $40 billion.

What type of economic strategy would be the most expansive?

Tax reductions and greater public spending are the two main manifestations of an expansive fiscal strategy. The goals of both programs are to boost overall demand while reducing budget surpluses or adding to deficits.

What is the government's expansive fiscal policy?

Contractionary fiscal policy—a decrease in government spending, an increase in tax revenue, or a combination of the two—is anticipated to slow economic growth. In contrast, expansionary fiscal policy—an increase in government spending, a decrease in tax revenue, or a combination of the two—is anticipated to stimulate economic activity.

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Which of the following is the most used monetary policy tool? a.
Changing the discount rate
b.
Interest rate changes
c.
Changing reserve requirements
d.
Open-market operations

Answers

The six instruments of monetary policy are the reverse repo rate, the reverse repo rate, open market operations, the bank rate policy (discount rate), the cash reserve ratio (CRR), and the statutory liquidity ratio (SLR).

Which tool for monetary policy is the most crucial?

Operations in the open market A monetary policy uses a variety of tools, including open market operations, requirements for bank reserves, and the discount rate, to accomplish macroeconomic objectives.

What are the goals of financial instruments?

The Fed utilises monetary policy tools to promote economic growth while regulating the availability of money and total demand for goods and services. By influencing the amount of money available to consumers, businesses, and banks, monetary policy instruments can regulate the overall amount of money in circulation.

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question content areawhich of the following is not classified as a current liability account? a.accounts payable b.note payable, due in 2 years c.salaries and wages payable d.income taxes payable

Answers

Notes payable due in 2 years is not classified as a current liability account because it is for more than 2 years' time period.

What is current liability?

A company's short-term financial commitments that are due in a year or within a typical operational cycle are known as current liabilities. Commonly, current assets—assets that are depleted within a year—are utilised to settle current liabilities.

Current obligations are shown on the balance sheet and are paid from the profits made by a business's operations. Accounts payable, short-term debt, accumulated expenses, and dividends payable are a few examples of current obligations. An obligation that must be paid off immediately is referred to as a current liability.

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stone company changed its method of pricing inventories from fifo to lifo what type of accounting change does this represent

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A change in accounting standards for which the previously reported financial statements for periods used for comparison should be supplied.

The use of a new depreciation technique or transitioning from the LIFO (Last In, First Out) to FIFO (First In, First Out) inventory valuation method are examples of changes in accounting principles. Accounting principle adjustments are always made within the current or next quarter. For changes in accounting estimates, previous statements should be restated.The corporation alternates between the various inventory value techniques in the shown instance. Because the policy is not applied consistently and is altered every year, this is a breach of the consistency principle.There are two accounting techniques known as FIFO and LIFO that are used to manage inventory and financial concerns regarding the amount of money a corporation must have locked up in inventory of finished items, raw materials, parts, components, or feedstocks.

Thus this is the type of accounting change.

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matthew has an opportunity to manage one of the factories for his company. he will direct the purchase of raw materials that his company uses to make office furniture. matthew will be the manager of a(n)

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Matthew will be the manager of a(n).Financial Management, opportunity to manage one of the factories for his company.

A company is a prison entity shaped by using a group of individuals to interact in and perform an enterprise—business or commercial—organization. An enterprise can be organized in diverse approaches for tax and financial liability purposes relying on the corporate law of its jurisdiction.

There are 3 commonplace kinds of corporations—sole proprietorship, partnership, and organization—and each comes with its very own set of benefits and downsides. In easy terms, the reason for an enterprise is to have a significant imagination and prescient after which to be worthwhile in accomplishing it. And we should qualify “profitable”: profitability means long-time period sustainable returns, and each word in that phrase is vital.

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A checklist screening model does not consider:(2 Points)

whether one criterion is more important than another

governmental or stakeholder interference

product durability and future market potential of the product line

the riskiness of the new venture

none of the above

Answers

A checklist screening model do not consider whether one criterion is more important than another.

What is Checklist screening model?

The Checklist screening model is a type of screening model used to determine the suitability of candidates for a particular role. It involves creating a list of criteria that must be met by any potential candidates for the role, and then checking off each criterion for each candidate. This type of screening model is often used when there is a large pool of potential candidates, as it helps to narrow down the field and ensure that only the most suitable candidates are considered.

What is Criterion?

A criterion is a standard or set of standards used to evaluate or measure a candidate's suitability for a job or position. Criteria may include qualifications, experience, skills, knowledge, and other qualities that the employer deems important for the role.

Hence, the correct option is Option A.

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Which of the following are fundamental ethical principles for professional accountants?
1 Competence
2 Compliance
3 Integrity
4 Objectivity
A. 1, 2 and 3 only
B. 1, 3 and 4 only
C. 2, 3 and 4 only
D. 1, 2 and 4 only

Answers

The following are fundamental ethical principles for professional accountants 1, 2 and 3 only.

Which of the following ethical guidelines applies to accountants in general Macq?

Acting with integrity, objectivity, professional competence and due care, confidentiality, and professional behavior are the essential ethical norms that apply to all members of professional bodies. All members of the accounting profession are required to adhere to the basic ethical norms.

Which of the following is a professional accountant's ethical obligation?

Any bias, conflict of interest, or undue influence from others should not be allowed to trump professional or business judgments by a professional accountant.

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individuals differ in risk aversion because of: group of answer choices differences in their insurance. moral hazard. adverse selection. differences in income or wealth.

Answers

Individuals differ in risk aversion because of differences in income or wealth.

Risk aversion is the propensity of people to choose outcomes with low uncertainty over those with high uncertainty, even when the average outcome of the latter is equal to or higher in monetary worth than the more definite event. This tendency is shown in both economics and finance.Risk aversion is the tendency to avoid danger. A risk-averse investor is one who prioritizes money preservation over the potential for a higher-than-average return. Price volatility and investment risk are the same.If someone would rather take the risk and maybe receive nothing than accept a definite payment (certainty equivalent) of less than $50 (for instance, $40), they are considered to be risk averse. If they have no preference between the wager and a specific $50 payoff, they are risk neutral.

Thus the correct answer is d.

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an investor shifted the allocation of corporate bonds in his portfolio to american depository receipts (adrs). as a result, he will be more exposed to: qid: 3569574 mark for review a political risk b liquidity risk c credit risk d interest-rate risk

Answers

The correct answer is: A Political risk.

What is political risk?

Political risk is a type of risk faced by investors, companies, and governments in which political decisions, events, or circumstances could materially affect the profitability of business actors or the expectations of a particular economic activity. give. Political risks can be understood and managed with reasonable forethought and investment.

The term political risk has had many different meanings over the years. Broadly speaking, however, political risk is the potential that businesses and governments face as a result of what is commonly called policy decisions or “policy changes that change the expected outcomes and values ​​of a particular economy.” refers to some complexity. possibility of achieving corporate objectives”.

Therefore, The correct answer is: A Political risk.

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what allows tax departments to view multiple years, periods, jurisdictions (state or federal or international, etc.), and differing scenarios of data, typically through use of a dashboard?

Answers

Tax data analysis  allows tax departments to view multiple years, periods, jurisdictions (state or federal or international, etc.), and differing scenarios of data, typically through use of a dashboard.

What do you mean by tax data analysis?

A range of background papers, position papers, policy memoranda, and analytical reports on the economic implications of domestic and international tax policy are produced by the Office of Tax Analysis (OTA), which also examines the effects of current tax legislation and alternative tax plans.To produce insights and a deeper understanding, tax data analytics combines technical tax expertise, big data sets, and modern technology like visualization tools. Tax analytics can assist a company's tax function in making wiser, more timely decisions that can enhance operations and influence strategy.

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robert mondavi is a well-known winery in napa valley, ca. it is a family-owned business and is not traded on any stock exchange. which type of commercial firm is this known as? group of answer choices public firm cooperative firm private firm open firm nontrade firm

Answers

Robert Mondavi is a well-known winery in napa valley, ca. it is a family-owned business and is not traded on any stock exchange. THE type of commercial firm is this known as a nontrade firm.

Robert Gerard Mondavi is an American winemaker. His technical and marketing strategies have brought California's Napa Valley wines to worldwide recognition. Mondavi early on promoted the labeling of wines as varietals rather than generics, which has become the standard for New World wines. It is known not only for producing some of the finest Cabernet Sauvignon wines but also for the Sauvignon Blanc grapes used by Mr. Mondavi to create his signature Hume Blanc wine.

Overall, we found Robert Mondavi his Private Selection Cabernet Sauvignon to be a very enjoyable wine. Its strength lies in its aroma and taste. Most of the wines from Robert Mondavi Winery are good, so it was no surprise that I liked this one too.

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in practice, the market portfolio is often represented by: c a. a diversified stock market index. c b. a portfolio of u.s. treasury securities. o c. an investor's mutual fund portfolio. o d. a hedge fund's stock portfolio.

Answers

In practice, the market portfolio is often represented by  a diversified stock market index. So, option (a) will be regarded as the suitable option.

Give a brief account on market portfolio.

Each asset available in the investment universe is contained in a conceptual portfolio called a market portfolio, and each asset is weighted according to its overall market participation. The expected return on the market portfolio is the expected return on the market as a whole. Only systemic risks or risks that affect the market as a whole threaten the market portfolio. Non-systematic risks or risks specific to a particular asset class. This is done by completely diversifying the market portfolio.

In a 1977 study, economist Richard Rolle argued that a well-diversified asset should include a portion of all assets that exist, including commodities, collectibles, and anything of intrinsic commercial value. argued that it is practically impossible to construct a market portfolio that Roll's Critique argues that even a portfolio composed of stocks from different markets is an index at best and can never achieve true diversification.

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a company reports the following at year end: sales of $15,000; cost of goods sold $8,000; net income $4,000; average merchandise inventory $2,500. inventory turnover is calculated to be:

Answers

Inventory turnover is calculated to be 3.2. Inventory turnover is a measure of how efficiently a company is managing its inventory and turning it into sales. It is calculated by dividing a company's cost of goods sold (COGS) by its average inventory during a given period.

In this case, the company had sales of $15,000, cost of goods sold of $8,000, and an average inventory of $2,500. To calculate the inventory turnover, we will divide the cost of goods sold by the average inventory:

Inventory turnover = Cost of Goods Sold / Average Merchandise Inventory

Inventory turnover = 8,000 / 2,500 = 3.2

This means that the company has an inventory turnover of 3.2, which indicates that it is turning over its inventory 3.2 times during the year.

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