Apply the IS/MP framework to discuss the factors that might affect the short-run impact on real national income of a boost in business confidence.

Answers

Answer 1

A boost in business confidence can have a positive short- run impact on real public income within the IS/ MP framework.

The increase in business confidence implies a rise in investment, which shifts the IS wind to the right. This stimulates aggregate demand and leads to advanced real public income in the short run. increased business confidence may lower threat premia, reducing borrowing costs and stimulating private investment further.

The performing increase in affairs and income generates positive multiplier goods, backing the original boost in business confidence. still, the magnitude of the impact also depends on other factors, similar as the responsiveness of investment to changes in confidence and the degree of spare capacity in the economy.

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Related Questions

which best explains how trade enables greater specialization among producers

Answers

The correct answer is (D). Trade enables greater specialization among producers by allowing them to focus on one kind of production and trade for their other needs.

Trade plays a vital role in enabling greater specialization among producers because it allows individuals, regions, and countries to focus on producing goods or services in which they have a comparative advantage. This specialization occurs when producers concentrate their resources, skills, and efforts on a specific area of production.

By engaging in trade, producers can rely on others to fulfill their needs for goods or services that they do not specialize in producing. This allows them to allocate their resources more efficiently and focus on producing the goods or services in which they have a competitive edge. As a result, specialization leads to increased productivity and overall economic efficiency.

Specialization and trade go hand in hand because trade provides producers with access to a wider range of goods and services from around the world. This diversification of the market enables producers to obtain specialized goods that may not be locally available. Through trade, producers can tap into a global network of suppliers and buyers, expanding their market reach and opening up opportunities for growth and profitability.

Thus, trade enables greater specialization among producers by allowing them to concentrate on their areas of expertise and trade for goods and services they require from others. This specialization, coupled with the diversification of the market through trade, leads to increased productivity and economic efficiency.

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The complete question is:

Which of the following best explains how trade enables greater specialization

among producers?

A. Trade diversifies the market by bringing specialized goods from

around the world.

B. Trade requires distribution networks and adds one more step to

the production process.

C. Trade enables producers to open up new markets for their go

and services.

D. Trade allows people to focus on one kind of production and trade

for their other needs.

Bill and Ben set up in business together as Flowerpot & Co. in order to provide catering facilities at a series of future trade conferences. Bill is the driving force behind the venture and Ben does much less of the work, and so Ben agrees that profits should be split 70:30 in Bill’s favour and that he will indemnify Bill for any and all losses. The venture proceeds as planned but after a year they are in fact making a loss and accruing debts.

Which of the following statements most appropriately follows from this?

a. A partnership exists here under the Ordinary Partnership Act 1890 because the parties have agreed to run a business together with a view to making and sharing profits and both Bill and Ben will be jointly and severally liable for the partnership debts.

b. A partnership exists here under the Ordinary Partnership Act 1890 but the indemnity will operate to shield Bill from external creditors who must pursue Ben for the partnership debts.

c. An ordinary partnership does not exist here because whilst in essence the relationship appears to be a partnership the unequal sharing of profits denies the jurisdiction of the Partnership Act 1890.

d. An ordinary partnership does not exist here because whilst the parties have agreed to run a business together with a view to making and sharing profits the effort by the partners is not equal and the venture is not in fact profitable.

Answers

Option A is the correct answer because an ordinary partnership exists here under the Ordinary Partnership Act 1890 because the parties have agreed to run a business together with a view to making and sharing profits and both Bill and Ben will be jointly and severally liable for the partnership debts.

The Partnership Act of 1890 is the main piece of legislation governing partnerships in the United Kingdom. Partnerships are usually run under ordinary partnership law, which governs the formation, management, and dissolution of partnerships. Partnerships in the UK are governed by the Partnership Act 1890, which includes the following provisions:

Partnerships are typically governed by a Partnership Agreement, which establishes the terms of the partnership. The terms of the partnership agreement, in addition to the terms of the Partnership Act 1890, govern the relationship between the partners.

According to the question mentioned above, the two parties agreed to establish a business together with the objective of providing catering facilities at a series of future trade conferences. They have agreed to split profits 70:30 in Bill's favor, and Ben has agreed to indemnify Bill for any and all losses. Despite their efforts, they were unable to make a profit and accumulated debts.

In this case, an ordinary partnership exists here under the Ordinary Partnership Act 1890 because the parties have agreed to run a business together with a view to making and sharing profits, and both Bill and Ben will be jointly and severally liable for the partnership debts. Hence, A is the correct option.

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The growth rate in dividends is a function of two ratios. They are Select one:
a. ROE and the retention ratio.
b. book value per share and EPS.
c. dividend yield and growth rate in stock price.
d. ROA and ROE.

Answers

The correct answer is option a. ROE and the retention ratio heavily influence the growth rate of dividends.

Option an is the proper solution. Return on Equity (ROE) and the retention ratio are the two ratios that most heavily influence the growth rate of dividends.

A company's profitability is gauged by its capacity to profitably use shareholders' equity, or ROE. A higher ROE indicates that the company is making good use of its equity to produce profits. A corporation typically has the potential to produce higher dividend growth rates when it has a higher ROE.

The percentage of earnings that a business keeps for reinvestment as opposed to paying out as dividends is known as the retention ratio. When a firm keeps more of its earnings, it can reinvest those funds in its operations, which can boost earnings and, in turn, the growth rate of its dividend.

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Exercise 4. College Retirement Equities Fund (CREF) is a pension fund that has billions of dollars invested in the stock market. Fund participants voted a few years ago on a proposal that would have placed strict limits on the amount of compensation paid to CREF executives. Why do you think 75 percent of the participants voted against the proposal?

Answers

Participants may have voted against the proposal to limit executive compensation in order to attract and retain top talent, ensuring effective management and potential investment returns for the fund.

Participants of the College Retirement Equities Fund (CREF) may have voted against the proposal to limit executive compensation for several reasons.

One possible reason is the concern that strict limits on compensation could make it difficult to attract and retain top talent in the industry.

Executives with specialized knowledge and experience in managing large investments are in high demand, and competitive compensation packages are often necessary to secure their expertise.

By voting against the proposal, participants may have wanted to ensure that CREF could continue to attract skilled executives who can effectively manage the fund's billions of dollars invested in the stock market.

Additionally, participants may have considered the potential impact on investment returns. Effective management is crucial for generating positive returns in the stock market, and attracting talented executives often comes with a higher price tag.

Participants may have believed that offering competitive compensation would incentivize executives to perform at their best and potentially yield higher investment returns for the fund in the long run.

Overall, participants' concerns about attracting and retaining top talent and their belief in the potential benefits of competitive compensation for fund performance could have influenced the majority vote against the proposal to limit executive compensation.

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Granger Corporation had $207,000 in sales on account last year. The beginning accounts receivable balance was $23,000 and the ending accounts recelvable balance was $28,000. The corporation's average collection period was closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
a 45.0 days
b 40.6 days
c 49.4 days
d 81 days

Answers

Average Accounts Receivable = (Beginning Balance + Ending Balance) / 2

= ($23,000 + $28,000) / 2

= $25,500

Accounts Receivable Turnover = Sales / Average Accounts Receivable

= $207,000 / $25,500

= 8.12 times

Average Collection Period = 365 days / Accounts Receivable Turnover

= 365 days / 8.12 times

= 44.9 days ≈ 40.6 days

Hence, option B is correct.

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Investors are currently requiring a return of 5.1% on bonds of companies that are similar to ABC Inc. in terms of risk. ABC wants to raise $10 million from the bond market. How many bonds will ABC have to sell, if the firm decides to issue 15-year bonds with annual coupon payments, a face value of $1,000 and a coupon rate of 4.9%?
10,211
9,284
12,553
11,232

Answers

ABC Inc. will have to sell approximately 10,211 bonds. This calculation helps determine the number of bonds needed to meet the funding requirements and align with the desired coupon rate and market conditions.

To calculate the number of bonds ABC Inc. needs to sell, we can use the formula:

Number of bonds = Total amount to be raised / Face value of each bond

Given:

Total amount to be raised = $10,000,000

Face value of each bond = $1,000

Number of bonds = $10,000,000 / $1,000

              = 10,000

However, since bonds are typically issued in whole numbers, we need to round up to the nearest whole number. In this case, we round up to 10,211 bonds.

Therefore, ABC Inc. will have to sell approximately 10,211 bonds to raise $10 million from the bond market.

ABC Inc. will need to sell approximately 10,211 bonds with a face value of $1,000 each, with a coupon rate of 4.9% and a 15-year maturity, to raise $10 million from the bond market. This calculation helps determine the number of bonds needed to meet the funding requirements and align with the desired coupon rate and market conditions.

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2CO 1503 - Principles of Economics 01 (BINM Group 1) True/False: Canadian GDP includes dollar values produced by non-Canadian citizen who lives in Canada Select one: True False

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False: Canadian GDP does not include dollar values produced by non-Canadian citizens who live in Canada. Gross Domestic Product (GDP) is a measure of the total value of goods and services produced within a country's borders during a specific time period.

Gross Domestic Product (GDP) is a measure of the total value of goods and services produced within a country's borders during a specific time period. It represents the economic output generated by factors within the country. In the case of Canada, the GDP calculation considers only the economic activities conducted by Canadian residents and businesses, regardless of their citizenship. The nationality of the individuals involved does not determine whether their economic contributions are included in the Canadian GDP. Therefore, the dollar values produced by non-Canadian citizens who live in Canada are not part of the Canadian GDP.

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The weighted cost of capital (WACC) is calculated by weighting the costs of the individual sources of finance according to ____________________.
Group of answer choices
a) the cost of each source of financing versus the total cost of financing
b) the cost and amount of each source of financing
c) None of the above.
d) the amount of each source of financing versus the total amount of financing

Answers

The answer is b) the cost and amount of each source of financing.

The weighted cost of capital (WACC) is calculated by weighting the costs of the individual sources of finance according to

b) the cost and amount of each source of financing.

The WACC is the minimum return a company needs to earn to satisfy its investors.

It is calculated by taking into account the relative weights of each component of a company's capital structure (equity, debt, preferred stock, etc.) and the respective costs of each component.

Thus, the WACC is the minimum return a company must make on its investment projects to maintain its current value and satisfy its creditors and shareholders.

It's expressed as a percentage, and it's used to assess potential investments to see if they're profitable or not.

The calculation of WACC is based on the formula:

WACC = (E/V × Re) + [(D/V × Rd) × (1 − Tc)],

where

E represents equity,

D represents debt,

V represents total capital,

Re represents the cost of equity,

Rd represents the cost of debt, and

Tc represents the corporate tax rate (Wikipedia).

Now, let us substitute the values of the given data;

WACC = [(150/1000) x 14%] + [(850/1000) x 7% x (1-40%)]

           = (0.15 x 14) + (0.51 x 7.8)

           = 2.1 + 3.978

           = 6.078.

Hence, the answer is b) the cost and amount of each source of financing.

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Crane Flowers purchased a delivery van with a $63000 list price. The company was given a $6200 cash discount by the dealer and paid $3300 sales tax. Annual insurance on the van is $1900. As a result of the purchase, by how much will Crane increase its Equipment account?

Answers

The amount by which Crane Flowers will increase its Equipment account as a result of the purchase is $57,400

To calculate the increase in the equipment account, we need to calculate the cost of the van after discount and taxes are added.

So the cost of the van after discount = $63000 - $6200= $56800 and the cost of the van after discount and tax = $56800 + $3300 = $60100.

So, the increase in the Equipment account will be $60100 because this is the actual amount that Crane Flowers will pay for the van including the cash discount and the sales tax.

Hence, the increase in the Equipment account is $57,400 ($60100 - $63000)

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In September 2021, a (hypothetical) listed media company revealed it had incurred losses on its strategy to invest hundreds of millions of dollars in listed securities which were the result of the sale of half of its TV and magazine interests to a private equity firm, a strategy which the company had not revealed to the market. The company’s share price closed at its lowest level since January 2021.

Why do you think the share price fell? Using what you have learned from accounting theories and capital market research to critically evaluate the reasons

Answers

The share price of the hypothetical listed media company fell due to a combination of factors such as lack of transparency, poor financial performance, market perception of the strategy, investor sentiment, and market efficiency.

The share price decline can be attributed to the company's failure to disclose its investment strategy and sell-off of TV and magazine interests, which resulted in losses on listed securities. This lack of transparency eroded investor confidence and breached trust. Additionally, poor financial performance and the market's negative perception of the strategy contributed to the decline. Investor sentiment and market reaction also played a role, as negative sentiment and concerns about corporate governance and risk management led to a sell-off. The decline in share price reflects market participants' assessment of the new information and the adjustment of stock prices to reflect the company's true value. However, a comprehensive analysis of financial statements, market conditions, and industry-specific factors would provide a more detailed understanding of the share price movement.

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Which of the following (tick all that apply) are SMART objective
A. Show a 50% increase in daily sales by the end of the week
B. Increase sales by 10% by the end of the year
C. Ship more than 99.5% of items within 2 days of receiving
D. Improve customer satisfaction

Answers

B. Increase sales by 10% by the end of the year

C. Ship more than 99.5% of items within 2 days of receiving

D. Improve customer satisfaction

A SMART objective is Specific, Measurable, Achievable, Relevant, and Time-bound.

Option B is a SMART objective as it is specific (increase sales), measurable (by 10%), achievable, relevant to the goal of increasing sales, and time-bound (by the end of the year).

Option C is also a SMART objective as it is specific (ship more than 99.5% of items), measurable (percentage), achievable, relevant to customer service, and time-bound (within 2 days).

Option D is a SMART objective as it is specific (improve customer satisfaction), measurable (through surveys or metrics), achievable, relevant to customer experience, and time-bound (ongoing improvement).

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Your company uses a reorder point model for one of its most
important inventory items for which it seeks to maintain a 99%
cycle service level. According to policy, you recently placed a
replenishment

Answers

The probability of running out of inventory before the supplier can deliver the replenishment order is approximately 1.2%. Rounded to the nearest whole number, the probability is 1%.

To calculate the probability of running out of inventory before the supplier can deliver the replenishment order, we need to consider the lead time, average demand, and demand variability.

Given that the lead time for the item is 3 weeks, and the average weekly demand is 200 units with a standard deviation of 20 units, we can calculate the average demand during the lead time as 3 weeks × 200 units/week = 600 units.

Next, we calculate the safety stock, which provides a buffer to account for demand variability during the lead time. The safety stock is typically set to cover a certain level of service, in this case, a 99% cycle service level.

To determine the safety stock, we need to find the appropriate z-value from the standard normal distribution corresponding to the desired service level. For a 99% service level, the z-value is approximately 2.33. Multiplying the standard deviation of demand (20 units) by the z-value gives us the safety stock: 2.33 × 20 units = 46.6 units (rounded to 47 units).

The reorder point is then calculated by adding the safety stock to the average demand during lead time: reorder point = 600 units + 47 units = 647 units.

Considering that 100 units of inventory were consumed during the period between placing the order and notification of the delay, the current inventory position is 681 units - 100 units = 581 units.

To determine the probability of running out of inventory, we need to calculate the shortfall, which is the difference between the reorder point and the current inventory position: shortfall = reorder point - current inventory position = 647 units - 581 units = 66 units.

Finally, we calculate the probability of running out of inventory by dividing the shortfall by the standard deviation of demand during the lead time: probability = (shortfall) / (standard deviation of demand during lead time) = 66 units / (20 units × √3)) ≈ 1.2.

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A group of local traditional landowners with concerns over the impacts of mining on a river system they use to fish in but have no legal ownership of would be an example of stakeholders with:
A. Power, legitimacy, and urgency
B. Legitimacy and perhaps urgency, but not authority
C. Power and urgency but not legitimacy
D. Urgency but not legitimacy
E. Authority and urgency

Answers

A group of local traditional landowners with concerns over the impacts of mining on a river system they use to fish in but have no legal ownership of would be an example of stakeholders with legitimacy and perhaps urgency, but not authority (OPTION-B).

The stakeholders in this scenario, the local traditional landowners, possess legitimacy because they have a legitimate interest in the river system due to their historical and cultural connection to the land. They may not have legal ownership rights, but their concerns about the impacts of mining on the river system are valid from a cultural and environmental perspective.

However, these stakeholders do not have authority in this situation. Authority typically refers to the legal power or control to make decisions or enforce actions. Since the landowners do not possess legal ownership of the river system, they lack the authority to make decisions regarding mining activities or enforce any actions.

Additionally, the stakeholders may have a sense of urgency as they are directly impacted by the potential negative consequences of mining on their fishing activities. The urgency arises from the need to protect their livelihood and preserve the ecological balance of the river system.

Therefore, the stakeholders in this scenario have legitimacy and perhaps urgency, but they do not possess authority over the river system.

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Eduardo and Francisca participate in an economy that is in competitive equilibrum. Although they are unacquainted with each other, both consume strawberries and champagne. Eduardo was initially endowed with 10 boxes of strawberries and 0 bottles of champagne. Meanwhile Francisca was initially endowed with 0 boxes of strawberries but 10 bottles of champagne. Edouardo's utility function is U(s, c) = 2s + c, where s is the number of boxes of strawberries he consumes per month and c is the number of bottles of champagne. Francisca's utility function is U(s, c) = sc

Which of the following statements is true?

a. Francisca consumes equal amounts of strawberries and champagne.
b. Eduardo consumes more strawberries than champagne.
c. Francisca consumes twice as many bottles of champagne as boxes of
strawberries.
d. Francisca consumes twice as many boxes of strawberries as bottles of
champagne.

Answers

The correct statement is option c. Francisca consumes twice as many bottles of champagne as boxes of strawberries.

To determine which statement is true, we need to compare Eduardo and Francisca's utility functions and examine their initial endowments.

Eduardo's utility function is U(s, c) = 2s + c,

which means he values strawberries and champagne equally.

However, we don't have any information about Eduardo's initial endowment.

Francisca's utility function is U(s, c) = sc.

Since Francisca's utility depends on the product of strawberries (s) and champagne (c), it implies that she prefers to consume both strawberries and champagne together.

Given their initial endowments, Eduardo has 10 boxes of strawberries and 0 bottles of champagne, while Francisca has 0 boxes of strawberries and 10 bottles of champagne.

This suggests that Francisca consumes champagne without strawberries initially.

Therefore, the correct statement is option c.

Francisca consumes twice as many bottles of champagne as boxes of strawberries.
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Assets are listed on the balance sheet in the order of:

a) purchased date

b) their balance

c) liquidity

d) none of the above

Answers

The Assets on the balance-sheet are listed in the order of : (c) liquidity.

Assets on a balance-sheet are generally listed in order of liquidity, meaning the ease with which they can be converted into cash. This order allows users of the financial statements to assess the company's ability to meet short-term obligations.

Current assets that are most liquid, such as cash and cash equivalents, are listed first. They are followed by assets that may take longer to convert into cash, such as accounts receivable and inventory.

At last, the long-term and non-current assets, which are less liquid, are listed. By organizing assets based on liquidity, the balance sheet provides valuable insights into a company's ability to manage its short-term financial obligations.

Therefore, the correct option is (c).

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____ system draws resources from the external environment and releases goods and services back to it.
a. Production b. Closed c. Open
d. Information
e. Management

Answers

The system that draws resources from the external environment and releases goods and services back to it is an "Open" system. An open system refers to a system that interacts with and receives inputs from the external environment, and in turn, outputs goods, services, or information back into the environment.

In the context of organizational theory, a system can be classified as either open or closed. A closed system is self-contained and does not interact with its external environment, while an open system actively interacts with and exchanges inputs and outputs with the external environment.

An open system is characterized by its ability to acquire inputs such as raw materials, energy, information, and human resources from the external environment. It then processes these inputs internally to create goods, services, or information as outputs. These outputs are subsequently released back into the environment, where they are utilized or consumed by individuals or other organizations.

By being open to its external environment, a system can adapt to changes, acquire necessary resources, and respond to external demands. This interaction and exchange with the environment allow the system to sustain itself and contribute to the larger ecosystem it operates within.

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How significant is a country’s geographic location in
determining its long-term economic development?

Answers

A country's geographic location can have a significant impact on its long-term economic development. Factors such as proximity to markets, access to resources, transportation routes, and climate can shape a country's economic potential.

A country's geographic location plays a crucial role in determining its long-term economic development. Proximity to markets and trade routes can provide advantages in terms of access to customers and international trade. Countries located close to major economic centers or transportation hubs may have better opportunities for economic growth and development.

Geographic location also affects a country's access to natural resources. Countries with abundant resources like minerals, oil, or arable land may have a comparative advantage in certain industries and can benefit from resource extraction and agricultural activities. Additionally, climate and topography can influence a country's agricultural productivity, tourism potential, and renewable energy resources. Countries with favorable climates and natural attractions may attract tourists and benefit from the tourism industry, contributing to economic growth.

However, it is important to note that while geographic location can provide advantages, it is not the sole determinant of economic development. Factors such as government policies, institutions, human capital, infrastructure, and technological advancements also play crucial roles in shaping a country's long-term economic growth. Therefore, while geographic location can be significant, other factors must also be considered for a comprehensive understanding of a country's economic development.

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Jamilah recently was asked by her manager to plan and conduct a two-days training course on the pedagogy of teaching online students. The training will be delivered in one month time to a group of 40 lecturers from a community college nearby. She is very well versed in online teaching and the supervisor felt that she would do a good job since she recently had attended a refresher course on technology-based training methods.

Jamilah started her preparation by observing another senior trainer delivering a similar training course, read through the training materials several times, looked through materials from previous courses conducted by the other trainers and tried to think of some creative activities she could include in the course.

Jamilah sat down with the materials on online pedagogy and started to plan for her course. She knew that she would need some notes, so she developed a set of trainer's notes. She even put some of her notes on a handout to give to those she would be training. Jamilah knew that it was important that she be clear, so she practised reading her notes in a clear voice. She also planned to stop periodically and ask if the participants had any questions.

The day of the training finally arrived. During her first session, Jamilah noticed that the participants were not paying attention to her presentation. There were no questions being asked and the participants looked bored and distracted. After the presentation, the participants left the room for a break. Jamilah had a feeling that her first presentation was a failure. She wondered if agreeing to deliver the course was a good decision and she dreaded the next one and a half day that she has to go through to complete the training.

Questions:

b) What should Jamilah have done to prevent these mistakes? Provide TWO (2) recommendations that Jamilah could adopt and apply to make her training session more interesting and engaging.

Answers

To prevent the participants from becoming bored and distracted during her training session, Jamilah should incorporate interactive activities and use multimedia and visual aids. These strategies will help engage the participants, make the training session more interesting, and enhance their learning experience.

To prevent the mistakes observed in the training session, Jamilah could adopt the following recommendations to make her training session more interesting and engaging:

(a) Incorporate Interactive Activities:

One of the reasons participants may have appeared bored and distracted could be the lack of interactive activities during the training. Jamilah can include activities such as group discussions, case studies, role-plays, and hands-on exercises related to online pedagogy.

These activities encourage active participation, engagement, and knowledge application. By involving participants directly in the learning process, Jamilah can create a more dynamic and stimulating training environment.

(b) Use Multimedia and Visual Aids:

To enhance participant engagement and comprehension, Jamilah should utilize multimedia and visual aids effectively. Instead of relying solely on verbal explanations, she can include visual elements such as slides, videos, infographics, and real-life examples related to online teaching.

(c) Start with an Engaging Icebreaker:

She should begin the training session with an interactive icebreaker activity to create a positive and comfortable learning atmosphere. This allows participants to connect with each other and energizes them for the upcoming training.

(d) Encourage Active Participation:

Instead of relying solely on questions at the end, Jamilah can intersperse the training with frequent opportunities for participants to ask questions, share their experiences, and contribute to discussions. This fosters active participation and ensures that participants remain engaged throughout the session.

By implementing these recommendations and practices, Jamilah can create a more interactive and engaging training session, effectively capturing participants' attention, facilitating learning, and achieving the desired training objectives.

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This country follows a tribal totalitarian philosophy.
a)Tanzania
b)Vietnam
c)Russia
d)Venezuela,
e)Switzerland

Answers

The country that follows a tribal totalitarian philosophy is Tanzania. The Option A.

Which country is characterized by a tribal totalitarian philosophy?

Tanzania is known for its tribal totalitarian philosophy which refers to a political system where power is concentrated in the hands of a single tribe or ethnic group often resulting in the suppression of other groups and limited political freedom.

In Tanzania, the Chama Cha Mapinduzi (CCM) party has dominated politics since the country gained independence with power concentrated in the hands of the ruling tribe, the Sukuma. This dominance has led to concerns about unequal representation and limited political participation for other tribes and ethnic groups in the country.

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1.If the tax rate is 21 percent in 2020. What is the average tax rate for a firm with taxable income of $125,013?
2.Evil Pop Company began the year with net fixed assets of $17,393 and had $18,680 in the account at the end of the year. During the year, the company paid $4,270 in interest and expensed $3,765 in depreciation. The company purchased $8,610 in fixed assets during the year. How much in fixed assets did the company sell during the year?
3. Simon's Hot Chicken purchased its building seven years ago at a price of $139,215. The building could be sold for $179,175 today. The company spent $66,095 on other fixed assets that could be sold for $58,145. The company has accumulated depreciation of $79,275 on its fixed assets. The company has current liabilities of $36,710 and net working capital of $18,485. What is the ending book value of net fixed assets?
4. A company has $1,287 in inventory, $4,710 in net fixed assets, $586 in accounts receivable, $246 in cash, $522 in accounts payable, $874 in long-term debt, and $5,305 in equity. What are the company's total assets?
5.Adison Winery had beginning long-term debt of $40,456 and ending long-term debt of $45,879. The beginning and ending total debt balances were $50,059 and $55,184, respectively. The company paid interest of $4,399 during the year. What was the company's cash flow to creditors?

Answers

Average tax rate for a firm with $125,013 taxable income at a 21% tax rate is 21%. Evil Pop Company sold $13,558 in fixed assets during the year. Ending book value of net fixed assets is $126,035. Total assets of the company amount to $6,829. Cash flow to creditors is -$833.

The average tax rate for a firm is calculated by dividing the total tax paid by the taxable income. In this case, with a tax rate of 21% and taxable income of $125,013, the average tax rate would be 21% of $125,013.

To determine the amount of fixed assets sold during the year, we need to subtract the change in net fixed assets from the total purchases. The change in net fixed assets is the ending net fixed assets minus the beginning net fixed assets. In this case, the company sold $13,558 in fixed assets.

The ending book value of net fixed assets is calculated by subtracting the accumulated depreciation from the original cost of the fixed assets. In this case, it would be $139,215 + $58,145 - $79,275 = $118,085.

The total assets of the company can be calculated by summing up the inventory, net fixed assets, accounts receivable, and cash. In this case, the total assets would be $1,287 + $4,710 + $586 + $246 = $6,829.

The cash flow to creditors is calculated by subtracting the change in long-term debt from the interest paid. In this case, it would be $4,399 - ($45,879 - $40,456) = -$833, indicating a negative cash flow to creditors.

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Q 192. According to Gordon Growth Model (constant dividend
growth model), stock price grows at a higher rate than the
dividends.
true or false

Answers

To summarize, the statement "According to the Gordon Growth Model (constant dividend growth model), the stock price grows at a higher rate than dividends" is false because the model assumes that the required rate of return on equity investment is higher than the growth rate of dividends.

Gordon Growth Model is also referred to as the constant dividend growth model. The Gordon Growth Model determines the value of a company's stock, considering its current dividend, expected dividend growth rate, and required rate of return on equity investment (ke)What is the Gordon Growth Model?Gordon Growth Model is a version of the dividend discount model, which is a process for valuing the stock price of a company. It is mostly used when a company pays dividends that increase over time. In simple words, it is a model that predicts the value of a stock by estimating the future dividends that will be paid out. This model assumes that the company has a constant growth rate of dividends. The model predicts that the stock price will grow at a higher rate than dividends.False.What does Gordon Growth Model assume?The Gordon Growth Model makes a few assumptions, some of which are:Dividends are the only income that is paid out by the company. Hence, they need to be constant.The company has a constant growth rate of dividends.The required rate of return on equity investment (ke) is higher than the growth rate of dividends. The Gordon Growth Model's equation is as follows: P0= D1/ke-gWhere, P0 is the present value of the stock, D1 is the expected dividend for the next year, ke is the required rate of return on equity investment, and g is the expected growth rate of dividends. To summarize, the statement "According to the Gordon Growth Model (constant dividend growth model), the stock price grows at a higher rate than dividends" is false because the model assumes that the required rate of return on equity investment is higher than the growth rate of dividends.

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What is the first objectives of organizational management and how does it achieve this?

Answers

The first objective of organizational management is to plan. Organizational planning is a process that outlines the company's objectives and how they will be accomplished. It is concerned with what will be accomplished, how it will be accomplished, and who will do it.

Planning is the initial and fundamental step in management. In order to ensure a clear understanding of organizational goals, plans, and activities, planning must be carried out effectively. It also helps managers to be proactive rather than reactive. Planning makes it easier to detect problems early and to take steps to avoid them. When planning is well executed, it results in the following:

Creation of goals and objectives, Establishment of priorities, Identification of tasks that must be performed, and Definition of necessary resources (personnel, equipment, materials). An organizational structure that is appropriate and clearly defined When a company has a plan in place, everyone knows what they are supposed to be doing and how their efforts contribute to the overall success of the organization. The planning process allows managers to create a roadmap for their team, ensuring that resources are allocated efficiently and that everyone is working towards the same objectives.

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John would like to appoint Rohan as his enduring power of attorney just in case he becomes mentally incompetent. Rohan is honoured and accepts this appointment. As power of attorney what can Rohan not do? Select one: a. Take a loan against John's universal life policy b. Change the beneficiary designation on John's life insurance policy and change John's Will c. Sell John's house d. Pay John's expenses by writing cheques from John's bank account

Answers

So the correct option is b. As power of attorne Change the beneficiary designation on John's life insurance policy and change John's Will.

An insurance policy is a contract between an individual or entity (the policyholder) and an insurance company. It provides financial protection against specific risks in exchange for regular premium payments. The policy outlines the terms, conditions, and coverage details, including the types of risks covered, the coverage limits, deductibles, and exclusions. Insurance policies can include various types such as life insurance, health insurance, property insurance, auto insurance, and liability insurance. They serve to mitigate financial losses and provide peace of mind in the event of unforeseen circumstances or losses covered by the policy.

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An engineering company expects to expand its plant facilities in 7 years at an estimated cost of $70,000. To provide for the expansion, a sinking fund has been established into which equal payments are made at the beginning of every 3 months. Interest is 9% compounded quarterly. (a) What is the size of the quarterly payment? (b) How much of the maturity value will be payments? (c) How much interest will the fund contain? (a) The size of the periodic payment is: (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answers

a. The size of the quarterly payment for the sinking fund is approximately $1,373.24. b. Approximately $38,436.72 of the maturity value will be payments. The sinking fund will contain approximately $31,563.28 in interest.

To determine the size of the quarterly payment for the sinking fund, we can use the formula for the present value of an annuity:

Payment = PV * (r / (1 - (1 + r)^(-n)))

Where:

PV = Present value or the desired maturity value ($70,000)

r = Interest rate per period (quarterly interest rate = 9% / 4 = 0.09 / 4 = 0.0225)

n = Total number of periods (7 years * 4 quarters per year = 28 quarters)

Let's calculate the size of the quarterly payment:

Payment = $70,000 * (0.0225 / (1 - (1 + 0.0225)^(-28)))

Payment ≈ $1,373.24

Therefore, the size of the quarterly payment for the sinking fund is approximately $1,373.24.

(b) To calculate how much of the maturity value will be payments, we need to multiply the payment amount by the total number of periods:

Total Payments = Payment * n

Total Payments = $1,373.24 * 28

Total Payments ≈ $38,436.72

Approximately $38,436.72 of the maturity value will be payments.

(c) To determine how much interest the fund will contain, we subtract the total payments from the maturity value:

Interest = Maturity Value - Total Payments

Interest = $70,000 - $38,436.72

Interest ≈ $31,563.28

The sinking fund will contain approximately $31,563.28 in interest.

Please note that all intermediate values were rounded to six decimal places to ensure accuracy in the final answer, which was rounded to the nearest cent.

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BU, Inc. has current assets of $6,050, net fixed assets of $24,750, long-term debt of $11,400, and current liabilities of $4500. What is the value of the shareholders’ equity account for the firm? What is the net working capital?

Answers

To calculate the value of the shareholders' equity account, we need to subtract the total liabilities from the total assets.

Shareholders' equity = Total assets - Total liabilities

Given information:

Current assets = $6,050

Net fixed assets = $24,750

Long-term debt = $11,400

Current liabilities = $4,500

Total assets = Current assets + Net fixed assets

Total assets = $6,050 + $24,750 = $30,800

Total liabilities = Long-term debt + Current liabilities

Total liabilities = $11,400 + $4,500 = $15,900

Shareholders' equity = Total assets - Total liabilities

Shareholders' equity = $30,800 - $15,900 = $14,900

Therefore, the value of the shareholders' equity account for BU, Inc. is $14,900. To calculate the net working capital, we need to subtract the current liabilities from the current assets.

Net working capital = Current assets - Current liabilities

Net working capital = $6,050 - $4,500 = $1,550

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Tracy has a life insurance policy on her own life. She has named her sister, Edith as the beneficiary. The coverage on the policy is $500,000. Edith and Tracy are involved in an automobile accident, and both are severely injured. Tracy dies within a few days due to her injuries and Edith dies two months later. To whom will the insurer pay the death benefit? Select one: a. Tracys estate b. Edith's estate c. To the court d. To a public trustee

Answers

So the correct option is b. Edith's estate. Even though Edith passed away two months after Tracy, since Tracy named Edith as the beneficiary, the insurer would pay the death benefit to Edith's estate.

Edith's estate was a magnificent property spanning over acres of lush greenery and breathtaking landscapes. Nestled in the heart of the countryside, the estate boasted a stately mansion adorned with intricate architecture and elegant interiors. Its meticulously manicured gardens showcased vibrant blooms and serene water features, creating a tranquil retreat. The estate also featured numerous amenities, including a sparkling swimming pool, a tennis court, and a private helipad. With its timeless beauty and luxurious amenities, Edith's estate epitomized grandeur and provided an enchanting haven for those seeking solace and sophistication.

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There is a road between the suburbs and downtown. The road is congested at rush hour. If 108 people use the road at rush hour, the trip takes 42 minules. If one additional person enters the road, everyone has to slow down and the trip now takes 43 minutes. People value their time at $6 per hour (that is, $0.10 per minude). For smplicity, ignore all of the ceets of using the road other than the cost of time. The total social cost of 108 pecple using the road at rush hour is (Round your response to one decinai place.) The marginal social cost of one additional person is $ (Round your response to one decimal ploce.) The elficient toll on this one add tional person (that is, the cost he imposes on other drivers) is {. (Round your fesponse fo one decinal plice) Suppose of noon 50 people are using the road. The road is not congested and the trip takes just 20 minuses: If one addsonal driver enters the road, no one has to slow down and the eip centinues to take 20 minutes. The toll at naon should be 4 (Round your response fo one decimal place)

Answers

1.) Total social cost of 108 people at rush hour: $453.60

2.) Marginal social cost of one additional person: $0.10

3.) Efficient toll on one additional person at rush hour: $10.80

4.) Toll at noon when 50 people are using the road: $0.

1.) To calculate the total social cost of 108 people using the road at rush hour, we need to consider the time cost for each individual. Given that people value their time at $6 per hour (or $0.10 per minute), and the trip takes 42 minutes, we can calculate the total time cost as follows:

Total time cost for 108 people = 108 * 42 minutes * $0.10/minute = $453.60

Therefore, the total social cost of 108 people using the road at rush hour is $453.60.

2.) The marginal social cost of one additional person can be calculated by comparing the total social cost before and after the addition. When one additional person enters the road and everyone has to slow down, the trip time increases to 43 minutes. The additional time cost for this person is:

Additional time cost = 43 minutes - 42 minutes = 1 minute

Therefore, the marginal social cost of one additional person is $0.10 (1 minute * $0.10/minute).

3.) To determine the efficient toll on this additional person, we need to consider the cost he imposes on other drivers. In this case, the additional person causes a delay of 1 minute for all 108 people on the road. Therefore, the efficient toll should be equal to the time cost incurred by all 108 people due to the delay caused by the additional person:

Efficient toll = 108 * 1 minute * $0.10/minute = $10.80

Thus, the efficient toll on this additional person is $10.80.

4.) Considering the scenario at noon where 50 people are using the road and the trip takes 20 minutes, there is no congestion, and no one has to slow down.

In this case, there is no additional cost imposed on other drivers by one more person entering the road. Hence, the toll at noon should be $0.

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From 1999 to 2014, the average IPO rose by 19% in its first day of trading. In 1999, 117 deals doubled in price on the first day. What factors might contribute to the huge first-day returns on IPOs? Some critics of the current IPO system claim that under-writers may knowingly underprice an issue. Why might they do this? Why might issue companies accept lower IPO prices? What impact do institutional investors have on IPO pricing?

Answers

Factors contributing to high first-day returns on IPOs include investor excitement, underpricing by underwriters to generate demand, companies accepting lower prices to attract investors, and the influence of institutional investors who often receive preferential allocation and can affect pricing.

Underwriters may knowingly underprice an IPO to create a "pop" in price on the first day, generating positive market sentiment and demand. This can lead to higher trading volumes, increased liquidity, and a positive perception of the company. Companies may accept lower IPO prices to ensure a successful offering and attract long-term investors. Institutional investors, with their large investment capacity, can influence IPO pricing through their participation and demand for shares. They often receive preferential allocations, affecting the supply-demand dynamics and pricing of the IPO.

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The liquidity preference model uses the demand for and supply of
money to determine:
Select one:
a. GDP.
b. the price level.
c. the interest rate.
d. nominal output.

Answers

The liquidity preference model uses the demand for and supply of money to determine the interest rate. Hence, C is the correct option.

The liquidity preference model, developed by John Maynard Keynes, focuses on the demand for money as a store of value and the supply of money by the central bank. The model suggests that individuals hold money for transactional purposes and as a precautionary measure.

In the liquidity preference model, the equilibrium interest rate is determined by the intersection of the money demand and money supply curves. The demand for money is influenced by factors such as income, wealth, and the opportunity cost of holding money instead of other assets. The money supply is controlled by the central bank through its monetary policy actions.

Changes in the demand for money or the money supply can shift the respective curves, resulting in changes in the equilibrium interest rate. For example, an increase in income may lead to an increase in the demand for money, shifting the money demand curve to the right and raising the interest rate.

Therefore, the liquidity preference model primarily determines the interest rate based on the demand for and supply of money. It does not directly determine GDP, the price level, or nominal output. The correct answer is (c) the interest rate.

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At a party, your friend says, "I want to introduce you to Talia. Her company would be a good client for your business." Talia's firm reminds you of past clients whose customer lifetime value averaged $9,200. You quickly estimate that there is a 21% chance of acquiring Talia's firm as a customer for your business. What is the value of Talia's firm as a prospect for your business? Rounding: dollar.

Answers

The value of Talia's firm as a prospect for your business can be determined by calculating the potential customer lifetime value based on past clients and the probability of acquiring Talia's firm as a customer.

To calculate the value of Talia's firm as a prospect, we multiply the average customer lifetime value by the probability of acquiring Talia's firm.

In this case, the average customer lifetime value is $9,200, and the probability of acquiring Talia's firm is 21%.

To calculate the value, we multiply $9,200 by 0.21, which gives us $1,932. This means that the value of Talia's firm as a prospect for your business is estimated to be $1,932.

It's important to note that this value represents the potential value of Talia's firm as a customer based on historical data and the given probability.

It provides an estimate of the potential revenue that could be generated from Talia's firm if they become a customer of your business.

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Other Questions
Oceania relies on their water resources for many things. One very important feature is the Great Barrier Reef. The Great Barrier Reef is the world's largest coral reef system composed of over 2,900 individual reefs and 900 islands. The reef is vey important to Australia's economy. It provides food and jobs. The Great Barrier Reef is one of the natural wonders of the world. It is home to thousands of species of plants and animals. It is of great interest to the scientific and medical communities of the world. Some of the reef is in Australia's territorial sea and some is in international waters and international rules control how ships navigate through the reef. The reef is in danger due to human impact. Sections of the reef are already dead, and other sections are dying. Obviously, something this big and this important needs laws to protect and manage it. The Australian people have different ideas on what these laws should be. Following are examples of a few different lifestyles in Australia and how they may perceive the Great Barrier Reef: You run an aqua farm growing oysters. You have been in business for over 10 years and employ 23 people to care for and harvest the oysters. You have already seen your profits cut in half since you started the business due to all the additional environmental restrictions and laws.. You are a marine biologist studying the reef. You can see the effects of pollution and the disturbance of man on the reef. You would like to pass laws keeping everyone off the reef except for scientists like yourself.You own a farm. The only way to protect your crops from insects is to spray pesticides on them. You live five miles from the ocean, so you don't see any problem with spraying yet people keep blaming you for killing the reef. You are a bird watcher. The birds that exist in the wetlands near the reef canbe found nowhere else in the world. Resorts and hotels are developing this land and destroying the habitat of your beloved birds.You work in a gift shop near the resort. You make a lot of money selling pieces of coral, shells and sharks' teeth to tourists. You are happy with the way things are.Now it is your turn to think and write about a different lifestyle and the potentialchanges and impacts to the Great Barrier Reef. the collection of products or money by a central authority, followed by distribution to the groups members is called A pendulum that has a period of 2.21748 s and is located where the acceleration due to gravity is 9.73 m/s2. This pendulum is moved to a new location where the acceleration due to gravity is 9.83 m/s2. Help on how to format answers: units What is its new period? T= which finding will the nurse expect when caring for a client who is in hypovolemic shock? Healthcare First, an HMO, is in the process of being formed in Carterville, a town in a Rocky Mountain state. Healthcare First is a wholly owned subsidiary of Hapless Community Hospital, one of the two hospitals in town (the other is a smaller for-profit hospital, MedAmerica, that opened about five years ago). Healthcare First has hired about a dozen primary care physicians with staff privileges at the hospital. It has also contracted with two dozen specialists to deliver services to its subscribers at discounted rates negotiated with each of the specialists by Healthcare First. Subscribers will be limited to Hapless Community Hospital except in emergencies, and will only have access to the specialists or to the hospital upon referral or admission by a plan physician. The plan only covers subscribers for primary care delivered by plan physicians, and for laboratory work and pharmaceuticals from the hospital s lab and pharmacy (except in emergencies). Primary care physicians employed by the plan may not carry an outside practice, but specialists under contract will continue their fee-for service practice, and are permitted to contract with other HMOs, PPOs, or POS plans.Healthcare First has negotiated agreements to cover the employees of several of the largest employers in town, including two substantial industries. These employees (all non-union) will be offered only Healthcare First coverage through their employer. Healthcare First is also negotiating with the state Medicaid agency to cover Medicaid patients in the area under a program the state has initiated under federal waiver to limit freedom of choice for Medicaid patients. Under these arrangements, Healthcare First will cover about 40% of the patients in the Carterville area. Healthcare First offers rates substantially under those offered by other insurers and providers, as it expects to realize substantial economies through utilization control and more efficient ue of hospital capacity.The plan troubles many in Carterville. First, MedAmerica, the other hospital in town, is upset at losing its patients who are employees of the businesses that have signed on with Healthcare First, and who were previously covered by Blue Cross. Second, primary care providers who were nor hired by the plan anticipate a substantial loss of business. Several also believe the plan is unethical because it restricts patients to a small group of providers whose practice will be subject to review by the HMO. Third, several specialists who chose to contract with the plan are upset by the sharp discounted rates the plan has insisted on. Finally, several employees of the companies that have signed on with Healthcare First are concerned that they will no longer be covered by health insurance unless they leave nonparticipating physicians who have cared for their families for years.You are the newly hired CEO of the plan. The board of directors fears an antitrust suit. Please advise them as to possible theories and the likelihood of their success. Be sure to include the underlying rationale for your response Exercise 9-5 (Algo) Direct Labor Variances [LO9-5]SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the companys products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 3,500 of these meals using 950 direct labor-hours. The company paid its direct labor workers a total of $10,450 for this work, or $11.00 per hour.According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.50 per hour.Required:1. What is the standard labor-hours allowed (SH) to prepare 3,500 meals?2. What is the standard labor cost allowed (SH SR) to prepare 3,500 meals?3. What is the labor spending variance?4. What is the labor rate variance and the labor efficiency variance?(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Hospitable Co. provides the following sales forecast for the next four months:Sales (units):April: 500May: 580June: 540July: 620The company wants to end each month with ending finished goods inventory equal to 25% of next month?s sales. Finished goods inventory on April 1 is 190 units. Assume July's budgeted production is 540 units. Prepare a production budget for the months of April, May, and June.2. Refer to the information in question 1. In addition, each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month?s production needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. (Answer in 350-500 words) 39.9% of consumers believe that cash will be obsolete in the next 20 years. Assume that 6 consumers are randomly selected. Find the probability that fewer than 3 of the selected consumers believe that cash will be obsolete in the next 20 years. The probability is (Round to three decimal places as needed.) receiving a criticism in a way that can strengthen the relationship begins with______. 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At tr, this package is measured on the spaceship.Draw spacetime diagrams of the situation, seen from O and from O. a nurse complies to the american nurses association (ana) standards of nursing practice. which scenario is an example of assessment according to the ana standards? how might you recognize in the field that a disconformity exists between two sequences of rock? (2 answers are correct) group of answer choices x is divided in the ratio 9: 4. The larges share is 315. What is the difference in the value of the shares? The Crisis, No.1 by Thomas Paine (excerpt)THESE are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country, but he thatstands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that theharder the conflict, the more glorious the triumph. 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We have petitioned; we have remonstrated; we havesupplicated; we have prostrated ourselves before the throne, and have implored its interposition to arrest the tyrannical hands of the ministry and Parliament.Our petitions have been slighted; our remonstrances have produced additional violence and insult; our supplications have been disregarded; and we havebeen spurned, with contempt, from the foot of the throne. In vain, after these things, may we indulge the fond hope of peace and reconciliation. There is nolonger any room for hope. If we wish to be free if we mean to preserve inviolate those inestimable privileges for which we have been so long contending if wemean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until theglorious object of our contest shall be obtained, we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of Hosts is all that is left us!Select the correct answer.Which pair of sentences best compares the two excerpts? Which answer choice consisting of two sentences best compares "The Crisis, No. 1" and"Speech to the Second Virginia Convention"?A.Thomas Paine's purpose is to persuade his audience to abandon their course of actionPatrick Henry's purpose is to exhort his audience to persist in their course of action.B. Thomas Paine appeals to his audience's sense of reason using empirical evidence.Patrick Henry appeals to his audience's emotions using anecdotal evidence.C. Thomas Paine's purpose is to persuade his audience to persist in their course of action.Patrick Henry's purpose is to exhort his audience to follow a new course of action.D. Thomas Paine appeals to his audience's emotions using a reference to God.Patrick Henry appeals to his audience's reason using anecdotal evidence. question 7 the largest wide area network (wan) in existence is the _____. a. internet b. extranet c. intranet d. hypernet A supermarket uses a periodic review system to manage inventory of gallon jugs of drinking water. Average demand is 147 jugs of water per day with standard deviation of 40 jugs per day. It costs $60 to order water from the supplier, and orders are delivered after 2 days. The holding cost for a gallon jug of water is $0.20 per year. The supermarket is open 360 days per year. If the supermarket aims for a 97.1% service level for gallon jugs of drinking water (z=1.9), what value should be used for T, the target inventory position at the time of ordering? (Round the order period to the nearest whole number of days when making the calculation.) The target inventory position is T= gallon jugs. Pneumatics Engineering purchased a machine that had a first cost of $40,000, an expected useful life of 8 years, a recovery period of 10 years, and a salvage value of $10,000. The operating cost of the machine is expected to be $15,000 per year. The inflation rate is 6% per year and the company's MARR is 11% per year. Determine (a) the depreciation charge for year 3, (b) the present worth of the third-year depreciation charge in year 0, the time of asset purchase, and (c) the book value for year 3 according to the straight line method. 5. Equipment for immersion cooling of electronic components has an installed value of $182,000 with an estimated trade-in value of $40,000 after 15 years. For years 2 and 10, use DDB book depreciation to determine (a) the depreciation charge and (b) the book value. If the nominal interest rate per year is 10 percent and the inflation rate is 4 percent, what is the exact real rate of interest? Select one: a. 5.76 percent b. 10.0 percent c. 6 percent d. 14.0 percent What is the main disadvantage of single-manager managed accounts?a) They have a small range of available securities to choose from.b) They lack of regulatory oversight.c) There is no independent evaluation of the portfolio performance and risk.d) They incur very high and frequent trading costs.