It is false that A minimum viable product with so many features that the consumer may be overwhelmed by everything involved.
What is minimum viable product?A minimum viable product can be described as the version of a product that is been giving out to the consumer and this product do posses the enough features that is needed by the customer so they can give their feedback and this feedback can be used in the product development in the future time.
In conclusion, the case above is false because it the customer may not be overwhelmed to that extent.
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If the account earns 6% compounded interest yearly, how much would you have to deposit today?
The amount that you would have to deposit today in the account that is 6% compounded yearly is $5,038.
How to find the amount?The account in question compounds yearly at a rate of 6% and you want to have $6, 000 in three years. You therefore need to deposit an amount that when compounded over three years, grows to $6, 000.
The $6, 000 is the future value so the amount can be found by the future value formula:
Future value = Amount x ( 1 + interest rate) ^ number of years
6, 000 = Amount x ( 1 + 6%) ³
Amount = 6, 000 / 1.06³
Amount = $5, 038
First part of the question is:
You would like to have $6,000 dollars in an account after three years' time.
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#
1. Review the list below, putting a:
● 1 next to those that are needs for you,
. a 2 next to high priority wants, and
a 3 next to low priority wants.
●
• You can leave some blank if they don't fit into your lifestyle at all
.
Fill in the empty boxes with iterns you value that we haven't included
#
ITEM
ITEM
Trendy clothing
Non-essential beauty/hygiene or
grooming items/services
etc)
Subscriptions (Netflix, Hulu, Spotify,
Ride-sharing or mobility apps (Uber,
Lyft, Bird, Jump)
Vacation/travel
Electronics (video games, phones, etc.)
Out-of-home entertainment
Personal hobbies (membership fees,
equipment, uniforms, clubs or teams, etc)
Professional expenses (employment
resources, online course subscriptions,
membership fees, conference attendance,
etc)
Holiday and other gift giving
Charitable or religious donations
Transportation costs (maintenance, car
payments, insurance, public
transportation)
Cell phone plan
Dining out
You must think critically to list the products and services that are needed to rank them as high or low priority.
What are essential goods?Essential goods are those products or services produced in the economy that are necessary to meet the basic needs of individuals, such as:
FoodsMedicinesWorking devicesKnowing this concept, we will now relate the items listed by the question as low or high priority products or services:
Trendy clothing: low priorityNon-essential beauty/hygiene or grooming items/services: low prioritySubscriptions or mobility apps: low priorityVacation/travel: low priorityElectronics: high priorityOut-of-home entertainment: low priorityPersonal hobbies: high priorityProfessional expenses: high priorityHoliday and other gift giving: low priorityCharitable or religious donations: high priorityTransportation costs: high priorityCell phone plan: high priorityDining out: low priorityTherefore, identifying consumer goods as high or low priority is also related to the individual's financial condition, income, personal financial planning, financial goals and objectives.
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Purchased computers 300 and the payment is made through cheque
Answer:
300 computers being a big no. it would cost much more currency even for which most possibly we won't able to give cash to the enterprise.
Explanation:
While dealing with a big and huge amount it is prefferable to go with and do the payments through the cheque,while the cash option is a bit hectic.
Question 2 (0.5 points) ✓ Saved
Ms. Studebaker started as a sole proprietor and now that she has employees, she must consider her company
as a factor for drawing on the right talent.
a) General Liability Insurance
b) Third Party Supply Management
c) Culture
d) Employee Turnover
e) Supplier Relationships
Since Ms. Studebaker began as a solo entrepreneur and now has staff, she must take her company culture into account while trying to attract the best personnel.
What exactly is corporate culture and why is it significant?Workplace behavior is governed by company culture. It's the culmination of all of your official and informal processes, attitudes, and beliefs that work together to give your staff and consumers a positive experience. Company culture is really about how things are done in the office.
How can a company's culture recruit employees?A positive, visible, and embedded culture that is supported at all organizational levels can increase retention in addition to attracting new employees; staff members who identify with the culture and values of the company are more likely to be satisfied with their jobs and motivated to stick around.
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Depreciation by Three Methods; Partial Years McMullen Company purchased tool sharpening equipment on May 1 for $162,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $3,600. The equipment was used for 2,400 hours during Year 1, 3,900 hours in Year 2, 4,050 hours in Year 3, and 1,650 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: Round all values for each depreciation method and each year to the nearest whole dollar.
Answer:ayton Company purchased tool sharpening equipment on October 1 for $108,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, a residual value of $7,200. The equipment was used for 1,350 hours during year 1, 4,200 hours in Year 2, 3,650 hours in Year 3, and 2,800 hours in Year 4.
Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
a. Straight-line method. Answer Year 4 amount.
Year Amount
Year 1 $8,400
Year 2 $33,600
Year 3 $33,600
Year 4 $_____
c. Double-declining balance method. Answer years 2 to 4.
Year Amount
Year 1 $18,000
Year 2 $_____
Year 3 $_____
Year 4 $_____
Explanation:
Why is storing inventory considered a "con" for businesses that sell physical products?
A.) Clients end up coming to your home
B.) It takes up a lot of space
C.) It's always a fire hazard
D.) It requires you to rent a storage unit
Answer:
D
Explanation:
It requires you to rent a storage unit
Which of the following file extensions can the browser render with no help from any other software?
A file with the extension.html may be opened in a browser even if the browser does not have any additional software or extensions installed.
Simply clicking on the file will cause it to open in your browser, at which point it will display the content that is included inside the file.
What is a web browser extension?Generally, A web browser may have its functionality enhanced via the installation of add-ons known as extensions.
The majority of browsers support a diverse range of extensions, which may include changes to the user interface, cookie management, the banning of advertisements, and the custom scripting and design of web pages.
It is possible for a browser to open a file that ends in.html even if the browser does not have any extra software or extensions installed.
Simply clicking on the file will cause it to open in your browser, at which time it will show the content that is included inside the file. Clicking on the file will cause it to open in your browser.
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Boothe Company has sales of $1,690,000 on 67,600 units. Variable cost of $1,014,000 and fixed costs totaled $549,000. Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced and result in the following changes for Booth Company. Variable Costs will increase by 15% per unit and fixed costs will increase by $48,000. Management feel that $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in unit sold. Prepare a CVP Income Statement assuming these changes have been made.
The CVP Income Statement for Boothe Company is as follows:
Boothe Company
CVP Income StatementsBefore After Changes
Sales Revenue $1,690,000 $1,703,520
Variable Cost $1,014,000 $1,049,490
Contribution margin $676,000 $654,030
Fixed Costs $549,000 $597,000
Net income $127,000 $57,030
What is CVP analysis?CVP analysis is an accounting technique to discover how changes in variable and fixed costs impact the company's profits.
Cost Volume Profit analysis shows the break-even point in units and dollars, reflecting the sales units and dollars required to ensure that all costs are recovered.
Before After Changes
Sales Revenue $1,690,000 $1,703,520 ($28 x 60,840)
Units sold 67,600 60,840 (67,600 x 1 - 10%)
Selling price $25 $28 ($25 + $3)
Variable Cost $1,014,000 $1,049,490 (60,840 x $17.25)
Variable cost per unit $15 $17.25 ($15 x 1 + 15%)
Fixed costs $549,000 $597,000 ($549,000 + $48,000)
Thus, using the CVP analysis, the industrial changes will reduce Boothe Company's net income by $70,000.
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Ann Carr planted a rose garden on the corner of Mrs. Baird's property.
Mrs. Baird was homebound and never left her house. Mrs. Baird never
knew that Ann Carr had planted a rose garden on her property. The
statutory period had elapsed and Ann Carr claimed the rose garden.
Would Ann Carr have a good chance of getting rights to an easement by
prescription?
2006
A Yes, because she had made open use of the property.
B Yes, because she made improvements that would not have been made otherwise.
C No, because Mrs. Baird did not know of the rose garden.
D No, because no improvements had been made to the property
Yes, because she had made open use of the property, Ann Carr have a good chance of getting rights to an easement by prescription. Hence Option (A) is the answer.
How do you prove a prescriptive easement?A prescriptive easement is one that has been gained over a long period of time through open, well-known usage of the owner's property that is against the owner's rights. State statutes specify the number of years necessary for such an easement.
The usage has to be (1) adverse (often referred to as "hostile"), (2) actual, open, and notorious, (3) continuous and uninterrupted, and (4) for the statutorily needed period of time in order to establish a prescriptive easement. Prescriptive easements, which are unusual, also become legal easements after rights have been used for more than 40 years.
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Intermediate Accounting ll
The interest income recognized by the investors in 2025 is $30, 410. (Option A)
What is interest income?The difference between revenue earned by interest-bearing assets and the cost of repaying liabilities is referred to as net interest income.
Commercial and personal loans, mortgages, construction loans, and investment securities are common assets for banks. Customers' deposits make up the majority of the liabilities.
The calculation for the interest income recognized is given as follows:
Interest Revenue in year 2024 = $ 303,000 x 10% market rate = $ 30300
Cash interest received in year 2024 = $ 365,000x 8% = $ 29,200
Discount on investment amortized = $ 33200 – 32000 = $ 1,100
Therefore,
Interest revenue to be recognized in the Year 2025
= ($303,000 + 1,100) x 10%
= 304100 x 10%
= $ 30, 410
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How can a young adult maximize the benefits of their education and career training? Determining a specific industry of interest early in their programs Earning the highest degree possible from one of the best universities Trying as many different types of classes and training as are available Avoiding any career certification programs as they are not worthwhile
By trying as many different types of classes and training as are available, a young adult abilities maximize the benefits of their education and career training communication.
You can also boost your confidence by developing new communication and problem-solving abilities and by accomplishing your goals. Your personality type and the degree of job fulfilment you want are two of the most important factors to take into account. Show how your goals fit with the long-term objectives and vision of the organization. Explain to the interviewer communication the position will help you acquire the knowledge and expertise required to realize abilities career goals. Making a career plan is crucial because it provides the direction you need and clarifies where you want to go in your career.
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Under what conditions do consumers bear the full burden of an excise tax levied on
the producer?
Answer:
If demand is more inelastic than supply, consumers bear most of the tax burden.
Now suppose the manager at Macy’s had 100 scarves in inventory. She decided to put the scarves on sale for $10, but an employee accidentally listed the sales price as $12. To the manager’s surprise, the store sold all 100 scarves at the $12 sales price.
How much producer surplus did Macy’s receive from the hundredth scarf sold?
The producer surplus that Macy would receive from the hundredth scarf sold is $2.
How to find the producer surplus?The producer surplus refers to the amount that a producer gains from selling a good, over the amount that they were willing to sell the good.
The producer surplus can be found by the formula:
= Selling price - Marginal cost
Selling price = $12
Marginal cost = $10
The producer surplus therefore is:
= 12 - 10
= $2
In conclusion, the producer surplus that Macy would have gotten from selling the hundredth scarf is $2.
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The federal law that specified that men and women doing equal jobs must be paid the same wage is the
Blank blank act of 1963
The federal law that specified that men and women doing equal jobs must be paid the same wage is the Equal Pay Act of 1963.
In accordance with the Equal Pay Act of 1963, employers in the United States are not allowed to pay men and women who perform the same job duties and are subject to comparable working circumstances different wages.
It falls under the 1938 Fair Labor Standards Act as amended. Although there are still income gaps between the sexes, the act constituted a significant step toward gender equality.
The Equal Pay Act is based on the idea that everyone should get equal pay for equal effort. Salary, salary, overtime, bonuses, benefits, stock options, profit-sharing schemes, vacation and holiday compensation, vehicle allowances, and expenditure reimbursements are all taken into consideration.
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Jessica has $24,383 to invest in a bank certificate of deposit for 13 years. The bank is paying 6% interest per year compounded monthly. How much will Jessica's investment be
worth at the end of the 13 year period? (round to 2 decimal places)
Use the correct formula from below to solve this problem.
Jessica's investment worth at the end of the 13 year period is $43401.74
interest = 24383*13*6/100= 19018.74
amount = 19018.74 + 24383 = 43401.74
What is interest?In relation to the amount lent, deposited, or borrowed, the amount of interest due each period is expressed as an interest rate. The amount lent or borrowed, as well as the interest rate, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall.
The rate indicates the precise amount of interest that a borrower will either earn or pay on a loan. A $100 loan at a nominal interest rate of 6%, for instance, would result in interest charges of $6 ($100 X 0.06). Even though the loan's size grows, the interest rate stays the same. If the debt was increased to $1000, the borrower would continue to pay 6%.
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The following is cost information for the Creamy Crisp Donut Company.
Entrepreneur's potential earnings as a salaried worker = $40,000
Annual lease on building = $25,000
Annual revenue from operations = $420,000
Payments to workers = $150,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Creamy Crisp's total economic costs are:
A. $309,000.
B. $183,000.
C. $111,000.
D. $189,000.
If entrepreneur's forgone interest on personal funds used to finance the business $6,000. Creamy Crisp's total economic costs are: C. $111,000.
What is economic profit?Economic profit can be calculated by deducting the cost from the revenue.
Using this formula to find the total economic costs
Total economic costs = Revenue - Total cost
Let plug in the formula
Total economic costs = $420,000 - ( $40,000 + $25,000 + $150,000 + $8,000 + $80,000 + $6,000)
Total economic costs =$420,000 - $309,000
Total economic costs = $111,000
Therefore we can conclude that the correct option is C.
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Question 10
Explain the impact low interest rates have on the economy
and why lowering them is a tool used in expansionary
policy..
Low interest rates are meant to encourage economic expansion. Low interest rates are supposed to motivate people to borrow and spend more freely, including individuals, businesses, and governments. As a result of rising consumer demand and more company investment, the GDP will grow and more jobs will be created. Lowering interest rates aids in boosting the amount of money in circulation, which stimulates demand and, in turn, enhances the flow of supply in an economy.
What is interest rates?
The portion of a loan that the borrower must pay in interest; this percentage is sometimes shown as a yearly percentage of the loan principal.
Therefore, lowering interest rates are used in expansionary policies
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When political researchers assess opinions towards President Trump's plan for immigration reform, a(n) ________ study is used. However, when political researchers want to assess the change in opinion toward immigration reform since the 1990s, a(n) ________ study should be used.
When political researchers assess opinions towards President Trump's plan for immigration reform, a(n) C) cross-sectional; study is used. However, when political researchers want to assess the change in opinion toward immigration reform since the 1990s, a(n) longitudinal study should be used.
What is a cross-sectional study?Observing the same variables repeatedly over a short or long period of time is the basis of a longitudinal study.
An illustration of a longitudinal study is the 1970 British Cohort Study, which has gathered information on the lives of 17,000 Britons from their births in 1970. An example of an observational study design is the cross-sectional study design. In a cross-sectional study, the researcher simultaneously assesses the participants' exposures and outcomes.
An illustration of a cross-sectional study might be a medical investigation into the incidence of cancer in a particular community. The researcher can assess persons from various ages, ethnic backgrounds, places of residence, and social classes.
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See full question below
36) When political researchers assess opinions towards President Trump's plan for immigration reform, a(n) ________ study is used. However, when political researchers want to assess the change in opinion toward immigration reform since the 1990s, a(n) ________ study should be used.
A) monitoring; communication
B) experimental; ex post facto
C) cross-sectional; longitudinal
D) exploratory; formal
E) laboratory; field
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. Example M1 M2 Edison has a roll of quarters that he just withdrew from the bank to do laundry. Kevin has $25,000 in a money market account. Maria has $8,000 in a two-year certificate of deposit (CD).
Kevin has $25,000 in a money market account. = M2. Money market account is grouped under M2 and means a condition where the deposits of many depositors are gathered purposely for investing in viable ventures such as short-term government bonds.
ii. Maria has $8,000 in a two-year certificate of deposit (CD). = M2. A two-year certificate of deposit is classified under M2 and means to account that the depositors are ready to keep in the bank for a particular period and gain a higher interest.
iii. Edison has a roll of quarters that he just withdrew from the bank to do laundry. = M1 and M2. A roll of quarters is currency in circulation. The currency in circulation falls under M1 and M2.
What is an M1 and M2 in economics?In economics, money is refered to as M1 and M2. M1 is made up of currency in circulation, traveler's checks as well as checkable deposits. On the other hand, M2 is made up of all components of M1 and other assets like small time deposits, savings deposits, and money market accounts.
Therefore, the correct answer is as given above
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Henry spent $550 to make 800 ceramic bowls to sell. What is the $550 he spent called? cost loss revenue profit
COST
LOSS
REVENUE
PROFIT
Answer: Cost.
Explanation:
He spent that money on materials to create a product. That is a cost. If he sold those bowls and $550 is what he made, it is revenue. If he sold the bowls and paid his costs and the new total came out to $550, that is profit. If he priced his bowls too high and spent money on materials that then made him no money, that is a loss of $550 (the total of the materials gone to waste).
Suppose the unemployment rate is 7% under one of these two outcomes and 5% under the other. Based on the previous graph, you would expect to be associated with the lower unemployment rate (5%). If aggregate demand is high in 2028, and the economy is at outcome B, the inflation rate between 2027 and 2028 is .
Inflation rate = % change in the price level
At A = [(103-102)/102]*100
= .98
= 1%
At B , π = [(105-102)/102]*100
= 2.94%
= 5%
now as per the Phillips curve, higher inflation is related to the lower unemployment rate
•so a higher unemployment rate of 5% is at A
• inflation at B = 2.94%
Unemployment inflation
A 7% 1%
B 3% 5%
Inflation takes place when expenses upward thrust in an economy and/or the buying strength of cash loses price. Economists have recognized numerous possible reasons for inflation from rising wages to multiplied aggregate demand to an increase in the delivery of money.
The once-year inflation fee for the united states is 7.7% for the 365 days ended October 2022 after growing 8.2% previously, in line with U.S. labor branch records posted Nov. 10. the subsequent inflation update is scheduled for release on Dec. 13 at eight:30 a.m. ET.
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performance measures on procure to pay?
Answer: Efficiency
Explanation:
1. Cost per invoice, purchase order and/or transaction.
2. Invoice cycle time – Average length of time from receipt of an invoice 3. up to payment approval.
4. Purchase order cycle time.
5. Number of invoices processed per FTE.
6. Percentage of invoices process straight-through.
7. First time match rate.
8. Number of supplier inquiries.
A procurement KPI or metric is a measurable value that tracks all relevant aspects of obtaining or buying goods and services. These KPIs enable the procurement department to control and optimize the quantity, quality, costs, timing and sourcing of purchasing processes.
The 10 Most Important KPIs at a Glance:Cost Per Invoice.Invoice Processing Times.Average Payment Period.First-Time Match Rate.On-Time Payment Rate.Realized Cash Discount Rate.Duplicate Payments Rate.Supplier Rate Per 1,000 Invoices.Automatically Processed Invoices Rate.Contactless Invoice Processing Rate.1. Understanding opportunity cost
Before you started applying for college, a job recruiter offered you a full-time cashier position at a doctor's office, earning an after-tax salary of
$28,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including
tuition, supplies, and additional housing expenses, is $35,000.
You decide to go to college, probably because?
If you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including supplies, and additional housing expenses, is $35,000, You decide to go to college, probably because: you value a year of college at more than $53,000.
What is opportunity cost?Opportunity cost can be defined as the way in a person choose on alternative and forgone or leave the other one. Opportunity cost enables people to go for the best choice among several alternatives choices they have or the choice they felt they will derived more benefit from.
This scenario best illustrate opportunity cost based on the fact you have to forgone one alternative and choose the other which is valuing a year of college by turning down the employment offer.
Therefore we can conclude that this is an example of opportunity cost.
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describe these two forms of divergent thinking: brainstorming and group mind mapping؟
A method for graphically expressing thoughts is mind mapping. A brainstorming session is an unstructured method of divergent thinking that generates several ideas at once.
What is Brainstorming and Mind mapping ?Fostering divergent thinking is just one of the many advantages of employing this strategy. It facilitates problem identification by quickly and easily producing original ideas.
Divergent thinking aims to produce a variety of thoughts on a subject in a short amount of time. It entails dissecting a subject into its component elements in order to obtain understanding of the subject's different facets.
Divergent thinking is disorganized and frequently happens quickly. It's a strategy that prizes originality and unpredictability.
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12. Robert bought shares of 6% $100 face value at a price of $120. Sam bought shares of 8% $20 face value at $30. Whose investment was better?
6% $ 100 shares at $ 120
i.e., the annual income from 1 share of nominal value $ 100 is $ 6, investment for 1 share being $ 120.
Therefore, profit percentage = 6/120 × 100 % = 5%
Therefore, Robert’s shares give him a profit of 5%
8 % $ 20 shares at $ 30
i.e., the annual income from 1 share of nominal value $ 20 is $ (8×20)/100 = $ 85, investment for 1 share being $ 30.
Profit percentage = [$(8/5)/$30] × 100 %
= 16/3 %
Therefore, Adrian’s shares give him a profit of 16/3% >5%
Therefore, Adrian’s investment was better.
Question 26
You purchase 50 shares of stock for $50 each. You receive dividends each year for
years of $2 per share. After 5 years, you sell the stock for $52.50 per share. What is
your return on investment in dollars?
Your return on investment in dollars, based on the amount of dividends received, and the selling price per share, is $625
How to find the return on investment?Your return on investment in dollar terms can be found by the formula:
= Dividends received + Capital gains
The Dividends received per year from each share was:
= Number of shares x Dividends per share per year
= 50 shares x 2 per share
= $100
The Dividends received in five years of holding the shares are:
= Number of years x Dividends received in total per year
= 5 x 100
= $500
The capital gains per share are:
= Selling price per share - Buying price per share
= 52.50 - 50
= $2.50
The capital gains on all the shares is:
= Capital gain per share x Number of shares
= 2.50 x 50
= $125
The total return on investment in dollars is:
= 500 + 125
= $625
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Can Twin Creeks demand specific performance from JVC?
In the case of Twin Creeks vs JVC, specific performance would not be considered in the instance of Twin Creeks and JVC since the subject of the contract, cassettes, is not unique.
What is Specific Performance in Law?Specific performance is a remedy used by courts when no alternative remedy, such as money, is available to appropriately recompense the other party.
Put differently, a contractual remedy in which the court requires one party to execute its commitment as precisely as feasible since monetary damages are insufficient to repair the loss. Most typically ordered in real estate and unusual chattels situations.
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Which of the five common reasons why new businesses fail did Morgan mention as a significant hurdle for Acre Landscaping that Craig and Amy haven't solutioned?
Multiple Choice
difficulty hiring and keeping good employees
government paperwork
inadequate management skills
aggressive competition
lack of financial support
Option C. One of the five common reasons why new businesses fail as mentioned by Morgan is: inadequate management skills.
What is a management skill?Business management skills are qualities a person in charge of a business utilizes to assist the business and its employees in achieving goals and growing. These skills are typically learned through employment-related experience or academic study. Knowing about business management skills will help you hone your current set of abilities and perhaps pick up some fresh ones that will improve your management career.
Time is a valuable resource to a firm, and as a manager, you assist make sure workers fulfill deadlines and that teams do the most crucial tasks first. Business managers can decide which activities are more important and who to give work to by using planning and prioritization techniques. Managers know how to make the most of their staff to meet deadlines and maintain quality.
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QUESTION 16
Which of the following statements is true about target marketing?
O a. is no longer used by most companies today
O b. it is not an efficient marketing strategy to attract customers
O c. it allows you to focus on those people most likely to buy your company's products
O d. follows the same strategies used for mass marketing
The true statements about the target marketing is that it allows you to focus on those people most likely to buy your company's products
What is a target marketing?In marketing, a target market refers to the group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service. It is also a marketing strategy that breaks a market into segments and then concentrates your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings.
The purpose of a Target Market is that once a target market is identified, it can influence a product's design, packaging, price, promotion and distribution.
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The ManU Hotel is located close to Manchester United’s football stadium. It has a souvenir shop that sells two main product lines: hats and scarves in the Manchester United colours. The quarterly sales budget for the forthcoming year is as follows: Quarter Hats Scarves 1 1,200 600 2 800 400 3 600 300 4 1,400 700 It is expected that the shop will be holding 240 hats and 180 scarves in stock at the beginning of the year. The shop manger always likes to keep 20 per cent of the next quarter’s hat sales in stock and 30 per cent of the next quarter’s scarf sales. Sales of hats and scarves in the first quarter of the following year are expected to be 25 per cent higher than the first quarter of the forthcoming year. Required: Prepare the quarterly purchases budget for hats and scarves for the forthcoming year.
The quarterly purchases budget for Hats and Scarves for the forthcoming year for The ManU Hotel is as follows:
Quarterly Purchases Budget:Quarter 1 Quarter 2 Quarter 3 Quarter 4
H S H S H S H S
Sales 1,200 600 800 400 600 300 1,400 700
Ending inventory 160 120 120 90 280 210 300 225
Units available 1,360 720 920 490 880 510 1,700 925
Beginning inventory 240 180 160 120 120 90 280 210
Purchases 1,120 540 760 370 760 420 1,420 715
How are the purchase units determined?Each quarter's purchase units are the difference between the expected available units for sale and the beginning inventory of the quarter.
We can use the following purchases or production formula: purchases = Sales units + Desired ending inventory - Beginning inventory.
The ending inventory is the product of the next quarter's sales units and the percentage expected to be kept in stock, as indicated in the data.
The last quarter's ending inventory considers the sales units for the first quarter of the following year, which are computed as follows.
Hat Scarves
Sales units for Q 1 1,200 600
Sales for Quarter 5 1,500 750
(1,200 x 1.25) (600 x 1.25)
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