According to the efficiency wage theory, raising salaries can enhance labor productivity since it motivates employees to work harder.
What is efficiency wage theory?According to the efficiency wage principle, employers should pay their employees well enough to encourage productivity and keep highly competent people on staff. Alfred Marshall used the phrase to describe the wage a company would pay a worker to boost their productivity so that the company would not differentiate between the low- and high-efficiency workers.
Workers may experience unemployment because they are paid more than the equilibrium pay, which draws in more workers. Therefore, in contrast to theories that place a strong emphasis on government intervention, such as minimum wages, efficiency wages offer a market failure explanation of unemployment.
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Organizational design is all about making sure that _________ are properly allocated, reflecting the structure of formal reporting relationships.
Organizational design is all about making sure that decision rights are properly allocated, reflecting the structure of formal reporting relationships.
Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. The process focuses on improving both the technical and people side of the business.
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you manage marketing for a small business on a tight budget, yet you need to reach as many people as possible. how can ads help?
Advertising can help by increase sales by telling potential and current customers about your new product launches, special offers and improvements. Apart from reminding current customers about your business, advertising can also help to create or develop a distinctive brand for your business.
Advertising is the practice and technique used to attract attention to a product or service. Advertising aims to bring a product or service into focus in the hope of attracting the attention of consumers. It is commonly used to promote a particular good or service, but has a variety of uses, the most common being commercial advertising.
Commercial advertisements typically seek to increase the consumption of their products or services through "branding," associating the product name or image with certain qualities in the consumer's mind.
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a written order for a bank to pay a third party a stated amount of money on a specific date is referred to as a
A written order for a bank to pay a third party a stated amount of money on a specific date is referred to as a bill of exchange. A bill of exchange, also known as a draught or draught.
Bill of exchange Is a short-term negotiable financial instrument that consists of a written amount order from one party—the seller of the goods—to another—the buyer—requiring the latter to pay a specific amount on demand (a sight draught) or at a specific future date bank (a time draught). A bill of exchange can be used by the parties to a transaction to specify the parameters of the transaction, including the terms of credit and the rate of interest that will accrue.
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the glass-steagall act came about due to concerns about excessive risk taking at banks and conflicts of interest between commercial and investment banking activities (T/F)
True
True
The Glass-Steagall Act was passed in 1933 and separated investment and commercial banking activities in response to the commercial bank involvement in stock market investment.
What Is the Glass-Steagall Act?
commercial banks to The Glass-Steagall Act, passed in 1933, forced refrain from investment banking activities in order to protect depositors from potential losses caused by bank speculation in stocks. Glass-Steagall was largely repealed in 1999 although some parts of it remain, including the Federal Deposit Insurance Corp., which guarantees bank depositors against losses.
Glass-Steagall was a reform measure aimed at preventing a repeat of the 1929 stock market crash and the wave of commercial bank failures that followed.
At the time, the overzealous involvement of commercial banks in the stock markets was seen as the main culprit of the financial crash. It was believed that commercial banks took on too much risk with depositors' money.
The Gramm-Leach-Bliley Act eliminated the Glass-Steagall Act's restrictions against affiliations between commercial and investment banks in 1999, which some argue set up the 2008 financial crisis.
What Was the Purpose of the Glass-Steagall Act?
The Glass-Steagall Act was intended to separate investment and commercial banking activities. It was established in the wake of the 1929 stock market crash.
Is the Glass-Steagall Act Still in Effect?
No. It was repealed in 1999, during the Clinton Administration.
Why Was the Glass-Steagall Act Repealed?
The Glass-Steagall Act was repealed in 1999 amid long-standing concern that the limitations it imposed on the banking sector were unhealthy and that allowing banks to diversify would actually reduce risk. At the time, the overzealous involvement of commercial banks in the stock markets was seen as the main culprit of the financial crash. It was believed that commercial banks took on too much risk with depositors' money
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congratulations!! you are the proud owner/ceo of your very own business. you get to build the organizational structures and culture from the ground up. take into consideration what you have learned so far. explain: how do you build an unethical organization? how do you build an ethical organization?
The proud owner of your very own business. you get to build the organizational structures and culture from the ground up. The method by which we try to discern if a behaviour is morally right or wrong is called moral reasoning.There are two main viewpoints on this issue.
According to ethical relativism, moral truths are relative to their cultural context and don't have any absolutes. This implies that since moral standards vary from culture to culture, there is no absolute good or wrong because moral standards are related to each community.On the other hand, Kant's Categorical Imperative, which calls for understanding the motivation behind the action as well as its potential outcomes, does assert that it is feasible to create a set of universal moral principles. Reality, though, is that this method disregards cultural context.to invite a diverse workforce from a range of backgrounds to join the company.Through employee development programmes, we can promote camaraderie, trust, employee loyalty, and skill development.
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in promoting macroeconomic stability, the government faces a trade-off between
The government faces a trade-off between inflation and unemployment in promoting macroeconomic stability.
What is macroeconomic stability?It corresponds to a situation where the economy is balanced, with low inflation and unemployment rates. To achieve this stability, macroeconomic policies must influence the government budget, interest rates, money supply and the labor market effectively to the objectives of the economy.
Therefore, macroeconomic stability is achieved when there is controlled inflation, with job creation and investment in a nation.
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a bank has $250 in checking deposits, $1,000 in savings deposits, $1,200 in time deposits, $1,000 in loans to businesses, $400 in outstanding credit card balances, $800 in government securities, $25 in currency in its vault, and $25 in deposits at the fed. the bank's reserves are equal to
A bank has $25 in cash in its safe, $250 in checking deposits, $1,000 in savings deposits, $1,200 in time deposits, $1,000 in business loans, $400 in credit card debt, $800 in government securities, and $25 in deposits with the Federal Reserve. The bank's reserves are $50.
What is Bank Reserves?
The minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards is known as bank reserves.
The bank must store this actual paper money in a vault on the property or in an account with the national bank.
The purpose of the cash reserve regulations is to make sure that every bank has enough cash on hand to handle any significant and unforeseen demand for withdrawals.
Therefore the bank reserves under the given case is to the tune of $
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an insurance agent, whose compensation is based on commission, is asked by a homeowner if damage from earthquakes is covered by the policy. it is company policy to avoid providing information about earthquake damage, so the salesperson misleads the homeowner. in this case the salesperson blank .
In this case, the salesperson can be held accountable.
An earthquake is a ground shaking as a result of an unexpected slip on a fault. Stresses in the earth's outer layer push the sides of the fault collectively. Strain builds up and the rocks slip, releasing power in waves that journey through the earth's crust and purpose the shaking that we sense for the duration of an earthquake.
Earthquakes can bring about floor shaking, soil liquefaction, landslides, fissures, avalanches, fires, and tsunamis.
We can't prevent natural earthquakes from occurring however we are able to extensively mitigate their effects with the aid of figuring out dangers, building safer systems, and imparting schooling on earthquake protection.
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True or False: The Radio division of a car company makes radios for use in its Assembly division. The Radio division incurs variable costs of $100 per radio and the market price is $225 per radio. If the Radio division is operating at full capacity, it should accept any transfer price over $100.
False, in case If the Radio department is running at complete capacity, it must take delivery of a minimal charge of variable costs plus contribution forgone i.e. $225.
The required details about variable costs is mentioned in below paragraph.
A variable costs is a company price that adjustments in share to how a great deal a agency produces or sells. Variable costs boom or lower relying on a agency's manufacturing or income volume—they upward thrust as manufacturing will increase and fall as manufacturing decreases.
Examples of variable costs encompass a production agency's charges of uncooked materials and packaging—or a retail agency's credit score card transaction prices or delivery expenses, which upward thrust or fall with income. A variable costs may be contrasted with a constant value.
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the nasdaq is the largest and probably best-known securities exchange market in the world. question 6 options: true false
False. The Nasdaq is the second-largest stock exchange market.
What is a stock exchange market?
In other words, a stock exchange is a marketplace for buying and selling financial instruments like bonds and stocks. This might be an offline trade platform or an online one. One of the numerous stock exchanges in the world is the NYSE, which is also the biggest when it comes to market capitalization, which counts all of the securities traded there. Historically, buy and sell orders were shouted by individuals standing on the floor at stock exchanges, which were largely physical locations. Stock dealers made the decision to gather at a London coffee shop, which they utilized as a marketplace. They eventually acquired control of the coffeehouse and changed its name to "stock exchange" in 1773. As a result, the London Stock Exchange, the first exchange, was established.
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the following types of relationships can be included in an entity-relationship model: one-to-one, one-to-many, many-to-many. true or false
A coordinated relationship is a connection between the data in two tables, where each record in each table just shows up once.
In a relational database, what are the three types of relationships?
The database contains three distinct types of relations: one-to-one.one-to-many, and. many-to-many.
How does a one-to-many relationship work?
In a relational database, a one-to-many relationship exists when one row in table A is linked to many rows in table B but only one row in table A is linked to one row in table A. It is essential to keep in mind that the quality of the relationship, not the data, determines a one-to-many relationship.
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on the graph, draw the maple grower's marginal revenue curve and label it mr1. draw a point to show the grower's profit-maximizing price and quantity in the short run. also show the grower's economic profit or economic loss in the short run and label it.
The marginal cost (MC) curve is the difference in total cost divided by the variation in energy output.
What is marginal cost?The initial portion of the MC curve, which slopes downward, shows the effect of running base load units at higher output levels, which increases their effectiveness and decreases their cost. In order to meet increased demand, less economical plants are added to the mix. MC increases are observed everywhere as a result of these intermediate units' higher MCs. Peaking units are the final choice; during system peak times, they deliver energy at even higher MC.This graph explains why the value of wind turbines can change depending on the utility, the season, or even the hour of the day. Because the demand for electricity changes over time, the utility effectively moves up or down its MC curve as new generators go online or lowers power output as the demand rises. Wind would always be employed in an economically efficient dispatch since it is fuel-free and so has a nearly zero MC. As a result, the residual load, net of wind generation, diminishes, and the marginal generator's output can be decreased or deleted during the appropriate time period.Wind energy offers a higher value for utilities with comparatively high MCs than it does for utilities with lower MCs. Furthermore, due to the fluctuating nature of the electrical load, this value would typically alter over time for all utilities. This helps to explain why a wind farm that generates a considerable amount of energy at night is less valuable than one that does so during the day.To Learn more About marginal cost refer to:
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during a deferment period, the government may pay the interest on certain types of student loans. true or false?
The statement "during a deferment period, the government may pay the interest on certain types of student loans." is false
What is the deferment period?Generally, A deferral is a period of time during which the principal as well as the interest on your loan are temporarily postponed until a later date.
The assertion is that "the government may pay the interest on some kinds of student loans during a deferral period." This is not true.
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which of the following statements indicates a disadvantage of using the traditional payback period for capital budgeting decisions? check all that apply.
The disadvantage of using the traditional payback period for capital budgeting decisions are
The payback period does not take into account the cash flows produced over a project's entire life.The payback period does not take into account the time value of money effects of a project's cash flows.What is payback period?In the payback period, only those cash flows that occur until the initial investment amount of the project is recovered are taken into account. You can have two projects with mutually exclusive repayment periods: project A is 5 years and project B is 6 years. Using the payback period alone, you would probably make a capital budgeting decision to accept Project A and reject Project B. However, Project A may have no cash flows after the initial investment is recovered, and Project B may have cash flows of $1 million per year for 20 years after the initial investment of the project is recovered. if this case, project B would be the better project to accept.
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What can be a strong reason that top universities graduate black and hispanic computer science and computer engineering students at twice the rate that leading technology companies hire them?
Hiring bias is the reason that top universities graduate black and hispanic computer science and computer engineering students at twice the rate that leading technology companies hire them.
Leading technology businesses employ black and Hispanic computer science and engineering students at a rate that is twice as high as the rate at which top institutions graduate them. This disparity is caused by hiring prejudice.
Researchers discovered that the recruiting process is frequently prejudiced and unjust, highlighting racism, ageism, sexism, and a range of other issues that we may or may not be aware of as important push factors for unfairness. The study was done by Harvard Business Review.
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Which of the answers below is NOT one of the reasons that small businesses often outsource project work? a. Insufficient resources b. Working capital issues
Insufficient resources are the reasons that small businesses often outsource project work.
Outsourcing is a contract in which one company contracts another company to handle a planned or ongoing operation that is being or might be handled internally. It occasionally entails the transfer of assets and people from one company to another. No later than 1981, the phrase "outside resourcing" gave rise to the term "outsourcing." The idea, which The Economist claims has "made its presence felt since the time of the Second World War," frequently entails the contracting out of an operational and/or non-core function, such as manufacturing, facility management, or call center/call center support, as well as a business process (for example, payroll processing, claims processing).
Outsourcing is another name for the practice of turning over control of public services to private businesses (privatization), even if it only happens sometimes.
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Do you have to report cash transactions over 10000?.
In general, you are required to file Form 8300 if your trade or company involves receiving more than $10,000 in cash in a single transaction or series of related transactions.
Explain about the cash transactions?A cash transaction is when you pay cash up front to buy anything. Even though the trade may not settle for a few days, some market stock transactions are nevertheless regarded as cash transactions. An exchange of cash is not deemed to be a futures contract.
Cash transactions over 2 lakh are not allowed for any reason, according to Indian income tax regulations. For instance, you must use a check, credit card, debit card, or bank transfer to pay for a single transaction of 3 lakh in gold jewelery.
In a firm, there are primarily four different sorts of financial transactions. Sales, purchases, receipts, and payments are the four categories of financial transactions that have an effect on the firm.
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The CEO of Southwest Airlines can sometimes be seen helping out at a gate, handling luggage, and assisting cabin attendants while in flight. This is an example of _____ to create and sustain the company's culture.
A) providing physical support
B) organizing ceremonies
C) clarifying expectations
D) using signs and symbols
The CEO of Southwest Airlines can sometimes be seen helping out at a gate, handling luggage, and assisting cabin attendants while in flight. This is an example of using signs and symbols to create and sustain the company's culture.
What is company culture?Although the concept of organizational culture is somewhat ambiguous, most culture experts can agree on its most basic elements. In a nutshell, an organization's culture is made up of a shared set of values, objectives, attitudes, and behaviors. Any organization is free to choose how it wants to create its own culture.
The background of corporate culture, the advantages of a positive culture, and methods for implementing better cultural practices are all covered in this guide. It is the result of all of your official and informal processes, attitudes, and values that combine to give your staff and consumers a positive experience. Company culture is really about how things are done in the office.
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why does the marginal revenue line decline downward within the monopoly graph as it sells more of its products or services?
Since the middle and lower classes along the demand curve, who can only afford moderate pricing, are the target market for the monopoly, the price must be lowered to sell more goods to them.
Monopoly's MR curve slopes downhill. It's because decreasing the price will result in more sales.
The private benefit from selling an additional unit of output is the marginal revenue for a monopolist. The additional benefit from raising the amount supplied is less than the decided market price, and the marginal revenue curve has a downward slope and is below the demand curve.
Because the company must lower the price it charges for its product if it wants to sell more units, the marginal revenue is dropping.
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anderson argues, with reference to hayek, that orienting the economy around the goal of people receiving the income they morally deserve would lead to
Anderson argues, with reference to Hayek, that orienting the economy around the goal of people receiving the income they morally deserve would lead to poverty and the abolition of capitalism.
What was said concerning the demise of capitalism by Karl Marx?
Marx contended that capitalists had forced the worker to become "enslaved by the machine," alienating him from the fruits of his labor, and that this exploitation would soon lead to a new class war that would culminate in the "violent overthrow" of the bourgeoisie by the proletariat.
It was destined to self-destruct over time due to its inherent tendency to produce ever-larger booms and busts. Marx cheered on capitalism's demise. He believed that a popular revolution would take place, creating a communist regime that would be more effective and far more humanitarian.
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you are considering an investment in 30-year bonds issued by moore corporation. the bonds have no special covenants. the wall street journal reports that 1-year t-bills are currently earning 1.25 percent. your broker has determined the following information about economic activity and moore corporation bonds:
The 30-year bonds issued by Moore Corporation have a fair interest rate of 4.65% and an inflation premium of 0.50%.
A measure known as the "inflation premium" is used in banking and investing to determine the typical rate of return on an asset or investment when the overall cost of goods and services increases over time.
The theoretical value of corporations and their shares is therefore affected by changes in interest rates. The predicted future cash flows of a share are essentially discounted to the present using the investor's necessary rate of return to determine the share's fair value.
Inflation premium = T-bill rate - real risk-free rate
= 1.25% - 0.75%
= 0.50%
30-year bond rate/Fair interest rate =
Inflation premium 0.50%
+ Real interest rate 0.75%
+ Default risk premium 1.15%
+ Liquidity risk premium 0.50%
+ Maturity risk premium 1.75%
Therefore fair interest rate 4.65%
Complete question:
You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 1.80 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds:
Real risk-free rate = 0.75%
Default risk premium = 1.15%
Liquidity risk premium = 0.50%
Maturity risk premium = 1.75%
a. What is the inflation premium?
b. What is the fair interest rate on Moore Corporation's 30-year bonds?
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In negotiations, the parties are likely to display different emotions. Which of the following emotions is likely to lead to more open-minded problem solving in a negotiation?
a) Sadness
b) Happiness
c) Nervousness
d) Tenacity
In negotiations, the parties are likely to display different emotions. Happiness is likely to lead to more open-minded problem solving in a negotiation.
Sometimes during negotiations, when things start to feel uncomfortable, we have a propensity to dig in our heels and hang onto our stance. When done professionally and in accordance with the ideals of your firm, that can occasionally be entirely acceptable. The ability to solve problems can be beneficial.
When you disagree with the customer, a problem-solving mindset does not need you to immediately give in or compromise. It suggests you show signs of being open-minded while negotiating. In other words, you continuously convey to them that you are open to learning about various approaches to the problem and finding a workable solution.
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Zoogle has the following selected data ($ in millions): (Round your answers to 2 decimal place. Enter your answers in millions (i.e., $10,110,000 should be entered as 10.11).) Net sales Net income $23,751 6,530 flows Total assets, beginning 32,768 Total assets, ending 41,497 Required: 1. Calculate the return on assets. ($ in millions) Return on Assets Zoogle 2. Calculate the cash return on assets. ($ in millions)Cash Return on Assets Zoogle 3. Calculate the cash flow to sales ratio and the asset turnover ratio. ($ in millions) Cash Flow to Sales Zoogle ($ in millions) Asset Turnover times Zoogle
The return on assets is 15.73%.
The cash return on assets is 15.73%.
The Cash Flow to Sales is 15.73% and the asset Turnover is 63.96%.
Return on assets (ROA) is used to measure how efficient a company's management is in generating profit from their sum assets on their balance sheet.
To determine the return on assets, you can use this formula:
Return on Assets = Net Income / Total Assets
Return on Assets = 6,530/41,497
Return on Assets = 0.1573
Return on Assets = 15.73%
Thus, the return on assets is 15.73%.
To determine the cash return on assets, we use this formula:
the cash return on assets = Operating cash flow / Total Assets
the cash return on assets = 9,317/41,497
the cash return on assets = 0.2245
the cash return on assets = 22.45%
Thus, the cash return on assets is 15.73%.
To determine Cash Flow to Sales we use this formula:
Cash Flow to Sales = Operating Cash flow / Sales
Cash Flow to Sales = 9,317/$23,751
Cash Flow to Sales = 0.3928
Cash Flow to Sales = 39.28%
Thus, the Cash Flow to Sales is 15.73%.
To determine the asset turnover ratio we use this formula:
Asset Turnover = Net Sales / Average. Fixed Assets
Where,
Average Fixed Assets = ($32,768 + $41,497) / 2 = $37,132.5
Hence,
Asset Turnover = $23,751/$37,132.5 = 0.6396 = 63.96%
Thus, the asset Turnover is 63.96%.
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Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the lowest monthly payment?.
Based on the available options, the financing option with the lowest monthly payment is a $3000 down payment, 6% interest, and 84 months.
What are the Available Financing Options?Financing options are a term used to describe the various methods of financing a project or business. Financing options in loans refer to various methods of repaying loans or debts.
In general, the option of a $3000 down payment, 6% interest, and 84 months will result in a $340.71 per month repayment plan, which is considered to be the lowest months because there is no interest on the number of payments.
Therefore, option A is correct.
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Your question is incomplete, but most probably your question was:
Elizabeth is considering buying a $30,000 car. Which of these financing options will likely lead to the lowest monthly payment?.
Options:
$3000 down payment, 6% interest, 84 months$3000 down payment, 6% interest, 60 months$0 down payment, 6% interest, 60 months$0 down payment, 0% interest, 36 monthsWhat two components determine the interest rate for an adjustable-rate mortgage?.
The index and the margin can be identified as the two components that are helpful in determining the interest rate for an adjustable-rate mortgage.
An adjustable-rate mortgage can be referred to or considered as a type of mortgage that does not charge a fixed rate of interest over the advances given in exchange for the collaterals.
As the interest rate keeps fluctuating as per the prevailing marketing conditions, the indexation of the amount is done as per the margin to compute the exact interest rate to be charged over the mortgage.
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How can you best achieve the highest return with the lowest risk?.
The safest investments with the highest returns are frequently thought to be high-quality bonds and fixed indexed annuities.
Which investment offers the best return with the least amount of risk? Bond funds and annuities come in a wide variety, each with their own risks and benefits.For instance, based on past performance, government bonds tend to be more stable than corporate bonds.Safe/Low Return:Treasury securities, savings bonds, life insurance, and certificates of deposit (from highly rated carriers)Fixed and indexed annuities, guaranteed municipal bonds are investments with very low risk and return.You can reach us at any moment.On a long-term basis, invest in stocks.When compared to short-term investments, long-term ones often have lower volatility.Short-term Stock Investing, Real Estate, Fine Art, Starting Your Own Business (Or Investing in Small Ones), Wine Investing, Peer-to-Peer Lending, and REIT Investing are some examples of investments.To learn more about investments refer
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identify the components of a business that make up its operations. (check all that apply.)
The components of a business that make up its operations are
Strategy, Marketing and research Operations and FinanceWhat is business?An economic activity that involves the exchange of goods and services with teh help of buying and selling with the objective to gain some profit is called Business.
The company's internal operations, including manufacturing, marketing, logistics, information systems, and human resources, support that position and ensure that the organization is set up properly to carry out its strategy.
This department works with coordination and helps the business to achieve maximum revenue.
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a sinking fund is established to discharge a debt of $60,000 in 5 years. if deposits are made at the end of each 6-month period and interest is paid at the rate of 5%, compounded semiannually, what is the amount of each deposit? (round your answer to the nearest cent.)
A sinking fund is established to discharge a debt of $60,000 in 5 years. if deposits are made at the end of each 6-month period and interest is paid at the rate of 5%, compounded semiannually, what is the amount of each deposit? (round your answer to the nearest cent.)
The required details for sinking fund in given paragraph
A sinking fund allows corporations which have floated debt within side the shape bonds steadily shop cash and keep away from a huge lump-sum price at maturity. Some bonds are issued with the attachment of a sinking fund feature. The prospectus for a bond of this kind will become aware of the dates that the company has the choice to redeem the bond early the usage of the sinking fund.
Given that debt = 60,000 dollars
Therefore present value of debt = 60,000 dollars
Rate of interest = 5%
compounded semi anually
semi anually value of interest = 5%
term = 5 years
since deposit is 6 month period
period = 10 years
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When preparing the operating activities section of the statement of cash flows using the indirect method, adding a decrease in accounts receivable to net income allows the inclusion of transactions that ______.
When preparing the operating activities section of the statement of cash flows using the indirect method, by adding a decrease in accounts receivable to net income allows the inclusion of transactions that decreased net income but not cash.
What is the operating activities section?Under Cash-flow statement, the operating activities involves the activities of a company in producing and selling its product, generating revenues as well as general administrative and maintenance activities.
There are typically an operating activities section on statement of cash flows that shows inflows and outflows of cash resulting from a company's key operating activities.
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When preparing the operating activities section of the statement of cash flows using the indirect method, adding a decrease in accounts receivable to net income allows the inclusion of transactions that increased cash, but did not affect net income.
What is net income.?Generally, In the context of commerce and accounting, "net income" refers to an entity's income after deducting the cost of products sold, costs, depreciation and amortization, interest, and taxes for a certain accounting period.
When preparing the operating activities section of the cash flow using the indirect method, it is possible to include transactions that enhanced cash but did not affect net income by adding a decrease in accounts receivable to net income.
This is done to account for the fact that net income was not impacted by the transaction.
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Jasmin, Shou-Yi, and Vanessa form an LLC, and each contributes $25.000 in capital. The LLC operates for a period of time, during which it borrows money from banks and purchases goods on credit from suppliers. After some time, the LLC experiences financial difficulties and goes out of business. If the LLC fails with $500,000 in debts, which of the following is an accurate statement regarding the liability of Jasmin. Shou-Yi, and Vanessa? Each will lose her capital contribution of $25,000, but will not be personally liable for the rest of the unpaid debts of the LLC. Each will lose her capital contribution of s25,000, and will be personally liable for the rest of the unpaid debts of the LLC. Each will not be personally liable for the $500000 in debts, and will be reimbursed for her $25000 capital contribution. Each will not be personally liable for the $500,000 in debts and a constructive trust for the entire $75,000 in capital contributions will be imposed so that Jasmin Shou-Yi and Vanessa can form a new business venture.
A true comment on Jasmin's responsibility. Vanessa, Shou-Yi, and Each will not be held personally accountable for the remaining unpaid debts of the LLC, but will forfeit her $25,000 capital contribution.
What is meant by capital?A factory and its equipment, intellectual property like patents, or the financial assets of a company or a person all fall within the broad definition of capital, which can also refer to anything that provides value or advantage to its owners. A factory and its equipment, intellectual property like patents, or a company's or individual's financial assets are just a few examples of things that offer their owner value or an edge. Although money can technically be considered capital, the term is typically used to refer to money that is used to invest or create things. In a firm, capital is the total amount of financial resources needed to produce goods or services.To learn more about capital, refer to:
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