Answer:
People
Explanation:
People is the component of the marketing mix that deals with what the customer wants and how to effectively tailor products to meet those needs
It gives rise to segmentation of customers based on their preferences. Customers within a given segment are effectively catered for by because the company has an understanding of how to satisfy them.
In this scenario we want to find the major benefits people look for in the packaged goods market, the kinds of people who look for each benefit, and the major brands that deliver each benefit.
Which of the following would contribute to the high price of health care?A. There are many providers of health care in the industry.B. Demand for health care is relatively elastic.C. Demand for emergency care is relatively inelastic.D. Supply of health care is limited.E. Many people use Medicare and Medicaid.
Answer:
C. Demand for emergency care is relatively inelastic.
D. Supply of health care is limited.
E. Many people use Medicare and Medicaid.
Explanation:
The Law of Supply posits that when there is a low supply of a good relative to its demand, the price will be higher because the good will be more scarce therefore people will have to pay more to get it. This is why in a situation where the supply of Health Care is limited, the price of health care will be high.
The law of demand states that when there are a lot of people demanding a good relative to its supply, the price of the good will be high because again, the good is now more scarce. When many people are using Medicare and Medicaid, there are more people able to afford health care meaning that demand is increased. This will increase the price of health care.
When a good's demand is said to be inelastic, it means that when prices change, the change in demand is less than the change in price. Prices of such goods will not have the incentive to remain low and will generally rise because the demand will not change by much. If demand for emergency care is relatively inelastic, the price will rise because demand will not change by much.
During November, the production department of a process operations system completed and transferred to finished goods 31,000 units that were in process at the beginning of November and 150,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to conversion. At the end of November, 33,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to conversion. Compute the number of equivalent units with respect to conversion for November using the weighted-average method.
Answer:
200,800 units
Explanation:
Calculation of Equivalent units of Production of Conversion Costs
Method : weighted-average method.
Completed and Transferred (181,000 × 100%) = 181,000
Ending Work In Process (33,000 × 60%) = 19,800
Equivalent units of Production of Conversion Costs = 200,800
Sterling Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 200 boats at a total cost of $720,000. The low point in production occurred in January when it produced 100 boats at a total cost of $450,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Sterling Boat Company. Determine the total estimated cost if 150 boats are made.
Answer:
$585,000
Explanation:
Using high-low method
Variable cost = Total cost (high activity) - Total cost (low activity) / Highest activity unit - Lowest activity unit
Variable cost = 720,000 - 450,000 / 100
Variable cost = 270,000 / 100
Variable cost = 270
Variable cost = Cost - Fixed cost
Now 720,000 = (200) * 2,700 - Fixed cost
- FIxed cost = 540,000 - 720,000
- Fixed cost = -180,000
Fixed cost = 180,000
Now Cost for 150 = 2,700 (150) + 180,000
= 405,000 + 180,000
= $585,000
A company brand offers a methodology for disctrubiting products.
A. True
B. False
Answer:
B. False
Explanation:
The role of the brand becomes significant for sponsoring the brand i.e. manufacturer, distributor, retailer. It also provides the legal safeguard with a help of trademark
Also, it offered an efficient and effective methods for products categorization
Therefore the given statement is false
hence, the correct option is B. False
Use the following information to calculate the interest rate on an eight year bond just issued by Becher inc. show work
inflation: next two years = 2.5%, year three and beyond = 4.5%
Pure rate= 2.0%
Maturity risk premium= zero for a 1 year maturity, increasing by .1% each year thereafter
Default risk premium= 1.5%
Liquidity risk premium = 0.0% for treasuries; 0.5% for corporate bonds
a. 7.7%
b. 8.2%
c. 8.7%
d. 9.2%
e. 9.4%
Answer:
c. 8.7%
Explanation:
Inflation for the next year is 2.5% and year 3 and beyond is 4.5%
Pure rate is 2.0%
Maturity Risk premium (MRP) is 0 for a 1-year maturity and increasing by 0.1% each year
Default Risk Premium (DRP) is 1.5%
Liquidity Risk Premium(LRP) is 0.0% for treasuries, 0.5% for Corporate bond
Interest rate = Pure rate + Inflation + LRP + MRP + DRP
= 2 + Inflation + 0.5 + (0.1*7) + 1.5%
= 2 + {(2 years * 2.5) + (6 years * 4.5) / 8} + 0.5 + (0.1*7) + 1.5%
= 2% + 4% + 0.5% + 0.7% + 1.5%
= 8.7%
Exercise 14-6 (Algo) Bonds; issuance; effective interest [LO14-2] The Gorman Group issued $900,000 of 11% bonds on June 30, 2021, for $977,220. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate).
Answer:
1) June 30, 2021, bonds are issued at a premium.
Dr Cash 977,220
Cr Bonds payable 900,000
Cr Premium on bonds payable 77,220
2) December 31, 2021, first coupon payment
Dr Interest expense 48,861
Dr Premium on bonds payable 639
Cr Cash 49,500
amortization of premium on bonds payable = (977,220 x 5%) - 49,500 = -639
3) June 30, 2022, second coupon payment
Dr Interest expense 48,829
Dr Premium on bonds payable 671
Cr Cash 49,500
amortization of premium on bonds payable = (976,581 x 5%) - 49,500 = -670.95 ≈ -671
Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on December 31, 2037 (20 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. to 4. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2025.
Answer:
The bonds were issued at $220,879,628.13
This is lower than the face value to compensate for the lower coupon payment.
cash 220,879,628.13 debit
discount on BP 39,120,371.87 debit
bonds payable 260,000,000 credit
--to record the issuance of the bonds--
Interest expense 13,252,777.69 debit
Discoun on BP 252,777.69 credit
cash 13,000,000 credit
--to record the first interest payment--
Interest expense 13,267,944.35 debit
Discount on BP 267,944.35 credit
Cash 13,000,000 credit
--to record second interest payment--
Interest expense 13,539,156.67 debit
Discount on BP 539,156.67 credit
cash 13,000,000.00 credit
--to record Dec 31st, 2025 payment--
Explanation:
To determinate the price we will solve for the present value of the coupon payment and maturity at the market rate of %12
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
Coupon payment:
260,000,000 x 10% x 1/2 =13,000,000.000
time 20 years x 2 payment per year 40
yield to maturity 12% / 2 = 6%
[tex]13000000 \times \frac{1-(1+0.06)^{-40} }{0.06} = PV\\[/tex]
PV $195,601,859.3298
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 260,000,000.00
time 40.00
rate 0.06
[tex]\frac{260000000}{(1 + 0.06)^{40} } = PV[/tex]
PV 25,277,768.80
PV c $195,601,859.3298
PV m $25,277,768.8042
Total $220,879,628.1340
For the journal entries, we will multiply this current market price of the bonds by the market rate (YTM) the difference between this and the actual cash obligation generate by the bond is the amortization of the discount.
first interest payment
$220,879,628.13 x 6% = 13,252,777.69
less actual cash outlay: 13,000,000
amortization 252,777.69
second interest payment
($220,879,628.13- $252,777.69) x 6% = 13,267,944.35
less actual cash outlay: 13,000,000.00
amortization 267,944.35
December 31st, 2025:
This will be payment 14th
after building the schedule until that date we got:
Meyer Inc's total invested capital is $660,000, and its total debt outstanding is $185,000. The new CFO wants to establish a total debt to total capital ratio of 55%. The size of the firm will not change. How much debt must the company add or subtract to achieve the target debt to capital ratio
Answer:
$178,000
Explanation:
Calculation for How much debt to achieve the target debt ratio
First step is to find the Target amount of debt using this formula
Target amount of debt =Target debt percentage ×Total assets
Let plug in the formula
Target amount of debt =55%× $660,000
Target amount of debt=$363,000
Second step is to calculate for the Change in the amount of debt outstanding using this formula
Change in amount of debt outstanding = Target debt -Old debt
Let plug in the formula
Change in amount of debt outstanding =$363,00-$185,000
Change in amount of debt outstanding =$178,000
Therefore How much debt to achieve the target debt ratio will be $178,000
Double your wealth. Kant Miss Company is promising its investors that it will double their money every years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $ now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $? Using the Rule of 72, what annual rate is Kant Miss promising? 24% (Round to the nearest whole percentage.) Using the time value of money equation, what annual rate is Kant Miss promising? 25.99% (Round to two decimal places.) Is this investment a good deal?
Answer:
The question is incomplete, so I looked for a similar one:
"Kant Miss Company is promising its investors that it will double their money every 3 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $300 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $26 comma 000?"
Since the number of years is very small, both the rule of 70 or 72 will not be very accurate. If you use the rule of 70 the answer is 23.33% and using the rule of 72 the answer is 24%, but both are wrong. In order to determine the correct interest rate you must solve the following:
2 = (1 + i)³
∛2 = ∛(1 + i)
1.2599 = 1 + i
i = 25.99%
If this deal was not a scam or a fraud, then it would be a great opportunity, but sometimes such great opportunities are generally false or simply an illusion (due to extremely high risk).
In order to determine how long it would take for $300 to turn into $26,000, we can use the future value formula:
26,000 = 300 x 1.2599ⁿ
1.2599ⁿ = 86.667
n = log 86.667 / log 1.2599 = 1.9379 / 0.1003 = 19.32 years
Which of the following can generally be found in a bond's indenture agreement?
I. Terms of repayment
II. Names of registered shareholders
III. Protective covenants
IV. Total amount of the bond issue
Answer:
I, III and IV
Explanation:
The bond indenture agreement is an agreement which is made between the issuer of the bond the bondholder. It involves terms and conditions that represent the maturity date, interest payment timing, their calculations,repayment terms, total amount of the bond issuance, and the protective covenants i.e. used for locating the restrictions imposed
Therefore in the given case, the I, III and IV are to be involved and the same is to be considered
Jessica Salas, president of Salas Products, is reviewing the warranty policy for her company's new model of automobile batteries. Life tests performed on a sample of 100 batteries indicated: (1) an average life of 75 months, (2) a standard deviation of 5 months, and (3) battery life is approximately normally distributed. Approximately 95% of the batteries will last between:______
a. 70 and 80 months
b. 60 and 90 months
c. 65 and 85 months
d. 55 and 95 months
Answer:
c. 65 and 85 months
Explanation:
Life tests performed on a sample of 100 batteries indicated:
(1) an average life of 75 months,
(2) a standard deviation of 5 months, and
(3) battery life is approximately normally distributed.
We create a 95% CI around mean.
If 95% is in the middle, then 5% is in the ends, 2.5% in each end.
Z score at .025 is -1.96, z score at .975 is +1.96
To convert z to battery life:
Z*sd + mean = battery life
-1.96*5 + 75 = 65.2, rounds to 65
+1.96*5 + 75 = 84.8, rounds to 85
examples of tangible and intangible
Answer: Tangible: cash, inventory, vehicles, equipment, buildings and investments
Intangible: goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists
Hope this helps
Plz mark brainlest
Sales returns related to sales on account were $400. All returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Net sales to be reported on the income statement is $18,098
Explanation
Computation of Net sales
Particulars Amount
Sales revenue $18,900
($8,400 + $10,500)
Less: Credit card discount (a contra revenue) $252
($8,400 * 3%)
Sales Discount (a contra revenue) $50
($10,500 - $500) * 1/2 * 0.01
Sales returns and allowances (a contra revenue) $500
Net sales $18,098
Note: Kindly find attach the complete question while $400 sales return is changed to $500.
Can an indifference curve be downward sloping in one section, but then bend backward so that it forms a "hook" at the end of the indifference curveLOADING...? An indifference curve A. cannot form a hook because it then would be upward sloping. B. cannot form a hook because . C. can form a hook as long as it does not intersect other indifference curves. D. can only form a hook if . E. can form a hook as long as it is not thick.
Answer:
A. cannot form a hook because it then would be upward sloping.
Explanation:
As in the case when the indifference curve slopes upward so the consumer would be indifferent that lies between the two bundles that generate more of the consumption goods
Now in case when the curve is hook sloping upward so the preference of the consumer could violate the assumption i.e. the more it is , the better it is
Therefore the option A is correct
Metlock Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $51,000 Fair value 42,000 Expected credit losses 12,550 New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. What is the amount of the credit loss that Metlock should report on this available-for-sale security at December 31, 2020
Answer:
The amount of credit loss that Metlock Company should report on this available for sale security at December 31, 2020 is $9,000.
Explanation:
Available-for-sale securities (AFS) can be described as equity or debt securities that are bought with the aim of reselling them before their date of maturity.
In accounting, available for sale securities are reported at fair value. As a result of this, any difference between amortized cost and fair value will transferred to other comprehensive income.
Therefore, the amount of credit loss that Metlock Company should report on this available for sale security at December 31, 2020 can be determined as follows:
Credit loss = Amortized cost - Fair value = $51,000 = 42,000 = $9,000
Therefore, the amount of credit loss that Metlock Company should report on this available for sale security at December 31, 2020 is $9,000.
Bourne Inc., a calendar-year end company, had the following select account balances from its unadjusted trial balance at 11/30/19: Credit Cash Supplies Deferred Revenue Debit $4,000 700 $0 The following select transactions occurred during the month of December:
Dec. 1 ---- Purchased $2,000 worth of supplies on account. The "Supplies" account was increased at that time.
Dec. 1 ---- Received $6.000 from a customer for services to be performed evenly over the next six months (beginning in December). The "Deferred Revenue account was increased when the cash receipt was recorded.
Dec. 1 ---- Financed the purchase of land by signing a nine-month, 12%, note payable. The amount financed was $40.000.
Dec 15 - Paid for the Dec 1 purchase of supplies in full.
At the end of December, the following information is also available:
• A physical count of supplies reveals supplies costing $800 are still on hand (unused). Required: In the General Journal which starts on the next page:
• Journalize the four December transactions, and
• Journalize any necessary December 31 adjusting journal entries related to the above transactions in order to properly reflect revenues and expenses for the accounting period. Note: If necessary, round adjusting entry calculations to the nearest whole month and to the nearest whole dollar. Note: Journal entries must be in proper form (ex. debits before credits, indent credits) to receive full credit. Explanations should not be included. Skip a line between each journal entry. Date Account Name Debit Credit
Answer:
Bourne Inc.
Journal entries
Date Account Name Debit Credit
1-Dec Supplies $2,000
Accounts Payable $2,000
1-Dec Cash $6,000
Deferred Revenue $6,000
1-Dec Land $40,000
Notes Payable $40,000
15-Dec Accounts Payable $2,000
Cash $2,000
Adjusting entries
Date Account Name Debit Credit
31-Dec Supplies expense $1,900
($700 + $2,000 - $800)
Supplies $1,900
31-Dec Deferred Revenue $1,000
($6,000/6)
Service Revenue $1,000
31-Dec Interest expense $400
($40,000*12%* 1/12)
Interest Payable $400
Walmart is the largest retailer with both brick-and-mortar stores and a growing internet business. Walmart continues to innovate with its service to shop online and pick up at the store. Walmart has also faced criticism due to its low wages and difficulty for part-time employees to get group health insurance. Many consumers refuse to shop at the store due to their employee policies. Based on this scenario, which criterion for an exchange to occur is missing?
Answer: Each party is willing to consider the other to be a desirable exchange partner.
Explanation:
From the question, we are informed that Walmart is a huge retailer but despite that, it has faced criticism as a result of its low wages and difficulty for part-time employees to get group health insurance and that this has led many consumers refusing to shop at the store due to their employee policies.
The criterion for an exchange to occur that is missing here is that "each party is willing to consider the other to be a desirable exchange partner". In this scenario, the customers doesn't see Walmart as a desirable excange partner due to the way they treat their workers therefore an exchange cannot take place.
Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment. Charlie reported net income of $120,000 for 2021 and paid dividends of $70,000 on October 1, 2021. How much income should Baker recognize on this investment in 2021
Answer:
the income that recognized on this investment is $10,500
Explanation:
The computation of the income recognized on this investment for the year 2021 is shown below"
= dividend × share of ownership
while
The dividend is $70,000
And, the share of ownership is 15%
Now place these values to the above formula
= $70,000 × 15%
= $10,500
hence, the income that recognized on this investment is $10,500
Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malfunctioned. In addition to the physical damage to the restaurant, Jenna also lost profits that could have been earned while the restaurant was closed for repairs. The lost profits are an example of
Answer:
Indirect loss
Explanation:
The lost profits are an example of indirect loss.
Indirect loss also known as consequential loss is a loss sustained by a business owner when it is unable to use its assets for the intended purpose. Indirect loss is as a result of damage caused by fire, flood, earthquake etc.
An insured business is able to recover part of indirect loss but if the business is not insured, then it will bear the consequences alone.
The taxes imposed under the Social Security Act consist of ______.
a. two taxes on employers
b. two taxes on employees
c. OASDI and HI taxes
d. all the above
Answer:
if I'm correct it should be D
select the correct answer.
Which Facets Model of Effects is a value that the customer assigns to something after receiving Information from their senses?
OA association
OB. affective
OC. perception
OD. cognition
Answer:
The answer is C. Perception!
Explanation:
Perception is when you receive information through your senses and assign it meaning. (There's a quizlet made by slmoon9852 that can teach you more about it!)
Peace Company began the accounting period with a $14,000 debit balance in its accounts receivable account. During the accounting period, the company recorded revenue on account amounting to $44,000. The accounts receivable account at the end of the accounting period contained a $8,000 debit balance. Based on this information, the cash collected from accounts receivable during the period is
Answer:
$50,000
Explanation:
Based on this information, the cash collected from accounts receivable during the period is $50,000. This can be calculated in the following way. Since the Company started the period with a $14,000 debit balance and ended that period with only $8,000 it means that $6,000 was used. Since it was used, it means that it was deducted from the actual collected total. Therefore to find this total we add these $6,000 to the revenue for that period which was $44,000. This totals up to $50,000.
A company had net income of $49,000, net sales of $390,000, and average total assets of $290,000. Its profit margin and total asset turnover were respectively:___________A) 12.56%; 1.34.B) 12.56%; 0.17.C) 1.34%; 12.56.D) 1.34%; 0.17.E) 1.96%; 1.34.
Answer:
Profit margin = 12.56% (Approx)
Total asset turnover = 1.34 (Approx)
Explanation:
Given:
Net income = $49,000
Net sales = $390,000
Average total assets = $290,000
Find:
Profit margin
Total asset turnover
Computation:
Profit margin = [Income / sales]100
Profit margin = [49,000 / 390,000]100
Profit margin = 12.56% (Approx)
Total asset turnover = Net Sales / Average total assets
Total asset turnover = $390,000 / $290,000
Total asset turnover = 1.34 (Approx)
Expedia and Priceline compete as online travel agencies. Historically, Expedia has focused more on flights, whereas Priceline has focused on hotel bookings. The following amounts were reported by the two companies in 2015. (in millions) Net Income Total Assets Total Liabilities Total Revenues Expedia $ 723 $ 15,504 $ 10,574 $ 6,672 Priceline 2,551 17,421 8,625 9,224 Required: Calculate each company’s net profit margin expressed as a percent. (Round your answers to 1 decimal place.)
Answer:
Expedia : 10.84%
Priceline :27.66%
Explanation:
Net profit margin is an example of a profitability ratio. It measures he ability of a firm to earn a profit from its assets
Net profit margin = Net income / Revenue
Expedia : $723 / $6,672 = 0.1084 = 10.84%
Priceline : 2,551 / 9,224 = 0.2766 = 27.66%
With a deadline approaching, all seven members of Sharon's product development team were working round-the-clock and still the work was not completed in time. After the project was completed, Sharon spoke individually with the members to determine the cause for this delay. Many members complained, saying the work given to them was not in accordance with their roles. Some were unclear about which team member to approach when faced with a problem, and many underestimated the time and effort the project demanded. This team is characterized by ________. Group of answer choices
Answer:
Dissimilar mental model
Explanation:
Communication is simply the interaction with two or more people. It is the passing of information. It involves the transfer and understanding of meaning. In communication, members of the organization shows their satisfaction and frustrations.
mental models simply represent a described or support comprehension as it keep info about the current situation available in memory. It guide behavior and allow prediction.
Which of the following statements about moneyness is least accurate? When:____.
A. S - X is > 0,a call option is in the money.
B. S - X = 0,a call option is at the money.
C. S > X, a put option is in the money.
Answer:
The answer is C.
Explanation:
Option A is correct because a call option is in the money when the price of the underlying asset(S) is greater than the exercise price (X)
Option B is correct because a call option at the money when the price of the underlying asset(S) is equal the exercise price (X)
Option V is incorrect because a put option is in the money when the price of the exercise price(X) is greater than the underlying price (S). (X -S > 0)
Smith and Baker Legal Services employs 6 full-time attorneys and 10 paraprofessionals. Budgeted salaries are $420,000 for each attorney and $140,000 for each paraprofessional. Budgeted indirect costs (e.g., rent, secretarial support, copying, etc.) are $980,000. The company traces the cost of attorney and paraprofessional time to each client and uses the total to assign indirect costs. What amount of indirect cost would be assigned if services to a client required $30,000 of attorney cost and $25,000 of paraprofessional cost
Answer:
Indirect cost for client is $13,750
Explanation:
Budgeted salaries = ($420,000 * 6) + ($140,000 * 10)
Budgeted salaries = $2,520,000 + $1,400,000
Budgeted salaries = $3,920,000
Budgeted indirect costs given = $980,000
Cost for client = $30,000 + $25,000
Cost for client =$55,000
Indirect cost for client is:
= $980,000 * ($55,000 / $3,920,000)
= $980,000 * 0.014031
= $13,750.38
= $13,750
In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices at which goods are sold is determined by the government. C) collectivist goals are given priority over individual goals. D) all productive activities are owned by the state.
Answer:
A) production is determined by the interaction of supply and demand.
Explanation:
A pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions
Characteristics of a pure market economy
Private ownership of means of productionfreedom of choice. Producers are free to produce what they desirecompetition among producers no government intervention.Suppose the Fed carries out an open market sale of $100m and simultaneously decreases the minimum required reserve ratio from 10% to 5%. The banking system has initially $100m of securities and $800m of loans. Assume that loans are used as currency by the borrowers. Deposits are kept constant to $1000m. Show the T-account of the banking system before and after these two operations. Do these operations increase the monetary base? Justify your answer.
Answer:
loanable amount after Fed operation = $950 M
Securities after fed operation = $50 M
attached below is the T-account table
Explanation:
Given data:
For assets : securities = $100 M , Loans = $800 M
For Liabilities : Constant demand deposit = $1000 M
difference between the assets and liability = $100 M and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action
How with the reserve ratio reduced to: 0.05
hence required Minimum required securities after operation = 0.05 * 1000 M = 50 M
Note : Total demand deposits = securities + loanable amount
therefore loanable amount after Fed operation = $1000 M - $50 M = $950
Attached below is the T-table
When both tables are compared it can be seen that there is a significant increase in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base
Alliance Life Insurance promotes its term life insurance products through commissioned sales representatives, who use aggressive sales tactics to acquire new customers who make monthly premium payments. Alliance is driven to earn profits and instructs its sales representatives to sell, sell, sell, and it trains them that "Everyone needs life insurance." This highlights one of the key differences between sales-oriented firms and marketing-oriented firms, which is _______.
Question options:
a. the organization's use of target marketing to sell its products to those with true needs
b. the organization's external, market-oriented focus
c. the organization's primary goal to achieve profitability through sales volume
d. the organization's mission to satisfy customers by providing products with many benefits to meet their needs
Answer:
c. the organization's primary goal to achieve profitability through sales volume
Explanation:
Sales oriented firms have selling concept disposition/philosophy as opposed to marketing concept. They are focused on maximisation of sales through promotion in order to generate profit. This is the philosophy of Alliance insurance as shown in the question, they are focused on selling using aggressive promotion through their sales representatives in order to maximise profits in this way. Marketing concept oriented firms are focused on satisfying customer needs while selling concept firms are focused on seller's needs
