$500,000. Alan will have an adjusted basis equal to the fair market value at the date of death even though it is lower than Mary's basis at the time of her death.
Fair market value (FMV) is the amount that a product would sell for on the open market if both the buyer and the seller were acting in their own best interests, were not subjected to excessive pressure, and were given a reasonable amount of time to complete the transaction.
In addition to salary negotiations, business sales, and many other transactions that depend on arriving at a price that seems reasonable to the parties involved, the term is frequently used in real estate and tax matters.
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if microsoft announces plans for a new product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. in this example, microsoft is employing a defense strategy.
'If Microsoft announces plans for new product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. in this example, Microsoft is employing a preemptive defense strategy.
The difference is that a preventive war is released to damage the potential threat of the targeted birthday celebration, while an assault with the aid of that party is not forthcoming or recognized to be deliberate. A preemptive battle is released in anticipation of instantaneous aggression via every other birthday party.
The preemption doctrine refers back to the concept that a better authority of law will displace the law of a lower authority of regulation when the 2 authorities come into conflict.
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Assume the equilibrium unemployment rate is 5%. If actual output falls to 5 percentage points below potential output, how would you expect the unemployment rate to change? (Note: Specify your answer to one decimal place, if necessary.)
According to Okun's law, a 2% reduction in actual output below potential output corresponds to a 1% rise in the unemployment rate. Therefore, a rise in the unemployment rate of (5/2) = 2.5% is caused by a 5% reduction in actual output below potential output.
What is Unemployment?When someone actively seeks job but is unable to do so, this is referred to as being unemployed.
People of working age who are unemployed, available for work, and have made explicit efforts to find employment are considered to be unemployed. Estimates of unemployment rates based on this definition are applied consistently, making them more comparable worldwide than estimates based on national definitions of unemployment.
Therefore, a rise in the unemployment rate of (5/2) = 2.5% is caused by a 5% reduction in actual output below potential output.
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You worked this past summer at a furniture manufacturing plant. Among the products used in making chairs and couches are glues, paint thinners, varnishes, and stains. Residuals of these products were discharged by the company through a pipe into a nearby pond. The pond is a tributary of a lake popular with boaters and people who like to fish. Now that you are back at school, you read in the paper that the company has pled guilty to the crime of knowingly discharging industrial pollutants into the waters of the United States, a violation of the Clean Water Act. You wonder what consequences will result.What are the various penalties that can be imposed by the judge on the furniture company for its violation of the Clean Water Act? Include all that apply.A maximum fine of $500,000.A fine of up to $2,500 for each day the Act was violated up to $1 million, an injunction mandating the company stop polluting, and a requirement that the company clean up the pollution it caused or pay for the cost of doing so.A fine of up to $2,500 for each day the Act was violated up to $1 million, plus an injunction.A fine of $2,500 for each day the Act was violated up to a maximum of $1 million.
The Clean Water Act (CWA) establishes the fundamental framework for controlling discharges of contaminants into U.S. waters and establishing quality criteria for surface waters. The foundation of the CWA, the Federal Water Pollution Control Act, was adopted in 1948, but the Act was considerably restructured and enlarged in 1972. With 1972 modifications, the Act's popular name became "Clean Water Act."
Under the Clean Water Act, the EPA has developed pollution management measures such as establishing industrial wastewater guidelines. Additionally, the EPA has established national water quality standard recommendations for pollutants in surface waterways.
Various penalties that can be imposed by the judge are as follows:
A fine of up to $500,000 may be assessed.
A fine of up to $2,500 for each day the Act was violated up to $1 million, an injunction mandating that the company stop polluting, and a requirement that the company clean up the pollution it caused or pay for the cost of doing so are the potential penalties that could be levied against the polluting company.
In addition to an injunction, a fine of up to $2,500 for each day that the Act was breached, up to a maximum of $1 million.
A fine of up to one million dollars, with a minimum of two thousand five hundred dollars for each day that the Act was broken.
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TRUE/FALSE. you placed a for sale ad in the local newspaper in an attempt to sell your old car. because this involves contact with the media, you are required to report it
You placed a ‘for sale’ ad in the local newspaper in an attempt to sell your old car. Because this involves contact with the media, you are required to report it. This statement is false.
A type of newspaper advertisement known as "newspaper display advertising" occurs when the advertisement appears with editorial material. Display advertisements are typically employed by companies and businesses to advertise their products and services and they are typically targeted at customers with bigger budgets. All sections of the newspaper contain display adverts, with the exception of the editorial page and classified section.
These advertisements are created in high quality color and black/white formats, enhancing visibility for newspaper readers in general. Display advertisements are a big part of how many large newspapers in developing countries subsidize the cost of publishing their publications.
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the use of specific facts in your business communication will typically help convince the reader about which of the following? (choose every correct answer.)
The use of specific facts in your business communication will typically help convince the reader about you know what you are talking about,You care about the reader.
Business communications are communications designed to help achieve a company's fundamental goals by sharing information between employees and people outside the company.
Business communications involve the exchange of information within and outside the organization's members. The four main types include upstream communication, downstream communication, lateral communication, and external communication.
Assigning tasks to employees, collecting and responding to customer feedback, and issuing press releases are examples of corporate communications.
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the market capitalization rate for admiral motors company is 8%. its expected roe is 14% and its expected eps is $7. the firm's plowback ratio is 40%.
Admiral Motors Company's market capitalization rate is 8%. Their P/E ratio is 25, and its predicted roe and eps are 14% and $7, respectively.
The capitalization rate is what?By multiplying a homeowner's net operating profit by its current market value, the capitalisation rate is determined. An investor's probable return on an investment in real estate is estimated using this ratio, which is given as a percentage.
What is the formula for capitalization rates?Net Operating Profit (NOI) divided either by asset's current market value is the method for calculating Cap Rate. Where: The annual revenue generated by asset after deducting all operational costs, such as maintaining the building and paying taxes, is known as net operating income.
Briefing:ROE=14%
Plowback ration, b =40%
g = ROE x b=0.14x 0.4 =0.056 or 5.6%
Calculation of P/E ratio,
P/E= 1-b/ K-g
=1 -0.4/0.08 -0.056
=0.6/0.024
=25
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anvils works' requires, on average, 2,800 tons of aluminum each week, with a standard deviation of 1,000 tons. the lead time to receive its orders is 10 weeks. the holding cost for one ton of aluminum for one week is $11. it operates with a 0.98 in-stock probability.
The average amount of order is 28,000 tons.
Average:
Average refers the sum of all values divided by the number of values. And it is also sometimes referred to as mean.
Given,
Anvils works' requires, on average, 2,800 tons of aluminum each week, with a standard deviation of 1,000 tons. the lead time to receive its orders is 10 weeks. the holding cost for one ton of aluminum for one week is $11. it operates with a 0.98 in-stock probability.
Here we need to find the average amount of weight.
While we looking into the given question, we have identified the following,
=> Average Weekly need = 2,800 tons
=> Lead time = 10 weeks
So, the average amount of tons on order is calculated as,
=> 10 × 2800 = 28,000 tons.
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for a competitive firm, a. total revenue equals average revenue. b. total revenue equals marginal revenue. c. total cost equals marginal revenue. d. average revenue equals marginal revenue g
For a competitive firm, average revenue equals marginal revenue.
Thus, the correct option is D.
What is marginal revenue?
One technique to examine revenue that offers varied insights beneficial to investors and businesses is through marginal revenue. For instance, the financial ratio of margin to revenue can be used to determine how the sale of an additional unit or product will affect overall revenue.
Both big and small businesses can look at their marginal revenue to figure out how much money they make based on more output units sold. As a result, businesses who want to maximize their profits must raise production until marginal revenue equals marginal cost (MR=MC).
On the other hand, when marginal revenue is lower than marginal cost, enterprises could decide to stop producing.
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to maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which
To maximize its profit, a monopolistically aggressive association chooses its level of output by searching for the. stage of output at which marginal revenue equals marginal cost.
What output Will the profit-maximizing monopolistic competitor produce?A profit-maximizing monopolistic competitor will are seeking for out the extent where marginal revenue is equal to marginal cost. The monopolistic competitor will produce that stage of output and cost the price that is indicated by using the firm's demand curve.
How do you maximize income in monopolistic competitive firms?In a monopolistic market, a association maximizes its total earnings by using equating marginal fee to marginal income and solving for the price of one product and the extent it ought to produce.
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https://brainly.com/question/2891218#SPJ4a company had sales of $920,000 and fixed costs were $160,000. what was the income from operations if the contribution margin ratio was 30 percent? group of answer choices
Hence the income from operations of the company is $160,000
Is income from operations the same as revenue?Operating income (also known as IFO) and EBIT are both forms of income from operations. The revenue generated by a company's internal activities is known as income from operations. The core business's revenue is derived from operations alone and is not included in income from other sources. Operating income is the total of a business's profits less regular, ongoing costs and expenses.
Given:
The contribution margin ratio = Contribution / Sales x 100
30% = Contribution / 920,000.00 x 100
Contribution = $276,000.00
Income from operations $
Total contribution $276,000
Less: Fixed cost $160,000
Income from operations $160,000
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Available-for-Sale Securities Assume the 2015 annual report of Bristol-Myers Squibb (BMS) reveals that the company maintains a large investment in available-for-sale securities: 2015 2014 (in millions) Available-for-sale securities Fair value Amortized cost $ 6,904 $ 6,607 $ 6,928 $ 6,558 Did the company's available-for-sale securities experience a gain or loss in value in 2015 and/or 2014, and if so, in what amount? Do not use negative signs with your answers. Enter answers in millions. Amount Gain or Loss 2015 $ 0 2014 $ 0 How did the company account for these gains and/or losses? OThe gains/losses reported as part of AOCI within the shareholders' equity section on the balance sheet. OThe gains/losses are reported on the income statement as part of other income/expense. Were these gains (losses) taxable (tax deductible) in 2015 and/or 2014? OThe gains/losses are taxable (tax deductible). OThe gains/losses are nontaxable.
An equity or debt security that is available for sale (AFS) is one that has been bought with the intention of selling it before it matures or keeping it for a long time if the security doesn't have a maturity date. Securities that are offered for sale are listed at fair value.
Companies must categorise any purchases of debt or equity securities as held-to-maturity, held-for-trading, or available-for-sale in accordance with accounting requirements.
In the given question,
A. For the Year 2015,
Fair Value = $6,904
Amortized Cost = $6,928
The company experienced an unrealized loss i.e reduction or decline in the value of available for sale securities.
Therefore, Unrealized Loss = $6,928 - $6,904 = $24 million
For the Year 2014,
Fair Value = $6,607
Amortized Cost = $6,558
The company experienced an unrealized gain i.e increase in the value of available for sale securities.
Therefore, Unrealized Gain = $6,607 - $6,558 = $ 49 million
B. The gains/losses reported as part of AOCI within the shareholder's equity section on the balance sheet.
C. The gains / losses are non taxable because they were unrealised.It is just theoretical profit/loss resulting from an investment that has not been sold yet. A gain/loss becomes realized once the investments are sold and then will affect the taxability.
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for financial reporting purposes, goodwill is only be recorded when a company acquires control over another company.
Goodwill is an intangible asset that represents the value of a company's reputation and its relationships with its customers, employees, and suppliers.
The Importance of GoodwillIn today's business world, it is more important than ever for companies to have a good reputation. Goodwill is an intangible asset that represents the value of a company's reputation and its relationships with its customers, employees, and suppliers. Goodwill is important because it can help a company to attract and retain customers, to attract and retain high-quality employees, and to negotiate favorable terms with suppliers.
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which us group did not share in the overall prosperity of the 1920's and struggled more than others to make ends meet? (page 647) question 1 options: factory managers corporate boards of directors middle class factory workers farmers
Reduced incomes and unemployment affected farmers, African Americans, Native Americans, and workers in some industries.
Which US group did not share in the prosperity of the 1920's?The Automobile's Ascendancy: The widespread use of the automobile was probably the single most significant factor in fostering prosperity.From 7 million to 23 million people in the 1920s owned a vehicle. Many facets of American life were significantly impacted by the massive increase in automobile ownership.Since cars needed a significant amount of rubber, glass, and steel, the production of automobiles helped to boost other industries.In America by 1929, the auto industry employed one out of every nine workers.The Growth of Other Industries: The Electric Vacuum Cleaner, Refrigerator, and Toaster were some of the other new products that were developed as a result of the widespread use of electricity. The motion picture and radio industries grew into significant businesses.Beginning of commercial aviation.The way Americans lived was altered by these new industries, which also produced significant profits.To Learn more About Reduced incomes refer to:
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In a liquidity trap, monetary policy has ________ effect on aggregate spending because a change in the money supply has ________ effect on interest rates.
no; no
In a liquidity trap, monetary policy has no effect on aggregate spending because a change in the money supply has no effect on the interest rates.
A liquidity trap develops when investors select lower-yielding assets over hoarding cash due to a bleak outlook for the economy. Bonds aren't the only thing affected by a liquidity trap; other sectors of the economy also supply as a result of consumers' reduced spending, which might make employers interest less eager to hire. When people hoard cash in anticipation of a negative event like deflation, insufficient overall demand, or war, a liquidity trap is created.
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The expected value of information (EVI) is the difference between the EMV obtained with free sample information and the EMV obtained without any information.
True
False
It is accurate what is said. The difference between the EMV obtained with free sample information and the EMV obtained with no information is known as the expected value of information (EVI).\
What is meant by expected value?The probability times the estimated value of each result is the expected value. For instance, if you don't mind taking a chance, you would value a 50% chance of winning $100 at $50. With this framework, we can decide if you ought to enter the lottery. The average of all the outcomes of a discrete random variable, weighted according to their probabilities, is what we call the mean (or expected value) of that random variable. Expected value is defined as the average result that would be expected if the random variable were to be examined over an infinite number of trials.The theoretical mean value of a numerical experiment over numerous iterations of the experiment is referred to as an expected value in probability theory.To learn more about expected value, refer to:
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joelle consumes food and clothing. for incomes near her current income, her income expansion path is negatively sloped. indicate whether each of the following statements is true or false, and provide a brief explanation why. (you may want to use a graph in formulating your explanation.) at current income levels, food must be an inferior good. at current income levels, clothing must be an inferior good. at current income levels, food and clothing must be inferior goods. at current income levels, either food or clothing must be an inferior good.
Joelle consumes food and garb. for earning near her modern-day income, her earnings expansion direction is negatively sloped. Increasing much less of 1 god whilst profits growth implies consuming extra of the opposite three .at the least one proper must be every day.
The term “profits” commonly refers to the quantity of money, property, and different transfers of price acquired over a set time period in change for products or services. there may be no unmarried, preferred definition: earnings are described consistent with the context in which the idea is used.
Three of the main varieties of profits are earned passive, and portfolio. Earned income consists of wages, salary, tips, and commissions. Passive or unearned earnings may want to come from condominium homes, royalties, and restricted partnerships. Portfolio or funding income includes interest, dividends, and capital gains on investments.
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What is the sequence of a bill?.
A Representative sponsors a measure first. A committee is then asked to study the measure. The measure will be up for a vote, discussion, or amendment once the committee releases it. The measure will be forwarded to the Senate if it receives a simple majority vote (218 out of 435).
A bill must have the title, enacting clause, sections altering and repealing laws, and effective date. A measure must be approved by both houses of Congress in order for the President to consider it. Even though the two bills must have the exact same language, this rarely happens in practice. To synchronize the measures, a Conference Committee made up of representatives from both chambers is established.
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which of the following monetary and fiscal policy combinations would definitely cause a decrease in aggregate demand in the short run? which of the following monetary and fiscal policy combinations would definitely cause a decrease in aggregate demand in the short run? discount rate- decrease government spending- increase open market operations- buy bonds discount rate- decrease government spending- decrease open market operations- buy bonds discount rate- decrease government spending- increase open market operations- sell bonds discount rate- increase government spending- decrease open market operations- sell bonds
Combinations of monetary and fiscal policies that would result in the sale of bonds through open market operations, an increase in the discount rate, would all result in a short-term decline in aggregate demand.
Even when it comes to supposedly "safe" investments like bonds, investing can be difficult. The money that a company receives in fiscal policies exchange for issuing a bond is a loan that needs to be repaid over time. Due to their promise of returns on investment in addition to bonds yearly interest income, bonds are a popular choice among investors for long-term investments.
When interest rates are expected to rise significantly, this is the best time to sell bonds in the market. A rise in interest rates means that current bonds—your bonds—will probably lose value because the value of fiscal policies bonds on the open market is largely dependent on the coupon rates of other bonds. As more recent bonds are created with higher bonds coupon rates that reflect the rising national rate, the market values them more.
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when inventory is stolen, the key concealment issue for the fraudster is . group of answer choices trust removing the stolen inventory from the premises shrinkage physical access (to secure areas)
when inventory is stolen, the key concealment issue for the fraudster is the shrinkage of physical access.
Inventory shrinkage occurs when real inventory levels are lower than those documented in the accounting system. This typically indicates that something has gone awry, such as a theft or an accounting problem. Shrinkage may also result from supplier fraud, in which a supplier invoices a business for a specific number of goods shipped but does not really deliver all of the goods. Because to shrinkage, the recipient reports fewer units in stock than the full amount of the products on the invoice.
Conduct a physical count of the inventory, determine its cost, and then deduct that cost from the cost indicated in the accounting records to determine the amount of inventory shrinkage.
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chance, justina, and rich have been operating a chain of self-service laundries as a general partnership for three years. at the beginning of the fourth year, justina declares bankruptcy. under the version of the uniform partnership act (upa) that is in effect in most states, justina's bankruptcy will a. dissolve the partnership automatically. b. do nothing to the partnership; it will continue as before. c. cause the partnership to declare bankruptcy. d. cause justina's dissociation from the partnership
Under the version of the Uniform Partnership Act (UPA) in effect in most states, Justina's bankruptcy would result in Justina's dissociation from the partnership.
Bankruptcy is a legal proceeding involving a person or business that is unable to repay its debts. Bankruptcy proceedings begin with an application filed by the debtor, which is most common, or on behalf of the creditor, which is less common. All assets of the debtor are measured and evaluated, and these assets can be used to repay part of the debt.
Bankruptcy offers the individual or business the opportunity to start over by writing off unpaid debts while providing creditors the opportunity to obtain some measure of payment based on the individual or business' assets available for liquidation. In theory, the ability to file for bankruptcy benefits the economy as a whole by giving people and companies a second chance to gain access to credit and by providing creditors with partial debt payments. After successfully completing the bankruptcy process, the debtor is released from debt obligations that arose before filing for bankruptcy.
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Suppose a student has no more than t minutes to write an examination consisting of two questions, 1 and 2. He receives A points if he gets question 1 correct and B points if he gets question 2 correct. He knows that if he spends s minutes in question 1 (assume he uses up all his time), then1) the probability that he gets it correct is p(s)2) the probability that he gets the second one correct is q(t-s).Both p( ) and q( ) are strictly increasing and concave functions. In addition, assume there is no partial credit, and the student receives constant marginal utility for additional points.(Question a) Derive the equilibrium conditions for his optimal allocation of time between the two questions.(Question b) How is his allocation a ected by a change in A or B?
The probability of A+B is [tex]P_A P_B[/tex]
The probability of A is pa -(1 - pb)
What is meant by probability ?Probability refers to potential. A random event's occurrence is the subject of this area of mathematics. The range of the value is 0 to 1. Mathematics has incorporated probability to forecast the likelihood of various events.
The probability is equal to the variety of possible outcomes. the total number of outcomes that could occur. For instance, there is only one way to receive a head and there are a total of two possible outcomes, hence the probability of flipping a coin and getting heads is 1 in 2. (a head or tail). P(heads) = 12 is what we write.
The number of favorable events to all the events in an experiment is the ratio that makes up the probability formula. Three categories of probability exist, namely
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which of the following is true of cartels?multiple choicetheir formation tends to lower market price.they reduce uncertainty and maximize profits for firms.they increase competition in the market.they usually last a long period of time.
Cartel tends to they reduce uncertainty and maximize profits for firms
Hence, Option C is correct.
What do you mean by Cartel ?
A cartel is a group of participants who come together with each other and form a group. They do so in order to improve their profits and dominate the market. The most famous and well known Cartel is OPEC. They introduce rules that changes competition in their favor through prices modification , production levels and marketing techniques.
There are various kinds of Cartels like
Price Cartels Term Cartels Customer Assignment Cartels Quota CartelsTo know more about Cartel from the given link
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the entry to record the issuance of a note for cash was recorded with a debit to cash and a credit to notes receivable instead of notes payable. the effect of recording this entry causes . (select all that apply.)
Because of the issuance of a note for cash, this transaction was recorded with a credit to notes receivable instead of notes payable and a debit to cash. Because of this entry, it causes the effect of recording, which is assets to be understated and liabilities to be understated.
What is an Account in Accounting?An account is a record in the general ledger that an accountant can use to store and sort transactions within a company. Every transaction that is in the company will be included in the debit and credit. Broadly speaking, debits indicate cash coming into the company. Meanwhile, credit indicates that there is cash coming out of the company. These debit and credit accounts must balance at the end of the books to show that sorting and classifying transactions have been carried out properly.
This question is incomplete, The complete question is as follows:
Because of the issuance of a note for cash, this transaction was recorded with a credit to notes receivable instead of notes payable and a debit to cash. Because of this entry, it causes the effect of recording, which is (select all that apply):
A. Assets to be understated
B. Assets to be overstated
C. Liabilities to be understated
D. Liabilities to be overstated
Hence, the correct options are (A) and (C).
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FILL IN THE BLANK. in the context of operations management, a___is defined as a set of related activities that transform inputs into outputs, thus adding value.
A transformation process a is defined as a set of interrelated activities that transform inputs into outputs and thereby create value.
A transformation process is any activity or group of activities that takes one or more inputs, transforms them to add value, and provides a result to a customer or client. The term transformation in the field of mediated cross-border communication describes, for example, the change of media systems from authoritarian or communist structures to new media systems with different structures and control mechanisms. Operations management organizes the direction and control of business processes that transform resources, called inputs, into finished goods or services for consumers or customers. Output management is the process of planning and organizing an organization's resources and activities to achieve specific goals in the most effective and efficient manner.
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a waste management service attempts to design routes so that each of their trucks pick-up on average four tons of garbage or less. a garbage collector believes, however, that he averages picking up more than four tons of garbage per day and decides to perform a hypothesis test.
We conclude that garbage collector's average pickup is more than four tons of waste every day.
What does P stand for?The following details are provided in relation to the issue:
We first create the null and alternative hypotheses.
Level of significance = 5% = 0.05
Value P = 0.04
The chance of getting the test's observed results, if the null hypothesis is true, is known as the p-value.
The strength with which the sample data support the null hypothesis is measured by its P value.
P-value is a metric or indicator that enables us to determine whether or not the sample is representative of the population.
The sample is a member of the population, according to the null hypothesis.
A high p-value indicates that the sample belongs and the null hypothesis is true.in relation to the populace.
A low p-value denotes that the sample has sufficient proof that the null hypothesis is false and that it does not represent the population.
To get at our conclusion, we compare p-value to significant threshold.
Here,
p-value = 0.04 and 0.05 is the significance level.
We are unable to accept the null hypothesis and reject it since the p-value is less than the significance level. As a result, we infer that the sample does not represent the population as a whole and that an average day's rubbish collection involves more than four tons of waste.
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What is it called when you invest your own money into your business?.
The thing that it is called when you invest your own money into your business is bootstrapping.
What is bootstrapping?
Bootstrapping is a business term that refers to the process of starting and growing a company using only existing resources such as personal savings, personal computing equipment, and garage space.
Bootstrapping is the process of starting a business from scratch without or with little outside funding. It is a method of financing small businesses by purchasing and utilizing resources at the expense of the owner, rather than sharing equity or borrowing large sums of money from banks.
It is the process of building your business from scratch with your personal fund. It is a way by which resources are purchased at the owner's expense without or with minimal investment from outside.
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For which of the following businesses would the job order cost system be appropriate?
a. lumber mill
b. oil refinery
c. canned soup processor
d. hospital
c. lumber mill
Because they work with different clients on different accounts, many lawyers and accountants will utilize a job order cost system to keep track of how much time and resources were used for each client.
When is it suitable to use a job order costing system?The job order method of pricing is used to determine the manufacturing costs for each product. When a manufacturer needs to calculate the cost of carrying out a certain operation while manufacturing a number of unique things, they frequently employ this costing method.
What is an example of a company that uses job order costing?Some companies that use task costing systems include Boeing (airplanes), Lockheed Martin (advanced technology systems), and Deloitte & Touche.
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What two things do incentives affect?.
Incentives can affect the individuals in a way that they get motivated for better productivity, and also bring a sense of positivity in their behavior towards the one whom they get incentivized by. Thus, they are highly beneficial.
Incentives are advantages or disadvantages of an action that affect people's choices and actions. Incentives, to put it another way, can persuade others to take a certain action. The way that incentives are established and used, as well as how people react to them, are key aspects of economics.
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if reserves decrease by $4 million and the required reserve ratio is 10 percent, what is the change in the money supply?
The money supply changes by $50 million while reserves change by $10 million.
What does a 10% reserve ratio indicate?Banks are required to retain 10% of their deposits in necessary reserves if the statutory reserve ratio is 10%. Deposits of $20 million require necessary reserves to be retained at $2 million ($20 million multiplied by. 10). Reserves over and above those that are necessary are called excess reserves.
What occurs if the necessary reserve ratio is lowered?Banks are able to extend more loans to individuals and businesses when the reserve ratio is reduced by the Federal Reserve. This lowers the amount of cash that banks must store in reserves. The economy grows as a result, increasing the money supply in the country.
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the actual inventory holding cost incurred by an item is often under-estimated because of the difficulty of quantifying the indirect, intangible cost of holding inventory.
The actual inventory holding cost incurred by an item is often under-estimated because of the difficulty of quantifying the indirect, intangible cost of holding inventory is True.
What is actual inventory holding cost?The expenses incurred by holding inventory that has not yet sold are known as holding costs. Along with ordering and shortage fees, these expenses make up a portion of the overall inventory costs. The cost of rotting or damaged goods, as well as the cost of labor, insurance, and storage space, are all included in a company's holding expenses.Following your completion of the aforementioned calculations, use the following formula to determine your holding costs:(Storage Costs + Opportunity Costs + Depreciation Costs + Employee Costs) / Total Value of Annual Inventory is the definition of holding cost.You will need the demand rate, setup costs, and holding costs to determine the economic order quantity. EOQ is calculated as [2(setup costs)(demand rate) squared] expense of holding.To learn more about holding cost refer to:
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