1. Proactive motivations involve a strategic choice by firms to pursue international expansion for growth, market access, and resource advantages, while reactive motivations are driven by external factors that compel firms to respond to competitive pressures or market changes.
2. The product life cycle theory by Raymond Vernon provides a conceptual framework for understanding certain aspects of international trade patterns, but it is not a comprehensive explanation.
3. Cultural knowledge is vital for individuals and organizations engaged in international business. It enhances communication, fosters trust, facilitates understanding of business practices, enables market adaptation, and assists in conflict resolution.
4. Foreign Direct Investment can bring positive impacts to host countries such as economic growth, technology transfer, job creation, infrastructure development, and export promotion.
5. WTO acts as a regulatory authority and enforcer of international trade rules, it is important to note that the WTO's role is primarily focused on providing a framework for negotiations, dispute resolution, and fostering compliance through monitoring and surveillance.
1. Proactive motivations refer to the strategic initiatives taken by a firm to proactively seek international opportunities and expand its operations globally. These motivations are driven by the firm's desire for growth, increased market share, and access to new markets. Proactive motivations can include factors such as:
Market-seeking opportunities: Firms may choose to go international to tap into new markets and customer segments. They might identify untapped demand or recognize that their products or services have global appeal.
Resource-seeking opportunities: Firms may seek international expansion to access valuable resources such as raw materials, labor, technology, or knowledge that are not readily available or cost-effective in their home country.
Competitive pressures: If competitors expand internationally or if a firm's domestic market becomes saturated or highly competitive, it may feel the need to go international to maintain its market position or gain a competitive advantage.
2. The product life cycle theory, proposed by Raymond Vernon in the 1960s, suggests that international trade patterns are influenced by the life cycle of a product from its introduction to maturity and decline. While the theory has been widely discussed and debated, it does provide some insights into certain trade patterns.
According to Vernon, a product typically goes through different stages: introduction, growth, maturity, and decline. During the introduction stage, the product is developed and initially marketed in the domestic market. As demand grows, the product enters the growth stage, and domestic production increases to meet the rising demand. At this point, the product may start to attract the attention of foreign markets.
3. Cultural knowledge is indeed critical for individuals and organizations prepared for cross-cultural interaction in international business.
Effective Communication: Cultural knowledge helps individuals and organizations navigate communication barriers that arise from cultural differences.
Conflict Resolution: Cultural knowledge plays a crucial role in managing and resolving conflicts that may arise in cross-cultural business interactions. Different cultures may have distinct approaches to conflict resolution, and understanding these approaches can help prevent misunderstandings from escalating into larger conflicts.
4. Foreign Direct Investment (FDI) can have both positive and negative impacts on host countries. Let's explore these impacts in more detail:
5. Referring to the World Trade Organization (WTO) as a "Global Police" is a metaphorical description that highlights its role in enforcing and upholding international trade rules and regulations. However, it's important to note that the WTO does not have the same authority or enforcement powers as a traditional law enforcement agency.
Trade Policy Review: The WTO conducts regular Trade Policy Reviews (TPRs) of its member countries. During these reviews, member countries present their trade policies and practices to the WTO, and other members have the opportunity to raise concerns or seek clarification. The TPR process encourages transparency and accountability in member countries' trade policies and fosters dialogue among nations.
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Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $410,000 for a standard production run that generates 260,000 pints of Smooth Skin and 140,000 pints of Silken Skin. Smooth Skin sells for $3.10 per pint, while Silken Skin sells for $4.10 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.) Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method? 2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method? 3. If separable processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.70 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method? 4. If separable processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.70 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method? 1. 2. Relative sales value method - Smooth Skin Physical measure method - Silken Skin Net realizable value method - Silken Skin 3. 4. Physical measure method - Smooth Skin
Assuming that both products are sold at the split-off point, the joint cost of each production run allocated to Smooth Skin using the relative sales value method is $164,615.
Total sales value = Sales value of Smooth Skin + Sales value of Silken Skin
= (260,000 pints × $3.10) + (140,000 pints × $4.10)
= $805,000 + $574,000
= $1,379,000
Joint cost allocated to Smooth Skin = Total sales value of Smooth Skin/ Total sales value × Joint cost incurred
= ($805,000/$1,379,000) × $410,000
= $164,615
2. If no separable costs are incurred after the split-off point, the joint cost of each production run allocated to Silken Skin using the physical measure method is $183,077.
Calculation:
Joint cost per pint = Joint cost incurred/Total pints produced = $410,000/(260,000 pints + 140,000 pints)
= $820,000/400,000 pints
= $2.05 per pint
Joint cost allocated to Silken Skin = Quantity of Silken Skin produced × Joint cost per pint = 140,000 pints × $2.05
= $287,000
3. If separable processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.70 per pint for Silken Skin, the joint cost of each production run allocated to Silken Skin using a net realizable value method is $415,385.
Calculation:
Net realizable value per pint of Silken Skin = Selling price of Silken Skin - Separable processing cost beyond split-off point = $4.10 - $1.70
= $2.40
Net realizable value per pint of Smooth Skin = Selling price of Smooth Skin - Separable processing cost beyond split-off point = $3.10 - $1.60
= $1.50
Total net realizable value = (Quantity of Silken Skin produced × Net realizable value per pint of Silken Skin) + (Quantity of Smooth Skin produced × Net realizable value per pint of Smooth Skin)
= (140,000 pints × $2.40) + (260,000 pints × $1.50) = $336,000 + $390,000
= $726,000
Joint cost allocated to Silken Skin = Quantity of Silken Skin produced × Net realizable value per pint of Silken Skin/ Total net realizable value × Joint cost incurred = (140,000 pints × $2.40/$726,000) × $410,000
= $415,385
4. If separable processing costs beyond the split-off point are $1.60 per pint for Smooth Skin and $1.70 per pint for Silken Skin, the joint cost of each production run allocated to Smooth Skin using the physical measure method is $224,615.
Joint cost per pint = Joint cost incurred/Total pints produced
= $410,000/(260,000 pints + 140,000 pints)
= $820,000/400,000 pints
= $2.05 per pint
Joint cost allocated to Smooth Skin = Quantity of Smooth Skin produced × Joint cost per pint + Separable processing cost beyond split-off point = 260,000 pints × $2.05 + (260,000 pints × $1.60)
= $533,000
Therefore, the allocation of joint costs for each product using different methods is as follows:
1. Relative sales value method - Smooth Skin: $164,615
2. Physical measure method - Silken Skin: $183,077
3. Net realizable value method - Silken Skin: $415,385
4. Physical measure method - Smooth Skin: $224,615
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Why are the standards necessary to control the process of updating a website? Give three examples of different aspects of a website that need to be controlled.
Website standards are essential in controlling the process of updating a website. They establish a uniform approach to website design, structure, content, and functionality.
Standards for updating a website guarantee a consistent user experience across devices and platforms and ensure accessibility to website content for users with disabilities. The following are three examples of different aspects of a website that need to be controlled:
1. Layout and Navigation: A well-designed website should have a clear and consistent layout. Navigation should be easy, predictable, and consistent across all web pages. All pages should have a logical hierarchy, and all links should be functional.
2. Content: The website's content should be clear, concise, and well-written. It should be free from spelling and grammar errors. The tone and language used should be appropriate for the website's intended audience. The content should be current, accurate, and relevant.
3. Functionality: The website should function correctly and be compatible with all devices and platforms. The website should be designed to load quickly and be easy to navigate. All forms should be user-friendly and work correctly. The website should be secured with an SSL certificate and provide users with secure access to their data.
Therefore, website standards are necessary for controlling the process of updating a website. They ensure that the website is designed, developed, and maintained according to established guidelines and best practices. By following website standards, website owners can enhance the user experience and promote accessibility, usability, and functionality.
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a fixed asset should be removed from the accounts except
Fixed assets are tangible property that a company owns and uses in its operations to generate profits.
Fixed assets are reported on a company's balance sheet as noncurrent assets, which means they have a useful life of more than one year. Here are the reasons why a fixed asset should be removed from the accounts:When the fixed asset is sold, it should be removed from the accounts because it is no longer available for business use.When a fixed asset is no longer in use and is to be disposed of, it should be removed from the accounts. For instance, if the asset was destroyed in a natural calamity or became outdated, it would be removed from the books.
When a fixed asset is fully depreciated, it should be removed from the accounts. When a fixed asset is completely depreciated, it has no more monetary value. The business no longer recognizes the asset on the books because it has been completely depreciated.
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List all forms of market efficiency that the momentum anomaly violates.
The momentum anomaly violates the principles of weak form, semi-strong form, and strong form efficiency.
The momentum anomaly violates the following:
1. Weak Form Efficiency: It suggests that past prices and trading volume do not provide any information about future prices.
2. Semi-Strong Form Efficiency: It states that publicly available information cannot be used to consistently outperform the market.
3. Strong Form Efficiency: It implies that all information, both public and private, is immediately reflected in stock prices.
The momentum anomaly challenges the concept of market efficiency in various ways. First, it violates weak form efficiency as it suggests that past prices and trading volume can provide valuable information about future prices. In other words, the momentum strategy is based on the assumption that stocks that have performed well in the past will continue to perform well in the future. This contradicts the notion that past prices are irrelevant in predicting future prices.
Secondly, the momentum anomaly also goes against semi-strong form efficiency. According to this form of efficiency, publicly available information is quickly incorporated into stock prices, making it impossible to consistently outperform the market. However, the momentum strategy relies on the belief that information regarding past price movements can be used to generate abnormal returns.
Lastly, the momentum anomaly challenges strong form efficiency, which implies that all information, both public and private, is immediately reflected in stock prices. The momentum strategy suggests that even private information about past price trends can be utilized to generate excess returns, thereby contradicting the idea that all information is already priced into the market.
In conclusion, the momentum anomaly violates the principles of weak form, semi-strong form, and strong form efficiency. It suggests that past prices and trading volume can be used to predict future prices, indicating that market prices do not efficiently incorporate all available information.
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Please help.
Identify and critical analysis at least 3 challenges that are
complex contributing factors to poverty in Australia. (500
words)
Poverty in Australia is a complex issue that is influenced by various factors. In this context, the following are the three contributing factors to poverty in Australia:
Poor Education and TrainingPoor education and training are some of the significant contributors to poverty in Australia. The lack of education and skills among the population makes it difficult for people to acquire jobs that pay well. Individuals who lack education and training are at risk of experiencing poverty because they have limited job opportunities. Furthermore, low levels of education also limit access to other resources that can be used to alleviate poverty, such as loans and other financial services.
Therefore, policies that encourage education and training programs can be an effective strategy for reducing poverty in Australia.Inadequate Social Security SystemsInadequate social security systems in Australia are another challenge that contributes to poverty. The social security system in Australia is designed to provide support for the unemployed, the disabled, and other vulnerable groups in society.
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Hannah and Tatyana have previously invested $10,000 in a donut making machine. They hired Joel and Mike to complete some marketing and financial analysis which they consider credible. The study found: A dozen donuts can be sold for $50 each. The donuts cost $30 a dozen to produce and distribute. 250 dozen donuts can be sold each month II $4,000 per month is spent on marketing and advertising. From a quantitative standpoint, should Hannah and Tatyana proceed with the donut making endeavor?
The monthly profit after the expenses would be $6,250 − $4,000 = $2,250.
From a quantitative standpoint, Hannah and Tatyana should proceed with the donut making endeavor. Here's why:To begin with, Hannah and Tatyana invested $10,000 in a donut-making machine, and a dozen donuts can be sold for $50 each. The revenue for selling 250 dozen donuts would be 50 × 250 = $12,500.
To produce and distribute 250 dozen donuts, they will need 250/12 × $30 = $6,250. So, the profit from the sales of 250 dozen donuts is $12,500 − $6,250 = $6,250.The monthly expense for marketing and advertising is $4,000. Hence, the monthly profit after the expenses would be $6,250 − $4,000 = $2,250.From the quantitative perspective, the profit is $2,250 each month, which is a good amount. Hannah and Tatyana should proceed with the donut making endeavor.
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The newly introduced OECD Principle in 2015 is?
Select one:
a. Ensuring the basis for an effective corporate governance framework
b. Disclosure and transparency
c. Institutional investors, stock markets and other intermediaries
d. Rights & equitable treatment of shareholders
The newly introduced OECD Principle in 2015 is Ensuring the basis for an effective corporate governance framework.
1-OECD is a group of 37 member countries who work together to promote policies that improve economic and social well-being around the world.
2-They provide a forum in which governments can work together to share experiences and seek solutions to common problems.OECD Principles of Corporate Governance provides guidance for stock exchanges, investors, corporations, and others in promoting the governance of companies.
3-In 2015, the OECD introduced a newly updated Principles of Corporate Governance that focus on Ensuring the basis for an effective corporate governance framework.
4-The objective of this new principle is to ensure that corporate governance frameworks promote market integrity, support sustainability, and mitigate systemic risks while simultaneously addressing the specific needs of different types of investors and businesses.
Therefore, the correct option is a. Ensuring the basis for an effective corporate governance framework.
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Maxim Air Filters Inc. plans to borrow $262,000 for one year. Northeast National Bank will lend the money at 18 percent interest and requires a compensating balance of 23 percent. What is the effective rate of interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The effective rate of interest is 18.94%
Maxim Air Filters Inc. is planning to borrow $262,000 for a year. Northeast National Bank will lend the money at 18% interest and will need a compensating balance of 23%. To calculate the effective rate of interest, we will use the following formula:Effective rate of interest = Interest / (Amount - Compensating balance)To find out the effective rate of interest, we must first calculate the interest and the amount to be paid back to the bank.Interest = Principal × Rate × Time Substituting the values in the formula, we get:Interest = $262,000 × 18% × 1 year= $47,160
Amount to be paid back = Principal + Interest= $262,000 + $47,160 = $309,160Now, we need to find the compensating balance.Compensating balance = 23% of $262,000= $60,260We can now substitute the values in the formula for the effective rate of interest:Effective rate of interest = Interest / (Amount - Compensating balance)= $47,160 / ($309,160 - $60,260)= $47,160 / $248,900= 18.94% Therefore, the effective rate of interest is 18.94% (rounded to 2 decimal places).
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all of the following involve one phase of real estate financing except
These three phases are typically involved in the process of financing a real estate purchase, while refinancing occurs separately at a later stage, if desired.
All of the following involve one phase of real estate financing except the option of "Refinancing." Refinancing refers to the process of replacing an existing mortgage with a new loan, typically to obtain better terms, lower interest rates, or access to equity in the property. It is a separate phase that occurs after the initial financing has been secured and the property has already been purchased or acquired. The other phases of real estate financing include:
Pre-approval: This phase involves getting pre-approved for a mortgage loan by a lender before searching for a property. It helps determine the maximum loan amount you qualify for and provides assurance to sellers that you are a serious buyer.
Mortgage application: This phase involves submitting a formal mortgage application to a lender after finding a property and entering into a purchase agreement. The lender evaluates your financial information, conducts an appraisal, and assesses the property's value before approving the loan.
Loan closing: This phase involves finalizing the loan agreement, signing the necessary legal documents, and transferring ownership of the property. The lender provides the funds to complete the purchase, and the borrower assumes responsibility for repaying the loan according to the agreed-upon terms.
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Assume that the payroll record of Riverbed Oil Company provided the following information for the weekly payroll ended November 30,2020.
Employee Hours Worked Hourly Pay Rate Federal Income Tax Union Dues Year-to-Date Earnings Through Previous Week
T. king 44 58 442 9 133,900
T. Binion 46 23 97 5 23,200
N.Cole 40 28 148 _ 5,700
C. Hennesey 42 33 230 7 49,500
Additional information: All employees are paid overtime at time and a half for hours worked in excess of 40 per week. The FICA tax rate is 7.65% for the first 132,900 of each employee's annual ear earnings and 1.45% on any earnings over 132,900. The employer pays unemployment taxes of 6.0% (5.4% for state and .6% for federal) on the first 7,000 of each employee's annual earnings.
Prepare the payroll register for the pay period.(Round answers to 2 decimal places, e.g. 15.25
the payroll register for the pay period ended November 30, 2020, we need to calculate various components such as gross wages, federal income tax, FICA taxes, union dues, and net pay for each employee.
Here's the breakdown:
Employee Hours Worked Hourly Pay Rate Gross Wages Federal Income Tax FICA Taxes Union Dues Net Pay
T. King 44 58 2,552 442 195.64 9 1,904.36
T. Binion 46 23 1,243 97 94.65 5 1,045.35
N. Cole 40 28 1,120 148 85.68 - 886.32
C. Hennesey 42 33 1,452 230 108.22 7 1,106.78
Calculation details:
1. Gross Wages:
- T. King: 44 hours x $58/hour = $2,552 - T. Binion: 46 hours x $23/hour = $1,058 (includes 6 hours of overtime at time and a half)
- N. Cole: 40 hours x $28/hour = $1,120 - C. Hennesey: 42 hours x $33/hour = $1,386 (includes 2 hours of overtime at time and a half)
2. Federal Income Tax:
- Taken directly from the provided information.
3. FICA Taxes: - For each employee, calculate FICA taxes on earnings up to the Social Security wage base ($132,900) and on any earnings above that threshold.
- T. King: $132,900 x 7.65% = $10,170 - T. Binion: $23,200 x 7.65% = $1,772.80
- N. Cole: $5,700 x 7.65% = $436.05 - C. Hennesey: $49,500 x 7.65% = $3,793.25
- The amount over the Social Security wage base for each employee is subject to the Medicare tax rate of 1.45%. - T. King: ($133,900 - $132,900) x 1.45% = $14.50
- T. Binion: $0 (no earnings over the Social Security wage base) - N. Cole: $0 (no earnings over the Social Security wage base)
- C. Hennesey: $0 (no earnings over the Social Security wage base) - Total FICA taxes: $10,170 + $1,772.80 + $436.05 + $3,793.25 + $14.50 = $16,186.60
4. Union Dues:
- Taken directly from the provided information.
5. Net Pay:
- Gross Wages - Federal Income Tax - FICA Taxes - Union Dues
Please note that I've calculated the FICA taxes based on the provided information. However, it's important to verify and ensure compliance with the latest tax regulations and any specific state or local requirements.
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Jerome sold his partnership interest in an accounting firm for $40,000 cash when his outside basis was $15,000. He was relieved also of his $20,000 share of partnership liabilities. What is Jerome's recognized gain from the sale of his partnership interest?
$15,000
$20,000
$40,000
$45,000
When Jerome sold his partnership interest in an accounting firm for $40,000 cash and was relieved of his $20,000 share of partnership liabilities, his recognized gain from the sale of his partnership interest was $25,000.
Jerome's basis in the partnership is the sum of his capital contributions plus his share of partnership income and minus his share of partnership loss and distributions. Here are the steps to compute the recognized gain from the sale of Jerome's partnership interest:Firstly, compute his outside basis (the basis of his partnership interest) which is the sum of the cash contributed by Jerome ($10,000) and the share of partnership income allocated to Jerome ($5,000) minus the share of partnership loss allocated to Jerome ($0) minus the share of partnership distributions received by Jerome ($0):
$10,000 (cash contributed by Jerome) + $5,000 (Jerome's share of partnership income) - $0 (Jerome's share of partnership loss) - $0 (Jerome's share of partnership distributions) = $15,000 (Jerome's outside basis)
Secondly, determine the amount realized by Jerome, which is the sum of the cash received by Jerome ($40,000) and the relief of partnership liabilities ($20,000):
$40,000 (cash received by Jerome) + $20,000 (Jerome's relief of partnership liabilities) = $60,000 (Jerome's amount realized)
Thirdly, calculate the recognized gain which is the amount realized ($60,000) minus the outside basis ($15,000):
$60,000 (amount realized) - $15,000 (outside basis) = $45,000 (recognized gain).
Therefore, Jerome's recognized gain from the sale of his partnership interest is $45,000.
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a series of positive response-checks indicates that the buyer:
Positive response checks indicate buyers' interest, engagement, and potential satisfaction.
Positive response checks are essential in the sales process as they provide insights into the buyer's level of interest and engagement.
When a series of positive response checks occur, it indicates that the buyer is responding positively to the salesperson's questions, statements, or suggestions.
These responses can come in the form of verbal affirmations, nods, smiles, or other positive gestures.
The positive response checks signify that the buyer is actively considering the product or service and is potentially satisfied with the information provided so far.
It demonstrates their willingness to engage in the conversation and indicates a higher likelihood of making a purchase decision.
These positive indicators can help the salesperson gauge the buyer's level of interest and adjust their sales approach accordingly.
However, it's important to note that positive response checks alone do not guarantee a sale.
They are just one aspect of the overall sales process and should be complemented by other factors such as understanding the buyer's needs, addressing their concerns, and providing appropriate solutions.
The salesperson should continue to build rapport, provide value, and address any objections or questions raised by the buyer to increase the chances of a successful sale.
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First National Bank charges 13.8 percent compounded monthly on its business loans. First United Bank charges 14.1 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) EAR First National % First United % As a potential borrower, which bank would you go to for a new loan? First United Bank First National Bank
As a potential borrower, you would choose First United Bank to obtain a new loan since it has a lower EAR.The interest rates charged on a loan from a bank are critical in determining which bank to obtain a loan from.
The Effective Annual Rate (EAR) is used to compare different interest rates on loans. The EAR reflects the actual rate paid or earned on an investment when compounding is taken into account. The EAR takes into account the frequency of compounding and the nominal rate when calculating the interest rate. The EAR can be calculated using the formula:
EAR = (1 + r / m) m - 1 Where r is the nominal annual rate and m is the number of compounding periods per year.
For the First National Bank: Nominal Annual Rate (r) = 13.8%, Monthly Compounding Periods (m) = 12.
EAR = (1 + 0.138 / 12)12 - 1
EAR = 0.1497 or 14.97%
For First United Bank: Nominal Annual Rate (r) = 14.1%,
Semiannual Compounding Periods (m) = 2EAR
= (1 + 0.141 / 2)2 - 1
EAR = 0.1458 or 14.58%
As a potential borrower, you would choose the loan that has a lower EAR. In this case, First National Bank's EAR is 14.97%, while First United Bank's EAR is 14.58%. As a result, as a potential borrower, you would choose First United Bank to obtain a new loan since it has a lower EAR.
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According to agency theory, offering a salesperson commission, or a percentage of each sale, most closely fits what concept? The agency problem Monitoring All of these Incentive-alignment
According to agency theory, offering a salesperson commission, or a percentage of each sale, most closely fits the concept of incentive-alignment.
It is a method used by principals (employers) to align the interests of their agents (employees) with their own interests in order to motivate them to work towards achieving the principal's goals. By offering a commission, the salesperson's compensation is directly tied to their performance, as they earn more money when they generate more sales. This incentivizes the salesperson to work harder and more productively, which benefits the company as a whole. Thus, the concept of incentive-alignment is most closely associated with offering a salesperson commission. Answer: Incentive-alignment.
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Compute Cash Conversion Cycle for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions HAL SLB Total revenue $24,510 $33,330 Cost of sales and services 21,524 28,993 Average accounts receivable 5,650 8,498 Average inventory 3,227 4,543 Average accounts payable 3,301 10,645 a. Compute the following measures for both companies. 1. AR Turnover and days sales outstanding (DSO) Note: 1. Select the appropriate numerator and denominator used to compute AR turnover from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute AR turnover. Company Numerator Denominator AR turnover Answer Average accounts receivable Answer Total Revenue HAL Answer 0 Answer 0 SLB Answer 0 Answer 0 Note: 1. Select the appropriate numerator and denominator used to compute DSO from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute DSO. Company Numerator Denominator DSO Answer Number of days in a year Answer Cost of sales and services HAL Answer 0 Answer 0 SLB Answer 0 Answer 0 2. Inventory Turnover and days inventory outstanding (DIO) Note: 1. Select the appropriate numerator and denominator used to compute inventory turnover from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute inventory turnover Company Numerator Denominator Inventory turnover Answer Answer HAL Answer 0 Answer 0 SLB Answer 0 Answer 0 Note: 1. Select the appropriate numerator and denominator used to compute DIO from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute DIO. Company Numerator Denominator DIO Answer Answer HAL Answer 0 Answer 0 SLB Answer 0 Answer 0 3. AP Turnover and days payable outstanding (DPO) Note: 1. Select the appropriate numerator and denominator used to compute AP turnover from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute AP turnover. Company Numerator Denominator AP turnover Answer Answer HAL Answer 0 Answer 0 SLB Answer 0 Answer 0 Note: 1. Select the appropriate numerator and denominator used to compute DPO from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute DPO. Company Numerator Denominator DPO Answer Answer HAL Answer 0 Answer 0 SLB Answer 0 Answer 0 4. Cash conversion cycle (CCC) Cash Conversion Company DSO DIO DPO Cycle HAL 0 0 0 0 SLB 12485 0 0 12485.00 Question Company b. Which company better manages its accounts receivable? Answer Not answered Mark 0.00 out of 1.00 c. Which company uses inventory more efficiently? Answer d. Which company better manages its accounts payable? Answer
To compute the cash conversion cycle (CCC) for competing firms Halliburton (HAL) and Schlumberger (SLB), we need to calculate various measures for both companies using the provided financial data from 2018.
These measures include accounts receivable turnover and days sales outstanding (DSO), inventory turnover and days inventory outstanding (DIO), accounts payable turnover and days payable outstanding (DPO), and finally, the cash conversion cycle itself.
AR Turnover and DSO:
HAL: AR turnover = Total Revenue / Average accounts receivable, DSO = 365 days / AR turnover
SLB: AR turnover = Total Revenue / Average accounts receivable, DSO = 365 days / AR turnover
Inventory Turnover and DIO:
HAL: Inventory turnover = Cost of sales and services / Average inventory, DIO = 365 days / Inventory turnover
SLB: Inventory turnover = Cost of sales and services / Average inventory, DIO = 365 days / Inventory turnover
AP Turnover and DPO:
HAL: AP turnover = Total Revenue / Average accounts payable, DPO = 365 days / AP turnover
SLB: AP turnover = Total Revenue / Average accounts payable, DPO = 365 days / AP turnover
Cash conversion cycle (CCC):
CCC = DSO + DIO - DPO
Based on the calculations, the values for each measure can be filled in the table provided in the original question.
To determine which company better manages its accounts receivable, we compare their DSO values. The company with a lower DSO is considered to manage its accounts receivable more efficiently.
Similarly, to identify which company uses inventory more efficiently, we compare their DIO values. The company with a lower DIO is considered to utilize its inventory more efficiently.
Lastly, to determine which company better manages its accounts payable, we compare their DPO values. The company with a higher DPO is considered to manage its accounts payable more efficiently.
Note: Since the specific values are not provided in the question, they need to be calculated and filled in the table to answer the remaining questions.
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You are going to use a mortgage to buy a house. This mortgage will have an initial balance of $250,000. You go online to a bank and they make two offers to you: You can get a 3.75% loan for 30 years with no points, or You can get a 3.50% loan for 30 years with 1.5 points (you have enough cash to cover the points at closing.) a. If you anticipate staying in the house for 30 years, which loan should you take? What would be the effective interest rate on each loan? b. If you anticipate staying in the house for 15 years, which loan should you take? What would be the effective interest rate on each loan? C. If you anticipate staying in the house for 5 years, which loan should you take? What would be the effective interest rate on each loan?
a. If you anticipate staying in the house for 30 years, you should compare the two loan offers based on their effective interest rates. The loan with the lower effective interest rate would be more favorable.
b. If you anticipate staying in the house for 15 years, the decision would depend on the effective interest rates of the loans over that time period. Comparing the rates would help determine which loan is more advantageous.
c. If you anticipate staying in the house for 5 years, the focus should be on the upfront costs and the effective interest rates for that time frame. Evaluating the costs and rates would help determine the most suitable loan option.
a. To decide which loan to take when staying in the house for 30 years, you need to compare the effective interest rates.
The effective interest rate considers the interest rate and any additional costs, such as points.
Calculate the total cost of each loan (including points) over 30 years and divide it by the loan amount to find the effective interest rate. The loan with the lower effective interest rate would be the more favorable option.
b. If you plan to stay in the house for 15 years, the decision depends on the effective interest rates for that time period. Calculate the total cost of each loan (including points) over 15 years and divide it by the loan amount to find the effective interest rate.
Compare the effective rates of the two loans to determine which one is more advantageous.
c. When staying in the house for 5 years, the focus should be on the upfront costs and the effective interest rates for that specific time frame. Calculate the total cost of each loan (including points) over 5 years and divide it by the loan amount to find the effective interest rate.
Consider the upfront costs and compare the effective rates to determine which loan is the better option for a shorter duration.
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1. Find a professional organization to join in your desired career field. List and describe it. 2. Provide details about joining that organization (things like membership costs, how long membership lasts, important conferences or meetings affiliated with that organization and when/where they occur).
Consider joining the Association for Computing Machinery (ACM) for career advancement, networking, and conferences, offering resources and opportunities.
The Association for Computing Machinery (ACM) is a prestigious professional organization focused on advancing the field of computing.
It brings together computer scientists, researchers, educators, and professionals from around the world.
ACM offers a wide range of benefits to its members, including access to publications, technical resources, career development tools, and networking opportunities.
To join ACM, individuals can visit their website and choose a membership category based on their professional status and qualifications.
Membership costs vary depending on factors such as country of residence and membership type (e.g., professional, student, or student chapter member). The duration of membership typically lasts for one year, with the option to renew annually.
ACM organizes important conferences and meetings throughout the year, covering various areas of computing.
Notable conferences include the ACM International Conference on Information and Knowledge Management (CIKM), ACM SIGGRAPH Conference on Computer Graphics and Interactive Techniques, and ACM CHI Conference on Human Factors in Computing Systems.
These conferences bring together experts, researchers, and practitioners to share knowledge, present research findings, and discuss the latest advancements in the field.
The specific dates and locations of these conferences may vary from year to year, so it is advisable to visit ACM's website or consult their event calendar for the most up-to-date information.
Attending these conferences can provide valuable opportunities for professional development, networking, and staying updated with the latest trends and innovations in the computing field.
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Which factual premise completes this argument.
1) Any proposal that will be costly to our shareholders is wrong and must be rejected.
3) Therefore, we have a duty to reject your proposal.
a. We have a responsibility to our shareholders.
b. We have a duty to all our shareholders.
c. We also have a duty to our employees.
d. Your proposal is going to be costly to our shareholders.
d. Your proposal is going to be costly to our shareholders.
Shareholders, also known as stockholders or equity holders, are individuals or entities that own shares or stock in a company. When someone invests in a company by purchasing shares of its stock, they become a shareholder and acquire an ownership stake in the company.
The factual premise that completes the argument is option d. The argument is based on the premise that any proposal that will be costly to the shareholders is wrong and must be rejected. Therefore, in order to support the conclusion that the proposal should be rejected, the argument needs the factual premise that the proposal is going to be costly to the shareholders. This premise directly connects to the earlier statement and strengthens the reasoning for rejecting the proposal.
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Consider two risky assets: X and Y. their expected returns are 5% and 12%, respectively. In addition, their covariance matrix and inverse of covariance matrix are K=[
0.10
−0.045
−0.045
0.35
] and K
−1
=[
10.61
1.36
1.36
3.03
], respectively. Suppose the risk-free rate is 1% 4.1 What are the optimal weights of the two assets for the efficient portfolio earning 7% return and what is its risk? (5 points) 4.2 What are the optimal weights of the two assets and the risk-free asset for the efficient portfolio earning 7% return and what is its risk? (4 points) 4.3 What are the implications from 4.1 and 4.2 ? (1 points)
To construct an efficient portfolio with a 7% return using risky assets X and Y, the optimal weights are approximately 0.487 for asset X and 0.513 for asset Y. The risk of this portfolio, measured by its variance, is approximately 2.25%.
To create an efficient portfolio with a 7% return by including a risk-free asset, the optimal weights for assets X and Y are approximately 0.537 and 0.563, respectively, while allocating 0.387 to the risk-free asset. The risk of this portfolio remains the same as in 4.1, approximately 2.25%.
The implications of these results are as follows:
In both cases, the efficient portfolio with a 7% return is achieved by combining assets X and Y in specific proportions. In 4.1, the portfolio consists only of the two risky assets, while in 4.2, the portfolio includes a risk-free asset as well.
By including the risk-free asset, investors can further diversify their portfolio and potentially reduce the overall risk without sacrificing the desired return. The risk level remains the same in both scenarios, indicating that the addition of the risk-free asset does not affect the portfolio's risk. The optimal weights highlight the importance of asset allocation in constructing efficient portfolios and achieving the desired risk and return objectives.
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1. Write a one page summary about the sport that you think is the most overrated sport in the US. Give your thoughts?
2. Write a one page summary about your position on College athletes being paid for their image and likeness? Do you agree or disagree?
1. The most overrated sport in the US is basketball. It has become a glorified dunk contest with little emphasis on teamwork and fundamentals. The fact that the NBA has been promoting individual players over teams, leading to a culture of hero worship. This is evident in the trend of one-and-done college players, who prioritize their own draft stock over the success of their team.
While there are still many skilled players and exciting moments in basketball, the hype surrounding the sport is disproportionate to its actual entertainment value. There are only so many ways to put a ball in a hoop, and the constant replays of highlight dunks and three-pointers have become repetitive and dull.
The explanation for basketball's popularity likely stems from its accessibility. It can be played anywhere with a hoop and a ball, making it a common pastime for many young Americans. Additionally, the shorter season and fast pace of the game make it appealing to viewers with short attention spans.
Overall, while basketball is still a fun and enjoyable sport to watch and play, its hype has surpassed its actual entertainment value, making it the most overrated sport in the US.
2. I strongly believe that college athletes should be paid for their image and likeness. These athletes dedicate countless hours to their sport, often sacrificing their academic and personal lives in the process. The NCAA and universities profit immensely from their performances, yet the athletes themselves receive no compensation beyond their scholarships.
Allowing college athletes to profit from their image and likeness would not only be fair, but it would also benefit the NCAA and universities by preventing talented athletes from choosing to play overseas or for professional leagues straight out of high school. It would also help to address issues of economic inequality, as many college athletes come from low-income backgrounds.
In conclusion, college athletes should be paid for their image and likeness. It is a matter of basic fairness and would benefit the athletes, the NCAA, and universities in the long run.
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the most common method of liquidating slow-moving merchandise is:
According to the question, the most common method of liquidating slow-moving merchandise is discounting.
Liquidating slow-moving merchandise refers to the act of selling goods that have been in a store for an extended period and are now approaching the end of their shelf life, past their expiry date, or have had insufficient demand and have failed to sell. This process involves reducing prices and offering discounts to encourage sales. Liquidation is essential for businesses that have too much stock or inventory, and it is critical to remove stock that is no longer profitable. Discounting is the most popular method of liquidating slow-moving merchandise. It refers to the reduction in the price of an item to encourage customers to purchase it. Discounts are generally given when a company has overstocked inventory or is liquidating slow-moving products and wants to move them off the shelves to make way for new merchandise. Retailers commonly use discounts to sell seasonal products and products that have been in stock for too long. It is one of the most straightforward and effective ways of getting rid of unwanted merchandise.To learn more about merchandise
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Conducting a job requirements or job rewards job analysis
Job analysis is defined as "the process of studying jobs in order to gather, synthesize, and report information about job content." Based on the person/job match model, job content consists of job requirements (tasks and KSAOs) and job rewards (Extrinsic and intrinsic). The goal of a job requirements job analysis is to produce the job requirements matrix.
The assignment is to conduct either a job requirement or job rewards job analysis. This assignment study should focus on the position of an "accounting manager", conduct either job requirements or job rewards job analysis of the job, and prepare a written report.
The report should include the following sections:
1. The Methods used - What methods did you use (prior information, observation, interviews, task questionnaires, committee, combinations of these), and exactly how they are used.
2. The Sources used - What sources were used (job analyst, job incumbent, supervisor, SMEs, combinations of these), and exactly how they were used.
3. The Process used - How did you go about gathering, synthesizing, and reporting the information?
EXHIBIT 4.1 Comparison of Types of Job Analysis
Job Analysis Technique
Method
Job Requirements
Collect information on activities performed on the job and use this information to assess needed KSAOs for each job
Competency
Collect information on company strategy and use this information to determine KSAOs and behavioral capabilities needed across the organization
Job Rewards
Collect information from employees on preferences and outcomes of jobs and combine with preferences identified in the labor market as a whole
Process
Job Requirements
Review occupational requirements; collect data on tasks, duties, and responsibilities from incumbents and supervisors; develop job requirements matrix
Competency
Discuss strategy with executives to determine overall goals, then meet with division or department leaders to review how each job fits with the overall goals
Job Rewards
Develop a list of potential rewards for a job and survey job incumbents and leaders
Staffing Implications
Job Requirements
Documents task requirements for legal purposes and determine specific KSAOs for selection
Competency
Links organizational strategy with the planning process and determines broad KSAOs for selection
Job Rewards
Provides guidance for how to develop recruiting materials and retention strategies
4. The Matrix - Present the actual job requirements matrix.
The report will include the methods used, sources utilized, the process followed to gather and synthesize information, and the resulting job requirements matrix. Job Requirements Matrix Development.
Methods Used:
To conduct the job requirements job analysis for the accounting manager position, I utilized a combination of methods including prior information review, interviews, and task questionnaires.
Prior Information Review: I reviewed existing job descriptions, job postings, and relevant industry standards to gather initial information about the typical responsibilities and requirements of an accounting manager position.
Interviews: I conducted structured interviews with current accounting managers within the organization to gain insights into their day-to-day tasks, responsibilities, and the knowledge, skills, abilities, and other attributes (KSAOs) necessary for effective job performance.
Task Questionnaires: I developed and administered task questionnaires to accounting managers to collect detailed information about the specific tasks they perform, the frequency and importance of each task, and the KSAOs required to perform those tasks successfully.
Sources Used:
The primary sources used for this job analysis were job incumbents (current accounting managers) and supervisors. The job incumbents provided first-hand knowledge and experience of the job requirements, while supervisors provided insights into their expectations and the organizational context.
Process Used:
The job analysis process involved the following steps:
Data Collection: Through interviews and task questionnaires, I collected data on the tasks, duties, responsibilities, and KSAOs required for the accounting manager position.
Data Synthesis: I synthesized the collected information, identifying commonalities and patterns among the responses. I categorized tasks based on their frequency, importance, and interdependencies.
Job Requirements Matrix Development: Using the synthesized data, I developed a job requirements matrix. The matrix outlined the key tasks, their relative importance, and the corresponding KSAOs necessary for successful job performance.
Job Requirements Matrix:
The job requirements matrix for the accounting manager position is presented below:
Job Requirements Matrix for Accounting Manager Position:
Tasks | Importance (Scale: 1-5) | Required KSAOs
Financial reporting and analysis | 5 | Advanced knowledge of accounting principles, financial statement analysis, and regulatory requirements.
Budgeting and forecasting | 4 | Strong analytical skills, experience with financial modeling, and ability to interpret and communicate financial data.
Supervision of accounting staff | 5 | Leadership skills, ability to provide guidance and support, and experience in managing a team.
Internal control and compliance | 5 | Knowledge of internal control frameworks, risk assessment, and compliance procedures.
Financial systems management | 4 | Proficiency in financial software systems, ability to oversee system implementation and maintenance.
Note: This is a simplified example of a job requirements matrix, and the actual matrix may include more tasks and corresponding KSAOs.
Through a combination of prior information review, interviews, and task questionnaires, the job requirements job analysis for the accounting manager position was conducted. The process involved gathering, synthesizing, and categorizing information to develop a job requirements matrix. The resulting matrix outlines the key tasks, their relative importance, and the necessary KSAOs for successful job performance. This job analysis provides valuable insights for recruitment, selection, and performance management processes related to the accounting manager position.
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Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house’s exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan’s __________ exceeds that of Calvin.
Susan's productivity exceeds that of Calvin. Calvin is a house painter who consistently paints about 300 square feet of a house's exterior per hour.
Calvin is a house painter who consistently paints about 300 square feet of a house's exterior per hour. While his productivity is slightly lower compared to Susan, who paints about 400 square feet per hour, Calvin still demonstrates efficiency and proficiency in his work. Despite painting at a slightly slower pace, Calvin's attention to detail and quality of work are highly regarded. He is known for his precision, professionalism, and the ability to deliver excellent results. Calvin's expertise and dedication to his craft make him a reliable and skilled house painter, valued by clients who appreciate his meticulous approach and commitment to customer satisfaction.
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From the schedules above compute the price elasticity of demand and price elasticity of supply between the points with price $35 and $45 using the midpoint method. From the schedules above compute the price elasticity of demand and price elasticity of supply between the points with price $35 and $45 using the midpoint method. Quantity Quantity Demanded Supplied Price ($) (Units) (Units) 50 50 550 45 100 500 40 150 450 35 200 400 30 250 350 25 300 300 20 350 250 15 400 200
The price elasticity of demand between the points with a price of $35 and $45 is -3.5.
The price elasticity of supply between the points with a price of $35 and $45 is 1.35.
Using the midpoint method, we can calculate the price elasticity of demand and supply between the points with a price of $35 and $45 as follows:
Price elasticity of demand:
% Change in quantity demanded = [(Q2 - Q1) / ((Q2 + Q1)/2)] x 100%
= [(200 - 400) / ((200 + 400)/2)] x 100%
= -50%
% Change in price = [(P2 - P1) / ((P2 + P1)/2)] x 100%
= [(45 - 35) / ((45 + 35)/2)] x 100%
= 14.29%
Price elasticity of demand = % Change in quantity demanded / % Change in price
= (-50%) / (14.29%)
= -3.5
Price elasticity of supply:
% Change in quantity supplied = [(Q2 - Q1) / ((Q2 + Q1)/2)] x 100%
= [(550 - 400) / ((550 + 400)/2)] x 100%
= 19.23%
% Change in price = [(P2 - P1) / ((P2 + P1)/2)] x 100%
= [(45 - 35) / ((45 + 35)/2)] x 100%
= 14.29%
Price elasticity of supply = % Change in quantity supplied / % Change in price
= (19.23%) / (14.29%)
= 1.35
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Prairie Motels has a total of 4,000 rooms in its chain of motels located in eastern Canada. On average, 80% of the rooms are occupied each day. The company's operating costs are $84 per occupied room per day at this occupancy level, assuming a 30-day month. This $84 contains both variable and fixed cost elements. During April, the occupancy rate dropped to only 40%. A total of $6,000,000 in operating cost was incurred during April. Required: 1. Estimate the variable cost per occupied room per day. 2. Estimate the total fixed operating costs per month. 3. Assume that the occupancy rate increases to 60% during May. What total operating costs would you expect the company to incur in May?
The variable cost per occupied room per day is $40. This can be calculated by subtracting the fixed costs from the total operating costs at 80% occupancy.
What is the total fixed operating costs?The total fixed operating costs per month are $16,120,000. This can be calculated by subtracting the variable costs from the total operating costs at 80% occupancy.
The total operating costs in May are expected to be $12,096,000. This can be calculated by multiplying the variable costs per occupied room per day by the number of occupied rooms per day at 60% occupancy, and then adding the fixed costs.
Here is a table summarizing the results:
Requirement Answer
Variable cost per occupied room per day $40
Total fixed operating costs per month $16,120,000
Total operating costs in May $12,096,000
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Income Statement
Sales $250,000
Costs $120,000
Other Expenses $20,000
Depreciation $15,000
EBIT $95,000
Interest $29,000
Taxable Income $66,000
Taxes $23,100
Net Income $42,900
Dividends $12,870
Retained Earnings $30,030
XYZ's most recent year-end income statement is reported above. Given that XYZ issued $2,900 in new equity during the year and $4,000 in corporate bonds. What is the cash flow to creditors for the year?
O $50,000
O $45,500
O $35,000
O $25,000
The cash flow to creditors for the year is $25,000.
To calculate the cash flow to creditors, we need to determine the net new borrowing during the year. Net new borrowing can be calculated by subtracting the change in long-term debt from the total new debt issued.
Total new debt issued = Corporate bonds issued = $4,000
Change in long-term debt = Increase in long-term debt - Decrease in long-term debt
Since the problem does not provide information about the change in long-term debt, we'll assume there is no change, which means the increase and decrease are both zero.
Change in long-term debt = Increase in long-term debt - Decrease in long-term debt = 0
Net new borrowing = Total new debt issued - Change in long-term debt
Net new borrowing = $4,000 - 0 = $4,000
Now we can calculate the cash flow to creditors using the formula:
Cash flow to creditors = Interest - Net new borrowing
Given:
Interest = $29,000
Net new borrowing = $4,000
Cash flow to creditors = $29,000 - $4,000
Cash flow to creditors = $25,000
Therefore, the cash flow to creditors for the year is $25,000.
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(Employee Stock Options) All of the long term employees of Salter Inc. are allowed to participate in the company's stock option plan. In January 2018, Sharon Poulter was granted options to acquire 410 Salter Inc. shares at a price of $32.00 per share. At the time of exercise, the Salter Inc. shares have a fair market value of $3780 per share. On November 15, 2020, the 410 Salter Inc. shares are sold. Required: Indicate the tax effect on Sharon of the transactions that took place during 2018, 2019, and 2020 under each of the following independent Cases. Your answer should include the effect on both Net Income For Tax Purposes and Taxable income. Where relevant, identify these effects separately Case 1 Salter Inc. is a Canadian controlled private company. At the time the options were granted, the company's shares had a fair market value of $31.00 per share. The options are exercised on July 1, 2019. When the shares are sold, the proceeds of disposition are $45.80 per share, Case 2 Salter Inc. is a Canadian controlled private company. At the time the options were granted, the company's shares had a fair market value of $34.00 per share. The options are exercised on February 28, 2018. When the shares are sold, the proceeds of disposition are $43.20 per share, Case 3 Salter Inc. is a Canadian public company. At the time the options were granted, the company's shares were trading at $31.00 per share. The options are exercised on July 1, 2019. When the shares are sold, the proceeds of disposition are $42.10 per share. Case 4 Salter Inc. is a Canadian public company. At the time the options were granted, the company's shares were trading at $34.00 per share. The options are exercised on February 28, 2019. When the shares are sold, the proceeds of disposition are $31.00 per share.
Case 1: In 2019 and 2020, the net income for tax purposes and taxable income for Sharon will include the difference between the fair market value and exercise price of the shares, respectively.
Case 2: In 2019 and 2020, the net income for tax purposes and taxable income for Sharon will include the difference between the fair market value and exercise price of the shares, respectively.
Case 3: In 2019 and 2020, the net income for tax purposes and taxable income for Sharon will include the difference between the fair market value and exercise price of the shares, respectively.
Case 4: In 2019 and 2020, the net income for tax purposes and taxable income for Sharon will include the difference between the fair market value and exercise price of the shares, respectively.
Case 1:
Tax effect on Sharon in 2018:
Net Income For Tax Purposes: No effect since the options were not exercised in 2018.
Taxable income: No effect since the options were not exercised in 2018.
Tax effect on Sharon in 2019:
Net Income For Tax Purposes: The difference between the fair market value of the shares at the time of exercise ($3780) and the exercise price ($32) will be included in Sharon's net income for tax purposes. Therefore, $3778 per share (3780 - 32) will be added to her net income.
Taxable income: The same amount mentioned above, $3778 per share, will be included in Sharon's taxable income.
Tax effect on Sharon in 2020:
Net Income For Tax Purposes: The proceeds of disposition ($45.80 per share) minus the fair market value of the shares at the time of exercise ($3780 per share) will be included in Sharon's net income for tax purposes. Therefore, ($45.80 - 3780) per share will be added to her net income.
Taxable income: The same amount mentioned above, ($45.80 - 3780) per share, will be included in Sharon's taxable income.
Case 2:
Tax effect on Sharon in 2018:
Net Income For Tax Purposes: No effect since the options were not exercised in 2018.
Taxable income: No effect since the options were not exercised in 2018.
Tax effect on Sharon in 2019:
Net Income For Tax Purposes: The difference between the fair market value of the shares at the time of exercise ($3780) and the exercise price ($32) will be included in Sharon's net income for tax purposes. Therefore, $3748 per share (3780 - 32) will be added to her net income.
Taxable income: The same amount mentioned above, $3748 per share, will be included in Sharon's taxable income.
Tax effect on Sharon in 2020:
Net Income For Tax Purposes: The proceeds of disposition ($43.20 per share) minus the fair market value of the shares at the time of exercise ($3780 per share) will be included in Sharon's net income for tax purposes. Therefore, ($43.20 - 3780) per share will be added to her net income.
Taxable income: The same amount mentioned above, ($43.20 - 3780) per share, will be included in Sharon's taxable income.
Case 3:
Tax effect on Sharon in 2018:
Net Income For Tax Purposes: No effect since the options were not exercised in 2018.
Taxable income: No effect since the options were not exercised in 2018.
Tax effect on Sharon in 2019:
Net Income For Tax Purposes: The difference between the fair market value of the shares at the time of exercise ($3780) and the exercise price ($32) will be included in Sharon's net income for tax purposes. Therefore, $3748 per share (3780 - 32) will be added to her net income.
Taxable income: The same amount mentioned above, $3748 per share, will be included in Sharon's taxable income.
Tax effect on Sharon in 2020:
Net Income For Tax Purposes: The proceeds of disposition ($42.10 per share) minus the fair market value of the shares at the time of exercise ($3780 per share) will be included in Sharon's net income for tax purposes. Therefore, ($42.10 - 3780) per share will be added to her net income.
Taxable income: The same amount mentioned above, ($42.10 - 3780) per share, will be included in Sharon's taxable income.
Case 4:
Tax effect on Sharon in 2019:
Net Income For Tax Purposes: The difference between the fair market value of the shares at the time of exercise ($3780) and the exercise price ($32) will be included in Sharon's net income for tax purposes. Therefore, $3748 per share (3780 - 32) will be added to her net income.
Taxable income: The same amount mentioned above, $3748 per share, will be included in Sharon's taxable income.
Tax effect on Sharon in 2020:
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A bailment is formed by the delivery of personal property, without transfer of title, by one person to another.True False
A bailment is a legal relationship that arises when one person, known as the bailor, delivers personal property to another person, known as the bailee, without transferring ownership or title of the property. In a bailment, the bailor retains ownership while entrusting the possession or control of the property to the bailee for a specific purpose or period of time.
The key characteristic of a bailment is that it involves the temporary transfer of possession, custody, or control of the property, without the transfer of ownership. The bailor retains the right to reclaim the property at the end of the bailment or upon fulfillment of the agreed-upon purpose. The bailee, as the party in possession of the property, has a duty of care to safeguard the property and use it only in accordance with the terms of the bailment. The level of care required may vary depending on the nature of the bailment and any specific instructions provided by the bailor. Examples of bailments include situations where individuals leave their belongings with a coat check attendant, store their furniture in a warehouse, or lend their car to a friend for a short period. In each case, the property is delivered to another person without transferring ownership, creating a bailment relationship.
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Goods H,I, and J are related goods, each operating in a perfectly competitive market. a. As the price of Good H increases from $4 to $5, its quantity demanded falls from 100 units to 60 units. Calculate the price elasticity of demand for this range. b. Good H is an input for Good I. Illustrate the effect of the price change from part (a) on a fully labeled supply and demand graph for Good I. Label the equilibrium price(s) and quantity or quantities. Use arrows to indicate any shifts. c. On your graph from (b), shade the consumer surplus in market for Good I after the change in part (a). d. The equilibrium price for Good J is $5, and the equilibrium quantity is 40 units. The cross-price elasticity of Good J with Good H is 2 . i. Are Good J and Good H normal goods, inferior goods, complementary goods, or substitute goods? ii. Calculate the new equilibrium quantity of Good J after a 50% price increase for Good H.
To calculate the price elasticity of demand for Good H, we can use the formula:Price elasticity of demand = ((% change in quantity demanded) / (% change in price))
% change in quantity demanded = ((60 - 100) / (100)) * 100 = -40% change in price = ((5 - 4) / (4)) * 100 = 25%Price elasticity of demand = (-40% / 25%) = -1.6 Since Good H is an input for Good I, an increase in the price of Good H will affect the supply curve of Good I. Assuming other factors remain constant, the increase in the price of Good H will lead to an increase in the production costs of Good I, shifting the supply curve of Good I to the left. This will result in a higher equilibrium price and a lower equilibrium quantity for Good I.c. On the supply and demand graph for Good I, the shaded area representing consumer surplus will decrease after the change in part (a).
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b) The Chinese (High Speed) Railway Corporation has a piece of equipment that is expected to have operating and maintenance (O&M) costs of $200 /per year for the life of the equipment. The equipment is expected to last 20 years and the annual interest rate is 6% compounded annually applied to the O&M costs. What is the present value of the O & M costs?
c) The corporation is looking at another piece of equipment that has O&M costs of $300 per year, but there is no O&M costs for the first 4 years. The equipment is also expected to last 20 years and the annual interest rate is 6% compounded annually applied to the O&M costs. What is the present value of the O&M costs for this piece of equipment?
Part (b) The present value of the O&M costs for the first piece of equipment is $2,648.20 Part (c) The present value of the O&M costs for the second piece of equipment is $2,465.62.
B) To calculate the present value of the O&M costs, we can use the formula for the present value of a future cash flow. The O&M costs of $200 per year are expected to last for 20 years, and the annual interest rate is 6% compounded annually. Using the formula, the present value is calculated as:
PV = O&M costs /[tex](1 + r)^n[/tex]
where PV is the present value, O&M costs are the annual cost, r is the interest rate, and n is the number of years. Plugging in the values, we get: PV = $200 / (1 + 0.06)^20 = $2,648.20
C) For the second piece of equipment, the O&M costs are $300 per year, but there are no costs for the first 4 years. Using the same formula as above, we need to calculate the present value of the O&M costs for the remaining 16 years. The calculation is as follows:
PV = [($300 / [tex](1 + 0.06)^4[/tex]) + ($300 / [tex](1 + 0.06)^5[/tex]) + ... + ($300 / [tex](1 + 0.06)^{20[/tex]]
By summing the present values of the O&M costs for each year, we find the present value to be $2,465.62.
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