Andrew will choose loan s - which have a nominal rate of 10.755%, compounded annually.
What is a loan?The term loan refers to a type of credit instrument in which an amount of money is lent to another party in exchange for future repayments of value or principal. Lenders often add interest or financing costs to the principal, which the borrower must repay in addition to the principal balance.A loan is a provision of money to another party in exchange for repayment of the loan amount plus interest.A lender considers a potential borrower's income, creditworthiness, and debt level before deciding to provide a loan.Loans may be secured by collateral, such as a mortgage, or unsecured, such as a credit card, gold, and property. A revolving loan or line can be issued, repaid, and reissued, while a term loan is a fixed interest rate loan with a fixed interest rate.loans are available as a one-time amount specified or as a permanent line of credit up to a specified limit. Loans come in many forms, such as: secured loans, unsecured loans, commercial loans, and personal loans.to know more about loan treatment refer to:
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the fresno company manufactures slippers and sells them at $13 a pair. variable manufacturing cost is $6.50 a pair, and allocated fixed manufacturing cost is $2.00 a pair. it has enough idle capacity available to accept a one-time-only special order of 5,000 pairs of slippers at $8.50 a pair. fresno will not incur any marketing costs as a result of the special order. what would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $10,000 increase, (c) $32,500 increase, or (d) $42,500 increase? show your calculations.
The provision of relevant information to managers during decision-making is part of relevant costing.In the decision-making process, relevant information refers to future information that is provided promptly and distinguishes between various options.
The company must comprehend additional cost concepts like opportunity costs and sunk costs in order to identify relevant costs.Costs that have already been incurred and will not change in the future are referred to as "sunk costs.
"Sunk costs are costs that don't matter and shouldn't be considered when making a decision.The cost of direct materials used in the production of a product that cannot be sold because of damage is an example of sunk cost.The benefits sacrificed when choosing one option over another are known as opportunity costs.
Operating income increased by (7.50 - 7) x 35,000 is equal to $17,500.
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pete metcalf, ceo and lead founder, says that the challenges are figuring out authority and responsibility, what level of global input to bring into the business, and what kind of global leadership to bring into the business. this statement implies that black diamond equipment is most likely concerned with using:
The CEO of Black Diamond Inc., Peter Metcalf, didn't start his climbing and outdoor gear business to generate money.Metcalf claimed that he did it "to make a difference."
Black Diamond Inc., a $200 million a year publicly traded company, is renowned for both its specialty equipment and its commitment to environmental protection.
Black Diamond has fought in the public eye for conservation policies controlling public lands, particularly those in Utah, while promoting conservation, access, stewardship, and education.
After managing Chouinard Equipment for Patagonia and purchasing that division of the company from its inventor Yvon Chouinard, Metcalf created Black Diamond in 1989.In 2010, Black Diamond went public.
The company not only creates cutting-edge products but also supports access, stewardship, education, and conservation.It aims to honor those who devote time to sports like climbing, mountaineering, and backcountry skiing because they are life-defining.
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thermal, inc. bought a new computer system for $50,000 cash. what is the effect of this purchase on the company's total assets? total assets . multiple choice question. remain the same decrease increase
Thermal, Inc. paid $50,000 in cash for a brand-new computer system. The total assets of the business won't change as a result of the purchase. Wealth overall stays constant.
The sum of a person's or entity's holdings is their total assets. Things of economic value are assets, which an owner uses throughout time to benefit. If the owner is a business, these assets can be seen on the balance sheet of the company and are frequently listed in the accounting records.
The value of all the valuable assets that a person, group of people, business, or nation owns is measured as wealth. Thereafter, all debts are deducted from the market value of all held tangible and intangible assets.
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when a large organization has departments based on areas of production, what type of departmentalization is being utilized?
Product departmentalization is being utilized. Product departmentalization is an organisational technique in which personnel are divided into teams to work on all areas of a specific project or product line.
Every product line has its own department or team, with people specialising in various elements of product development and distribution. LA Gear is a corporation that employs product departmentalization. Its structure is built on its diverse product lines, which include women's footwear, among other things. Customer departmentalization is the grouping of activities based on common customers or customer kinds. Product departmentalization distinguishes employees based on the organization's products or services.
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suppose that you have just opened a new ford sales showroom and repair shop. which of your employees would be paid wages, which would receive salaries, and which would receive commissions?
it is a system where wages are paid on the basis of time spent by the workers on the job. The time spent may be in hours, days, weeks, or in months. Wages are to be paid per hour, per day, per week, or per month. Total wages are determined by multiplying the wages per unit of time by the total time spent on the job.
1. Service employees that include cashiers, and receptionists would be paid an hourly wage.
2. A salesperson would be paid a commission with an option for a weekly draw.
3. Repair technicians would be paid based on their billed labor hours.
4. Service writers would be paid a salary with a monthly bonus based on completed repairs.
5. Parts counter salesperson would be paid hourly plus a commission. Management would be paid a salary plus a bonus based on departmental performance.
“Wages” method all remuneration for private offerings, along with commissions and bonuses, and the coins price of all remuneration in any medium apart from coins.
salary and wages are each used to consult the cash paid to a person frequently for the paintings they do. expert people which include instructors are commonly paid a revenue. Their profits are the entire amount of cash that they are paid every 12 months, even though this is paid in twelve components, one each month.
Wages to be paid in current coin or forex notes-All wages will be paid in cutting-edge coin or foreign money notes or in both: [supplied that the business enterprise can also, after acquiring the written authorization of the hired character, pay him the wages both be cheque or with the aid of crediting the wages in his bank account.
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g if a wage differential is due to any factor other than gender, then it does not violate the equal pay act. true false
The correct answer is True because the wage gap can be defined as the difference in wage rates between two classes of workers and does not violate the Equal Pay Act.
When considering wages, it is important to consider wage inequality. This is the ratio of a company's wages to the average wages earned by all workers in a particular sector. The cost of living in the United States varies from region to region, and so does income by occupation. These pay gaps are most often the result of differences in workers' skills and the effort workers make to perform their jobs, but they can also occur when jobs are unionized.
We conclude that wage inequality in firms is an important explanation for why wages differ among individuals because they can only be partially explained by observable firm characteristics.
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tracy is covered by a group dental insurance plan at work. at her latest check-up, the dentist notes that she needed crowns on two teeth. under her plan, if the cost of dental work will exceed $500, the dentist submits the treatment plan to the insurer to calculate what the plan will cover and what the employee will pay. this provision is known as a
Tracy is covered by a group dental insurance plan at work. Under her plan, if the cost of dental work will exceed $500, the dentist submits the treatment plan. This provision is known as a predetermination of benefits.
A predetermination of benefits is an estimate in writing from your dental insurer of the sum your dental plan will pay for a particular treatment based on data supplied by your dentist.
The predetermination technique used by SDC is beneficial to the patient as well as the treating dentist. Predeterminations help you, the patient, understand your financial obligations and guarantee that the planned service is covered by the dental plan.
Predeterminations can speed up claim payment because documentation criteria are met before treatment starts. A dentist must submit a predetermination if the planned treatment plan costs more than $400 or includes periodontal therapy.
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when in a hurry to complete a project where time is of the essence, and rework is possible, which method of reducing project duration is most appropriate? multiple choice question.
When in a hurry to complete a project where time is of the essence, and rework is possible, the most appropriate method of reducing project duration is to Do it twice-fast and correctly.
Project management is the process of planning, organizing, and controlling resources to achieve specific goals within time. A project is a temporary endeavor with a defined beginning and end.
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management is a critical skill for any organization. It helps to ensure that projects are completed within duration, budget, and to the required standards.
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at jackson electric, the company's core competence is based in the proprietary technology it has developed for kitchen appliances. which foreign entry mode should jackson electric avoid in order to protect this technology?
In order to protect this technology, Jackson Electric should avoid the foreign entry mode called the joint venture.
Technology has always been a integral part of any company, whether it is used for communication, research and development, or production. Technology is continually evolving, and it is important for companies to keep up with the latest trends in order to stay ahead of the competition.
There are a number of ways to do this, such as attending trade shows and conferences, reading industry publications, and working with technology and appliances partners.
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in order to reduce the risk that the aggregate of undetected misstatements in the group financial statements of a nonissuer exceeds the materiality for the group financial statements as a whole, an auditor should establish a
The this situation the auditor should establish a component materiality that is lower than the materiality for the group financial statements.
Financial statements:
Financial statement refers are the written records that convey the business activities and the financial performance of a company
Given,
in order to reduce the risk that the aggregate of undetected misstatements in the group financial statements of a non issuer exceeds the materiality for the group financial statements as a whole
Here we need to find an auditor should establish what type of financials statements.
While we consider the given situation, we have identified that the undetected misstatements in the group financial statements of a non issuer exceeds the materiality for the group financial statements.
So, the auditor should establish a component materiality that is lower than the materiality for the group financial statements.
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since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees? multiple select question. maintain good employee relations increase employees' workload provide more challenging opportunities to learn be respectful of employees' opinions reduce employee empowerment
The primary driver of long-term economic prosperity is productivity growth, which raises a society's material well-being, raises living standards, and drives innovation.
How can the government encourage entrepreneurship in four ways?Entrepreneurship can be encouraged by the government by:
allowing private business ownership.enacting legislation that enables businesses to create legally binding contracts.creating a currency that can be traded on global markets.reducing the amount of corruption in its own ranks and in business.What are the three most crucial responsibilities of an entrepreneur?Innovation and creativity, taking risks, success, organization and management, catalyzing economic growth, overcoming change resistance, and research are some of the many roles that entrepreneurship plays.
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Answer:
be respectful of employees opinions
provide more challenging opportunities to learn
maintain good employee relations
Explanation:
net credit sales for the month are $900,000. the accounts receivable balance is $192,000. the allowance is calculated as 5% of the receivables balance using the percentage-of-receivables basis. if the allowance for doubtful accounts has a credit balance of $6,000 before adjustment, what is the ending balance of allowance for doubtful accounts?
According to the given information, the ending balance of allowance for doubtful accounts is $9,600
Given,
Beginning allowance for doubtful accounts = $6,000
Net credit sales for the month = $900,000
The accounts receivable balance = $192,000.
The receivables balance using the percentage-of-receivables basis = 5%
Bad Debts = ($192,000 x 5%) - $6,000 = $3,600
Balance after adjustment = Beginning allowance for doubtful accounts +
Bad Debts
= $6,000 + $3,600
= $9,600
The balance sheet's total receivables are netted against an allowance for doubtful accounts to show only the amounts anticipated to be paid. Estimated by the provision for doubtful accounts is the proportion of receivables that are anticipated to be uncollectible. However, the estimate may be significantly off from how customers really pay.The allowance is created during the same fiscal year as the initial sale, with a credit for bad debt expense.Learn more about Doubtful accounts, here
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a 5.5 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond? (assume annual interest payments.)
The bond's face value, also known as its par value, is the amount that the issuer must pay the bondholder at maturity.
What is the term for dividing a bond's market price by its annual coupon?The bond's current yield is the product of its price and the annual coupon. The coupon bond issued by Genova Corporation has a coupon rate of 10% per year for four years.
$1,000 plus the call premium, or 0.055 percent of $1,000, equals $1,055.
What is a bond with a 5% coupon?If an investor buys a $1,000 ABC Company coupon bond with a coupon rate of 5%, the issuer pays the investor 5% annually. This indicates that the investor will receive $50 annually, which is the bond's face value calculated by multiplying $1,000 by 0.05.
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you are a group cash manager interested in the north american business market. what are the personalization options available to you in sap fiori? there are 2 correct answers to this question.
The personalization options available in SAP Fiori are to create access to North American accounts as payable groups so that it can report to us and to create an app that will directly take us to the North American business market's cash position.
For the North American accounts payable group that reports to you, you can grant access to pertinent apps. You can develop an app that will take you directly to the North American business market's cash position. The Iaunch-pad colour scheme can be modified in accordance with the cash report's predefined values. You can organise all the apps needed for your daily operations into a tile group for quick access.
With simple screens that work on any device, SAP Fiori is a design system that enables you to create business apps with a consumer-grade user experience. This transforms regular users into SAP experts. You can quickly create and customise your own apps by using the SAP Fiori design guidelines and tools.
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Advertising a low-priced product in order to lure customers into buying a high-priced product is called what?.
Advertising a low-priced product in order to lure customers into buying a high-priced product is called Bait and switch
An ethically dubious sales strategy known as "bait and switch" entices clients with promises of high quality or low pricing on products that ultimately prove to be out of stock in order to upsell them on a more expensive, similar alternative. Despite the fact that it also occurs in other situations, it is regarded as a type of retail sales fraud. When a seller makes an alluring but phony offer to sell a good or service that the seller does not truly plan to sell, it is known as "baiting and switching."
A Potential Bait and Switch: Warning Signs
If a business provides you with a good or service at a significant discount and without any conditions.If a seller inquires about payment information too soon.If a vendor starts offering justifications for why a product that has been marketed is unavailable or costs more than stated.Learn more about Bait and switch here:
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rising interest rates tend to group of answer choices contract the level of economic activity. increase the level of business investment. indicate governmental expansion of the economy. signal the trough of a recessionary market.
Rising interest rates tend to option a, contract the level of economic activity.
Federal reserve increases the interest rate which increases the short-term borrowing cost for financial institutions. It affects the rest of the borrowing costs for financial institutions and consumers.
When financial institutions borrow money at short-term borrowing costs, they charge more interest rates from consumers for borrowing money. High-interest rates on credit card and mortgage loans impact consumers. It reduces the spending capacity of consumers.
Consumers face high household bills and are left with low disposable income. With lower demands for products and services, it decreases the profits and revenue of the business decrease.
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period 900,000 units completed and transferred out 885,000 ending work in process inventory 90,000 80% 30% production cost information for the assembly department follows. beginning work in process direct materials $ 134,400 conversion 45,900 $ 180,300 costs added this period direct materials $ 3,693,600 conversion 2,690,100 $ 6,383,700 calculate the number of units started and completed this period for the assembly department.
Costs of units started out and completed: you will take the equivalent gadgets calculated for devices began and carried out x the fee per equal unit for materials, labor and overhead (or conversion).
The sum of these 3 will be the value of gadgets accomplished and transferred which is additionally known as value of items manufactured.
What is supposed with the aid of the phrase units started and completed?5. The gadgets commenced and achieved in a duration are calculated as the whole unitscompleted throughout the length minus the gadgets that had been in the starting inventory.
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https://brainly.com/question/24050722#SPJ4In a perfectly competitive market, the inverse demand curve is and the inverse supply curve is when this market is in equilibrium, what is the consumer surplus? (round only your final answer to one decimal place if necessary)
When a market is in equilibrium, it is allocative efficient (meets societal needs), and the sum of consumer and producer surpluses, or total economic surplus, is the maximised.
The surpluses below depicts this at the point where the quantity required equals the quantity delivered (Q1). Setting inverse supply equal to inverse demand and solving for Q yields the market equilibrium. 8+2Q = 80 - Q, therefore 72=3Q, resulting in Q=24. The price would be 8+2(24) = 56. MSB=80-2Q, therefore the socially ideal consumption point would be where the inverse supply equals MSB, or 8+2Q = 80-2Q, so 72=4Q or Q=18.
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who should be on your personal default account team? a. coworkers from your department who want to know how you achieve all your success b. all the contacts for all your accounts c. coworkers you usually work with on your accounts d. customers who responded positively to the last marketing campaign check the quiz to earn 100 points
c. Coworkers you usually work with on your accounts should be on your personal default account team.
A team of users that collaborate on an account is known as an account team. They enable sharing, reporting, and process automation at the record-level. Account Teams use Team Roles to determine who is working on an account, and the team members are shown in Related Lists (on the Account Detail Page).
The Account Owner can create a default account team, which can subsequently be when necessary allocated to an owner's accounts. There can be only one default account team per user.
Each user may enter their default account teams (under My Settings, go to Advanced User Details). Use of Default Account Teams is optional and might not be appropriate for your organization.
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you borrow $15,000 from a bank at 10 percent annually compounded interest to be repaid in six equal installments. calculate the interest paid in the second year. group of answer choices
Hence $1500 is the interest to be paid on the second year, when you borrow $15,000 from a bank at 10 percent with an annually compounded interest to be repaid in six equal installments.
How is annual compound interest determined?The amount of the initial loan, or principal, is multiplied by one, and the annual interest rate is raised to the number of compound periods minus one. You will then be left with the principal amount of the loan plus compound interest. Compound interest is computed as interest on the principle of an account plus any accrued interest.
Given:
The amount borrowed: $15,000
Instalments: 6
Interest: 10%
Solution: $15000 x (10/100)
= $1500
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which of the following situations could be considered examples of price gouging? a. a deadly tornado strikes oklahoma city, destroying the homes of 50% of its population. immediately afterward the price of sleeping bags increases by 150%. b. the exchange rate between u.s. dollars and the papua new guinea kina increases sharply as the summer olympics in paris, france, approach. c. a new model of sunglasses become the hottest overnight fashion trend after several movie stars wear them to the academy awards. as a result, producers increase their price by 300%. d. at what level would you expect prices to settle during a period of price gouging? the price would settle the pre-gouging market price.
A deadly tornado strikes Oklahoma city, destroying the homes of 50% of its population. Immediately afterward the price of sleeping bags increases by 150%. Above the pre-gouging market price, price gouging is in response to crisis or disaster.
Tornado is a rotating column of air extending from the base of a thunderstorm down to the ground. Tornadoes are capable of completely destroying structures, uprooting trees, and hurling objects through the air like deadly missiles.
What is the fact about tornadoes?
Quick Tornado Fact
The strongest tornadoes are having rotating winds of more than 250 mph.
What can stop a tornado?
It is not possible to stop a tornado. Tornadoes are nature's most powerful force. They contain 6 times the energy density of a hurricane.
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a firm that uses a push supply-chain strategy is most likely to group of answer choices produce small quantities of multiple goods at the same time. produce a limited number of products rather than risk high inventory costs. manufacture products before it receives any orders for those products. try and keep its inventory costs to the bare minimum. adapt to changing demand patterns, rather than depend on sales forecasts.
As part of the push supply chain strategy, decisions regarding when products are manufactured and shipped are based on anticipated demand from customers. For seasonal goods, the traditional push supply chain strategy is used.
Where are push-pull strategies used?The business terms "push" and "pull" were first used in supply chain management and logistics, but they are also frequently used in marketing and the hotel distribution industry.
What are the benefits and drawbacks of a supply chain that is based on push?Long-term planning, readily available stock, economies of scale, and the ability to plan and control more are the main benefits of this strategy. However, a push strategy's main flaw is that it takes a long time to respond to market shifts.
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arbitration is an agreement to bring in an impartial third party called an arbitrator to render a binding decision in a labor or other dispute. group of answer choices true false
The statement is true since to bring in an impartial third party called an arbitrator to render a binding decision in labor or other dispute in an agreement called arbitration.
A judge who is impartial and in charge of arbitrating disputes acts as the judge in arbitration. The arbitrator hears each side's argument and relevant evidence, then makes a binding decision. A dispute may be submitted to one or more arbitrators through the process of arbitration with the consent of the parties, who then render a legally binding decision. The parties decide against going to court by choosing arbitration as their method of private dispute resolution.
A worker and employer's disagreement can be settled outside of court through arbitration. A neutral arbitrator, who hears arguments from both sides and renders a decision on the merits of the case, presides over arbitration proceedings.
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you are creating the project's cost baseline. ultimately, what document will be the outcome of this process?
If we are creating the project's cost baseline. Ultimately Budget will be the outcome of this process.
What do you mean by project cost baseline and Budget?
1. Cost Baseline is the budget that has been approved for the project including a list of salaries, materials, equipment and more.
It can be represented as
Cost Baseline = Project Cost Estimates + Contingency Reserves
Used to maintain reliability, understanding the overall project cost.
2. A budget is an estimation of revenue and expenses over a specified future period of time and is utilized by governments, businesses, and individuals. It includes income, expenditure and total GDP contributed.
Therefore ,If we are creating the project's cost baseline. Ultimately Budget will be the outcome of this process.
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a technique that allows the small business owner to perform financial analysis by understanding the relationship between two accounting elements is called:
A technique that allows the small business owner to perform financial analysis by understanding the relationship between two accounting elements is called Ratio Analysis
What is Ratio Analysis?
Ratio analysis is the study or analysis of the line items included in the company's financial statements. It can be used to evaluate a number of aspects of a business, including profitability, liquidity, solvency, and operational effectiveness. There are five main categories of financial ratio analysis: profitability, solvency, liquidity, turnover, and earnings ratios. Ratio analysis is a useful tool for performance evaluation of your company's financial outcomes. These ratios make it easier to comprehend your company's financial statements. They can serve as a gauge for analyzing the financial health of your company as they reveal specific trends over time.
Hence, A technique that allows the small business owner to perform financial analysis by understanding the relationship between two accounting elements is called Ratio Analysis.
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There are 8,536 dog owners in a town and a pet supply store wants to survey those owners to determine what types of dog-grooming services and supplies they prefer. The researchers want to have completed surveys from 4 percent of the owners and experience has shown that 60 percent of all people asked will complete a survey. How many people should be selected to participate in order to have the correct number of completed surveys?
The number of people that need to be selected for the researchers to have the correct number of completed surveys is 569 people
How to find the number of people?First, find out 4% of the number of dog owners in town as this is the amount of people that the researchers want to complete surveys:
= Number of dog owners in town x 4%
= 8, 536 x 4%
= 341 people
This 341 people would then need to represent only 60% of the number of people that need to be selected to participate as only 60% of people complete surveys.
The number of people to be selected is:
= 4% of the people / 60 %
= 341 / 60%
= 569 people
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in which market structure do the actions of a rival have a significant impact on your operations? oligopoly monopoly perfect competition monopolistic competition
In monopolistic competition the market structure do the actions of a rival have a significant impact on your operations.
What is monopolistic competition and in which market structure do the actions of a rival have a significant impact on operations?Monopolistic competition is the competition in the market in which numerous producers compete against each other .The competing producers compete against each other but the selling fraternity are differentiated from each other.Here the question is asked of the market structure doing the actions of a rival having significant impact on your operations.Monopolistic competition is a competition in the industry of market and business that is covered all over by competing companies.Hence the market structure doing the actions of a rival having significant impact on operations is monopolistic competition.To know more about market visit:
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Companies often pay to make their products visible in popular movies- such as when admired actors drink certain beverages. Based on classical conditioning principles, what might be an effect of this pairing?.
The fundamentals of conventional conditioning would decrease your capacity to sell a particular product (energy beverages) to teenagers Create a commercial.
Teens feeling nauseous and even lethargic following they drink the energy drinks; it’s a fantastic method.To teach people to cut back on their consumption.to teach people to cut back on their consumption.A form of gaining Is classical conditioning.Knowledge where a stimulus is not conditional a neutral stimulus is also present, leading to a conditioned.Using classical conditioning as a study method, occurs subconsciously. When you thoroughly automated conditioning, classical conditioning response is connected to a specific stimuli. This produces behaviour.Learning about classical conditioning is the process through which a seemingly neutral stimulus, such as a tone, comes to be associated with a clearly behavior-producing stimulus, such as food. Once the association is established, the once neutral stimulus is sufficient to cause the behaviour.
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byron owned stock in blossom corporation that he donated to a museum (a qualified charitable organization) on june 8, 2018. what is the amount of byron's deduction assuming that he had purchased the stock for $10,500 last year on august 7, 2017 and the stock had a fair market value of $13,800 when he made the donation?
b. $10,000 in long-term securities The fair market value of the securities on the date of the gift is generally the amount that an individual can claim as a charitable gift for federal income tax.
Purposes if they donate securities held for a long time to a "public" charity, such as a church, educational institution, health care organization, or other cause. See section 170(b)(1)(A) of the Internal Revenue Code.
At least one year and one day is considered "long-term. "See section 1222(3) of the IRC. The holding period for appreciated property gifts at full market value that qualify as long-term property remains twelve months and one day.
Short-term securities: In contrast, the donor's cost basis in the securities, if it is less than the securities' fair market value, is the amount that can be claimed as a charitable gift in the case of donated securities held for a short period of time. See IRC area 170(e)(1)(A).
Securities whose value has decreased in a mannerDonating shares that have lost value since being purchased is generally not advised because, for federal income tax purposes, a gift of such an investment does not result in the realization of the potential capital loss. Instead, the donor ought to give the proceeds from the sale of the shares after realizing the loss by selling the shares.
As a result, securities are held for a brief period of time because the holding period from August 7 (last year) to June 8 (this year) is less than 12 months. The investment's cost of $10,000 is less than its fair market value, which is $13,800.Therefore, a deduction of $10,000 will be made.
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firms that do not have access to the capital necessary to develop overseas operations should engage in a(n)
licensing agreement is a must to develop overseas operations
What is capital?
A factory and its equipment, intellectual property like patents, or a person's or a company's financial assets are all examples of things that offer their owner value or an advantage and fall within the expansive definition of capital. Despite the fact that money itself can be referred to as capital, the term is typically used to refer to cash used to buy items or make investments.
A firm should engage in licensing agreements to develop overseas operations A licensing agreement is a legal, written agreement between two parties known as a "licence agreement" that authorises one party to utilise another party's trademark, brand, or patent. The contract specifies the sort of licencing agreement, the usage guidelines, and the manner in which the licensor will be paid. It is made between the licensor (the property owner) and the licensee (the permitted party). Depending on what is being licenced, several contract types apply. Additionally, licencing agreements resolve disagreements regarding sales, quality problems, and royalties.
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