The decrease in the company value due to expected bankruptcy costs is $581,000
Debt outstanding = $5.1 million
Value of equity = $22 million
Stock outstanding = 370,000 shares
Selling price per share = $47
Corporate tax = 21%
Calculating the value of the levered firm -
= Value of equity + Value of debt × Tax rate
= 22,000,000 + (5,100,000 × 0.21)
= 22,000,000 + 1,071,000
= 23,071,000
Calculating the total market value of the firm:
= Market value of debt + Stock outstanding × Share selling price
= 5,100,000 + (37000 × 47)
= 5,100,000 + 17,390,000
= 22,490,000
In this case, one would anticipate that the value of the leveraged firm and the overall market value of the firm would be equal. However, bankruptcy costs fall under non-marketed claims.
Calculating bankruptcy
= Value of the levered firm - Total market value of the firm
= 23,071,000 - 22,490,000
= 581,000
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for purposes of the qualified business income deduction, a qualified trade or business is any trade or business other than a(n) trade or business or business of being a(n
For purposes of the qualified business income deduction, a qualified trade or business is any trade or business other than a(n) trade or business or business of being noncorporate taxpayers.
A legal entity is considered a legal entity. Partnerships, such as partnerships and sole proprietorships, have no legal distinction from their owners. This means that owners of such companies do not enjoy the same legal protections as legal entities.
Non-Income Taxpayer is defined pursuant to Section 120 of the Income Tax Act. Income Tax Rates and Thresholds - Resident Individuals (1) Section 1(2)(a) is 10%. ¹ XXI p. 260. *According to Section 1(3E) of the Income Tax Act, 1970
The distinction between corporate and unincorporated shareholders has to do with the corporation owning the shares of the company. A corporate shareholder is a legal entity that has purchased shares in another company, and an unincorporated shareholder is usually an individual who has purchased shares in the company.
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what does a reductive process mean in sculpting? group of answer choices removing the marble block from the mountain tools get smaller and finer as the process nears completion once material has been removed it cannot be replaced polishing the finished piece with leather
A reductive process in sculpting means B) tools get smaller and finer as the process nears completion.
Reductive art is created through a process meant to reduce, consolidate, and simplify. By stretching the definition of the word, you may conclude that Michelangelo's marble sculpture David is reductive in some ways. After all, it resulted from the altering of the original form.
Reducing is the process of employing a pantograph to reduce a huge sculpture to a smaller one or to reverse the enlargement process.
The oldest type of sculpting is subtractive, which involves taking material out to make a finished piece, as in stone or wood carving. Additive sculpture, in its simplest form, is the technique of creating sculpture by adding materials to the object.
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since 1820, the growth rate of real gross domestic product (gdp) per capita in the united states has:
Since 1820, the growth rate of real GDP per capita in the United States has been rapidly increasing.
Real GDP per capita is the ratio of a country's real GDP to its entire population. It is often referred to as the standard of life.
The current population of the United States is over 32 crores. In 1820, the real GDP per capita was around $2000, but it is today around $62,000. The real GDP per capita is increasing rapidly.
GDP is crucial since it gives information about an economy's size and performance. The rate of rise in real GDP is widely cited as an indicator of the economy's overall health.
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larren buffett is concerned after receiving her weekly paycheck. she believes that her deductions for social security, medicare, and federal income tax withholding (fit) may be incorrect. larren is paid a salary of $4,100 weekly. she is married, claims 3 deductions, and prior to this payroll check, has total earnings of $128,245. what are the correct deductions for social security, medicare, and fit? assume a rate of 6.2% on $128,400 for social security and 1.45% for medicare.
Social Security $604.19
Medicare $59.45
FIT $230.70
Total earning = $128,245
Weekly salary= $4,100
Social security tax = ($128,245 - $118,500) × 0.062 = $604.19
Medicare tax = $4,100 × 1.45 = $59.45
Within the united states, Social protection is the normally used time period for the federal vintage-Age, Survivor, and disability coverage (OASDI) software and is administered with the aid of Social protection management (SSA).[1] The authentic Social protection Act become enacted in 1935,[2] and the contemporary version of the Act, as amended,[3] encompasses numerous social welfare and social insurance packages. The average monthly Social safety benefit for August 2022 was $1,547.[4] the total cost of the Social safety program for the 12 months of 2021 becomes $1.145 trillion or approximately five percent of the U.S. GDP.
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independent auditing can best be described as group of answer choices a branch of accounting. a discipline that enhances the degree of confidence that users can place in financial statements. a professional activity that measures and communicates financial and business data. a regulatory function that prevents the issuance of improper financial information.
Independent auditing can be best describe as all the above mentioned options that are demonstrating the narrative.
What exactly falls under the independent auditor's remit?An independent auditor is frequently retained to prevent conflicts of interest and to ensure the neutrality of an audit. To safeguard shareholders and potential investors from occasionally false or misleading financial statements made by public corporations, independent auditors are frequently used—or even required.
What makes auditing impartial?The auditor should be independent of the client company to prevent any connection between them from influencing the audit opinion. The shareholders anticipate receiving from the auditors a fair, sincere evaluation of the financial statements.
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economic profit is the difference between a. total revenue and the opportunity cost of all of the resources used in production. b. total revenue and the implicit costs of using owner-supplied resources. c. accounting profit and the opportunity cost of the market-supplied resources used by the firm. d. accounting profit and explicit costs.
An economic profit or loss is the difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs.
The difference between the revenue generated by the sale of a product and the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit. Opportunity costs are a type of hidden expenses that are decided by management and change depending on various events and viewpoints.
Accounting profit and economic profit are frequently examined together in analyses. The profit a corporation displays on its income statement is known as accounting profit. Accounting profit is a component of the necessary financial transparency for a corporation and measures actual inflows versus outflows. Contrarily, economic profit is not disclosed on a company's financial statements.
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If you wanted to know what factors contributed to your credit score, how could you find out?.
Check your credit report to find out what elements went into determining your credit score.
Your credit report and credit score are influenced by your payment history, debt-to-credit ratio, length of credit history, new credit, and the total amount of credit you have.
You can examine your credit reports for free if you're interested in seeing what's there. Free Equifax and TransUnion credit reports are available through Credit Karma. Additionally, you may visit annualcreditreport.com every 12 months to get a free copy of your credit report from each of the major credit bureaus.
Your FICO credit score is determined by five factors: your payment history, the amount of debt you have in relation to the credit you have available, the length of time you have had credit accounts, the mix of different types of credit you have (loans and credit card accounts), and your desire for new credit.
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(make-to-stock) is an example of make-to-stock. a. canned soups (e.g., campbell's soups) b. dell computers c. benetton's knitted sweaters d. ikea furnitures
An example of make-to-stock are canned soups(e.g., Campbell's soups).
What is make-to-stock?Build to stock, also known as make to stock or BTS or MTS, is a build-ahead production method where production plans may be based on sales estimates and/or past demand. BTS is typically linked to mass production methods used during the industrial revolution, in which enormous quantities of products are manufactured and stored in warehouses in advance of demand. Build to stock is typically regarded as a suitable option for goods with few product lines and lengthy changeover times between pricey products. While other businesses build all of their products to stock, some do so to order. Many manufacturers are adopting a hybrid approach, where some products are produced on a large scale and others are produced on a smaller scale, in response to the widespread proliferation of products.
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broadly defined, technological advance multiple choice can occur in the short run, long run, or very long run. comprises new and improved goods and services and/or new and improved ways of producing or distributing them. includes invention but not innovation or diffusion. includes product innovation but not process innovation.
Broadly defined, technical advancement includes new and improved goods and services, as well as new and improved methods of creating or distributing them. As a result, the correct choice is to comprise new and improved goods and services and/or new and improved ways of producing or distributing them.
What is technological advance?Technological advancement is the enhancement and invention of science's utility. Science is an epistemological process that seeks to comprehend, describe, explain, and predict natural and mathematical phenomena through observation, research, experimentation, and, most importantly, falsification. Science is essentially the methodical elimination of defective or erroneous ideas. Technology is any usefulness and applicability of scientific understanding; that is, science is used for practical use and purposes.
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in the video, heidi discusses the importance of maintaining uniformity across the bow wow franchises to ensure efficient operations and a consistent customer experience. her question to you is, which leadership style would help her best achieve this objective as the business grows even bigger?
According to the information provided in the question, Heidi should adopt consistent compensation policies so that the employees will know how they will be rewarded for their performance in order to achieve the goal of maintaining uniformity across the Bow Wow franchises to ensure efficient operations and a consistent customer experience. The staff will be motivated to work harder and accomplish the company's objectives as a result of this morale booster.
Additionally, Heidi should require that all franchises follow clear instructions for each significant business transaction. This is required to maintain consistency among Bow Wow franchises, which will aid in guaranteeing operational effectiveness.
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as a country develops economically from being very low income to higher income, what are the most important changes that occur in the country's burden of disease
As a nation progresses economically from low to high income, the most significant changes in the country's illness burden are that the percentage of communicable diseases decreases and the share of noncommunicable disease grows. Thus, the right answer is the share of communicable diseases declines and the share of non-communicable diseases increases.
What are communicable diseases?Communicable diseases are illnesses that may be passed from person to person, from animal to human, or through a surface or food. Direct touch with a sick individual can spread diseases during plane travel. A sick individual sneezing or coughing spreads respiratory droplets.
Specific Communicable Disease Information
Shingles / ChickenpoxCOVID-19. \sEbola.Eliminating the HIV Epidemic (EHE)Hepatitis BHepatitis CAIDS / HIVTo learn more about communicable diseases, click
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carla and sven have a previous foreclosure, but now they are a few years away from that. they make good money with their jobs, and have about $30,000 available to use for a down payment and closing costs. why might they consider an fha 203(b) loan, even if they have sufficient down payment for a conventional loan?
Carla and sven have a previous foreclosure, but now they are a few years away from that. The lender can consider compensating factors, even if their credit history isn't great if they have sufficient down payment for a conventional loan.
Is it better to go FHA or conventional?
A conventional loan is frequently better if you hold valid or excellent credit because your mortgage rate and PMI costs will go down. But an FHA loan can be perfect if your belief score is in the high- 500s or low- 600s. For lower- credit borrowers, FHA is frequently the cheaper attachment.
What's the biggest advantage of an FHA loan?The downside of FHA loans is you may qualify with much lower scores than conventional loans allow and a down payment as little as 3.5 of the home's price.However, you may indeed be preapproved with a DTI rate above 50, If you have a many redundant bones in the bank and a advanced credit score.
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after a 25% discount, a pair of lebrons costs 67.50. what was the original price? round to the nearest dollar.
Assuming you are referring to the LeBron 15 basketball shoes, the original price would be $90.00. After a 25% discount, the cost would be $67.50.
To find the original price, we take the discounted price of 67.50 and divide it by the decimal equivalent of the 25% discount, which is 0.75.
67.50/0.75
=90.00
The original price of the lebrons was $90.00. The 25% discount brought the price down to $67.50.
Therefore, the original price of the lebrons is $90.00.
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Why is cash rather than petty cash credited when a petty cash fund is replenished?.
Your "Cash Account" will be credited because it will be debited on your "Petty Cash Account" when your petty cash is replenished.
The reason for credit entry on Cash Account and debit entry on Petty Cash Account is because of double entry accounting system. Cash Account and Petty Cash Account are recorded on a separate journal, therefore when a petty cash fund is replenished, you will have to credit your cash on your cash account journal entry because you take money out from it and then you put it into your petty cash account and make a separate journal entry on your petty cash account showing that money has been put into it and therefore debited on your Petty Cash account.
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a company had interest expense of $3,000, income before interest expense and income taxes of $16,000, and net income of $6,400. the company's times interest earned ratio equals:
The times interest earned ratio for the company is 5.33
Based on current income, the times interest earned (TIE) ratio assesses a company's capacity to service its debt. Earnings before interest and taxes (EBIT) divided by the total amount of bond and other debt interest payable is the formula for a company's TIE number.
Interest expense: It is an extra fee that banks or other lenders charge to their clients in exchange for the money due on loans, bonds, or notes. Furthermore, interest expense is shown as a cost on the income statement, typically under administrative expense or non-operating expense
Times interest earned = EBITDA/Interest Expense
= 16000/3000 = 5.33
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belmont corporation issues $100,000 of 7% bonds, due in 10 years, when the market rate of interest is 5%. interest is paid semiannually on june 30 and december 31. the issue price of the bonds is:
Belmont corporation issues $100,000 of 7% bonds, due in 10 years, when the market rate of interest is 5%. interest is paid semiannually on june 30 and December 31. the issue price of the bonds is: $104,464.
What is corporation ?A corporation is an organization authorized by the State to act as a single entity and legally recognized as such for a specific purpose. 10 Early corporation entities were incorporated by law. Most jurisdictions now permit the formation of new companies by registration. Corporations come in many forms, but are usually divided by the laws of the jurisdiction in which they are licensed based on two aspects: whether they can issue shares or whether they are incorporated to make a profit. Depending on the number of owners, legal entities can be classified as joint stock companies. One of the most attractive early advantages that corporations offered investors compared to early business entities such as sole proprietorships and limited partnerships was limited liability.To learn more about corporation from the given link :
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how would you defend intermediaries to someone who said that eliminating them would save consumers millions of dollars?
The fact that marketing middlemen offer value far in excess of what they cost is why they have not been completely removed .
Market intermediates are organizations that are involved in the transaction of the product from the producer till the final customer purchases it. Market intermediaries can be either companies or individuals. At each stage, when future transit and inventory costs are imposed, the products are continuously changing who is in possession of them. Finally, the product is made a certain price at the retail store.
Although they present a challenge to businesses when they compete on price, intermediaries are essential since a large distribution network cannot be managed by a single company.
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mcneil uses the high-low method of estimating costs. mcneil had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. when, at its highest level of activity, sales equaled 12,000 units, total costs were $78,000. what would mcneil estimate its total cost to be if sales equaled 8,000 units?
Mcneil estimate its total cost to be if sales equaled 8,000 units.
Using the high low method
Subtract total costs price/ subtract units = decimal
Highest total cost - ( decimal * largest unit)= answer
(answer * estimated unit) + answer= final answer
What is high-low method?The high-low technique compares the overall costs at each level of activity, starting with the highest level and ending with the lowest level. It is easy to figure out the fixed and variable costs by solving the system of equations if the variable cost is a fixed charge per unit and the fixed costs stay the same.
The hotel manager would like to create a cost model to forecast future operating expenses. The amount of activity (number of visitors) and total expenses for each month are, however, the only facts that are readily available.
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which statement describes a fixed bid contract? the dollar amount for completing a segment of project work varies. this is a specific dollar amount for completing a segment of project work. the dollar amount is based on the items needed to complete a segment of project work. the dollar amount is based on the number of days needed to complete a segment of project work.
The statement describes a fixed bid contract, this is a specific dollar amount for completing a segment of project work.
A fixed bid contract is a contract that is based on the idea that a fixed scope of work will be completed for a fixed. The fixed bid contract provides for a process that is not subject to any adjustment on the basis of the contractor's cost experience in performing the fixed contract. The fixed bid contract is also a contract that is based on the idea that a fixed scope of work will be completed for a fixed amount.
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Annie runs a group therapy session on anger management. In one of the sessions, she finds that the members have become aggressive and are having heated arguments with each other. What technique can Annie use to bring the discussion back into order?
A.
terminate the discussion for the day
B.
call for a moment of silence
C.
pass a clipboard for people to write their feelings
D.
ask the aggressive members to leave the group
E.
introduce humor in the session to ward off the argument
Annie can use a clipboard to get people to write down their feelings in order to get the discussion back on track. Option C is correct.
What is the significance of clipboard?A clipboard is a transient garage location for facts that the person desires to replica from one vicinity to every other. The Clipboard is a temporary storage area on your computer where the data can be store.
When a person copies something, it is saved to the Clipboard and remains there until you copy something else or shut down the computer. When Annie leads an anger management group therapy session, she can use a clipboard to prompt participants to jot down their feelings in order to refocus the discussion.
Therefore, option C is correct.
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what challenge is often experienced when employees make the transition from hourly worker to supervisor?
Uncertainty regarding the changing focus and a confusing impression of loss of accomplishment and outcomes. Employees frequently encounter this difficulty while moving from an hourly position to a supervisory position.
Leaving the peer group to become the group supervisor is one of the most challenging leadership transitions. More than any other transition, this one is dotted with landmines. In their excitement over their promotion, many new leaders will fail to lay the necessary foundations for a smooth transfer.
It can be difficult to make the move from employee to supervisor, and many new supervisors end up working too much to make up for it. Potential side effects of overwork include stress, illness, mood swings, and eventually burnout.
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which of the following is not a reason why the aggregate-demand curve slopes downward? a. the wealth effect b. the interest-rate effect c. the classical dichotomy/monetary neutrality effects d. the exchange-rate effect e. all of the above are reasons why the aggregate-demand curve slopes downward.
The statement that is not a reason why the aggregate demand curve slopes downward are c. the classical dichotomy/monetary neutrality effects.
Combination demand is calculated because of the sum of customer spending, funding spending, government spending, and the distinction between exports and imports. Every time this type of factor modifications and when aggregate delivery stays regular, then there is a shift in combination demand.
Aggregate demand will increase when the additives of aggregate demand–including consumer spending, funding spending, authorities spending, and spending on exports minus imports–rise.
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which of the following must be determined to use capital budgeting techniques for each it alternative? multiple select question. capitalize initial costs establish relevant time frame select appropriate discount rate assess sensitivity to assumptions
Must be determined to use capital budgeting techniques for each IT alternative
Select the appropriate discount rate. Establish a relevant time frame. Assess sensitivity to assumptions.Anything that falls outside of the mainstream can be referred to as alternative, often known as Alt. Punk, Grunge, Emo, and more genres may fall under this. The alternative rock may exist as a separate subgenre from "mainstream" rock in some cases where a subculture is especially well-liked (rock is an example of this).
It is significant to remember that the majority of aesthetics nowadays might be classified as alternatives. Additionally, because of the internet's ability to promote "underground" performers, the distinction between alternative and mainstream is becoming increasingly hazy.
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If the republicans gain control of the house, what will the consequences be for the issue of the economy?.
A unified government is one in which the President's party controls both chambers. 47 times since 1857, 22 times under Democratic rule and 25 times under Republican rule, the government has been unified.
When one party holds the White House (executive branch) while another party holds either one or both houses of the United States Congress, this is referred to as a divided government in the US (legislative branch).
One political phenomenon known as a dominant-party system, sometimes known as a one-party system, is when a single political party consistently outperforms rival groupings or parties in electoral outcomes.
unified administration. a system of government in which the White House and both Houses of Congress are under the authority of the same party.
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Assume that large-company stocks had an average rate of return of 18. 5 percent over the past 55 years while T-bills returned an average of 2. 4 percent and inflation averaged 1. 8 percent. Given this, the real return on large-company stocks was:
A. 13. 56 percent
B. 12. 49 percent
C. 16. 40 percent
According to the given information, the real return on large company stocks was 16.40 percent.
The Fisher equation, which shows the exact relationship between normal interest rates , real interest rates, and inflation, is:
( 1+ R ) = ( 1+r )( 1+h)
( 1+ 0.185) = ( 1+r)( 1+ 0.018)
r = [ ( 1+0.185)/ ( 1+ 0.018)] - 1
r = 0.1640 or 16.40%
Hence, the real return on large company stocks was 16.40%.
What do you mean by Fisher equation?
The Fisher equation is a concept in economics that describes the relationship between nominal and real interest rates under the effect of inflation. The equation states that the nominal interest rate is equal to the sum of the real interest rate plus inflation.
The Fisher equation is often used in situations where investors or lenders ask for an additional reward to compensate for losses in purchasing power due to high inflation.
Inflation + Real Interest Rate = Nominal Interest Rate
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If you are a pizza seller and you pay $10,000 for a pizza oven only to make one pizza with it, the average cost of each pizza you make is
A) $10,000
B) $10
C) $100
D) $5,000
Answer: The correct answer would be A) $10,000
Explanation:
The total cost of the pizza oven / the number of pizzas = cost of the oven per pizza
$10,000/1 = $10,000
* Does not include the cost of the pizza ingredients! :)
karen has formulated a line of green cleaning products, which she has tested with local commercial entities with great results. she is now ready to seek money to place the product in stores. what stage of financing is karen interested in?question
Karen has created a range of green cleaning products that she has successfully tested with local businesses. She is now ready to seek to place product in stores. Karen is interested in early-stage funding.
A product is any thing or service that you sell to meet a customer's need or desire. They can be physical or virtual. Durable commodities (such as vehicles, furniture, and computers) and nondurable items are examples of physical things (like food and beverages). Services or experiences are offered as virtual products (such as education, software, and streaming services). A hybrid product has both physical and virtual features. Hybrid products are becoming more popular as traditionally analog items use digital technology to better reach and service customers.
These categories can help us understand various types of items. However, these are not hard and fast rules. Software, for example, can be both a product and a service.
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what are some issues and risks that international packaging faces that are not present in a domestic shipment?
The following are some obstacles and risks that international packing faces that are not present in domestic shipments.
Product damage, export delays, price increases, and the country's culture
What is the Damage to the product?If you are exporting your goods to another country, the packaging must be strong enough to safeguard the contents within. Consider how you would feel if you ordered something from another country and it arrived damaged. Will you buy the same product from the same company again? As a result, the firm must guarantee that the packaging is sufficient to ensure that the product survives the extended travel.
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nour's responsibilities include creating organizational goals and overall strategy for the organization. in terms of her level in the organization, which type of manager is nour
Nour is a Top manager whose responsibilities include creating organizational goals and overall strategy for the organization.
In addition to setting rules, standards, and strategic goals, top management is also in charge of leading and directing quality management efforts inside the company. For a range of management system procedures, it should also identify the parties in control and hold them accountable. The top managers' responsibilities include setting the stage for change, cultivating ownership and commitment attitudes, fostering a healthy corporate culture via words and deeds, and keeping an eye on the external business environment.
Top-level managers are in charge of managing and supervising the whole company. Executing organizational plans that adhere to corporate policies is the responsibility of middle-level managers. Setting goals and making choices for the entire organization are among top-level managers' duties.
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therefore, the net effect of an increase in the price level in the united states is that the amount of u.s. goods and services that are purchased will change in an unknown way. increase. decrease. not change.
Thus, the net effect of an increase in the price level in the United States is a decrease in the amount of goods and services purchased by Americans.
The price level is the average of prevailing prices across all goods and services produced in an economy. More generally, the price level refers to the price or cost of goods, services or security in the economy.
The price level has a significant impact on the purchase of goods and services, but also on the purchasing power of money. For example, if P is the amount needed to buy a specific quantity of goods and services, then one dollar can buy 1/P.
A network economy is a business economy that benefits from network effects. It is when the value of a good or service increases when others buy the same good or service.
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