Ideally, a project manager should be selected and assigned during the initiating processes of the project life cycle.
The project manager plays a critical role in the successful execution of a project, and ideally, they should be selected and assigned during the initiating processes of the project life cycle. Therefore, the correct answer is option B: "During the initiating processes." During the initiating processes, the project is defined, and its feasibility, objectives, and stakeholders are identified. It is at this stage that the project manager can contribute their expertise in project planning and management to ensure a smooth transition from the initial concept to the execution phase.
By selecting and assigning the project manager early on, the project team benefits from their involvement in key decisions and discussions that shape the project's direction. The project manager can collaborate with stakeholders, understand their requirements and expectations, and align them with the project's goals. They can also contribute to the development of the project charter, which outlines the project's scope, objectives, and initial plans. By engaging the project manager during the initiating processes, the project can benefit from their leadership, planning skills, and ability to provide strategic guidance from the beginning. This early involvement sets a strong foundation for effective project management throughout the entire project life cycle, increasing the chances of project success.
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Which of the following is NOT a step performed by the salesperson during the selling process? demonstrating the product prospecting and qualifying following up on the sale handling objections conducting market research
The step that is NOT typically performed by the salesperson during the selling process is:
conducting market research.
While market research is an essential activity for businesses, it is typically conducted by marketing teams or researchers who gather and analyze market data to inform sales and marketing strategies. Salespeople primarily focus on tasks such as prospecting and qualifying leads, demonstrating the product, following up on sales, and handling objections. Market research falls more within the purview of marketing professionals rather than salespeople.
Sales roles can vary widely depending on the industry, company size, and type of sales (e.g., retail, inside sales, field sales, account management). The specific tasks and responsibilities may vary, but the overall objective remains the same—to effectively promote and sell products or services while building positive customer relationships.
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Using Michael Porter's Diamond Framework, explain why UPS is pursuing a strategy of growth in India. Explain with each step of the Diamond Framework: Factor conditions, Demand conditions, Competitive intensity in focal industry, and Related and supporting industries/complementors.
UPS is pursuing a strategy of growth in India using Michael Porter's Diamond Framework is as follows:
Michael Porter's Diamond Framework describes why some countries outperform others in particular industries and is particularly useful for understanding the competitive advantage of nations. As India emerges as a major market and supply chain destination, UPS has pursued a growth strategy in India to capture a share of the market and gain a competitive advantage in the industry.
Factor conditions include the necessary inputs, such as infrastructure and skilled labor, that determine a nation's competitiveness. UPS's investment in its employees and transport infrastructure has helped it stay ahead of its competitors in India. Demand conditions, including local market size and demand growth, affect a nation's competitiveness. As India's economy expands, the demand for logistics services such as UPS's grows, giving the company an opportunity to meet this demand and expand its operations. Competitive intensity, or the degree of rivalry among competitors in an industry, is also an important factor. UPS's reputation as a global leader in logistics and delivery has helped it maintain a competitive edge in India. Finally, Related and supporting industries, such as transport and communication networks, influence the competitiveness of a nation's industries. By investing in its transportation infrastructure, UPS is also helping to improve the overall competitiveness of India's supply chain industry.
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The following schedule shows the excess of cash receipts over cash disbursements projected for the Zoptic Company for 2021: Q1 Q2 Q3 04 Year Excess (deficiency) of cash available over disbursements $(126,300) $(44,680) $130,780 $45,300 $5,100 The company borrows and repays from an open line of credit in round $100 amounts. Loan related payments are made in periods when cash is available with interest paid on only the portion of any principal being repaid. The current balance (principal plus accrued interest) in the line of credit account is $2,704 for the borrowing that occurred in the last quarter of the previous year. The annual interest rate is 16%. A minimum cash reserve of $600 must be maintained each quarter. The opening balance for the year is expected to be $1,080. Required: Prepare a cash budget for each quarter and for the year in total and calculate the annual interest expense on the line of credit that would appear on the budgeted income statement for the year 2021. (Any "Repayments" and "Interest" should be indicated by a minus sign.)
To prepare the cash budget for each quarter and for the year 2021, we need to consider the excess or deficiency of cash available over disbursements, interest payments, and the minimum cash reserve requirement.
Quarter 1:
Opening balance: $1,080
Excess of cash available over disbursements: $(126,300)
Loan borrowing: $100 (to cover the deficiency)
Loan repayment: $0 (no repayment needed)
Interest payment: $0
Minimum cash reserve: $600
Closing balance: $(126,520)
Quarter 2:
Opening balance: $(126,520)
Excess of cash available over disbursements: $(44,680)
Loan borrowing: $100 (to cover the deficiency)
Loan repayment: $0 (no repayment needed)
Interest payment: $0
Minimum cash reserve: $600
Closing balance: $(44,900)
Quarter 3:
Opening balance: $(44,900)
Excess of cash available over disbursements: $130,780
Loan borrowing: $100 (to cover the deficiency)
Loan repayment: -$100 (repayment made from excess cash available)
Interest payment: $100 (16% of $100 borrowed)
Minimum cash reserve: $600
Closing balance: $130,480
Quarter 4:
Opening balance: $130,480
Excess of cash available over disbursements: $45,300
Loan borrowing: $0 (no borrowing needed)
Loan repayment: -$100 (repayment made from excess cash available)
Interest payment: $0
Minimum cash reserve: $600
Closing balance: $45,800
Yearly cash budget:
Opening balance: $1,080
Total excess (deficiency) of cash available over disbursements: $5,100
Total loan borrowing: $200
Total loan repayment: -$200
Total interest payment: $100 (from Quarter 3)
Minimum cash reserve: $600 (maintained each quarter)
Closing balance: $5,180
Annual interest expense on the line of credit that would appear on the budgeted income statement for the year 2021 is $100.
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If a seller knowingly misrepresents the number of bedrooms permitted for the septic system, the buyer may obtain a judgment requiring a price reduction. rescind the purchase agreement and recover treble damages. force the seller to upgrade the septic system. sue the seller's agent for the cost of remedying the violation.
If a seller knowingly misrepresents the number of bedrooms permitted for the septic system, the buyer may have several options for recourse.
They can seek a judgment requiring a price reduction based on the misrepresentation, rescind the purchase agreement and potentially recover treble damages if fraud is involved, or compel the seller to upgrade the septic system to meet the required standards.
Additionally, if the seller's agent was involved in the misrepresentation or was negligent in their duty to disclose accurate information, the buyer may have the option to sue the agent for the cost of remedying the violation. The specific available remedies will depend on the applicable laws and regulations in the jurisdiction.
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Write reflections of the resistance against the colonial
rule of India ( Eastern Bengal).The Faraizi Movement.
The Faraizi Movement was a peasant uprise in the late 18th century. The movement was developed in the eastern Bengal region of India, which is modern-day Bangladesh.
It was a Muslim-led movement and was a resistance against the British colonial rule of India.The Faraizi Movement was led by Haji Shariatullah. The movement was founded in the year 1818. The Faraizis were devoted to their religious faith, and the movement was a way to combine politics and Islam.
The Faraizi Movement was against the Hindu landlords who were exploiting the Muslim peasants. The movement, however, was not just against the British, but it was also against the Hindu landlords who had control of most of the agricultural land.The British saw the movement as a threat to their rule.
In response to the Faraizi Movement, the British banned the use of the Arabic language. The British also created a law that would have required Muslim landlords to pay higher taxes than their Hindu counterparts.The Faraizi Movement was a significant milestone in the history of Bengal. The movement gave Muslims in Bengal a new sense of identity.
The movement also created a new political and social consciousness among the Muslims of Bengal. It played a vital role in developing the Bengali nationalism that was the precursor to the Indian independence movement.
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Question 3 (1 point) A natural monopoly can be due to diseconomies of scale (i.e. increasing marginal costs). True False Question 4 (1 point) Deregulation involves the additional of new government controls over setting prices and quantities in certain industries. True False
A natural monopoly can be defined as a situation in which a single producer supplies a good or service with no close substitutes.
The main reason for natural monopolies is economies of scale, which is a phenomenon that arises when the average cost per unit of output decreases as the amount of production increases. However, this does not mean that a natural monopoly cannot be created by diseconomies of scale. When a firm's size becomes too large, it may experience diseconomies of scale. Diseconomies of scale refer to the point at which a firm's costs per unit of production start to rise as the output increases. This statement is incorrect. Deregulation refers to the removal or relaxation of government regulations or controls over an industry or sector. It is aimed at reducing barriers to entry, increasing competition, and encouraging innovation in a market. The reduction of government controls and regulations can lead to more competitive markets and lower prices for consumers.
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If the NPV (Net Present Value) of a project with one sign reversal is negative, then the project's IRR (Internal Rate of Return) ________ the firm’s required rate of return.
Group of answer choices
could be greater or less than
must be less than
must be greater than
is exactly equal to
Systematic (or market) risk is that part of a stock’s risk that is non-diversifiable due to the exposure of the stock market to the effects of all of the following EXCEPT
Group of answer choices
changes in the general level of interest rates.
changes in the general level of macroeconomic activity.
changes in corporate tax legislation.
changes in the firm’s unsystematic risks.
The firm’s (weighted) cost of capital is commonly referred to as all the below EXCEPT:
Group of answer choices
opportunity cost of funds
internal rate of return
hurdle rate
required rate of return
1) If the NPV of a project with one sign reversal is negative, then the project's IRR must be less than the firm's required rate of return.
2) Systematic (or market) risk is that part of a stock's risk that is non-diversifiable due to the exposure of the stock market to the effects of all of the following EXCEPT changes in the firm’s unsystematic risks.
3) The firm's (weighted) cost of capital is commonly referred to as all the below EXCEPT internal rate of return.
1) The NPV represents the net present value of cash flows generated by a project, and a negative NPV indicates that the project's cash flows are not sufficient to cover the initial investment and meet the required rate of return. The IRR, on the other hand, represents the discount rate at which the project's NPV becomes zero. If the NPV is negative, it means that the IRR is less than the required rate of return.
2) Systematic risk refers to the risk that is inherent in the entire market or economy and cannot be eliminated through diversification. It includes factors such as changes in the general level of interest rates, changes in the general level of macroeconomic activity, and changes in corporate tax legislation.
3) The firm's (weighted) cost of capital is a financial metric that represents the average rate of return required by investors to provide funds to the firm. It is commonly referred to as the firm's opportunity cost of funds, hurdle rate, or required rate of return. The internal rate of return (IRR) is a different financial metric that represents the discount rate at which the present value of a project's cash flows equals its initial investment.
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As described in this chapter, in recent years, both the United States and Greece have experienced increases in government de and significant economic downturns. In what ways were the two situations similar? In what ways were they different? Why do the two nations have different policy options at their disposal? a. Consider the various characteristics of an economic downturn listed below. Place each characteristic in the appropriate category as being either similar" or "different" across these two countries. Similar Different Change (increase or decrease) in the country's credit rating Ability to conduct an independent monetary policy to a o facilitate economic recovery Large increase in national debe Sector (private or public) responsible for creating the finanical crisis
Greece's monetary policy is determined by the ECB, limiting its ability to tailor policy measures to its specific economic needs
The situations faced by the United States and Greece in terms of increases in government debt and economic downturns had both similarities and differences.
Similarities:
1. Change in credit rating: Both countries experienced a change in their credit rating. The United States faced a downgrade in its credit rating by Standard & Poor's in 2011, while Greece's credit rating was downgraded multiple times during its debt crisis. These downgrades reflected concerns about the countries' ability to manage their debt and repay their obligations.
2. Large increase in national debt: Both countries saw significant increases in their national debt. The United States experienced a substantial increase in its debt during the global financial crisis of 2008-2009, primarily due to stimulus spending and financial sector bailouts. Greece's debt crisis emerged in the wake of the global financial crisis, with the country's debt burden reaching unsustainable levels.
Differences:
1. Ability to conduct an independent monetary policy: The United States has its own currency, the U.S. dollar, and an independent central bank, the Federal Reserve (FED). This gives the U.S. the ability to implement monetary policy measures to facilitate economic recovery, such as adjusting interest rates and implementing quantitative easing. In contrast, Greece is part of the Eurozone and uses the euro as its currency. It does not have independent control over monetary policy, as it is governed by the European Central Bank (ECB).
2. Sector responsible for the financial crisis: In the United States, the financial crisis was primarily caused by the private sector, particularly the collapse of the housing market and the subsequent subprime mortgage crisis. Irresponsible lending practices, securitization of risky mortgages, and inadequate regulation played a significant role. In Greece, the financial crisis was exacerbated by excessive public spending, unsustainable government borrowing, and accounting mismanagement. It was a combination of factors involving the public sector and the Greek government's fiscal policies.
The different policy options available to the United States and Greece are largely influenced by their unique economic and institutional contexts. The United States has more flexibility in conducting monetary policy due to its independent central bank and control over its currency. It can implement measures to stimulate the economy and manage interest rates. In contrast, Greece's monetary policy is determined by the ECB, limiting its ability to tailor policy measures to its specific economic needs. Greece's policy options are primarily focused on fiscal measures, such as austerity measures and structural reforms, to address its debt crisis and restore fiscal sustainability. The European Union and the International Monetary Fund also played significant roles in providing financial assistance and imposing conditions on Greece's policy choices.
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Use the following information to answer questions in Problem 1 (below) and Problem 2 (next page): An unlevered (all-equity) firm has 500,000 common shares trading at $80 per share. With its investment plan fixed, it is expected to generate a perpetual EBIT stream of $6 million per year. The corporate tax rate is 40%. The firm is contemplating taking on debt by issuing a $20 million face value perpetual bond carrying 5% coupon interest per year and using the proceeds to retire some of its stock outstanding. PROBLEM 2 (9 points: 3 points for each part) a) What will be the share price after the firm changes its capital structure? b) Suppose you are holding 100 shares bought at $80 per share just before the firm changes its capital structure. How much capital gain tax will you pay by selling your 100 shares just after the firm's change its capital structure. Assume that the capital gain will be taxed at half of the 40% corporate tax rate? c) What will be the firm's WACC after the firm changes its capital structure?
To calculate the new share price, we need to consider the effect of the debt issuance on the firm's equity value. The debt issuance will reduce the number of outstanding shares and increase the firm's leverage.
a) The share price after the firm changes its capital structure will be $96 per share.
Given that the firm plans to issue a $20 million perpetual bond, we can calculate the value of the debt as the present value of its cash flows. With a 5% coupon interest rate, the annual interest payment will be $1 million ($20 million * 5%). Since it is a perpetual bond, the present value of the debt is the coupon payment divided by the cost of debt, which is also 5%. Therefore, the value of the debt is $20 million.
The new equity value is the original equity value minus the value of the debt. The original equity value is the number of common shares multiplied by the share price: $80/share * 500,000 shares = $40 million. Subtracting the value of the debt, the new equity value is $40 million - $20 million = $20 million.
Finally, we calculate the new share price by dividing the new equity value by the number of shares outstanding: $20 million / 500,000 shares = $96 per share.
b) If you sell your 100 shares just after the firm changes its capital structure, you will pay $1,920 in capital gain tax.
To calculate the capital gain tax, we need to determine the capital gain. The capital gain is the difference between the selling price and the purchase price. Since you bought 100 shares at $80 per share, your initial investment is $8,000.
After the capital structure change, the new share price is $96 per share. Therefore, if you sell your 100 shares, you will receive $9,600 ($96/share * 100 shares).
The capital gain is $9,600 - $8,000 = $1,600. Since the capital gain is taxed at half of the corporate tax rate (40%), the tax rate applicable to the capital gain is 20% (0.5 * 40%).
Thus, the capital gain tax you will pay is $1,600 * 20% = $320. Multiplying this by the number of shares (100), the total capital gain tax will be $320 * 100 = $1,920.
c) The firm's weighted average cost of capital (WACC) after the capital structure change will be 5%.
WACC is the weighted average of the cost of equity and the cost of debt, taking into account the proportion of equity and debt in the capital structure.
Given that the firm's EBIT is $6 million and the corporate tax rate is 40%, the interest payment on the debt is $1 million ($20 million * 5%). The net interest expense (after tax) is then $1 million * (1 - 40%) = $600,000.
To calculate the WACC, we need the market value of equity and debt. The market value of equity is the new share price multiplied by the number of shares: $96/share * 500,000 shares = $48 million. The market value of debt is the face value of the perpetual bond: $20 million.
The proportion of equity in the capital structure is $48 million / ($48 million + $20 million) = 0.7059 (rounded to four decimal places), or approximately 70.59%. The proportion of debt is 1 - 0.7059 = 0.2941 (rounded to four decimal places), or approximately 29.41%.
Finally, we calculate the WACC as the weighted average of the cost of equity and the after-tax cost of debt, using the respective proportions:
WACC = (Cost of Equity * Proportion of Equity) + (After-Tax Cost of Debt * Proportion of Debt)
WACC = (0 * 0.7059) + (5% * 0.2941)
WACC = 0 + 1.4705% = 1.4705% (rounded to four decimal places), or approximately 1.47%.
Thus, the firm's WACC after the capital structure change will be 1.47%.
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An uncle validly executed and notarized a deed conveying his beach house to his nephew, and then validly recorded the deed. When the nephew, who was experiencing financial difficulties, learned of the recordation of the deed, he immediately told his uncle that he did not want the beach house and could not accept such an expensive gift anyway. Later, the nephew filed for bankruptcy and the trustee in bankruptcy asserted an ownership interest in the beach house on behalf of the debtor's estate. The bankruptcy court ruled that the property belonged to the uncle and not to the nephew, and thus was not part of the debtor's estate subject to distribution.
Which of the following is the strongest reason in support of the bankruptcy court's ruling?
A There was no presumption of delivery created by recordation of the deed because the nephew did not know of the recordation.
B The nephew's statements to the uncle were a constructive reconveyance of the property.
C There was never an effective acceptance of delivery of the deed by the nephew.
D The recordation of the deed was invalid because it was done without the nephew's permission.
The strongest reason in support of the bankruptcy court's ruling is option C: There was never an effective acceptance of delivery of the deed by the nephew.
What is the strongest reason supporting the bankruptcy court's ruling in favor of the uncle's ownership of the beach house?The lack of effective acceptance of delivery of the deed by the nephew. In order for a conveyance of property to be legally effective, there must be a valid acceptance of delivery by the recipient.
In this case, the nephew immediately informed his uncle that he did not want the beach house and could not accept such an expensive gift. This constitutes a clear rejection of the property and a lack of acceptance.
As a result, the nephew never acquired legal ownership of the beach house, and it remained the property of the uncle.
Therefore, the bankruptcy court correctly ruled that the property did not belong to the nephew and was not part of the debtor's estate subject to distribution in the bankruptcy proceedings.
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(Present value of a complex stream) Don Draper has signed a contract that will pay him $80,000 at the end of each year for the next 7 years, plus an additional $110,000 at the end of year 7. If 11 percent is the appropriate discount rate, what is the present value of this contract?
Given data: Don Draper has signed a contract that will pay him $80,000 at the end of each year for the next 7 years, plus an additional $110,000 at the end of year 7.11 percent is the appropriate discount rate. To calculate the present value of this contract, we need to calculate the present value of each cash flow and then add the present value of all the cash flows. Using the formula for the present value of an ordinary annuity, we have:
PV = PMT × ((1 - (1 / (1 + r)n)) / r)
Where, PV is the present value
PMT is the cash flow
r is the discount rate per period
n is the number of periods
Using the formula for the present value of a single cash flow, we have:
PV = FV / (1 + r)n
Where,
FV is the future value
r is the discount rate per period
n is the number of periods
We can now calculate the present value of the contract as follows:
PV of annuity due of $80,000 per year for 7 years:
PV = $80,000 x ((1 - (1 / (1 + 0.11)7)) / 0.11) x 1.11
PV of single cash flow of $110,000 at the end of year 7:
PV = $110,000 / (1 + 0.11)7
Adding both the above, we have the present value of the contract:
PV = $80,000 x ((1 - (1 / (1 + 0.11)7)) / 0.11) x 1.11 + $110,000 / (1 + 0.11)7 = $467,069.31
Hence, the present value of the contract is $467,069.31. Answer more than 100 words:
In finance, the present value (PV) of an amount of money is the value of that amount of money today (the present) in comparison to the same amount at some future date, taking into account potential earning power. The present value of a future amount of money is less than the future amount because of the potential earning power of money that is not yet available. A dollar received today is worth more than a dollar received at some future time because it can be invested or saved and earn interest or other returns until the future time arrives. The present value of an annuity due, which is a series of payments of a fixed amount over a set period with the payments made at the beginning of each period, is calculated using the formula PV = PMT × ((1 - (1 / (1 + r)n)) / r) where PV is the present value, PMT is the cash flow, r is the discount rate per period, and n is the number of periods. The present value of a single future cash flow is calculated using the formula PV = FV / (1 + r)n where FV is the future value, r is the discount rate per period, and n is the number of periods. In this case, the present value of a complex stream is calculated using both the formulas mentioned above. As per the given data, the present value of the contract is $467,069.31.
Thus, the present value of a complex stream is the value of that stream today (the present) in comparison to the same amount at some future date, taking into account potential earning power.
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ABC Company has a current stock price of $15.35 and is expected to trade for $17.75 in 1 year. If ABC's equity cost of capital is 18%, what is its expected dividend in 1 year? 1 0.563 (round to the nearest cent: $x.xx)
the expected dividend in 1 year for ABC Company is $0.563.
ABC Company has a current stock price of $15.35 and is expected to trade for $17.75 in 1 year. If ABC's equity cost of capital is 18%, what is its expected dividend in 1 year?The expected dividend in 1 year for the ABC Company can be calculated as follows:
Step 1: First calculate the expected return or capital gains on the stock based on the current stock price and the expected future price.The expected capital gain or return in 1 year is calculated as follows:
Expected Capital Gain = (Future Price - Current Price) / Current Price
Expected Capital Gain = ($17.75 - $15.35) / $15.35
Expected Capital Gain = 15.64%
Step 2: Next, calculate the required return for the stock based on the equity cost of capital.The required return or cost of equity is calculated as follows
Cost of Equity = Dividend / Current Price + Capital Gains
Cost of Equity = Dividend Yield + Capital Gains Yield
Cost of Equity = 18%
Step 3: Finally, calculate the expected dividend in 1 year using the cost of equity formula.
Dividend = Cost of Equity × Current Price - Capital Gains
Dividend = 0.18 × $15.35 - 0.1564Dividend = $2.77 × 0.18 - 0.1564Dividend = $0.50 or 0.563 (round to the nearest cent: $x.xx).
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Keep It Cool ("KIT") is a manufacturer of refrigeration systems that are used in industrial air-conditioning units. KIT acquired 31% of the ordinary shares of Freeze (Pty) Ltd ("Freeze"), an importer of refrigeration systems, on 1 January 2020. The cost of the investment amounted to R8.505 million.
The main reason for making the investment is because Freeze is one of KIT’s largest suppliers and the CEO of KIT, Mr Ice, has plans to integrate the whole supply chain over the next five years.
The statement of financial position of Freeze as at 31 December 2019 was supplied to you:
Book value Fair value
Current assets 3 795 000 3 795 000
Plant and equipment 10 245 000 12 000 000
Land and buildings 15 855 000 19 275 000
29 895 000 35 070 000
Current liabilities 3 210 000 3 210 000
Borrowings 6 225 000 6 225 000
Net assets 20 460 000 25 635 000
Additional information
Income earned by Freeze amounted to R17.145 million for 2020 and R19.065 million for 2021.
Freeze depreciates plant and equipment on the straight-line basis and at the time of the investment, plant and equipment had a useful life of six years remaining. Freeze does not depreciate land and buildings.
During 2020 Freeze sold products to KIT for R5.1 million. Freeze paid R3.57 million for these units. At 31 December 2020 KIT had R1.710 million worth of these products in closing inventory which was sold to third parties during 2021.
During 2016 Freeze paid dividends of R10.65 million.
REQUIRED
Calculate the goodwill that resulted from the acquisition. (4 marks)
Calculate the equity income in the income statement of KIT for 2020 and 2021. (8 marks)
Calculate the balance of the investment account as at 31 December 2021. (4 marks)
The goodwill resulting from the acquisition is R1.680 million. The equity income in KIT's income statement for 2020 is R0.646 million, and for 2021 it is R0.718 million. The balance of the investment account as of 31 December 2021 is R9.145 million.
To calculate the goodwill, we subtract the fair value of net assets from the cost of the investment: R8.505 million - R6.825 million = R1.680 million.
The equity income is calculated using the equity method. It is the investor's share of the investee's income. In this case, it is calculated as the investment percentage (31%) multiplied by Freeze's net income for each year: R17.145 million * 31% = R0.646 million (2020) and R19.065 million * 31% = R0.718 million (2021).
The balance of the investment account is the initial cost of the investment plus the equity income recognized minus any dividends received. For 2020, it is R8.505 million + R0.646 million - R0 = R9.151 million. For 2021, it is R9.151 million + R0.718 million - R0 = R9.869 million.
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The Langley County School District is trying to determine the relative efficiency of its two high schools. In particular, it wants to evaluate Lincoln High School. Therefore, the following data have two input measures and two output measures.
Input Measure Lincoln High School Washington High School
Senior Enrollment 400 600
Budget $5,000 $ 7,000
Output Measure Lincoln High School Washington High School
Average SAT Scores 800 900
College Admission 150 200
Formulate a linear programming model that can be used to perform data envelopment analysis for Washington High School.
Define the decision variables
Define the objective function
Define the constraints
The linear programming model that can be used to perform data envelopment analysis for Washington High School is presented below:
Decision variables:Let us define two decision variables x1 and x2.
Here, x1 represents senior enrollment, and x2 represents the budget of Washington High School.Objective function:We aim to maximize the relative efficiency of Washington High School.
We can do this by taking the ratio of output to input measures. Thus, the objective function is as follows:
Maximize z = (800x1 + 150x2)/(400x1 + $5,000x2)
Subject to constraints:Senior enrollment should be at least 600.x1 >= 600
The budget of Washington High School should not exceed $7,000.$5,000x2 <= $7,000x1
Average SAT scores should be at least 900.800x1 + 150x2 >= 900(400x1 + $5,000x2)
College admissions should be at least 200.150x2 >= 200
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What leadership styles and traits does The Coca Cola
Company utilize?
The Coca-Cola Company is well-known for its leadership and management styles. The Company has a vast network and employs different leadership styles to accommodate its diversity of customers and employees.
The company has adopted various leadership styles, including transformational leadership, participative leadership, and situational leadership. Transformational leadership is one of the styles that the company employs. In this style, a leader focuses on employees' individual talents and encourages them to perform beyond their expectations. Participative leadership is another style adopted by Coca-Cola, and it involves the inclusion of employees in the decision-making process to enhance teamwork, productivity, and efficiency. Finally, Coca-Cola utilizes situational leadership, which is based on the leader's ability to adapt to changing circumstances or situations. It involves determining the employees' abilities and delegating tasks accordingly.
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which of the following is not a motive behind introducing the basic principles of insurance? INDEMINITY CONTRIBUTION CORPORATION MITIGATION
The term that is not a motive behind introducing the basic principles of insurance is Corporation. Insurance is a contract between the insurer and the policyholder, whereby the policyholder pays a sum of money as a premium to the insurer in exchange for coverage against a particular risk that may occur in the future.
Principle of indemnity: The insurance policy compensates the policyholder with the exact amount of damage caused by the event. This principle is used in the case of policies such as fire, marine, and motor policies.
Principle of contribution: This principle applies when an individual purchases more than one insurance policy for the same risk. It is a common practice that insurers share the cost of the claim, and this principle enables the insured to claim compensation from all of the policies they have.
Principle of mitigation: The policyholder must take all necessary precautions to avoid any losses that may occur in the future. If the policyholder does not comply with the terms of the policy, the insurer has the right to cancel the policy. This principle is most commonly used in life insurance.
Principle of utmost good faith: This principle requires both the insurer and the policyholder to disclose all material facts related to the policy. The insurer relies on the information provided by the policyholder while issuing the policy. The policyholder must not conceal any material fact that may lead to the rejection of the policy. This principle is used in all insurance policies.
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businesseconomicseconomics questions and answerstwo firms sell an identical product in a market by setting prices simultaneously. consumers buy from the firm that offers the lower price; if the prices are identical, the firms split the demand. if p is the lowest price (in dollars), aggregate demand is q = 120 – 4p. suppose each firm has unlimited capacity, but that the marginal costs of firm 1 and firm
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Question: Two Firms Sell An Identical Product In A Market By Setting Prices Simultaneously. Consumers Buy From The Firm That Offers The Lower Price; If The Prices Are Identical, The Firms Split The Demand. If P Is The Lowest Price (In Dollars), Aggregate Demand Is Q = 120 – 4p. Suppose Each Firm Has Unlimited Capacity, But That The Marginal Costs Of Firm 1 And Firm
Two firms sell an identical product in a market by setting prices simultaneously. Consumers buy from the firm that offers the lower price; if the prices are identical, the firms split the demand. If p is the lowest price (in dollars), aggregate demand is Q = 120 – 4p.
Suppose each firm has unlimited capacity, but that the
marginal costs of Firm 1 and Firm 2 are $20 and $35 respectively.
Is (24.99, 25) a Nash Equilibrium?
Is (23.99, 35) a Nash Equilibrium?
We cannot conclude whether these two sets of prices are Nash Equilibrium or not. Therefore, the correct answer is (d) None of the above.
Given data: Firm 1 has marginal cost = $20Firm 2 has marginal cost = $35Aggregate demand = Q = 120 - 4pThe Nash Equilibrium is the situation where neither firm has an incentive to change its price if the other firm's price remains unchanged. Now, let us check whether (24.99, 25) is Nash Equilibrium or not. When Firm 1 sets p = $24.99, Firm 2 has an incentive to set a price slightly lower than $24.99, say $24.98 which would attract all customers and make the market share of Firm 2 to be 1.Now, let us check whether (23.99, 35) is Nash Equilibrium or not. When Firm 1 sets p = $23.99, then Firm 2 has an incentive to set a price slightly lower than $23.99, say $23.98 which would attract all customers and make the market share of Firm 2 to be 1.Thus, neither (24.99, 25) nor (23.99, 35) is Nash Equilibrium. Hence, we cannot conclude whether these two sets of prices are Nash Equilibrium or not. Therefore, the correct answer is (d) None of the above.
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unit is mixed and packaged. Aves Treats uses process costing and had the following unit production information available for the months of June and July: end of the month were 40% complete. For the month of June, the number of equivalent units of labor and overhead produced was:
Multiple Choice
934.
1,000
780
890.
To determine the number of equivalent units of labor and overhead produced in the month of June, we need to consider the units that are completed and the units that are in progress (i.e., the partially completed units at the end of the month).
According to the information provided, the units at the end of the month were 40% complete. This means that 60% of the units were completed in June.
Let's denote the number of completed units in June as X. Since 60% of the units were completed, we can set up the equation:
X = 0.6X + 40% of X
Simplifying the equation:
X = 0.6X + 0.4X
X = 1X
This means that all the units produced in June were completed. Therefore, the number of equivalent units of labor and overhead produced in the month of June is equal to the total number of units produced, which is 1,000.
Therefore, the correct answer is: 1,000.
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what might be a disadvantage of agreeing that both ends will confirm receipt like this?
A potential disadvantage of agreeing that both ends will confirm receipt is the potential for delays or disputes in confirming receipt.
What are the drawbacks of mutual confirmation of receipt?While agreeing that both ends will confirm receipt can be seen as a way to ensure accountability and accuracy, it can also lead to certain disadvantages. One possible drawback is the potential for delays or disputes in confirming receipt. If both parties are required to confirm receipt before proceeding, any delay in receiving and acknowledging the receipt can slow down the overall process. Additionally, if there is a disagreement or discrepancy in the confirmation, it can lead to unnecessary conflicts or difficulties in moving forward with the transaction or agreement. It may require additional time and effort to resolve such disputes, causing frustration and hindering productivity. Therefore, while mutual confirmation of receipt can be beneficial in some cases, it is essential to consider the potential drawbacks and assess whether they outweigh the advantages in a given situation.
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Which KPI field should you add to a PivotTable if you want to display the KPI icon? Status Goal. Value Measure. Where do you create KPI's in the Data Model? By selecting Create KPI from the Diagram View. By right-clicking on the base value (measure) in the calculation area and selecting Create KPI. By right-clicking on the column name on the Data View and selecting Create KPI. By right-clicking on the base value (measure) on the Pivot Table and selecting Create KPI.
To display the KPI icon in a PivotTable, the "Status" field should be added. KPIs are created in the Data Model by right-clicking on the base value (measure) in the calculation area and selecting "Create KPI."
To display the KPI icon in a PivotTable, you need to add the "Status" field to the PivotTable. The "Status" field represents the status of the Key Performance Indicator (KPI) and determines which icon will be displayed for each value. When creating KPIs in the Data Model, you do so by right-clicking on the base value (measure) in the calculation area. The calculation area is where you define the measures and calculations for the PivotTable. By right-clicking on the base value and selecting "Create KPI," you can define the KPI's target value, actual value, and other parameters to set up the KPI.
Creating KPIs from the Diagram View, column names in the Data View, or base values on the PivotTable do not provide the specific functionality to create KPIs. The correct method is to right-click on the base value (measure) in the calculation area of the Data Model.
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Issue 1: Estimated duration of existing superannuation
Calculate the number of years the current superannuation fund amount of AUD600,000 will support a net income requirement of AUD75,000 per annum. Assume the net income requirement does not change and the fund generates a constant return of 5% per annum. Ignore fees and taxes. Show your answer in years to one decimal place (for example, 10.2 years). (3 marks)
To calculate the number of years the current superannuation fund amount will support the net income requirement, we can use the concept of the present value of an annuity.
Given:
Superannuation fund amount: AUD 600,000
Net income requirement per annum: AUD 75,000
Return on the fund: 5% per annum
We can determine the present value of the net income requirement using the formula:
Present Value = Net Income Requirement / Return Rate
Present Value = AUD 75,000 / 0.05 = AUD 1,500,000
Next, we need to calculate the number of years that the superannuation fund amount of AUD 600,000 will support the present value of the net income requirement.
Number of Years = Superannuation Fund Amount / Present Value
Number of Years = AUD 600,000 / AUD 1,500,000 = 0.4 years
Therefore, the current superannuation fund amount of AUD 600,000 will support a net income requirement of AUD 75,000 per annum for approximately 0.4 years (rounded to one decimal place)
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WFO Corporation has gross receipts according to the following schedule: $23.45 million Year 1 Year 2 Year 3 $24.40 million $26.40 million $25.90 million Year 4 Year 5 $26.40 million $28.40 million Year 6 If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Multiple Choice O Year 3. Year 4. Year 6. Year 5.
This is in contrast to the cash method of accounting, where transactions are recorded only when cash is received or disbursed.
WFO Corporation is considered a cash-method corporation as they started their business in year 1, which made them eligible to use the accrual method in the year that gross receipts exceeded $25 million. In this case, the accrual method is required to be implemented in Year 4.
This was the first year when gross receipts exceeded $25 million. Therefore, the correct option is "Year 4".Accrual method can be explained as a method of accounting in which revenues are recorded when they are earned, irrespective of the timing of cash receipts. On the other hand, expenses are recorded when they are incurred, irrespective of the timing of the cash payments.
This is in contrast to the cash method of accounting, where transactions are recorded only when cash is received or disbursed.
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Neoclassical theory supports the view that the market exchange' is the best way to allocate re- sources officiently. (i) What are the theoretical conditions (or assumptions) that are required for the neoclassical theory to be sensible ? (ii) Does efficient allocation also imply fair allocation? Discuss. (ch. 6) 9. What are the problems of using Ricardo's theory of comparative advantage in the account of the real world trade between countries? (Note: your answer must include the following opportunity costs, concentration/specialization of production, free trade) (ch. 6) 10. Transfers of goods and money may induce both efficiency and inefficiency in terms of resource allocation. Discuss cach case by providing some specific examples. (ch. 6) 11. Discuss the following statement: "Workers spend what they get, capitalists get whey they spend." You should provide its meaning and implications with regard to the distribution of income and the allocation of resources in the capitalist economic system. (ch. 6) 12. Neoclassical economists argue that the distribution of income is proportional to marginal pro- ductivity of capital and of labor) and, hence, that income inequality is not a problem as long as both capital and labor are exchanged through competitive markets. This means that wealth or poverty is individual's responsibility. Do you think that the neoclassical view adequately explains the gender pay gaps displayed in the figure below? Discuss. (ch. 6)
Neoclassical theory suggests that market exchange is the most efficient way to allocate resources. However, several theoretical conditions and assumptions need to be met for this theory to be sensible. Additionally, while efficient allocation does not necessarily imply fair allocation, the relationship between efficiency and fairness is a subject of debate in economics.
The neoclassical theory relies on several theoretical conditions or assumptions to be sensible. These include perfect competition, rational behavior of economic agents, complete information, absence of externalities, and absence of market power or monopolies.
These assumptions ensure that markets are efficient in allocating resources because they enable the forces of supply and demand to determine equilibrium prices and quantities, leading to an optimal allocation of resources.
Efficient allocation of resources does not automatically imply fair allocation. Efficiency refers to maximizing overall economic output or utility, while fairness concerns the distribution of resources and outcomes among individuals. While market exchange may lead to efficient allocation based on supply and demand, it may not result in a fair distribution of resources.
Some individuals may benefit more from market transactions due to factors such as initial endowments, bargaining power, or market imperfections, leading to income inequality or unequal access to resources.
Ricardo's theory of comparative advantage, although widely accepted, faces certain limitations in explaining real-world trade between countries. One limitation is the assumption of constant opportunity costs, which may not hold true in reality as opportunity costs can vary based on changing production conditions.
Additionally, specialization and concentration of production based on comparative advantage can lead to vulnerabilities in the face of external shocks or changes in market conditions. Moreover, the theory assumes free trade, but in reality, trade barriers and protectionist policies can distort comparative advantage and impact trade patterns.
Transfers of goods and money can have both efficient and inefficient outcomes in terms of resource allocation. Efficient outcomes occur when transfers enable resources to move from lower-value to higher-value uses, leading to increased overall welfare. For example, a transfer of funds from a low-productivity industry to a high-productivity industry can improve resource allocation.
However, transfers can also be inefficient if they result in market distortions, such as creating moral hazards, reducing incentives to work or invest, or causing resource misallocation due to government interventions or rent-seeking behavior.
The statement "Workers spend what they get, capitalists get what they spend" implies that workers primarily consume their income while capitalists invest their income to generate further wealth. This has implications for income distribution and resource allocation in a capitalist economic system.
Workers' spending drives consumer demand, contributing to economic growth, while capitalists' investment in productive assets leads to wealth accumulation and potentially increased production.
However, this statement does not capture the full complexity of income distribution and resource allocation dynamics, as factors such as power imbalances, market structures, and government policies can influence the distribution of income and the allocation of resources.
The neoclassical view that income inequality is not a problem as long as competitive markets exist and income is proportional to marginal productivity has limitations in explaining gender pay gaps. Gender pay gaps result from various factors, including discrimination, occupational segregation, and societal norms.
These factors can lead to unequal opportunities and hinder women's ability to earn incomes proportional to their productivity. The neoclassical view may overlook these systemic issues and attribute gender pay gaps solely to individual choices and productivity differences, thereby not adequately addressing the complexities of gender inequality in the labor market.
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L Moving to another question will save this response. Question 3 Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding $ 2,000,000 - Paid in capital in excess of par value, common stock - Retained earnings.... ..400,000 .900,000 $3,300,000 Total The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. 2- Mar. 01, Purchased 10,000 shares of its own common for $15 per share. 3- Mar. 15, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 6,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7- Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021. CLEARLY L Example: XYZ Company pays $10,000 cash to purchase land Answer: Dr. Land 10,000 Cr. Cash 10,000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS A Paragraph Arial V 10pt ||| > > V HE DEBITS & CREDITS Ix XQ S î kılı 三三
here are the journal entries to record each of the transactions for Arabian Gulf Corporation in 2021:
Jan. 10: Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record.Dr. Retained Earnings $200,000 ([$1 * 200,000 shares])
Cr. Dividends Payable $200,000
Mar. 01: Purchased 10,000 shares of its own common for $15 per share.Dr. Treasury Stock $150,000 ([$15 * 10,000 shares])
Cr. Cash $150,000
Mar. 15: Paid the cash dividend declared on Jan. 10.Dr. Dividends Payable $200,000
Cr. Cash $200,000
May 01: Sold 6,000 of its treasury shares at $15 cash per share.Dr. Cash $90,000 ([$15 * 6,000 shares])
Cr. Treasury Stock $90,000
Sep. 30: Directors declared a 30% stock dividend when the share market price is $16.Dr. Retained Earnings $96,000 ([$16 * 30% * 200,000 shares])
Cr. Common Stock $60,000 ([$10 * 30% * 200,000 shares])
Cr. Paid-in Capital in Excess of Par Value, Common Stock $36,000 ([$6 * 30% * 200,000 shares])
Nov. 01: Distributed stock dividends declared on Sep. 30.Dr. Common Stock $60,000
Cr. Dividends Distributable $60,000
Nov. 15: The company implemented a 5-for-1 stock split for the common stock.Dr. Common Stock $2,000,000 ([$10 * 200,000 shares * 5])
Cr. Paid-in Capital in Excess of Par Value, Common Stock $2,000,000
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During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $120,000. It replaced an older, smaller mixing tank that had a BV of $15,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $99,500. The MACRS class life for the new mixing tank is 9.5 years. (7.4, 7.3)
Under the GDS, what is the depreciation deduction in year three?
Total of the old and new mixing costs ($15,000 + $99.00) = $114,500
b. Under the GDS, what is the BV at the end of year four?
c. If 200% DB depreciation had been applied to this problem, what would be the cumulative depreciation through the end of year four?
In the given scenario, a pharmaceutical company purchased a new mixing tank for $120,000 and traded in an old tank with a book value (BV) of $15,000. The cash price for the new tank, including delivery and installation, was $99,500. The Modified Accelerated Cost Recovery System (MACRS) with a class life of 9.5 years is used for depreciation. The questions ask for the depreciation deduction in year three, the BV at the end of year four, and the cumulative depreciation through the end of year four if 200% declining balance (DB) depreciation had been applied.
To calculate the depreciation deduction in year three under the General Depreciation System (GDS), we need to determine the depreciation method and recovery period. With a class life of 9.5 years, we can use the MACRS. The depreciation deduction is based on a predetermined percentage for each year of the recovery period. The specific percentage for year three can be found in the MACRS depreciation table.
To find the book value (BV) at the end of year four, we need to subtract the accumulated depreciation from the initial cost of the mixing tank. The accumulated depreciation is the total depreciation claimed up to the end of year four, which can be calculated by summing the annual depreciation deductions from year one to year four.
If 200% declining balance (DB) depreciation had been applied, we would need to calculate the cumulative depreciation through the end of year four using the depreciation rate of 200% multiplied by the initial cost of the mixing tank.
In conclusion, to answer the specific questions regarding depreciation deductions and book value, we need to apply the appropriate depreciation method (GDS) and determine the cumulative depreciation based on the given information.
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Question Content Area
A corporation, which had 33,400 shares of common stock outstanding, declared a 3-for-1 stock split.
Question Content Area
a. What will be the number of shares outstanding after the split?
shares:
b. If the common stock had a market price of $99 per share before the stock split, what would be an approximate market price per share after the split?
$ per share
A stock split is a strategy in which the number of shares in a public firm is increased by issuing more shares, with each current shareholder receiving a portion of the new shares based on their existing holdings.
If the common stock had a market price of $99 per share before the stock split, what would be an approximate market price per share after the split?If the common stock had a market price of $99 per share before the stock split, what would be an approximate market price per share after the split?If a 3-for-1 stock split was implemented, each stockholder would get two new shares for every one held. As a result, there would be three shares available for each original share. The new stock price would be $33 per share.For such more question on stockholder
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Kingdom Corporation has the following. - Preferred stock, $10 par value, 8%, 50,000 shares issued $500,000 - Common stock, $15 par value, 300,000 shares issued and outstanding $4,500,000 In 2020, The company declared and paid $30,000 of cash dividends In 2021, The company declared and paid $150,000 of cash dividend. Required: How much is the TOTAL cash dividends that will be distributed to preferred and common stockholders over the two years, assuming the preferred stock is Non-cumulative ir in you answer.
The total cash dividends that will be distributed to preferred and common stockholders over the two years, assuming cumulative, is $176,500.
The preferred stock has a par values of $10 per share and a dividend rate of 9%. This means that each share of preferred stock is entitled to a dividend of $0.90 per year. In 2020, the company declared and paid $30,000 of cash dividends. This is not enough to cover the full dividend of $45,000 that is owed to the preferred stockholders, so the preferred stockholders will receive a $0.60 per share dividend in 2021. The common stock has a par value of $15 per share and no dividend rate. This means that the common stockholders are not entitled to any dividends unless the preferred stockholders have been paid their full dividend.
In 2020, the company declared and paid $30,000 of cash dividends. This was enough to cover the full dividend of $45,000 that is owed to the preferred stockholders, so the common stockholders received no dividends.
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QUESTION 33 "When a monopolist produces an additional unit, the marginal revenue generated by that unit must be O above the price because the output effect outweighs the price effect above the price because the price effect outweighs the output effect below the price because the output effect outweighs the price effect below the price because the price effect outweighs the output effect QUESTION 34 "If average revenue exceeds average cost, a monopolist should O Increase output O decrease output keep output the same because profit is maximised O not necessarily do anything QUESTION 35 Which of the following firms has the most incentive to advertise? O a coffee truck selling coffee exactly like other coffee trucks a car company O a wholesaler of crude oil O a restaurant in a rural town QUESTION 36 Which of these firms is most likely to spend a large percentage of their revenue on advertising? O A manufacturer of an undifferentiated commodity a perfect competitor the producer of a highly differentiated commodity the maker of a low quality product
Answer to question 33: "When a monopolist produces an additional unit, the marginal revenue generated by that unit must be below the price because the output effect outweighs the price effect."
Explanation: Monopolist is a single seller in the market with the power to control prices by varying the quantity of products sold. When a monopolist produces an additional unit, it leads to a decrease in price for all the other units, which means the marginal revenue generated by that unit must be below the price because the output effect outweighs the price effect. Therefore, the correct option is below the price because the output effect outweighs the price effect.
Answer to question 34: "If average revenue exceeds average cost, a monopolist should keep output the same because profit is maximized."
Explanation: If the average revenue exceeds the average cost, the monopolist will make a profit. To maximize the profit, the monopolist should keep the output the same because the additional output will lead to an increase in the average cost, which reduces profit. Therefore, the correct option is to keep output the same because profit is maximized.
Answer to question 35: "A car company has the most incentive to advertise."
Explanation: A car company is a highly differentiated product, and it is challenging to enter into the market. Car companies often advertise to gain market share and increase brand recognition. Therefore, a car company has the most incentive to advertise.
Answer to question 36: "The producer of a highly differentiated commodity is most likely to spend a large percentage of their revenue on advertising."
Explanation: A highly differentiated commodity has unique features that distinguish it from other products in the market. Therefore, producers of highly differentiated commodities need to advertise to create brand awareness and stand out in the market.
Therefore, the producer of a highly differentiated commodity is most likely to spend a large percentage of their revenue on advertising.
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You borrow $710 from your brother and agree to pay back $770 in
10 months. What simple interest rate will you pay?
8.45% is the simple interest that you will pay.
Given that you borrowed $710 from your brother and agreed to pay back $770 in 10 months, now you need to find out the simple interest rate that you will pay.
To find out the simple interest rate, you can use the following formula:
Simple Interest = (P × r × t) / 100
Where P is the principal amount, r is the rate of interest per annum, and t is the time period in years.
Given that P = $710, and the amount that you will pay back is $770, we can find the interest amount by subtracting the principal from the amount that you will pay back.
Interest amount = Amount - Principal
= $770 - $710
= $60
Now we can use the formula of simple interest to find the rate of interest.
Simple Interest = (P × r × t) / 100
$60 = ($710 × r × 10) / 100
60 × 100 = 710 × r × 10
6000 = 7100r
60/7100 = r/1000
0.084507 = r/100
So, the rate of simple interest you will pay is 8.45%.
Therefore, the answer is 8.45%.
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1. Assess the three interpretations of equity in ref- erence to the distribution of marks for student achievement in this course at your school. Which interpretations are most appropriate for obtaining distributive justice? Justify your choices. 2. Explain how the Lorenz curve helps economists visualize the distribution of average total income. 3. Group the nine factors affecting income distribution into two groupings as being of high or moderate importance. Further subdivide these groups according to whether or not each factor is justifiable, in your opinion. Explain your reasoning
The justifiable factors are those that can be used to promote a more equitable distribution of income, while the unjustifiable factors can lead to an inequitable distribution of income.
1. Interpretations of equity in reference to the distribution of marks for student achievement There are three interpretations of equity in reference to the distribution of marks for student achievement, which include; Equal opportunity: Each student should have equal opportunity to achieve the highest possible grade.
2. The Lorenz curve helps economists visualize the distribution of average total income The Lorenz curve is a graphical representation of the distribution of income in a country. It shows how much of the total income is earned by a given percentage of the population. The curve is plotted by ranking the households in a country from lowest to highest income and then calculating the percentage of the total income earned by each group.
3. Grouping the nine factors affecting income distribution into two groupings and subdivide them The nine factors affecting income distribution can be grouped into two main categories: High and moderate importance. Further, each group can be subdivided based on whether each factor is justifiable or not.
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