The term used to fill the blank is "resource." A resource is defined as any object used to produce goods and services, regardless of whether it is a natural gift, the result of human efforts, or the outcome of production.
A resource is an object, substance, or service that can be used to create goods or services. It might be anything from natural resources like land, water, and minerals to human-made ones like machinery, tools, and factories. Human resources, which include knowledge, education, and skills, are also included in the list of resources. Resources can be classified into two types: natural resources and human-made resources.
Natural resources refer to things that occur naturally in the environment and are not produced by human efforts. Examples include air, water, and land. They can be classified into two categories: renewable resources and non-renewable resources.
Human-made resources are created by human beings. They are often the result of human effort, but they can also be the result of production. Human-made resources can be further divided into two categories: physical resources and intangible resources. Physical resources include all types of machinery, tools, factories, and other items that can be physically touched.
Intangible resources, on the other hand, are non-physical resources like knowledge, education, and skills. Resources are critical for economic development because they enable the production of goods and services, which leads to the creation of wealth and increased standards of living.
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Some entrepreneurs find success by being a first mover and some find success by being a fast follower.
Fast Follower - A company that quickly imitates the innovations of its competitors.
First Mover – A company that gains a competitive advantage by being the first to bring a new product or service to the market.
For Project 3, do some online research to name and describe the strategies of a company that was successful as a startup being a first mover. Then, contrast this with a company that was successful being a fast follower. Consider marketing strategies, competitive environments, and barriers to entry that each company overcame.
Summarize your research findings in your own words and write at least 300 words.
The success of entrepreneurs can be achieved through two strategies: being a first mover or a fast follower. A first mover gains an advantage by introducing a new product or service to the market before competitors, while a fast follower quickly imitates the innovations of others.
One example of a successful first-mover company is Apple Inc. In 2007, Apple launched the iPhone, revolutionizing the smartphone industry. By being the first to introduce a touch-screen smartphone with a user-friendly interface, Apple gained a significant competitive advantage. They capitalized on this advantage through effective marketing strategies, creating a strong brand image and building a loyal customer base. Apple's early entry into the market allowed them to establish itself as a leader, making it challenging for competitors to catch up.
On the other hand, a notable fast-follower company is Samsung Electronics. Although Samsung wasn't the first to enter the smartphone market, it quickly recognized the potential and imitated the innovations of its competitors, including Apple. Samsung leveraged its manufacturing capabilities and strong distribution networks to rapidly launch its own line of smartphones, such as the Galaxy series. They focused on providing a range of options at different price points, targeting a broader market segment. By closely monitoring consumer preferences and competitor strategies, Samsung was able to position itself as a formidable competitor in the smartphone industry.
Both Apple and Samsung faced different competitive environments and barriers to entry. Apple's early entry allowed them to establish a dominant position, but it faced challenges from competitors who aimed to replicate its success. On the other hand, Samsung faced the challenge of catching up with established players like Apple. However, Samsung's ability to adapt quickly and leverage its existing resources played a crucial role in its success.
In conclusion, being a first mover or a fast follower can lead to success for startups, depending on the circumstances. Apple's success as a first mover was driven by its innovative product and effective marketing strategies, while Samsung excelled as a fast follower by quickly adapting to market trends and imitating competitors. Both companies overcame competitive environments and barriers to entry through different approaches, ultimately achieving significant success in their respective industries.
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When internal auditors report audit findings there are certain attributes, for each finding, that needs to be taken into account. These attributes are:
1. Criteria
2. Condition
3. Cause
4. Effect
5. Recommendation
6. Action taken
The ten sentences which follow are extracts from an internal auditor's working papers.
1. After the bank reconciliation was made, four bank errors that had gone undetected for as long as five months were disclosed.
2. In the future the accountant will check and approve monthly bank reconciliations.
3. It is company policy for the accounting department to make monthly reconciliations of all bank accounts.
4. The bank statements and cancelled cheques are delivered to the accounting department on the 5 th of each month.
5. The clerk responsible, for doing bank reconciliations, does not really know how to complete bank reconciliations.
6. We found that the last reconciliation of the payroll account had been made six months before the date of our audit.
7. The difference between the balance per bank statement and the ledger account was R12 876
8. A test of 437 transactions showed that 25 were incorrect.
9. We discussed the matter with the manager of the accounting department and he issued instructions that the bank and ledger accounts promptly be reconciled.
10. Before we completed our audit the accounts were reconciled.
11. The manager of the accounting department had given a low priority to bank reconciliations.
Criteria, 2. Condition, 3. Cause, 4. Effect, 5. Recommendation, 6. Action taken. When internal auditors report audit findings, they consider certain attributes for each finding.
In the given extracts, these attributes can be identified. For example, in extract 1, the condition is the disclosure of four undetected bank errors, the cause could be inadequate reconciliation procedures, and the effect could be financial misstatements. The recommendation could be to improve reconciliation processes, and the action taken may involve checking and approving reconciliations (extract 2). These attributes help provide a comprehensive understanding of the audit findings and guide the organization in taking corrective actions. Recommendation: Proposed actions or measures to address the identified condition and mitigate risks. Action taken: Any actions already implemented or planned to address the finding.
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A mining company will spend $28 million in order to exploit a low-grade placer deposit of gold ore. They estimate the deposit will produce profits of $6 million per year for six years. They calculate the net present value (NPV) using an estimated cost of capital of 6%. What is the maximum that the cost of capital can deviate from this estimate that still makes the decision to mine worthwhile?
The maximum that the cost of capital can deviate from 6% and still make the decision to mine worthwhile is 2%.
The NPV of a project is calculated as the present value of the project's future cash flows, discounted by the cost of capital.
In this case, the project's future cash flows are the profits of $6 million per year for six years. The cost of capital is the rate of return that the company requires on its investments.
If the cost of capital is 6%, then the NPV of the project is $0. This means that the project just breaks even. If the cost of capital were to increase by 2%, then the NPV would become negative, meaning that the project would no longer be worthwhile.
The reason for this is that the present value of the project's future cash flows would decrease as the cost of capital increases. This is because the discount factor would be larger, which would reduce the present value of the future cash flows.
Therefore, the maximum that the cost of capital can deviate from 6% and still make the decision to mine worthwhile is 2%.
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Which of the following is an example of a variable cost for a manufacturing firm?
Multiple Choice
a The cost of rent on the factory.
b The cost of factory supervision.
c The cost of raw materials.
d The cost of depreciation on equipment.
The cost of raw materials is an example of a variable cost for a manufacturing firm. The answer to the following question is "c) The cost of raw materials."
Which of the following is an example of a variable cost for a manufacturing firm?A variable cost is a cost that changes in proportion to the production volume. Variable costs differ from fixed costs, which remain the same regardless of the level of production.
A company's variable costs will increase as it increases production, and they will decrease as it decreases production.
In addition to raw materials, other examples of variable costs for a manufacturing company may include labor costs, packaging costs, and the cost of electricity required to operate machinery.
Hence, option c. is correct.
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1) Your client wants to primarily protect the family’s wealth.
1) Recommend the specific investments/products and 2) clearly
explain to your client why you recommend those
investments/products. Note
1. Diversified Portfolio: Recommend building a diversified investment portfolio that includes a mix of asset classes such as stocks, bond , real estate, and alternative investments.
Diversification helps spread risk and reduce the impact of any single investment's performance on overall wealth. It provides a balance between growth potential and stability.
The rationale behind these recommendations lies in the principle of diversification, which helps manage risk and stabilize investment returns. By diversifying across different asset classes and investment types, the client can benefit from a balanced portfolio that offers growth potential while mitigating downside risks. Additionally, the inclusion of retirement accounts and risk management products ensures long-term financial security and safeguards against unexpected events.
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Hans Bozzell is a vice-president of the Western Bank in Markham, Ontario. Active in community affairs, Bozzell serves on the board of directors of Orson Tool & Dye. Orson is expanding rapidly and is considering relacating its factory. At a recent meeting, board members decided to try to buy 20 hectares of land or the edge of town. The owner of the property is Sheri Fallon, a customer of Western Bank. Fallon is a recent
widow. Bozzell knows that Fallon is eager to sell her local property. In view of Fallon's anguished condition, Bozzell believes she would accept almost any offer for the land. Realtors have appraised the property at
$4 million.
Required
Apply the ethical judgment framework to help Bozzell decide what his role should be in Orson's attempt to buy the land from Fallon.
Bozzell should act ethically by prioritizing the best interests of both parties involved and avoiding any conflict of interest.
As a vice president of Western Bank, Bozzell has a fiduciary duty to act in the best interests of the bank and its customers. In this situation, Bozzell should ensure that any negotiations or transactions regarding Fallon's property are conducted fairly and transparently.
He should disclose his position on the board of Orson Tool & Dye and avoid using his influence to exploit Fallon's vulnerable state. Bozzell should also consider obtaining independent appraisals and facilitating a fair market value transaction for the property. Acting ethically will maintain trust, protect all parties' interests, and uphold the integrity of his position.
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what brand has been impacted by external factors lately in the
marketplace
One brand that has been impacted by external factors lately in the marketplace is Tesla Inc.
Tesla Inc., the electric vehicle (EV) manufacturer, has experienced the impact of several external factors in the marketplace recently.
1. Global Chip Shortage: The ongoing global chip shortage has significantly affected Tesla's production capacity. The shortage has disrupted the supply chain, leading to production delays and a decrease in vehicle deliveries. This external factor has put pressure on Tesla's operations and financial performance.
2. Regulatory Changes: Changes in government regulations and policies related to EVs and emissions have influenced Tesla's business. For example, modifications in tax incentives or subsidies for electric vehicles can affect consumer demand and purchasing decisions. Tesla's market share can be impacted by such regulatory changes, particularly in key markets.
3. Competition: Increased competition in the EV market has impacted Tesla's market position. Several established automakers and new entrants have launched their electric vehicles, offering consumers more options. This heightened competition has put pressure on Tesla to continuously innovate and maintain its competitive edge.
4. Geopolitical Factors: Geopolitical tensions and trade disputes can impact Tesla's operations, particularly regarding the sourcing of raw materials and components. Tariffs or restrictions on imports and exports can disrupt the supply chain and increase costs for Tesla.
5. Environmental Concerns: As a company focused on sustainable transportation, Tesla's brand image is closely tied to environmental concerns. Any negative publicity or controversies related to sustainability issues can impact consumer perception and affect Tesla's reputation and sales.
Overall, Tesla Inc. has been impacted by external factors such as the global chip shortage, regulatory changes, increased competition, geopolitical factors, and environmental concerns. Adapting to these factors and effectively managing their impact is crucial for Tesla's continued success in the marketplace.
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Should you be given the authority to legislate,
which of the limitations to the power of taxation will you seek to
amend, and what other limitations would you propose to adopt, and
why?
Diverse viewpoints and priorities are taken into account while limiting the authority of taxes. The principle of fairness, which ensures that the tax burden is divided equitably across individuals and corporations, is one prevalent restriction that is frequently up for discussion.
If given the authority, some potential changes or areas for consideration include altering tax brackets to address income inequality, streamlining the tax code to reduce complexity and compliance costs, and investigating alternative taxation models like consumption-based taxes or wealth taxes to support a more equitable system. The legislative body's objectives and guiding principles, as well as the larger social context in which the taxation system is implemented, will ultimately determine the precise restrictions that should be changed or introduced.
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Joanna Gaynes was an amazing high school student and so it was no great surprise when she was accepted into Prestige Private University (PPU). To entice Joanna to attend PPU, the school offered her a reduced tuition of $13,000 per year (full-time tuition would typically be $43,000 per year). PPU also has a scholarship program thanks to a large donation from William Gatos. Joanna was the Gatos Scholarship winner and will receive a scholarship for $20,000. Joanna is required to use the scholarship first to pay her $13,000 tuition and the remainder is to cover room and board at PPU. Lastly, PPU also offered Joanna a part-time job on the PPU campus as a student lab assistant in the Biology Department of PPU for which she is paid $1,500. Required: Go to the IRS website (www.irs.gov) and locate Publication 970. Review the section on Scholarships. Required: Write a letter to Joanna Gaynes stating how much of the PPU package for Joanna is taxable. Submit your letter using the Turnitin link below. Required: Write a letter to Joanna Gaynes stating how much of the PPU package for Joanna is taxable. Submit your letter using the Turnitin link below. Taxable Portion of PPU Package for Joanna Scholarship used for Room and Board =20000− 13000=7000 Add: Part Time Income from PPU =1500 Total Taxable Portion =8500 ANS
Below is a letter to Joanna gaynes about PPU :-
Dear Joanna Gaynes,
I am writing to you regarding the taxability of your financial aid package at Prestige Private University (PPU). Firstly, congratulations on being a Gatos Scholarship winner and for securing the part-time job on the PPU campus as a student lab assistant in the Biology Department of PPU. Here is the amount of your PPU package that is taxable.
Based on my calculations, the taxable portion of your financial aid package is $8,500. The scholarship used for Room and Board is calculated by subtracting the reduced tuition amount from the scholarship amount.
It is $20,000 − $13,000 = $7,000. You must add the part-time income from PPU which is $1,500. The sum of these amounts is $8,500. This taxable amount should be reported on your federal income tax return using Form 1040. I hope this information helps you in understanding the taxability of your financial aid package. If you have any further questions or concerns, please feel free to ask me.
Thank you.
Sincerely,[Your Name]
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$1,000,000 Calculating EPS and Multiple Securities At the end of 2020, the records of Wolverine Corporation reflected the following. Common stock, $10 par; authorized 200,000 shares: issued and outstanding throughout the year, 100,000 shares Preferred stock, $50 par, 7%, cumulative, convertible into common stock, share for share; authorized, 20,000 shares, issued and outstanding throughout year, 4,000 shares Contributed capital in excess of par, common stock Retained earnings (no dividends declared during the year) Bonds payable, 10% nonconvertible, issued at par in 2016 Net income Stock options outstanding (all year for 20,000 shares of common stock at $15 per share) Income tax rate, 25% Average market price of the common stock during 2020, $25 per share 200,000 160,000 940,000 300,000 264,000 Required a. Is this a simple or a complex capital structure? b. Compute the required EPS amounts. • Note: Round earnings per share amounts to two decimal places. • Note: If an amount is not required, leave the answer blank (zero). Per Share Net Income Available to Weighted Avg. Common Common Stockholders Shares Outstanding Basic EPS $ Diluted EPS $
a. The capital structure of Wolverine Corporation is complex because it includes both common stock and preferred stock.
b. EPS Calculation:
- Net Income Available to Common Stockholders: $986,000
- Weighted Average Number of Shares Outstanding: 100,000 shares
- Basic EPS: $9.86 per share
- Diluted EPS (Convertible Preferred Stock): $9.86 per share
- Diluted EPS (Stock Options): To be calculated.
The capital structure of Wolverine Corporation is complex because it consists of both common stock and preferred stock. To calculate EPS, we first determine the net income available to common stockholders, which is the net income minus the preferred dividends.
Next, we calculate the weighted average number of shares outstanding, which is simply the number of common shares outstanding throughout the year.
The basic EPS is then computed by dividing the net income available to common stockholders by the weighted average number of shares outstanding.
Since there were no conversions of preferred stock during the year, the diluted EPS remains the same as the basic EPS.
To calculate the dilution impact from stock options, we consider the average market price of the common stock and the number of stock options outstanding. If the average market price exceeds the exercise price of the stock options, they are considered dilutive. In this case, we calculate the number of potential common shares from stock options using the treasury stock method. However, the calculation for diluted EPS (Stock Options) is not provided in the given information.
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Marigold Industries can produce 500 units of a necessary component part with the following costs:
Direct Materials $75700
Direct Labour 20500
Variable Overhead. 59000
Fixed Overhead 10800
If Marigold Industries purchases the component externally $3200 of the foxed costs can be avoided. Below what external price for the 500 units would Marigold choose to buy instead of make?
a $96200
b $166000
c $155200
d $158400
To determine the external price at which Marigold Industries would choose to buy the component instead of making it, we need to compare the total costs of making the component with the cost of purchasing it externally.
The total cost of making the component includes direct materials, direct labor, variable overhead, and fixed overhead. The fixed overhead cost that can be avoided if the component is purchased externally is $3200.
Total Cost of Making = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead - Avoidable Fixed Overhead
Total Cost of Making = $75700 + $20500 + $59000 + $10800 - $3200
Total Cost of Making = $165800
Therefore, Marigold Industries would choose to buy the component externally if the external price for the 500 units is less than $165800.
Among the given options, the external price that is below $165800 is $155200 (option c). Hence, Marigold Industries would choose to buy the component instead of making it at a price of $155200 for the 500 units.
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In the PDF case study, how did Pearson use cloud computing?
In the PDF case study, Pearson utilized cloud computing in several ways. Firstly, Pearson migrated its learning platforms, including LearningStudio and OpenClass, to a cloud-based infrastructure.
This allowed them to provide scalable and flexible solutions for their customers, enabling easy access to educational resources and learning materials from anywhere and at any time.Additionally, Pearson adopted cloud-based storage and data management solutions. By leveraging cloud storage services, they were able to securely store and manage vast amounts of educational content, such as textbooks, videos, and assessments.
This ensured efficient access and retrieval of content for both educators and students. Moreover, Pearson leveraged cloud computing to enhance their data analytics capabilities. By utilizing cloud-based analytics platforms, they were able to process and analyze large volumes of educational data, enabling them to gain valuable insights and improve their learning products and services.
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which of the following terms refers to all money owed
The terms refers to all money owned is ' liabilities' . Liabilities are financial obligations that a person or organization owes to others and are typically categorized as short-term or long-term.
"All money owned" refers to the total amount of money that an individual or organization owes to others, which is typically referred to as liabilities. This includes any outstanding debts, loans, or financial obligations that need to be paid back to creditors or lenders. It is important to keep track of all money owed in order to properly manage finances, avoid defaulting on payments, and maintain a good credit score.
Assets, on the other hand, refer to anything of value that a person or organization owns or controls, such as cash, investments, property, and equipment.
Net worth is the difference between a person or organization's total assets and total liabilities, and is often used as a measure of financial health.
Financial status refers to the overall financial position of an individual or organization, which takes into account various factors such as income, expenses, assets, liabilities, and net worth.
The complete question is
Which of the following terms refers to all money owed?
assets
liabilities
net worth
financial status
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The term that refers to all money owed, in Business or Economics, is a liability. This includes any amounts or debts that a firm or an individual owes to another entity. In the broader context of a country's finances, the term 'country's debt' can refer to all money owed.
Explanation:In the context of Economic and Business Studies, the term that refers to all money owed is known as liability. These are any amounts or debts that a firm, entity, or an individual owes to another party. Liabilities can occur due to borrowing money, purchasing goods or services on credit, receiving advance payments for future services, etc. They are typically categorized into two groups: Current Liabilities which are due within one year, and Long-Term Liabilities, which are due after a year.
In context with a country's finances, the broad term referring to all money owed is sometimes termed as the country's debt. This encompasses both internal and external liabilities, including amounts owed by the government through loans and securities.
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3 logging firms use a forest to collect timber. Each firm i must choose how many trees to cut, g i . The benefit of cutting a tree is 1000−1006 per tree, where G is the total quantity of trees cut in the forest. The marginal cost of cutting a tree is 50 . Firms do not face any fixed costs. The social optimum solves:
max g i (1000−100G)g i −50g i
max G (1000−100G)G−50G
max g i (1000−100G)g i
max g i (1000−100G)C−50g i
In this equation, gi represents the quantity of trees cut by firm i, G represents the total quantity of trees cut in the forest, and Σ is the summation symbol indicating that the objective is to maximize the total benefit across all firms. The social optimum solves: max Σ[(1000 - 100G)gi - 50gi]
The objective function is composed of two parts:
1. The benefit of cutting a tree: (1000 - 100G)gi
This term represents the benefit obtained by firm i from cutting gi trees. The benefit per tree is given by (1000 - 100G), where G represents the total quantity of trees cut in the forest. Multiplying this benefit per tree by gi gives the total benefit for firm i.
2. The cost of cutting a tree: -50gi
This term represents the cost incurred by firm i for cutting gi trees. The cost per tree is a fixed value of 50, and multiplying it by gi gives the total cost for firm i.
By maximizing this objective function, the social optimum aims to find the allocation of trees (gi) that maximizes the overall net benefit (benefit minus cost) for the society as a whole. The optimal solution will determine the quantities of trees each firm should cut (gi) and the total quantity of trees cut in the forest (G) that maximizes this net benefit.
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monetary theorem
2. Which type of bonds can a microfinance involve in or sell? 4:37 AM
Microfinance institutions (MFIs) can include a variety of bonds and debt instruments in their portfolios or sell. These bonds can be divided into two categories: local currency bonds and foreign currency bonds.
MFIs are more likely to participate in local currency bonds, which are debt securities that are denominated in the currency of the issuer's country and pay interest at a fixed or floating rate over a specified period. These bonds may be issued by governments, public sector entities, and corporations.Local currency bonds, in addition to providing the security of a home currency, may benefit from local tax advantages and lower currency risk.
Foreign currency bonds are typically issued by corporations and governments to raise funds in a foreign currency. Although foreign currency bonds can provide a high yield, they carry a higher risk because they are subject to currency fluctuations. As a result, MFIs are less likely to hold or sell foreign currency bonds, which are more difficult to obtain due to the need for international legal and regulatory frameworks to ensure their stability.
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Consider the following four terms and explain what they are
a. SWOT:
b. Crisis management:
c. Competitive strategy:
d. Goals:
Share how they are related
a. SWOT: Analysis of internal strengths, weaknesses, and external opportunities and threats. b. Effective handling of crises. c. Actions for gaining a competitive edge.d. Goals: Specific and measurable targets.
a. SWOT: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic planning framework used to assess and analyze the internal and external factors that can impact an organization's performance. Strengths and weaknesses refer to internal factors within the organization, while opportunities and threats pertain to external factors in the business environment. By identifying these factors, organizations can develop strategies to leverage their strengths, address weaknesses, capitalize on opportunities, and mitigate threats.
b. Crisis management: Crisis management refers to the process of preparing for, responding to, and recovering from a crisis or emergency situation that poses a significant threat to an organization's reputation, operations, or stakeholders. It involves implementing strategies and protocols to effectively manage and mitigate the impact of the crisis, maintain business continuity, protect the organization's image, and ensure the safety and well-being of employees and stakeholders. Crisis management typically includes risk assessment, crisis planning, communication strategies, resource allocation, and post-crisis evaluation.
c. Competitive strategy: Competitive strategy refers to the set of actions and approaches that an organization implements to gain a competitive advantage over its rivals in the market. It involves analyzing the industry, identifying competitors, understanding customer needs, and formulating strategies to differentiate the organization's products or services, reduce costs, or focus on specific market segments.
Competitive strategies can include price leadership, product differentiation, market niche targeting, innovation, strategic partnerships, or operational efficiency, among others, with the goal of outperforming competitors and achieving sustainable success in the marketplace.
d. Goals: Goals are specific, measurable targets or objectives that organizations set to guide their actions and measure their progress towards achieving desired outcomes. Goals provide a clear direction and purpose, helping organizations align their efforts, allocate resources effectively, and monitor their performance.
Goals can be short-term or long-term, and they can encompass various aspects of an organization's operations, such as financial performance, market share, customer satisfaction, employee development, or social and environmental responsibility. Setting goals allows organizations to focus their efforts, track their achievements, and make necessary adjustments to ensure they are on track to achieve their desired results.
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1. Distinguish between the short run and the long run. Page 292 2. What is the Law of Diminishing Returns? Why does marginal product eventually diminish?
The short run refers to a period where some factors of production are fixed, while the long run involves all factors being variable. The Law of Diminishing Returns states that as additional units of a variable input are added to a fixed input, the marginal product of the variable input will eventually diminish.
In economics, the short run refers to a time period in which at least one factor of production is fixed, typically capital. This means that certain resources cannot be easily adjusted, such as the size of a factory or the number of machines. In contrast, the long run is a period where all factors of production can be adjusted. Firms have the flexibility to change their inputs, expand or contract their operations, and make strategic decisions.
The Law of Diminishing Returns is an economic principle that states that as additional units of a variable input are added to a fixed input, the marginal product of the variable input will eventually diminish. Initially, as more units of the variable input are employed, the total output will increase at an increasing rate. However, after a certain point, the productivity gains start to decline. This happens because the fixed input becomes a limiting factor and cannot be increased proportionately to keep up with the increasing variable input. As a result, the additional output generated by each additional unit of the variable input decreases.
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The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil... [leading to] the lowest price for domestic crude oil since June 1990."
Statements. True/False
The members of OPEC were trying to agree to cut production so they could save more oil for the future.
OPEC was unable to agree on cutting production because each country has an incentive to cheat on any agreement.
The newspaper also noted OPEC's view "that producing nations outside the organization, like Norway and Britain, should do their share and cut production."
What does the phrase "do their share" suggest about OPEC's desired relationship with Norway and Britain?
a OPEC would like Norway and Britain to join the cartel.
b OPEC would like Norway and Britain to act competitively.
c OPEC would like Norway and Britain to keep their production levels high.
Statements:
1. False. The members of OPEC were trying to agree to cut production to stabilize oil prices and increase their revenue in the short term, rather than specifically saving more oil for the future.
2. True. OPEC was unable to agree on cutting production because each country has an incentive to cheat on any agreement, as reducing production would mean a loss of revenue for individual countries while others might not adhere to the agreed-upon quotas.
OPEC's main objective is to regulate oil prices by controlling the global oil supply. The inability to agree on production cuts indicates that the member countries were not primarily concerned with saving more oil for the future but rather with their immediate financial interests.
Each member has its own economic considerations, and cutting production means reduced revenue, especially if other countries do not adhere to the agreed-upon quotas.
This creates an incentive for individual countries to exceed their assigned production limits and benefit from higher oil prices.
Regarding the phrase "do their share," it suggests that OPEC would like Norway and Britain, which are producing nations outside the organization, to contribute to stabilizing oil prices by reducing their own production levels.
By using the term "share," OPEC implies that all oil-producing nations, both within and outside the organization, should shoulder the responsibility of balancing the global oil market.
OPEC's desired relationship with Norway and Britain, as implied by the phrase, is for these countries to actively participate in coordinated production cuts and align their actions with OPEC's objectives.
Thus, the answer is option (a) - OPEC would like Norway and Britain to join the cartel and collaborate in managing oil production.
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Which of the following is true of supplies?
Question 2 options:
a) Only one supplier is generally available.
b) Branding is not important for maintenance and small operating supplies.
c) None of these answers is correct.
d) New-task buying is typical with most purchases.
e) Breadth of assortment is important, but dependability is not.
None of the options provided is true of supplies. The option c is correct answer.
None of the options provided accurately describes the characteristics of supplies. Let's analyze each option:
a) Only one supplier is generally available: This statement is not true because supplies can be sourced from multiple suppliers. In many cases, businesses prefer to have multiple suppliers to ensure a consistent and reliable supply chain.
b) Branding is not important for maintenance and small operating supplies: This statement is also incorrect. Branding can play a significant role in the selection of maintenance and small operating supplies. Brands often represent quality, reliability, and compatibility with existing equipment or systems, making branding an important consideration.
d) New-task buying is typical with most purchases: This statement is not true for supplies. New-task buying refers to the purchase of unfamiliar or complex products or services, which is not typically the case with routine supplies. Most supply purchases are classified as straight rebuys or modified rebuys, where the buyer is familiar with the product and supplier.
e) Breadth of assortment is important, but dependability is not: This statement is also incorrect. Dependability is a crucial factor when selecting supplies. Businesses rely on a dependable supply of materials, equipment, and services to ensure smooth operations and meet customer demands. While breadth of assortment may be important for some industries or specific purchasing situations, dependability is universally valued.
In conclusion, none of the options provided accurately describes the characteristics of supplies. Factors such as multiple suppliers, branding, dependability, and familiarity with the product and supplier play essential roles in the supply procurement process. Therefore , the option c is correct.
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Which one of the following statements related to beta is correct? Multiple Choice Highly cyclical stocks tend to have low betas. The beta of debt is generally assumed to equal the market beta. Stocks with a high variance must have a high beta. The levered beta of equity exceeds the asset beta. A firm with a given sales cyclicality can reduce its beta by replacing variable production costs with fixed costs.
Among the given statements related to beta, the correct statement is that the levered beta of equity exceeds the asset beta.
Beta is a measure of a stock's sensitivity to market movements. It indicates the relationship between the stock's returns and the returns of the overall market. The levered beta of equity reflects the risk of an investment in a company's shares, taking into account the impact of debt and financial leverage. It is influenced by the company's capital structure, including the use of debt financing. When a company has debt, the presence of interest payments and the potential for financial distress can increase the riskiness of the equity, resulting in a higher levered beta compared to the asset beta.
The other statements in the multiple-choice options are not correct. Highly cyclical stocks tend to have high betas, as their returns are more sensitive to market fluctuations. The beta of debt is typically lower than the market beta because debt is generally considered less risky than equity. The volatility or variance of a stock's returns does not necessarily determine its beta, as beta is a measure of systematic risk relative to the market, not overall volatility. Lastly, a firm's beta is not directly affected by the allocation of variable production costs to fixed costs. Beta primarily reflects the sensitivity to market movements and cannot be significantly reduced by cost allocation decisions.
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Explain the difference between the following:
a. Money markets and capital markets
b. Primary markets and secondary markets
Money markets and capital markets:Difference between money markets and capital marketsThe difference between money markets and capital markets is that the former refers to short-term borrowing and lending and the latter refers to long-term investments or financing instruments.
Money markets deal with very liquid assets that are easily convertible into cash, while capital markets are concerned with long-term investments in stocks and bonds.There are a few other key differences between money markets and capital markets:Money marketsCapital marketsMaturity of instrumentsLess than a yearMore than a yearRiskLow to mediumHighType of instrumentsTreasury bills, certificates of deposit, commercial paper, etc.Stocks, bonds, and other long-term securitiesSizeSmallerLargerAs far as primary markets and secondary markets are concerned:Primary markets and secondary markets:Difference between primary markets and secondary marketsA primary market is where new securities are issued to investors for the first time. Primary markets are where initial public offerings (IPOs) and other equity and debt offerings occur, allowing companies to raise capital for growth and other initiatives. The secondary market is where securities that have already been issued are bought and sold. Trading in the secondary market doesn't affect the issuer of the securities, but rather it's the buyer and seller that are exchanging the assets between themselves. The secondary market is often referred to as the stock market or bond market, and it's where investors buy and sell securities after they've been issued.
There are a few other differences between primary markets and secondary markets: Primary markets Secondary marketsPurposeTo raise capital for growth and other initiatives To provide liquidity for investors Type of issuanceNew securities already issued securities Activities IPOs, other equity and debt offerings Trading in securities already issuedTiming of transactions Before securities are issued After securities are issued.
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Given the actions of the Federal Reserve in recent months, what
would you expect to happen to the value of the dollar in the coming
months? Illustrate the effects in the market for foreign exchange,
a
To assess the potential effects on the value of the dollar in the market for foreign exchange.
Factors such as interest rate differentials, economic growth prospects, trade imbalances, political stability, and investor confidence can all influence the value of a currency.
It is recommended to consult up-to-date financial news, economic analysis, and expert opinions from trusted sources to gain insights into the current and potential future trends in the foreign exchange market and the value of the dollar.
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According to Michael Porter, a company with good products that has no clear competitive advantage is said to be ________.
a. perfectly positioned
b. stuck in the middle
c. in the wheelhouse
d. outside of the box
According to Michael Porter, a company with good products that has no clear competitive advantage is said to be "stuck in the middle."
The concept of being "stuck in the middle" refers to a situation where a company fails to achieve a sustainable competitive advantage by either being a low-cost provider or differentiating itself effectively in the market.
This lack of strategic focus can result in a company being unable to compete effectively against rivals and can hinder its long-term success.
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. Name three statutory deductions for employees. A. Employee Income tax CPP, EI B. Employee Union dues; RRSP, EI C. Employer Income tax, GST, El D. Employer Income tax, CPP, HST
The Correct option is A. Employee Income tax CPP(Canada Pension Plan), EI (Employment Insurance) are three statutory deductions for employees .
Employee Income tax, CPP (Canada Pension Plan), and EI (Employment Insurance) are three statutory deductions that are taken from the employee's paycheck. Income tax is a compulsory deduction imposed by the government on employees' earnings to fund public services and programs.
CPP is a social insurance program that provides income in retirement, disability, and death. EI is another social insurance program that provides temporary financial assistance to individuals who are unemployed or on parental leave.
Deductions such as income tax, CPP, and EI are mandatory for employees and are withheld by the employer from the employee's gross pay. These deductions ensure that individuals contribute to various government programs and benefits.
The income tax deduction is based on the employee's taxable income, which is determined by their earnings and any applicable tax credits or deductions. CPP contributions are calculated based on the employee's earnings, up to a maximum annual limit set by the government. Similarly, EI premiums are deducted from the employee's wages, and the amount depends on the employee's insurable earnings and the current rate set by the government. These deductions play a crucial role in financing social welfare programs and providing financial support to employees in various situations.
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The treasurer of Brandon Blue Sox is seeking a $22.000 loan for 180 days from the Brandon Credit Union. The stated interest rate is 12 percent and there is a 20 percent compensating balance requirement. The treasurer always keeps a minimum of $1,700 in the firm's chequing account. These funds could count toward meeting any compensating balance requirements
What is the annual rate of interest on this loan? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Annual rate of interest ____
The annual rate of interest on the $22,000 loan from Brandon Credit Union is approximately 5.90%.
To calculate the annual rate of interest on the loan, we need to account for the compensating balance requirement and the effective amount borrowed.
First, let's calculate the effective amount borrowed by subtracting the minimum balance requirement from the loan amount:
Effective Amount Borrowed = Loan Amount - (Loan Amount * Compensating Balance Requirement)
Effective Amount Borrowed = $22,000 - ($22,000 * 0.20)
Effective Amount Borrowed = $22,000 - $4,400
Effective Amount Borrowed = $17,600
Next, let's calculate the interest paid on the loan over 180 days:
Interest Paid = Effective Amount Borrowed * Interest Rate * (Number of Days / 365)
Interest Paid = $17,600 * 0.12 * (180 / 365)
Interest Paid = $2,112 * 0.493150685
Interest Paid = $1,040.44 (rounded to 2 decimal places)
To calculate the annual rate of interest, we divide the interest paid by the effective amount borrowed and then multiply by the number of periods in a year:
Annual Rate of Interest = (Interest Paid / Effective Amount Borrowed) * (365 / Number of Days)
Annual Rate of Interest = ($1,040.44 / $17,600) * (365 / 180)
Annual Rate of Interest = 0.059 (rounded to 3 decimal places)
Converting to a percentage, the annual rate of interest on the loan is approximately 5.90%.
Therefore, the annual rate of interest on this loan is 5.90%.
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For a cost to be relevant, it must meet which of the following criteria?
Multiple Choice
a It must not differ between the decision alternatives and it must be incurred in the future rather than in the past.
b It must differ between the decision alternatives and it must be inculred in the future rather than in the past.
c It must not differ between the decision alternatives and it must have occurred in the past rather than in the future.
d It must differ between the decision alternatives and it must have occurred in the past rather than in the future.
For a cost to be relevant, it must meet the criteria of option (b) it must differ between the decision alternatives and it must be incurred in the future rather than in the past.
Costs play an important role in decision-making.
A cost is said to be relevant if it can influence a decision that the organization needs to take.
Relevant costs are used to make effective decisions, and irrelevant costs are avoided.
A relevant cost is a cost that is related to the decision being made, differs between alternatives, and is incurred in the future. These costs are also known as differential costs, incremental costs, and avoidable costs.
Relevant costs are important for decision-making purposes, as they can help the decision-makers to choose among different alternatives.
For example, a company may have two alternatives: either to continue production or to shut it down.
If the relevant costs of continuing production are less than the relevant costs of shutting down production, then the company should continue production.
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The statement that ʺpeach ice cream is better than chocolate ice creamʺ
A.
Provides a basis for predicting which type of ice cream will exhibit the most sales.
B.
Can be tested using the scientific approach.
C.
Is a normative statement.
D.
Is a positive statement.
The statement that "peach ice cream is better than chocolate ice cream" is an example of what kind of statement? Is it a normative statement or a positive statement? The statement that "peach ice cream is better than chocolate ice cream" is an example of what kind of statement? Is it a normative statement or a positive statement?
Answer: C. Is a normative statement.
Normative statement: Normative statement expresses a judgment or opinion on what ought to be. This statement can be true or false, but it does not make a claim about what is actually occurring. It is used to express an opinion about how the world should be and is not testable or verifiable.
These are subjective statements that cannot be tested by any scientific methods. Example: The statement that "peach ice cream is better than chocolate ice cream" is an example of a normative statement. It is an opinion or judgment about which flavor is preferable. It is subjective and based on personal preferences. There is no scientific method to test whether this statement is true or false.
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refer to the table above. Nebraska and Virginia each have 100 acres of farmland. The table gives the hypothetical figures for yield per acre in the two states. For the next four problems, you will find actual points on the combined PPC of the two states. You will be given a value of one good, and you must calculate the maximum amount of the other good that the two states could produce working together. 400 Wheat: 980 Cotton 1320 Cotton 860 Cotton 1160 Cotton None of the above 480 Cotton: 720 Wheat 840 Wheat 960 Wheat 1080 Wheat None of the above 1200 Cotton: 100 Wheat 200 Wheat 300 Wheat 400 Wheat None of the above 1100 Wheat: 250 Cotton 350 Cotton 450 Cotton 550 Cotton None of the above In Virginia, what is the marginal rate of transformation between wheat and cotton? (Assume wheat is graphed on the vertical axis.) −0.5 −0.666 −1 −1.5
To find the marginal rate of transformation (MRT) between wheat and cotton in Virginia,
we need to calculate the slope of the production possibilities curve (PPC) for Virginia at the given points. The MRT represents the rate at which one good can be substituted for the other while keeping total production constant. Let's consider the given values for Virginia's production:- 480 Cotton: 720 Wheat - 840 Wheat: 960 Cotton To calculate the MRT, we'll use the formula: MRT = (Change in Cotton) / (Change in Wheat) MRT = (960 - 720) / (840 - 480) MRT = 240 / 360 MRT = 2/3 Therefore, the marginal rate of transformation between wheat and cotton in Virginia is 2/3.
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Question 1 Rockford Plc prepares financial statements to 31 December each year. On 1 January 2020 Rockford plc purchases plant and machinery for £2,400,000 which has a useful life of 8 years with no residual value. The tax authorities do not allow depreciation as a deductible expense. Instead, the tax authority gives capital allowances each year at a rate of 20% on the tax written down value each year. The corporation tax rate is 22%
Rockford Plc has estimated that its current tax liability for the year ended 31 December 2021 is £106,000.
Calculate the amount of deferred taxation to be shown in the statement of financial position as at 31 December 2020 and as at 31 December 2021, and show the Statement of Financial Position extracts for 2020 and 2021. (6 marks)
To calculate the amount of deferred taxation to be shown in the statement of financial position as at 31 December 2020 and 31 December 2021, we need to determine the temporary difference between the accounting profit and the taxable profit for each year and apply the applicable tax rate.
Let's calculate the deferred taxation for each year:
As at 31 December 2020:
In this case, the plant and machinery was purchased on 1 January 2020, and the useful life is 8 years. Therefore, as of 31 December 2020, the plant and machinery will have a tax written down value of £2,400,000 x (1 - 20%) = £1,920,000.
The temporary difference for 2020 is the difference between the accounting depreciation and the tax depreciation. Since the tax authorities do not allow depreciation, the tax depreciation is zero. Therefore, the temporary difference is £2,400,000 - £0 = £2,400,000.
The deferred tax liability is calculated by multiplying the temporary difference by the tax rate. Therefore, the deferred taxation as at 31 December 2020 is £2,400,000 x 22% = £528,000.
Statement of Financial Position Extract as at 31 December 2020:
Deferred Tax Liability: £528,000
As at 31 December 2021:
The tax written down value as of 31 December 2021 can be calculated as follows:
Tax written down value = £1,920,000 x (1 - 20%) = £1,536,000
The temporary difference for 2021 is the difference between the accounting depreciation and the tax depreciation. The accounting depreciation for the year can be calculated as £2,400,000 / 8 = £300,000. The tax depreciation for the year is 20% of the tax written down value as of 31 December 2020, which is £1,536,000 x 20% = £307,200. Therefore, the temporary difference is £300,000 - £307,200 = -£7,200.
Since the temporary difference is negative, we have a deferred tax asset instead of a deferred tax liability. The deferred tax asset is calculated by multiplying the absolute value of the temporary difference by the tax rate. Therefore, the deferred taxation as at 31 December 2021 is £7,200 x 22% = £1,584.
Statement of Financial Position Extract as at 31 December 2021:
Deferred Tax Asset: £1,584
In summary:
As at 31 December 2020:
Deferred Tax Liability: £528,000
As at 31 December 2021:
Deferred Tax Asset: £1,584
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2. Suppose you manage a portfolio of risky assets with an expected return of 10% and a standard deviation of 15%, and the short-term Treasury bond rate is 5%.
(1) Suppose your client wants to invest y proportion of his investment in your risky portfolio, and the rest into short-term government bonds. His proposed goal is to obtain the highest expected return under the condition that the standard deviation of the total investment does not exceed 10%. How much do you recommend he put into your risky portfolio? What is his expected rate of return at this point?
(2) If your client's risk aversion coefficient is 3, how would you recommend him to allocate his investment funds for optimal utility? What is his expected return and standard deviation at this point?
(1) I would recommend the client to allocate approximately 66.67% of his investment in the risky portfolio and the remaining 33.33% in short-term government bonds. The expected rate of return for this allocation would be 8.33%.
(2) Considering the client's risk aversion coefficient of 3, I would recommend allocating approximately 27.78% of the investment in the risky portfolio and the remaining 72.22% in short-term government bonds. The expected return for this allocation would be 7.22% with a standard deviation of 4.17%.
(1) To ensure that the standard deviation of the total investment does not exceed 10%, the client should allocate a proportion (y) in the risky portfolio and the remaining (1 - y) in short-term government bonds. To determine the recommended allocation:
Standard Deviation of Total Investment = √(y² * Standard Deviation of Risky Portfolio² + (1 - y)² * Standard Deviation of Government Bonds²)
Solving for y when the standard deviation is 10%:
10% = √(y² * 15%² + (1 - y)² * 0)
Since the standard deviation of government bonds is zero, the equation simplifies to:
10% = y * 15%
Solving for y:
y = 10% / 15% = 2/3 ≈ 0.667
Thus, the recommended allocation is approximately 66.7% in the risky portfolio and 33.3% in short-term government bonds. The expected rate of return for this allocation would be 10%.
(2) To recommend an optimal investment allocation based on the client's risk aversion coefficient, use concept of the risk premium. The risk premium is the excess return that compensates for the additional risk taken.
In this case, the risk premium is the difference between the expected return of the risky portfolio (10%) and the risk-free rate (5%), which is 5%.
The optimal allocation is given by the formula:
y = (Expected Return of Risky Portfolio - Risk-Free Rate) / (Risk Aversion Coefficient * Standard Deviation of Risky Portfolio)
Substituting the values:
y = (10% - 5%) / (3 * 15%) = 5% / 45% ≈ 0.111
Thus, the recommended allocation is approximately 11.1% in the risky portfolio or remaining in government bonds. The expected return for this allocation would be:
Expected Return = y * Expected Return of Risky Portfolio + (1 - y) * Risk-Free Rate
Expected Return = 0.111 * 10% + (1 - 0.111) * 5% ≈ 6.11%
The standard deviation of the total investment can be calculated using the formula mentioned in part (1), but with the new allocation weights.
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