Apple confirms it’s slowing down your old iphone-but for good reason
Discussion of the ethical issues, moral violations with reference to an International ethics document. You are expected to summarize the document and discuss its relevance and importance for business ethics:

The use of the veto power was a conspicuous feature of the administration of the President of the United States. The use of the veto power has been a conspicuous feature of the executive branch's administration in the United States government. The use of the veto power has been a conspicuous feature of the executive branch's administration in the United States government, playing significant in both the economic and social roles aspects of governance.

Explanation: It gives the President of the United States the power to reject a bill that is sent to him by Congress. The veto power is given to the President of the United States by the Constitution. It is a power used to protect the President's executive authority. The veto power is a powerful tool that the President uses to defend his executive authority.

The use of the veto power was a conspicuous feature of the administration of the President of the United States. The veto power is a power that is used to reject a bill that is sent to the President by Congress. It is a powerful tool that the President uses to protect his executive authority. The Constitution gives the President of the United States the power to veto bills that are sent to him by Congress. This gives the President the power to protect his executive authority. The use of veto power is a powerful tool that the President of the United States uses to defend his executive authority.

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1. According to Paulo Freire's Pedagogy of the Oppressed, the Banking System is:

b) educational knowledge used to manipulate students

Explanation: In Freire's work, the Banking System refers to a traditional education system where students are treated as passive recipients of knowledge. The knowledge is deposited into students' minds, and they are expected to memorize and regurgitate the information without critical thinking or active engagement. This system is seen as oppressive because it disempowers students and perpetuates a hierarchical relationship between the teacher (the depositor of knowledge) and the students (the recipients).

2. Gloria Anzaldua's notion of mestiza consciousness means:

b) people that inhabit multiple worlds because of their gender, sexuality, race, ethnicity, class, body, personality, spiritual beliefs, and other life experiences

Explanation: Mestiza consciousness, as conceptualized by Anzaldua, refers to a state of consciousness experienced by individuals who embody multiple intersecting identities. It goes beyond a dual personality and recognizes the complex and diverse nature of individuals' identities and experiences. Mestiza consciousness embraces the multiple worlds and perspectives that individuals inhabit due to their various social, cultural, and personal dimensions.

3. Presently in the US, Latinos make up the largest:

a) Population in California

Explanation: Presently, Latinos make up the largest population in California, which has a significant Latino population compared to other states in the US. However, it's important to note that demographic statistics can change over time, and it's always advisable to consult the most recent data for accurate information.

4. Cultural Citizenship is a legal category that:

c) allows one to participate in the meaning and scope of the community in which one lives

Explanation: Cultural Citizenship refers to a legal and social framework that recognizes and affirms individuals' cultural rights and identities within a community or society. It allows individuals to actively participate in shaping the meaning, values, and practices of their community, fostering a sense of belonging and inclusion.

5. The Prison Industrial Complex is a system of racial stratification because:

c) the US Government uses surveillance, policing, and imprisonment as solutions to economic, social, and political problems

Explanation: The Prison Industrial Complex is considered a system of racial stratification because it disproportionately impacts communities of color, particularly Black and Brown communities. The complex refers to the intersection of government and private interests that profit from the expansion of the prison system. The policies, practices, and over-policing disproportionately target and impact people of color, leading to high rates of incarceration. This system perpetuates racial inequalities and systemic racism within the criminal justice system.

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Canadian Tire is a Canadian retail company that provides a wide range of products, including automotive, home, and sports products, among others.

From a customer perspective, Canadian Tire is excellent at Customer Relationship Management (CRM). One of the main reasons for this is that the company places the customer at the center of everything they do. Canadian Tire is good at CRM because of its ability to satisfy customers with high-quality products and services. Their products are affordable and of good quality, which satisfies customers. The company also offers after-sales support to customers to ensure that they remain happy and satisfied with their purchases.

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The answer that best fits the description of transfer payments is (c) A payment to individuals not linked to the provision of goods and services.

Transfer payments are defined as payments to individuals, generally for which no good or service is immediately required or offered in return, and as such, they are a type of government expenditure that can influence aggregate demand. Transfer payments involve government payments to households for which no corresponding output is produced in return. Transfer payments are not linked to the production of goods and services; instead, they are payments for income or to meet needs that are not met by the market economy. Hence, the answer that best fits the description of transfer payments is (c) A payment to individuals not linked to the provision of goods and services.An increase in transfer payments could be expansionary, shifting Aggregate demand to the right. When the government increases transfer payments, households' disposable income rises, which leads to a rise in consumption and a rise in aggregate demand. Since transfer payments are not linked to the production of goods and services, the increased consumption does not raise the economy's productive capacity, but it raises the economy's aggregate demand level. Hence, transfer payments influence aggregate demand, but they do not influence aggregate supply. Therefore, an increase in transfer payments could be expansionary, shifting Aggregate demand to the right. 

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The situation in which markets fail to provide efficiently is called market failure.

Market failure happens when the free market, left to itself, does not lead to the ideal outcome for a specific group of individuals or the economy as a whole.

A market failure may occur for a variety of reasons, including:

Externalities, public goods, market power, lack of knowledge, and too much inequality or income disparity between people.

In such cases, the government may intervene to correct the inefficiency and re-establish economic efficiency and equity, as well as to provide for the public goods required by society.

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To calculate the implied one-year forward rates, we can use the formula:

Forward Rate = [(1 + YTM2)^(2/n)] / [(1 + YTM1)^(1/n)] - 1

Using the given YTM values, we can calculate the forward rates as follows:

Forward Rate for 1-year: [(1 + 0.11)^(2/1)] / [(1 + 0.10)^(1/1)] - 1 = 0.21 = 21.00%

Forward Rate for 2-year: [(1 + 0.12)^(3/2)] / [(1 + 0.11)^(2/2)] - 1 = 0.21 = 21.00%

b. According to the pure expectations hypothesis, the yields to maturity on one- and two-year zero-coupon bonds next year will be equal to the implied forward rates. Therefore, the pure yield curve for next year will be:

1-year yield: 21.00%

2-year yield: 21.00%

c-1. If you purchase a two-year zero-coupon bond now, the total return will depend on the change in yield to maturity over the two-year period. However, without information on future yield changes, we cannot determine the exact return.

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The given statement, "A problem often incurred with merit raises is that employees may not believe that their compensation is tied to effort a performance, and they may not be able to differentiate between merit pay and other types of pay increases," is a True statement.

Merit pay is an increase in compensation based on an employee's job performance or productivity.

Merit pay is based on the assumption that a worker's performance can be quantified and differentiated.

This type of pay is usually given to employees on an annual basis, either in the form of a lump sum or a permanent salary increase.

Merit pay raises are commonly used in businesses and are beneficial to both the employer and the employee.

The company benefits from increased productivity and higher job satisfaction, while the employee is rewarded for their efforts, which is a source of motivation and pride in their work.

Therefore, the employees may not believe that their compensation is tied to their performance and they may not be able to differentiate between merit pay and other types of pay increases.

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Given that,The monthly average cable TV bill in 2017 is $70.45. If cable costs are climbing at an annual rate of 6% per year, we are supposed to calculate how much the typical cable subscriber will pay in 2021.

Now, we can calculate the amount the typical cable subscriber will pay in 2021 as follows;

The cost of cable TV will increase every year at a rate of 6%.

Therefore, the price of cable TV after one year will be:Initial cost in 2017 + Increase in 1st year = $70.45 + 6% of $70.45 $70.45 + $4.23 = $74.68Then the price of cable TV after 2 years will be:Price of cable TV after 1 year + Increase in 2nd year = $74.68 + 6% of $74.68 = $79.19Price of cable TV after 3 years = $84.03Price of cable TV after 4 years = $89.22Price of cable TV after 5 years = $94.78

Therefore, the typical cable subscriber will pay $94.78 in 2021 since it will be 5 years after 2017 which is the base year.

Hence,  and the typical cable subscriber will pay $94.78 in 2021.

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The rights and liabilities that may affect Douglas, Serena and Rumana are:Serena's interest in the land will form part of her estate. Since the land was a joint tenancy, this means that Serena's share passes to Rumana as the surviving joint tenant and sole owner.

Douglas has no further interest in the land and cannot prevent Rumana from occupying it since the joint tenancy was terminated by Serena's death.Since Douglas collected the entire rent without any agreement with Serena or her estate, he has acted wrongfully and will be required to pay a share of the rent collected to Serena's estate. Douglas may be held accountable for the breach of his fiduciary responsibility as a joint tenant in respect of the property since he leased it without Serena's consent and kept the rent without informing her.Serena could also be sued by Marcus Inc for breach of contract for the return of all rents paid by Marcus Inc if they claimed that they paid rent to Douglas on the assumption that he was the sole owner of the property. However, because Marcus Inc was in occupation of the land, the rent they paid was to the real owner and not to a pretend owner.Douglas, who leased the property, is not entitled to the entire rent. As a co-owner, he has no right to exclude other co-owners from sharing in the use and benefits of the property. He could also be sued for fraud and damages by Marcus Inc for the unfulfilled promise of a lease without a written contract.

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Qualitative interviews provide in-depth insights and contextual understanding that survey research often fails to capture due to their open-ended nature and flexibility in probing responses.

Qualitative interviews excel in several ways compared to survey research. Firstly, they provide a deeper understanding of participants' thoughts, feelings, and beliefs, allowing researchers to explore complex topics and uncover unexpected insights. The open-ended nature of qualitative interviews allows participants to express themselves freely, offering a rich narrative that captures their unique perspectives.

Secondly, qualitative interviews allow for flexibility and adaptability during the data collection process. Researchers can probe further, clarify responses, and delve into specific areas of interest, fostering a more comprehensive understanding of the research topic. This flexibility is particularly valuable when studying complex or sensitive subjects where standardized survey questions may be insufficient.

Overall, qualitative interviews offer a more holistic and nuanced approach to research, capturing the intricacies of human experiences and providing a deeper understanding of participants' views. While survey research provides valuable quantitative data, qualitative interviews complement it by providing the qualitative depth necessary for comprehensive research insights.

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To prepare the balance sheet, begin with the assets section. San Juan Health Services has four assets: Cash, Accounts Receivable, Inventory, and Supplies.

In this case, the San Juan Health Services balance sheet is being prepared as of December 31, 2018.

Here are the steps to prepare a balance sheet:

San Juan Health Services Balance Sheet   December 31, 2018

AssetsCash............................................................ $22,100

Accounts Receivable........................................ $27,000

Inventory........................................................ $13,500

Supplies............................................................. $600

Total Assets.................................................. $63,200

Liabilities and Stockholders' EquityLiabilitiesAccount Payable.............................................. $17,000

Salaries Payable................................................. $3,500

Income Taxes Payable..................................... $3,200

Total Liabilities................................................. $23,700

Stockholders' EquityCapital Stock (10,000 shares outstanding).. ............................$20,000

Retained Earnings.............................................. $19,500

Total Stockholders' Equity............................... $39,500

Total Liabilities and Stockholders' Equity..... .................$63,200

Their values are listed on the balance sheet. Add the values of all assets together to obtain the total assets, which is $63,200.Next, move on to the liabilities section. San Juan Health Services has three liabilities: Account Payable, Salaries Payable, and Income Taxes Payable. Again, add the values of all liabilities together to obtain the total liabilities, which is $23,700. Finally, subtract total liabilities from total assets to obtain total stockholders' equity, which is $39,500.

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Tests of the additions to the expense accounts are an example of tests of controls over financial reporting.

Tests of controls are performed to assess the effectiveness of internal controls within an organization. They aim to ensure that the company's financial reporting is reliable, accurate, and compliant with relevant regulations and policies. In this case, conducting tests of the additions to the expense accounts involves examining the controls in place for recording and classifying expenses. This can include reviewing supporting documentation, verifying proper authorization, and ensuring that expenses are accurately recorded and allocated to the appropriate accounts. By performing these tests, auditors or internal control assessors can evaluate the strength and effectiveness of the control procedures related to expense account additions, helping to identify any weaknesses or potential risks that may exist.

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A supply chain refers to the method used by a corporation to obtain raw materials, goods, and services that it uses to manufacture and/or distribute a product. The total annual supply chain cost would is b. $29,000.

The phrase "supply chain" refers to the flow of products and services, from raw materials to the final product delivered to the consumer. Supply Chain Cost The costs that are involved in the supply chain can include many factors such as cost of materials, transportation, inventory, logistics, and more. Therefore, the total supply chain cost can vary from product to product. Now, let's see how to calculate the annual supply chain cost of the greeting card store baby photo album.

The formula to calculate Total supply chain cost = Annual ordering cost + Annual carrying cost + Annual material cost

Therefore, Annual ordering cost = (Annual demand/D) × S Annual ordering cost

= (24000/6000) × 1000

= $4,000

Annual carrying cost = (H × C × D)/2

Annual carrying cost = (2.5 × 10 × 24,000)/2

= $60,000

Annual material cost = C × D

Annual material cost = 10 × 24,000

= $240,000

Total Annual Supply Chain Cost = Annual ordering cost + Annual carrying cost + Annual material cost

Total Annual Supply Chain Cost = $4,000 + $60,000 + $240,000

= $304,000

Now, we have to find the closest option to the calculated Total Annual Supply Chain Cost.

The closest option to the Total Annual Supply Chain Cost is $29,000 which is option b.

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Question 12: Changes in a firm's profit induce identical changes in the producer surplus (PS). Qustion 13: Mary's consumer surplus from the toy is at least $95.

Question 12:  Changes in a firm's profit directly impact the producer surplus. As profit increases, the producer surplus also increases, and vice versa. The relationship between profit and producer surplus is direct and proportional. Therefore, any change in the firm's profit will induce an identical change in the producer surplus.

Qustion 13: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid. In this case, Mary purchased the stuffed animal toy for $5, but she refused an offer of $100 for the same toy. This indicates that Mary's willingness to pay for the toy was higher than $5, and she derived additional satisfaction or utility from owning the toy. The minimum consumer surplus Mary could have from the toy is the difference between the offer she refused ($100) and the price she paid ($5), which is $95 or more.

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Nonetheless, here is a summary of Standard Chartered Bank's strategic approach to overcome the pandemic situation: Standard Chartered Bank has developed a number of strategies to overcome the COVID-19 pandemic situation. It is essential to have a strong balance sheet, which the bank has, to support customers, employees, and communities.

The bank has taken the necessary steps to ensure the safety of employees, including remote work. Standard Chartered Bank's strategy includes focusing on the most crucial aspects of its business, such as managing customer needs and managing credit risks. They have implemented various digital tools and services to support customers and make banking accessible from the safety of their homes. The bank has extended the credit facility and provided payment relief for customers facing financial difficulties due to the pandemic. They have also offered support to small and medium-sized enterprises (SMEs) affected by the pandemic, through various initiatives.

The bank has also supported governments and health organizations in their efforts to manage the pandemic. They have contributed to various initiatives such as providing medical equipment, supporting research on vaccines, and supporting frontline health workers. Standard Chartered Bank's strategic approach also includes expanding their digital capabilities, investing in new technology, and accelerating digital transformation. In conclusion, Standard Chartered Bank has taken a comprehensive approach to address the challenges posed by the pandemic.

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In the current economic climate with inflationary pressure and elastic prices, management can take steps to increase profitability and sales of its products. This response will address strategies to enhance sales and profitability, considering the given factors.

To increase sales and profitability in an economic environment characterized by inflationary pressure and elastic prices, management can adopt several strategies:

Price optimization: Analyze the elasticity of demand for the products and adjust prices accordingly. Conduct market research to understand customers' price sensitivity and identify opportunities for price adjustments that maximize revenue while considering inflationary pressures.

Cost management: Evaluate and optimize operational costs to maintain profitability. This may involve identifying areas for cost reduction, streamlining processes, negotiating better supplier contracts, and implementing efficiency measures to improve the overall cost structure.

Product differentiation: Enhance product features, quality, and value proposition to differentiate from competitors. Focus on understanding customer needs and preferences and align product offerings accordingly. This can help capture market share and maintain or increase sales despite inflationary pressures.

Marketing and promotion: Develop effective marketing and promotional campaigns to increase product visibility and attract customers. This can include targeted advertising, social media marketing, influencer collaborations, and offering incentives or discounts to stimulate sales.

Customer retention and loyalty: Implement strategies to enhance customer loyalty and encourage repeat purchases. This can be achieved through loyalty programs, personalized customer experiences, excellent customer service, and maintaining strong relationships with existing customers.

Market expansion: Explore new markets or customer segments where demand may be less affected by inflationary pressures. This may involve entering international markets, diversifying product offerings, or targeting niche markets that are less price-sensitive.

It is important for management to regularly monitor and evaluate the effectiveness of these strategies, adapting them as necessary to navigate the changing economic conditions. By focusing on price optimization, cost management, product differentiation, marketing efforts, customer retention, and market expansion, management can work towards increasing profitability and sales despite inflationary pressures and elastic prices.

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The most the retail website should spend to attract a visitor is $2.50.

$5 - (50% of $5) = $5 - ($5 * 0.50) = $5 - $2.50 = $2.50

To determine the most a retail website should spend to attract a visitor, we need to consider the profit margin and revenue per visitor.

The profit margin is given as 50%, which means the website makes a profit of 50% of the revenue per visitor.

The revenue per visitor is stated as $5.

To calculate the maximum amount the website should spend, we need to subtract the desired profit margin from the revenue per visitor:

$5 - (50% of $5) = $5 - ($5 * 0.50) = $5 - $2.50 = $2.50

Therefore, the most the retail website should spend to attract a visitor is $2.50.

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Implementing a pay-with-competition policy helps attract talent but can be costly, while a lead pay-level policy attracts and retains top talent but may strain finances.

Lag pay-level policy saves costs but can lead to difficulty in attracting talent and low morale.

1. Pay-with-competition policy (matching the market):

Pros:

- Attracts and retains top talent: Offering a competitive salary helps in attracting skilled professionals who may be considering other job opportunities.

- Maintains competitiveness: By aligning salaries with market rates, organizations can ensure they remain competitive in attracting and retaining employees.

Cons:

- Cost implications: Paying salaries at the market rate can be costly, especially if the market rate is high. It may put pressure on the organization's budget and affect profitability.

- Limited differentiation: Implementing a pay-with-competition policy may not differentiate the organization from its competitors, as employees may perceive little difference in compensation between companies.

2. Lead Pay-Level (paying above market):

Pros:

- Attracting top talent: Offering salaries above the market rate can be a powerful incentive for highly skilled professionals to join the organization.

- Retaining employees: Leading pay-level can create a sense of loyalty and reduce the likelihood of employees seeking higher-paying opportunities elsewhere.

Cons:

- Financial strain: Paying above market rates can significantly impact the organization's budget and profitability, especially if it becomes unsustainable in the long term.

- Unrealistic expectations: Leading pay-level may set high expectations among employees, leading to dissatisfaction if the organization faces financial constraints and cannot maintain the same level of compensation.

3. Lag Pay-Level policy (paying below market):

Pros:

- Cost savings: Paying below market rates can help the organization save costs and allocate resources to other areas of the business.

- Focus on non-monetary incentives: Organizations adopting a lag pay-level policy can emphasize non-financial incentives such as professional development opportunities, work-life balance, or a positive work environment.

Cons:

- Difficulty in attracting talent: Paying below market rates may make it challenging to attract skilled professionals who have other options offering higher compensation.

- High turnover and low morale: Employees may feel undervalued and seek better-paying opportunities elsewhere, leading to high turnover rates and lower employee morale.

Ultimately, the choice between these pay-level policies depends on various factors such as the organization's financial situation, industry norms, the level of talent required, and the organization's overall strategy. A balanced approach that considers the organization's financial sustainability while offering competitive compensation and additional incentives can often be the most effective solution.

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A mediator is the neutral person sought to facilitate resolution in the heated contract dispute between Acme Corp. and Dow Products.

In the given scenario, where Acme Corp. and Dow Products are involved in a contract dispute and are unable to communicate constructively, the neutral person they are seeking to facilitate a resolution is a mediator. A mediator is a neutral third party who assists conflicting parties in reaching a mutually agreeable resolution through facilitated negotiation and communication.

Unlike an arbitrator or judge, a mediator does not impose a decision but rather helps the parties explore their interests, understand each other's perspectives, and work towards a voluntary settlement. The mediator's role is to facilitate dialogue, manage emotions, and guide the parties towards finding a solution that meets their mutual interests.

By engaging a mediator, Acme Corp. and Dow Products aim to improve communication, reduce conflict, and find a resolution to their contract dispute in a collaborative and cooperative manner.

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The capitalized cost of this project is $202,045. Hence, option (c) $202,045 is the correct.

Capitalized cost of a project involves the cost of project incurred in a given period of time by considering the future costs.

The future costs are then discounted using the current interest rate to express them in present value.

It is therefore calculated by adding the present value of all future costs to the investment cost for the entire project.

Formula for calculating capitalized cost = Initial Investment+PV of future costs

PV of future costs= Annual cost/(1+r)t - 1/ r

Where:r = interest rate= 10% = 0.10

Annual cost = Maintenance cost for the first 20 years ($6,500) + Maintenance cost for the years thereafter ($8,500)

Annual cost = $6,500 + $8,500

= $15,000

t = Number of years into the future

T for the first 20 years = 20 years

n = Number of years to the future where maintenance increases

n = Total years - 20 years = ∞.

option (c) $202,045 is the correct.

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On the settlement day, Bank A needs to pay Bank B an amount of $758.10 (option b). Bank A has made a 3-month Eurodollar loan of $3,000,000 and has offset this with a 6-month Eurodollar deposit.

To eliminate the interest rate risk, Bank A has entered into a three-against-six Forward Rate Agreement (FRA) with Bank B. The interest rates involved are as follows: AR (Agreed Rate) = 5.2% and SR (Settlement Rate) = 5.1%. Since AR is higher than SR, Bank A has sold the FRA to Bank B.

To determine the settlement payment, we need to calculate the net settlement amount. The formula for the net settlement amount for a three-against-six FRA is: Net Settlement Amount = Notional Amount x (SR - AR) x (Days in Settlement Period / Days in FRA Period) x (1 + SR x (Days in Settlement Period / 360))

Substituting the given values:

Notional Amount = $3,000,000

AR = 5.2% or 0.052

SR = 5.1% or 0.051

Days in Settlement Period = 91

Days in FRA Period = 181 (3 months = 91 days, 6 months = 181 days)

Net Settlement Amount = $3,000,000 x (0.051 - 0.052) x (91 / 181) x (1 + 0.051 x (91 / 360)) ≈ -$758.10

Therefore, on the settlement day, Bank A needs to pay Bank B an amount of approximately $758.10, which corresponds to option b.

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Based on the limited information provided, it is unclear which specific authors or publication you are referring to by Herve, Schmitt, and Baldegger. To provide an accurate analysis, it is important to have more context and specific references. However, can provide a general explanation of the terms "new internationalization model" and "old one" based on common understandings in the field of international business.

A "new internationalization model" typically refers to a contemporary approach or framework for companies to expand their operations globally and engage in international business. This model often takes into account the rapid changes and complexities of the global business environment, such as advancements in technology, evolving consumer behavior, and increased competition. It emphasizes strategies that enable firms to be agile, adaptive, and responsive to international market dynamics.

On the other hand, the "old internationalization model" refers to traditional or conventional approaches to international business. This model was typically characterized by a gradual, step-by-step process of international expansion, where firms would establish a strong domestic base before venturing into foreign markets. It often involved a focus on exporting, licensing, or establishing subsidiaries in foreign countries.

The differences between the "new" and "old" internationalization models can vary depending on the specific perspectives and theories discussed in the field of international business. However, some common differentiating factors may include:

1. Speed and Scope: The new internationalization model may emphasize a more rapid and broader approach to global expansion, leveraging technological advancements and interconnectedness to access markets quickly. The old model may have been more cautious and focused on gradual expansion.

2. Market Entry Modes: The new model may explore alternative market entry modes such as strategic partnerships, joint ventures, or e-commerce platforms, whereas the old model may have relied more on traditional modes like exporting or direct investment.

3. Customer-Centric Approach: The new model may prioritize understanding and catering to the needs and preferences of diverse international customer segments. The old model might have been more centered on adapting domestic offerings for foreign markets.

4. Risk Management: The new model may involve strategies to mitigate risks associated with international operations, such as political instability, economic fluctuations, or cultural differences. The old model may have been more focused on managing risks through a gradual expansion process.

It's important to note that the specific theories and perspectives discussed in your course could provide additional insights into the differences between the new and old internationalization models.

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Jane's willingness to make a loan to Austin indirectly through a bank at a higher interest rate can be attributed to risk mitigation, legal and administrative convenience, and the opportunity to earn interest on her savings while Austin repays the loan.

Jane might be willing to make a loan to Austin indirectly through a bank at a higher interest rate (10%) instead of lending him directly because of several reasons:

1. Risk mitigation: By lending through the bank, Jane can transfer the risk of default or non-repayment to the bank. If Austin fails to repay the loan, the bank would be responsible for pursuing repayment and Jane's funds would remain safe in her savings account.

2. Legal and administrative convenience: Lending directly to someone involves legal and administrative complexities, such as drafting loan agreements, monitoring repayments, and potentially dealing with legal actions in case of default. By using the banking system, Jane can avoid these hassles and rely on the bank's established procedures for lending and collection.

3. Higher return on savings: Jane's funds deposited in a savings account with a 5% interest rate would continue to earn interest even while being used by the bank to lend to Austin at a higher interest rate (10%). This allows Jane to earn a higher return on her savings compared to lending directly to Austin, where she may not receive any interest on the loan amount.

It's important to note that these reasons may vary based on the specific circumstances and the relationship between Jane and Austin. Some additional factors that might influence Jane's decision could include her level of trust in the banking system, the convenience of having the bank handle the loan process, or her desire to maintain a professional distance in financial matters.

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Risk aversion and pattern recognition are two critical factors that can influence random events like a coin toss experiment. Risk aver si on In economics, risk aversion refers to the preference of people for safer outcomes with lower risks than for more dangerous ones with higher risks.

People who are risk-averse are less likely to engage in risky behavior, while those who are not are more likely to do so. In a coin toss experiment, people who are risk-averse will prefer the outcome that has the least amount of risk. They will choose to bet on the side that they perceive to have a higher chance of winning.Pattern recognitionPattern recognition refers to the ability of the human mind to recognize and categorize patterns based on previous experience.

It's an essential cognitive process that helps people make sense of the world around them. In a coin toss experiment, pattern recognition can come into play in several ways. People who have a pattern recognition bias may perceive patterns where there are none. For example, if someone flips a coin three times and gets tails each time, they may believe that the next flip is more likely to be heads, even though the odds are still 50/50. Conversely, someone who is good at pattern recognition may be able to recognize patterns in a series of coin flips that others cannot, giving them an advantage in betting.Overall, risk aversion and pattern recognition can both play a role in a coin toss experiment, influencing people's choices and perceptions of the outcome.

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a) Net Income: $360,000.

b) Operating Breakeven Point in Units: 3,333.33 units; Operating Breakeven Point in Dollars: $1,333,333.33.

c) The Degree of Operating Leverage (DOL) measures the percentage change in operating income resulting from a percentage change in sales.

d) Degree of Operating Leverage (DOL) at the current level of production: 2.

e) Percentage increase in operating income and net income with a 20% increase in sales: 40%.

a) The income statement for the Parkview Company is as follows:

Sales: $8,000,000

Variable Costs (75% of Sales): $6,000,000

Contribution Margin (Sales - Variable Costs): $2,000,000

Fixed Costs: $1,000,000

Depreciation: $400,000

Operating Income (Contribution Margin - Fixed Costs - Depreciation): $600,000

Taxes (40% of Operating Income): $240,000

Net Income (Operating Income - Taxes): $360,000

b) The operating breakeven point can be calculated by dividing the fixed costs by the contribution margin ratio.

Operating Breakeven Point in Units = Fixed Costs / Contribution Margin per Unit

Operating Breakeven Point in Units = [tex]\frac{1,000,000}{ (400 - 100)}[/tex] = 3,333.33 units

Operating Breakeven Point in Dollars = Operating Breakeven Point in Units * Unit Sale Price

Operating Breakeven Point in Dollars = 3,333.33 units × $400 = $1,333,333.33

c) The Degree of Operating Leverage (DOL) measures the percentage change in operating income resulting from a percentage change in sales. It is calculated by dividing the contribution margin by the operating income.

DOL = Contribution Margin / Operating Income

d) At the current level of production, the Degree of Operating Leverage (DOL) can be calculated using the contribution margin and fixed costs.

DOL = Contribution Margin / (Contribution Margin - Fixed Costs)

DOL = $2,000,000 / ($2,000,000 - $1,000,000) = 2

e) Assuming sales increase by 20%, we can use the Degree of Operating Leverage (DOL) to calculate the percentage increase in operating income and net income.

Percentage Increase in Operating Income = DOL Percentage× Increase in Sales

Percentage Increase in Operating Income = 2 × 20% = 40%

Since the tax rate is 40%, the percentage increase in net income will also be 40%.

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When it comes to valuing a new start-up company, the most suitable method of share valuation would generally be the "No growth rate model" or the "Constant growth dividend discount model" (option D).

A. No growth rate model: This method assumes that the company's future cash flows will remain constant over time, without any growth. It is often used for mature and stable companies, but may not be the best choice for a start-up where significant growth is expected.

B. Present value of a perpetuity: This method is used when the company is expected to generate consistent cash flows indefinitely. However, it may not be appropriate for a start-up as it assumes a stable and predictable income stream, which may not be the case for a new venture.

C. Mixed growth dividend discount model: This method is suitable for companies that are expected to have varying growth rates over time. It involves forecasting different growth rates for different periods. While it can be used for start-ups, it may be more complex and challenging to accurately estimate growth rates for a new company.

D. Constant growth dividend discount model: This method assumes a constant growth rate in perpetuity for the company's dividends or cash flows. While it is commonly used for mature companies, it can also be applied to start-ups if a reasonable and justifiable growth rate can be determined.

Overall, the "Constant growth dividend discount model" (option D) is often the most appropriate method for valuing a new start-up company, as it allows for a reasonable estimation of future cash flows and incorporates a growth rate that aligns with the company's growth prospects. However, it is important to note that valuing start-ups can be challenging, and a combination of valuation methods and additional considerations may be required to arrive at a comprehensive and accurate valuation.

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Based on the given information, here is the complete October 31 balance sheet for Ernst Consulting:

ERNST CONSULTING

Balance Sheet

As of October 31

Assets:

Cash: $11,360

Accounts Receivable: $14,000

Office Supplies: $3,250

Land: $46,000

Office Equipment: $18,000

Total Assets: $92,610

Liabilities:

Accounts Payable: $8,500

Equity:

Common Stock: $84,000

Retained Earnings: $110

Total Equity: $84,110

Total Liabilities and Equity: $92,610

Note: The balance sheet includes the assets, liabilities, and equity sections. The given information only provides the values for cash, accounts receivable, office supplies, land, office equipment, accounts payable, common stock, and a small amount for retained earnings

($110).

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1. The probability that demand in a given month is between 1529 and 1631 units is approximately 47.8%.

2. If 1624 units are stocked at the beginning of the month, the probability that demand exceeds this amount (experiencing stock-out) is approximately 3.3%.

3. To set the probability of stock-out at 2%, the number of units that should be in stock at the beginning of the month is approximately 1582.

To find the probability that demand falls between 1529 and 1631 units, we need to calculate the z-scores for these values using the formula (X - mean) / standard deviation. Then, we can use a standard normal distribution table or a calculator to find the corresponding probabilities. The probability is approximately 47.8%.

To calculate the probability that demand exceeds 1624 units, we calculate the z-score for this value. Then, we find the area under the curve to the right of this z-score, which represents the probability of exceeding the given demand. The probability is approximately 3.3%.

To determine the number of units needed in stock to achieve a 2% probability of stock-out, we can use the inverse normal distribution function. By finding the z-score corresponding to a 2% probability, we can then calculate the corresponding demand value using the formula X = (z-score * standard deviation) + mean. The approximate number of units needed is 1582.

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Yes, companies should bear some responsibility and foresight for the consequences or outcomes experienced by gaming consumers.

The situation described highlights the potential harm caused by addictive behavior associated with online gaming. While consumer-players bear personal responsibility for their actions, the companies that design, create, and market these games have a duty to prioritize the well-being of their consumers. They should consider implementing measures such as time limits, notifications, and educational resources to raise awareness about addictive tendencies and promote responsible gaming. By taking proactive steps, these companies can contribute to a healthier gaming environment and address the negative consequences associated with excessive gaming.

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The direct material price variance is $35,000. (a) Calculation of price and efficiency variances for direct materials and direct labor: Actual quantity of direct materials used = 35,000 kgs

Actual price per kg of direct materials = $4/kg

Standard quantity of direct materials allowed = 12,000 units * 5 kgs per unit = 60,000 kgs

Standard price per kg of direct materials = $3/kg

(a.1) Direct Material Price Variance:

Direct Material Price Variance = (Actual Price - Standard Price) * Actual Quantity

= ($4/kg - $3/kg) * 35,000 kgs

= $1/kg * 35,000 kgs

= $35,000

The direct material price variance is $35,000.

(a.2) Direct Material Efficiency Variance:

Direct Material Efficiency Variance = (Actual Quantity - Standard Quantity) * Standard Price

= (35,000 kgs - 60,000 kgs) * $3/kg

= (-25,000 kgs) * $3/kg

= -$75,000

The direct material efficiency variance is -$75,000.

Actual direct labor hours = 22,000 hours

Actual labor rate per hour = $9/hour

Standard direct labor hours allowed = 12,000 units * 2.5 hours per unit = 30,000 hours

Standard labor rate per hour = $10/hour

Direct Labor Rate Variance = (Actual Rate - Standard Rate) * Actual Hours

= ($9/hour - $10/hour) * 22,000 hours

= -$1/hour * 22,000 hours

= -$22,000

The direct labor rate variance is -$22,000.

Direct Labor Efficiency Variance = (Actual Hours - Standard Hours) * Standard Rate

= (22,000 hours - 30,000 hours) * $10/hour

= -8,000 hours * $10/hour

= -$80,000

The direct labor efficiency variance is -$80,000.

(b) Journal entries to record the price and efficiency variances:

(b.1) Direct Material Price Variance Journal Entry:

Debit: Direct Material Price Variance ($35,000)

Credit: Accounts Payable (to record the reduction in liability for direct materials)

(b.2) Direct Material Efficiency Variance Journal Entry:

Debit: Direct Material Efficiency Variance ($75,000)

Credit: Work-in-Process Inventory (to adjust the cost of direct materials used)

(b.3) Direct Labor Rate Variance Journal Entry:

Debit: Direct Labor Rate Variance ($22,000)

Credit: Wages Payable (to record the reduction in liability for direct labor)

(b.4) Direct Labor Efficiency Variance Journal Entry:

Debit: Direct Labor Efficiency Variance ($80,000)

Credit: Work-in-Process Inventory (to adjust the cost of direct labor used)

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