If the auditor determines that inner controls aren't functioning as designed, and a compensating manipulate does now no longer exist, the auditor will determine manipulate chance and the chance of cloth misstatement (rmm) as high and set detection(risk) as low.
The auditor will determine manipulate chance as excessive as inner controls aren't working as deliberate and there may be no different manipulate in place. The auditor will conduct extra sizeable exams to make certain detection chance is low and probabilities of cloth misstatement are low. The audit of inner manipulate over monetary reporting must be included with the audit of the monetary statements. The goals of the audits aren't identical, however, and the auditor should plan and carry out the paintings to obtain the goals of each audits.
ICFR refers to the controls especially designed to cope with dangers associated with monetary reporting. In easy terms, a public company's ICFR includes the controls that are designed to offer affordable warranty that the company's monetary statements are dependable and organized according with GAAP. The auditor must shape an opinion at the effectiveness of inner manipulate over monetary reporting with the aid of using comparing proof received from all sources, including the auditor's checking out of controls, misstatements detected throughout the monetary assertion audit, and any diagnosed manipulate deficiencies.
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when management centralizes a resource, such as a library or research department, and allows other units in the organization to have access to it, what kind of relationship does that resource have with those units?
when management centralizes a resource, such as a library or research department, and allows other units in the organization to have access to it, they are having Service kind of relationship.
Depending on their availability, resources can be divided into renewable and non-renewable categories. They can be divided into real and potential categories according to their level of development and use, biotic and abiotic categories according to their resource, and localised categories according to where they are distributed.
A group of people who cooperate, such as in a union, corporation, charity, or neighborhood association, constitutes an organisation. The word "organisation" can apply to a person, a group, a company, or the process of creating something. An entity, such as a business, institution, or association, that consists of one or more people and has a specific goal is known as an organisation.
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softstep stables has developed a lighter horseshoe for thoroughbreds, called the air citation. the company is presently experiencing labor difficulties and plans to raise wages to avert a strike. this will increase the variable cost per shoe from $15 to $21. the shoes presently sell for $47 each, but due to the competitive environment, softstep stables plans to drop their price to $32 each. their current volume is 1,000 units. fixed costs are $1,800. what will be the new unit volume required to generate the same total contribution as before?
Variable price may be a price that remains constant on a per unit basis no matter the output level, but it will increase in totality. Fixed costs, on the contrary, remain constant in totality and reduce on a per-unit basis because the output level will increase.
Current Situation: Terms per unit = $49 Variable prices per unit = $15 Sales Volume = 800 units.
Contribution Margin per unit = terms per unit - Variable prices per unit Contribution.
(($2.88 - $1.22) - ($2.88 - ($1.22 + .40))) / ($2.88 - $1.22) = 0.24[+/- 0.01](24%[+/- 1%]
Change in contribution divided by the original contribution, divide the new contribution margin by the old contribution margin and subtract the result from 1.
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how can liens, such as those created by non-payment of federal income tax, result in mortgage default?
New liens can threaten the lender's position as the primary lienholder. The default can occur for this reason.
When you disregard or refuse to pay a tax debt, the government will have a legal claim against your property known as a federal tax lien. All of your property, including real land, personal property, and financial assets are covered by the lien, which safeguards the government's interest in them.
Simply submitting and paying all of your taxes in full and on time will prevent a federal tax lien from forming. Do not disregard the IRS correspondence if you are unable to file or pay on time.
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tax rates for the wealthiest americans, particularly the super wealthy, have dropped dramatically over the past three and a half decades, regardless of whether republicans or democrats are in control in washington. what does this suggest?
The reduction in the taxes suggests that regardless of the party in power, wealthy Americans have often maintained their political influence.
Every dollar of wages received by an American is immediately subject to regular income tax rates. But when they make a dollar profit because the value of their stocks rises, that dollar is either taxed at a low preferred rate or not at all.
The wealthiest Americans will benefit greatly from this preferential treatment of investment gains because it is their main source of income. However, because the most popular estimates of tax rates utilize an inadequate measure of income, they do not accurately reflect the value of this tax benefit. For two main reasons, the wealthy consistently pay low income tax rates. First, a large portion of their income is taxed at favorable rates.
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blink appliances plans to order microwaves and stoves. each microwave requires 2 hours to unpack and set up in the storeroom, and each stove requires 4 hours. the storeroom space is limited to 68 items. the budget of the store allows only 244 hours of employee time for unpacking and setup. microwaves yields a profit of $128 each, and stoves yields a profit of $174 each. how many of each should the store order to maximize profit?
According to the given information, The maximum profit is $11,188 with 14 microwaves ordered and 54 stoves ordered.
Let x = number of microwaves
Let y = number of stoves
Objective function:
Maximum profit, P = 128x + 174y
x + y = 68 → 1
2x + 4y = 244 → 2
⇒4x + 4y = 272 (multiply the first equation by (4))
⇒2x + 4y = 244
equations 1-2
2x = 28
x = 14 ( number of microwaves )substitute x = 14
x + y = 68
14 + y = 68
y = 54 ( number of stoves )Now we substitute x and y values into the objective function:
Maximum Profit (P) = 128(14) + 174(54) = $11,188 with 14 microwaves ordered and 54 stoves ordered.Learn more about Maximum Profit, here
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what are two ways that performance planner can help reveal the possibilities across all your ads campaigns? (choose two.)
The two ways a performance planner can help are validation and simulation.
The Performance Planner is a system supporting the planning of search campaigns and can assist in maximising the firm's ad budget for growth. To make predictions, it combines machine learning with account history. Projections must be accurate to a certain degree with Ads tools. One can view campaign projections, investigate results, comprehend opportunities, decide on budgets, and boost ROI.
There are two ways a performance planner can help, these are validation and simulation. The forecast mechanism replicates specific advertisement auctions employing query level factors such as seasonality, clickthrough rate, rivals, landing page, and time. In contrast, validation is the process through which software evaluates the accuracy of thousands of campaign samples over the course of 1, 7, 30, or 90 days by doing backwards and forward measures of accuracy.
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how could a government reduce inflationary pressures within an economy? select all that apply: increase taxes reduce taxes increase government spending reduce government spending
The correct answer is increase taxes and reduce government spending.
One strategy for managing inflation is to implement a contractionary monetary policy. By lowering the bond prices and raising interest rates, a contractionary policy aims to reduce the amount of money available in an economy. As a result of which the prices drop, inflation slows, and consumption declines.
If the government spends more, more economic activity results, which generates income that cascades through the economy in cycles of new spending and income.
If the government were to reduce expenditure, there would be no new revenue earned by the government, which would leave businesses and employees with less money to spend and cause a smaller economic impact.
People pay a larger percentage of their income in taxes if the government raises the income tax rate, which leaves them with less money to spend on goods and services.
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how is immigration affecting u.s. demographics? multiple choice it is increasing the diversity of the workforce. it is decreasing the number of workers. it is decreasing the number of consumers.
Due to their higher fertility rate than natives, immigrants also contribute to the demography of modern economies. In 2017, the total fertility rate in the United States was 1.76 children per woman among natives, compared to 2.18 among immigrant.
What impact does immigration have on American workers?
Numerous empirical studies have established the advantages of immigration for American workers. With a few notable exceptions, it has been discovered that even immigrants with low levels of formal education have little impact on the salaries of workers with comparable levels of education. Although immigrants enhance the labour supply, they also increase domestic economic demand by buying homes, food, TVs, and other goods and services with their earnings. As a result, there are more employment needed to build those homes, produce and sell food, and deliver TVs. 27-Jun-2016
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land improvements are: multiple choice additions that increase the usefulness of land and are not depreciated. additions to land that have limited useful lives. included in the cost of the land account. expensed in the period incurred. also called basket purchases.
Assets that make land more useful yet have a short lifespan and are prone to depreciation.
Depreciation definition:A tangible item's cost can be spread out over the period of the its useful life using the accounting approach of depreciation. Depreciation illustrates how much more of an asset's worth has actually been lost. It makes it possible for companies to buy assets over a predefined timeframe and profit from those assets.
Is depreciation a cost?Depreciation is a component of almost every company's financial statement. Since it is recorded as an expense, it should be taken into consideration anytime an item is computed for year-end tax reasons or to assess whether it is still viable for liquidation.
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in the context of establishing incentive systems, identify a true statement about the attitude of unions toward incentives
In the context of establishing an incentive systems, a true statement about the attitude of unions toward incentives is that Unions tend to support organization wide systems because they provide extra earnings to their members.
What is an incentive systems?The basic requirement of creating an effective incentive system for individuals and the organization is understanding the human behavior and motivators of human behavior. Various theories helps to understand human behavior include utility theory, principal-agent theory, need hierarchy theory, two factor theory, cognitive evaluation theory, expectancy theory, goal-setting theory, and equity theory.
All these determinants influencing human judgment and decision-making highlights the complexity of understanding human behavior. The elements that are part of an incentive system includes:
Monetary Compensation (example: bonuses, awards, profit-sharing, and incentive plans)Non-monetary Compensation (example: gifts, company car, company insurance)Targets (example: easy, difficult, stretch)Career Prospects (example: promotion, termination of contract)Reputational Considerations (example: praise, awards, status, wider recognition in society, positive impact of job)Meaningfulness of Tasks (such as job rotation, job enrichment, enlargement).Read more about incentive system
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Rick invests $7,174 in an account that earns an annual interest rate of 3%. what will be the balance of the account in 18 years if the interest is compounded monthly?
With annual interest rate o f3% compounded monthly, his balance in 18 years will be $12,302.34
The formula for the future value is given by:
FV = PV (1 + r)ⁿ
Where:
r = interest rate per period
n = number of periods
PV = present value
Parameters given in the problem:
PV = $7,174
r = monthly interest = 3%/12 = 0.0025
n = 18 years x 12 = 216 months
Plug these parameters into the formula:
FV = 7,174 (1 + 0.0025)²¹⁶
= 12,302.34
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fredrick has so many student loans, he can't afford rent on an apartment. most of the time, he lives in his car and even though he has a job, he can't seem to make enough to save for the deposit and rent payments. he rarely gets a full night's sleep and as a result he has difficulty concentrating at work. he is jumpy and scared at night and worried all the time. fredrick is struggling to fulfill which two of maslow's needs?
Fredrick is struggling to fulfill Physiological safety.
How vital is psychological safety?
Psychological safety is the conviction that you won't suffer consequences or face humiliation for voicing your opinions, queries, worries, or errors.
As was already noted, an atmosphere that fosters psychological safety makes innovation easier since staff members are less prone to fear failure and more likely to question the status quo. This aids in solving challenging issues and identifying innovative working methods.
The capacity to express one's thoughts and feelings without fear of losing one's reputation or standing is known as psychological safety. It refers to members of a team feeling comfortable taking risks without fear of being shamed by their teammates. Members of teams that are psychologically safe feel.
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a stock has an expected return of 14.8 percent, the risk-free rate is 5.8 percent, and the market risk premium is 7.5 percent. what must the beta of this stock be?
The profit or loss an investor can anticipate realizing from an investment is known as the expected return. Calculating an expected return involves multiplying possible outcomes by their likelihood before adding the results. Return expectations cannot be ensured.
The expected return on investment, or ER, is what investors hope to make. For instance, if a bond pays the maximum return when it matures, it may be the ER on the bond.
Using CAPM, the return is calculated as follows: return = risk-free rate + beta*risk premium (14.8 = 5.8+B*7.5 Beta,B = 14.8-5.8)/7.5 = 1.2
The return an investor anticipates receiving from a single investment or a portfolio of investments is known as the expected return on investment. This assumed return is neither a certainty or an assured result because it is based on the idea of chance.
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a company's sales in year 1 were $430,000 and in year 2 were $467,500. using year 1 as the base year, the percent change for year 2 compared to the base year is:
The percent change for year 2 compared to the base year is 9%
What is sales?A sale is a deal in which two or more parties exchange goods or services for cash or other assets.A sale in the financial markets is an arrangement involving the cost of a security and its delivery for agreed-upon payment between a buyer and a seller.A gift or donation is what is referred to as when an item or service is given from one party to another without any money changing hands.Sales are a significant component of the fundamental framework of commerce and happen around the clock, worldwide, in a variety of industries.A price cut made on a service or product in an effort to draw customers also qualifies as a sale.Calculation
The of percentage change for year 2 compared to base year
⇒[(year 2 sales – Base year sales)/ base year sales]*100
⇒[($467,500-$430,000)/$430,000]*100
⇒(37,500/$430,000)*100
⇒9%
Hence, The percent change for year 2 compared to the base year is 9%
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what are two reasons that consumers engage in webrooming. multiple select question. for the convenience to avoid the crowds at stores to gain immediate possession of a product to avoid shipping costs
Contrarily, webrooming is when customers examine things online before making a final decision and buying them in-store. Customers used the internet for the majority of their purchase research instead of wasting afternoons and weekends wandering around stores.
They then choose to pick up items locally to save shipping fees and wait times. Despite being on different ends of the shopper behavior spectrum, showrooming and webrooming have both developed as a result of technology's increasing accessibility. Webrooming eliminates the need for shipment.
Customers who use webrooming have the best of both worlds: they may shop from home and acquire their goods right away. It does away with waiting times as well as shipping expenses. The possibility of cross-selling and upselling products is provided by webrooming.
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Derek's team is struggling to come to a consensus because several people are unwilling to share their thoughts. What would be the BEST question for the group to ask themselves to avoid groupthink?
Question 3 options:
How is this situation similar to others we've encountered?
What about the group could be making people feel unsafe?
How would this situation look different if we had more money?
Can we get rid of the people who aren't willing to speak up?
If the team is struggling to come to a consensus because several people are unwilling to share their thoughts. The BEST question for the group to ask themselves to avoid groupthink is: B) What about the group could be making people feel unsafe?
What is groupthink?Groupthink refers to the way in which members of a group accepts
the decisions made in the group even if the decision they all accepted will have a negative effect on them as they do not consider the consequence that is attached to the conclusion they reach and they does this so as to be in one accord or for unity to reign among them.
Based on the given scenario it is advisable that the leader of the group to ask the members the reason why they feel unsafe to shares their thought or what they have on the mind as by doing this will help to give them insight about the reason why the members are unwilling to share their thought as well how to combat that feelings.
Therefore the correct option is B.
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Answer: What about the group could be making people feel unsafe?
Explanation: I took the quiz
suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. what can we conclude about the concentration ratio?
Suppose that total sales in an industry in a particular year are $600
The concentration ratio of industry is 83.33%
Calculating the problem:Concentration ratio is the sum of the sales by corporations to the total market share.
The concentration ratio = ($200 million + (150 million) + ($100 million) + ($50 million)/$600 million
= $500 million / $600 million
=83.33%
What's the meaning of concentration rate?The concentration rate is calculated as the sum of the request share chance held by the largest specified number of enterprises in an assiduity. The concentration rate ranges from 0 to 100, and an assiduity attention rate indicates the degree of competition in the assiduity.
What's high concentration rate?A high concentration rate indicates that a many enterprises produce utmost of the assiduity affair and may indicate a significant quantum of request power in the assiduity. High concentration rates don't inescapably indicate request power.
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samsung is sharing in the costs of the most recent best buy advertising campaign. samsung lcd televisions will be highlighted in all ads. this is an example of .
Samsung is sharing in the costs of the most recent best buy advertising campaign. Samsung lcd televisions will be highlighted in all ads. this is an example of cooperative advertising.
What kind of marketing focuses on the identity and reputation of a company or sector?Institutional advertising is a type of marketing that makes use of sponsored media to advance the reputation, goals, or name of your organization. Institutional advertising can be used to spread knowledge about a problem or cause, to spark interest in a good or service, or even just to build brand recognition and loyalty.
Which of the following outcomes from a sales promotion multiple choice question is preferred?Customers utilize a coupon to test a new product once, and if they like it, they go on to buy it again and again.
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in fighting ambushing marketing, who should be responsible, the host venue or organizer or the sponsoring brands?
During the most recent soccer tournament made headlines. This note defines ambush marketing, details how businesses can breaking ambush marketing regulations developing marketing strategies.
Ambush advertising occurs when an organization that isn't a political tournament candidate sponsors an event (like a sporting competition or music ambush marketing festival) and engages in promotional activities in an effort to establish an association with the event or to take advantage of the event's profile without the owner's consent.
For instance, if a retailer of consumer goods on the high street published an advertisement for "World Cup WAG handbags" or "Olympic Special ambush marketing Offer: two for one sports gear," readers might assume that the company has some connection to the world Cup or the Olympics.
Because they must protect the value of their own commercial rights in tournament the event and because they may have chosen official sponsors (possibly direct competitors of the advertiser) who have paid significant sums for the exclusive rights to be formally associated with the event, event owners frequently respond angrily to ambush advertising.
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the law of diminishing marginal returns is caused by part 2 a. poor quality fixed inputs. b. insufficient amounts of the variable input. c. some workers performing poorly on the job. d. the existence of a fixed input that must be combined with increasing amounts of the variable input.
the law of diminishing marginal returns is caused by part the existence of a fixed input that must be combined with increasing amounts of the variable input.
An economic theory known as the law of diminishing marginal returns states that once an optimal level of capacity is reached, adding more factors of production will really only lead to smaller improvements in output.
For instance, a factory hires workers to produce its goods, and eventually the business performs at its best. If you increase the number of employees beyond this point, operations will become less efficient even if all other production factors remain constant.
The idea of declining marginal utility is connected to the law of diminishing returns. Economies of scale can be used to contrast it.
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how much the bond price will be if the market rate is the same as the coupon rate for a $1,000 face value bond? how much the same bond will be priced if the maturity is only 3 months away when market rate has dropped 2% below the coupon rate?
If the Market rate and coupon rate are the same, then the bond price can't change which means the bond price is the same as the face value, so here the Bond price will be $1000 as it's not changed because the market rate and coupon rate are the same.
If the 2% decrease in bond interest rate then the bond price is increased above par value so there is a market premium, so the bond price will be increased by 2% = $1020
The stocks and the bond price are generally related to each other. When the price of the bond begins to fall, the stock market will plummet too. Stock returns and bond returns can both be negative. The price which investors are willing to pay is known as the bond price. The market price of the bond consists of two parts. The face value of the bond represents the first part and the bond interest payment represents the second part.
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after being hired to deliver newspapers to his neighbors, a man is provided with $10,000 of life insurance by the newspaper. he would be covered under which kind of life insurance?
A man is recruited by a newspaper to distribute newspapers to his neighbors, and the newspaper gives him $10,000 in life insurance. He would be protected by life insurance of the Blanket type. All life insurance policies include paying premiums to the insurance company throughout the policy's duration.
A contract between an insurance policy holder and an insurance company in which the insurer agrees to pay a quantity of money in exchange for a premium upon the demise of an insured person or after a specific amount of time is known as life insurance.
Every person in the modern era needs to have a life insurance policy because it is one of the finest ways to safeguard one's future and the futures of their loved ones. The market is filled with a wide variety of life insurance coverage.
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rene is a manager at a mid-size hospital. she has basic familiarity with all functional areas necessary to manage the hospital. which type of manager is she
Rene is a manager at a mid-size hospital. she has basic familiarity with all functional areas necessary to manage the hospital. Administrative type of manager is she.
Operations managers are involved with developing and dealing with the structures that create an organization's merchandise and services. IE's are regularly in those positions. They acquire their dreams thru manufacturing control, stock control, exceptional control, and plant Web page choice and layout. The 0.33 managerial function is leading, a pastime this is regularly visible because the maximum essential and tough of all of the managerial functions. In this stage, managers are predicted to inspire personnel to assist them acquire their dreams and objectives.
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true or false: service retailers often adjust prices according to capacity utilization. true false question. true false
The statement is False. Service retailers often adjust prices according to capacity utilization.
Usage is described as the quantity of an employee's available time it's used for efficient, billable paintings, expressed as a percentage. An worker's utilization fee is a essential metric for companies to song.
Proper utilization of assets is essential for preserving productivity, as it prevents workforce from underperforming or being overburdened by way of workloads and burning out. Initiatives can be controlled with better visibility, reducing the threat of oversights.
You can calculate the utilization price with the aid of dividing billable hours worked by way of the quantity of hours labored in a day. Consciousness price: This measures the capability fee of work accomplished. You can determine your regulation firm's realization rate by way of dividing the quantity of billable hours invoiced by using the quantity of hours worked.
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when coverage is provided under the additional coverages of section ii of a homeowners policy, payments are:
Under section 2 coverages provided are
Claim expensesfirst aid expensesdamage coverageloss assessment chargesliability for damage to third persondamage to property of others ( $1000)What do you mean by section ii of a homeowners policy?
Homeowners insurance policy-section ii (liability coverage) section providing protection under three coverages
Coverage E (Personal Liability)coverage in the event a suit is brought against the insured because of bodily injury property damage resulting from the acts or non-acts of the insured.It deals with various fines, coverages that need to be paid by the people.
Hence, the above factors explains our answer.
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you work for an advertising agency that is preparing a new television commercial to appeal to women. you have been asked to design an experiment to compare the effectiveness of three versions of the commercial. each subject will be shown one of the three versions and then asked her attitude toward the product. you think there may be large differences between women who are employed outside the home and those who are not. because of these differences, you should use a
The large differences between women who are employed outside the home and those who are not are the reason one should use a block design.
When the word commercial pops up, widespread business activity and commerce come into one's mind. The organization inquires about what kind of design one would prefer to utilize. In two levels of therapy, a matched pair design is used. The two final options are the completely randomized design and the randomized block design. In a completely randomized design, only one treatment component is considered. In randomized block design a treatment factor and a blocking factor are both considered (reminder that the blocking factor is controlling for a nuisance variable like if the experimental unit is employed or not). Since this design wants to consider that, the answer is a randomized block design.
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competitive strategies are intended to: group of answer choices improve a firm's ability to challenge other firms. improve capital productivity. improve both labor and capital productivity. reduce the firm's debt levels. reduce competitors' prices.
Competitive strategies are intended to ; improve a firm's ability to challenge other firms.
Hence, Option A is correct.
What do you mean by Competitive strategies ?
Competitive strategy is a long-term action plan of firms in order to gain a competitive advantage over its competitors in the business market. It is used to improve position in market and generate a greater Return on Investment (ROI). The objective is to win the customers’ hearts through satisfying their needs and to attain competitive advantage as well as out-compete the competitors and rival companies.
Four Types of Competitive Strategy
Cost Leadership StrategyDifferentiation Leadership StrategyDifferentiation focusCost focusTherefore, Competitive strategies are intended to ; improve a firm's ability to challenge other firms.
Hence, Option A is correct.
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What will be the general impact on janet’s amortization schedule by making this single larger payment?.
She will pay more total interest, making her trip cost more overall.
How can amortization be explained?
The process of dividing a loan into a series of fixed payments is known as amortization. At the conclusion of the payment plan, the loan is paid off. Your loan balance and interest costs each receive a portion of each payment. You pay less interest and more toward your balance over time.
What is 6 percent on a loan of $300,000?
For instance, a $30,000 loan with a 36-month term and 6% interest costs $2,856.The same loan—$30,000 at 6% interest rate—would cost $5,797 in interest over 72 months to repay.
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consider pacific energy company and atlantic energy, inc., both of which reported earnings of $790,000. without new projects, both firms will continue to generate earnings of $790,000 in perpetuity. assume that all earnings are paid as dividends and that both firms require a return of 11 percent. what is the current pe ratio for each company? pacific energy company has a new project that will generate additional earnings of $175,000 each year in perpetuity. calculate the new pe ratio of the company. atlantic energy has a new project that will increase earnings by $350,000 in perpetuity. calculate the new pe ratio of the firm.
a) PE ratio = 9.09 times
b) PE ratio = 11.10 times
c) PE ratio = 13.12 times
a) as this is a case of perpetuity with no growth rate
PE ratio for each company = 9.09 times
Explanation: Please refer to the solution in this step.
b) if pacific energy has additional earnings of 175,000
PE ratio = 11.10 times
Explanation: Please refer to the solution in this step.
c) if Atlantic energy has additional earnings of 350,000
PE ratio = 13.12 times
Explanation: Please refer to the solution in this step.
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the tracking signal for the forecast in the following table is: month forecast demand actual demand april 200 190 may 185 210 june 180 190 july 230 210 august 215 185 a. more than -4 but less than or equal to -2. b. more than -2 but less than or equal to 0. c. more than 0 but less than or equal to 2. d. more than 2 but less than or equal to 4.
The tracking signal for the forecast in the following table is More than -2 but less than or equal to 0.
TS (Tracking Signal) is provided by:
RSFE = MAD / RSFE
Here,
Running Sum of Forecast Error (RSFE) = ∑(Actual - Forecast)
Mean Absolute Deviation (MAD) = ∑|Actual - Forecast| / n
Therefore,
RSFE = (190 - 200) + (210 - 185) + (190 - 180) + (210 - 230) + (185 - 215)
= -25
MAD = (|190 - 200| + |210 - 185| + |190 - 180| + |210 - 230| + |185 - 215|) / 5
= 19
Hence:
Tracking Signal = -25 / 19
Tracking Signal = -1.316
More than -2 but less than or equal to 0
The difference between the actual and the forecasted values for sales, inventory, or any other aspect of future demand for an organization is automatically signaled by a tracking signal. When unexpected deviations from the forecasts in the results occur, it monitors and alerts.The ratio of the mean absolute deviation to the total sum of the deviations between the estimated forecasts and the actual values is known as a tracking signal. The tracking signal ratio mentioned above is used as the smoothing parameter in simple exponential smoothing in Trigg and Leach's 1967 adaptive method of forecasting.Learn more about Tracking Signal, here
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