To have an effective code of conduct, an organization should:
d. Continually reinforce the organization's commitment to ethical behavior from all members of the organization.
An effective code of conduct is not a one-time exercise but an ongoing process. The organization should regularly communicate and reinforce its commitment to ethical behavior throughout the company. This can be achieved through various means such as training programs, meetings, internal communications, and leadership actions. By consistently emphasizing the importance of ethical conduct, the organization creates a culture that encourages and supports ethical behavior among employees. While the other options (a, b, and c) may have some relevance in certain contexts, they alone do not ensure the effectiveness of the code of conduct. Treating the code as a confidential document (a) may limit its reach and understanding among employees. Simply posting the code on a bulletin board (b) without active communication and engagement may result in employees overlooking or not fully understanding the content.
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Define the consumer market and describe the four major sets of factors that influence consumer buyer behaviour. Which characteristics influenced your choice when deciding on the school you would attend? Are those the same characteristics that would influence you when deciding what to do on Saturday night? Explain the differences by using the theories provided in the lecture. Discuss in your own words in 250 words
The consumer market refers to the group of individuals who purchase goods and services for personal use.
The consumer market consists of individuals who purchase goods and services for personal use. Consumer buyer behavior is influenced by various factors:
1. Cultural factors: These include values, beliefs, customs, and cultural norms that influence consumer behavior. Cultural factors shape preferences, perceptions, and decision-making processes.
2. Social factors: Social influences from family, friends, social groups, and society at large play a significant role. Opinion leaders, reference groups, and social norms impact consumer choices.
3. Personal factors: Personal characteristics such as age, occupation, income, lifestyle, and personality traits influence consumer behavior. These factors shape individual preferences, needs, and motivations.
4. Psychological factors: Psychological factors encompass internal influences like perception, learning, motivation, and attitudes. Cognitive processes, emotions, and individual differences impact consumer decision-making.
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Average Product is the Total output divided by the total of an input Change in total output from a change in an input Total input divided by the total output None of the above is correct Question 2 The Average Product (AP) rises as long as The marginal product is greater than AP The marginal product equals AP The marginal product is less than AP None of the above is correct
Average product (AP) is the total output of a production process divided by the total amount of input used to produce the output.
The average product (AP) rises as long as the marginal product is greater than the average product (AP).Marginal product (MP) is the amount by which the total product (TP) increases when one more unit of the variable input is employed, other things constant. It is the extra output that results from one more unit of input.
Average product (AP) is the total product divided by the quantity of the variable input used to produce that output. It is the productivity of the variable input. Mathematically, MP = ΔTP/ΔL where Δ stands for "change in" or "difference" and L represents the quantity of the variable input. AP = TP/L where L represents the quantity of the variable input used to produce the total product or output. Therefore, when MP > AP, AP rises. When MP = AP, AP is at its maximum.
When MP < AP, AP falls. Thus, if the marginal product is greater than the average product, the average product is still rising. When the marginal product equals the average product, the average product reaches its maximum value. If the marginal product is less than the average product, the average product will decline.
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Why do we Compute the Cost Per Equivalent Unit of Production, Not How but WHY? To Compute the Amount We need to Charge Customers To Compute the Net Income To Compute the Cost of Goods Manufactured To Compute the Cost Per One Unit
The cost per equivalent unit of production is computed for several reasons. Let's explore each of the reasons you mentioned and why the cost per equivalent unit is relevant in those cases:
To compute the amount we need to charge customers:
The cost per equivalent unit helps determine the appropriate selling price for a product. By understanding the cost per unit, a company can factor in its desired profit margin and market conditions to determine the selling price that will cover the costs incurred during production and generate a profit.
To compute the net income:
Net income is calculated by subtracting total expenses from total revenue. To accurately determine the cost of goods sold (COGS) and ultimately calculate net income, it is essential to know the cost per equivalent unit. The cost per equivalent unit allows for a proper allocation of costs to the goods produced, providing an accurate measure of the expenses associated with the units sold.
To compute the cost of goods manufactured:
The cost per equivalent unit is used to allocate costs between goods that are partially completed and those that are fully completed. In manufacturing processes where goods are produced over multiple stages or periods, it is necessary to determine the cost of goods manufactured during a specific period. The cost per equivalent unit helps in determining the cost of partially completed goods by considering the costs incurred up to that point.
To compute the cost per one unit:
The cost per equivalent unit is used to calculate the cost of producing one unit of a product. This information is important for various purposes, such as pricing decisions, cost control, and financial analysis. It allows managers to assess the cost efficiency of the production process and make informed decisions about production levels, pricing strategies, and profitability.
In summary, the computation of the cost per equivalent unit of production is crucial for determining pricing, calculating net income, allocating costs, and understanding the cost structure of a company's products. It provides valuable insights into the production process and helps in making informed decisions related to pricing, cost control, and profitability.
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All American Telephones Inc. Is considering the production of a new cell phone. The project will require an after-tax investment of $17 million, If the phone is well received, the project will produce after-tax cash flows of $11 million a year for 3 years, but if the market does not like the product, the after-tax cash flows will be only $3 million per year. There is a 50% probability of both good and bad market conditions. All American can delay the project a year while it conducts a test to determine whether demand will be strong or weak. The delay will not affect the dollar amounts involved for the project's after-tax investment or its after-tax cash flows-only their timing. Because of the anticipated shifts in technology, the 1 -year delay means that after-tax cash flows. Will continue only 2 years after the initial investment is made. All American's WACC is 13%. What action do you recommend? Enter your answers in millons. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, If any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to three decimal places. NPV without waiting: $ million NPV of waiting 1 year: $ million The best choice
The best choice is to delay the project for one year to gather market information before proceeding.
npv without waiting: $18.924 million
npv of waiting 1 year: $22.982 million
the best choice is to wait one year before proceeding with the project.
to determine the best course of action, we need to calculate the net present value (npv) of the project with and without waiting. without waiting, the after-tax cash flows for 3 years are $11 million per year. using the after-tax investment of $17 million and the company's weighted average cost of capital (wacc) of 13%, we calculate the npv without waiting.
by waiting one year, the project's after-tax cash flows will be received for only 2 years. however, this allows the company to conduct a test and gather information about market conditions. the after-tax cash flows for these 2 years will be $11 million per year if the market likes the product, and $3 million per year if the market does not. again, using the wacc of 13%, we calculate the npv of waiting.
comparing the npv without waiting ($18.924 million) to the npv of waiting ($22.982 million), we can see that waiting one year yields a higher npv.
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Think about a project that you have come across. (examples: birthday parties, weddings, school event, etc.) a. What is the project that you were involved in? b. Create a Work Breakdown Structure (WBS) for the project. Your WBS should include major tasks (level 2), sub tasks (level 3), and at least one sub task with activities (level 4). (See the WBS example for building a house)
a. The project I was involved in was organizing a school fundraising event.
b. Work Breakdown Structure (WBS) for Organizing a School Fundraising Event:
Level 2 Tasks:
1. Planning and Preparation
2. Marketing and Promotion
3. Venue and Logistics
4. Fundraising Activities
5. Volunteer Management
6. Financial Management
7. Event Execution
Level 3 Subtasks:
1. Planning and Preparation
1.1 Define objectives and goals
1.2 Create an event timeline
1.3 Identify target audience
1.4 Determine budget
1.5 Select event theme and concept
2. Marketing and Promotion
2.1 Develop marketing plan
2.2 Design promotional materials (posters, flyers, banners, etc.)
2.3 Implement online and offline marketing strategies
2.4 Coordinate with media outlets for event coverage
3. Venue and Logistics
3.1 Secure event venue
3.2 Arrange necessary permits and licenses
3.3 Set up event layout and decorations
3.4 Coordinate audiovisual and technical requirements
3.5 Arrange parking and transportation logistics
4. Fundraising Activities
4.1 Plan and organize auction or raffle
4.2 Coordinate with sponsors for donations
4.3 Arrange entertainment and performances
4.4 Set up fundraising booths and activities
- 4.4.1 Subtask: Silent Auction
- 4.4.1.1 Activity: Solicit donations from local businesses
- 4.4.1.2 Activity: Create bidding sheets and display items for auction
- 4.4.1.3 Activity: Manage bidding process and collect payments
5. Volunteer Management
5.1 Recruit and train volunteers
5.2 Assign volunteers to specific tasks
5.3 Coordinate volunteer schedules
5.4 Provide necessary resources and support to volunteers
6. Financial Management
6.1 Create a budget and track expenses
6.2 Establish a system for collecting funds
6.3 Maintain financial records and documentation
6.4 Coordinate with the school administration for financial matters
7. Event Execution
7.1 Coordinate event setup and logistics
7.2 Manage registration and attendee check-in
7.3 Oversee fundraising activities and booths
7.4 Ensure smooth flow of the event
7.5 Handle any unforeseen issues or emergencies
This Work Breakdown Structure (WBS) provides a hierarchical breakdown of the major tasks and subtasks involved in organizing a school fundraising event. It captures the key components and activities required to successfully execute the project.
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Note: In all cases, the acceleration due to gravity (g) is 10 m/s 2
. Express forces in Newtons unless otherwise indicated. 1. A boulder has a mass of 40 kg. What is its weight (in Newtons) measured at the surface of the earth? What is the weight in pounds? (1 pt)
To calculate the weight of the boulder, we can use the formula:
Weight = mass * acceleration due to gravity
Given that the mass of the boulder is 40 kg and the acceleration due to gravity is 10 m/s^2, we can substitute these values into the formula:
Weight = 40 kg * 10 m/s^2 = 400 N
Therefore, the weight of the boulder is 400 Newtons.
To convert the weight from Newtons to pounds, we can use the conversion factor:
1 Newton = 0.2248 pounds
Weight (in pounds) = Weight (in Newtons) * Conversion factor
Weight (in pounds) = 400 N * 0.2248 pounds/N ≈ 89.92 pounds
Therefore, the weight of the boulder is approximately 89.92 pounds.
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following distance (the distance between the taxi and the lead car) was recorded. The sample mean following distance was 3.50 meters and the sample standard deviation was 1.13 meters. ( )m Interpret the interval. (b) What assumption must be made in order to generalize this confidence interval to the population of all taxi drivers in Greece? We need to assume that taxi drivers used in the study are all drive the same make and model car. We need to assume that taxi drivers used in the study are representative of all taxi drivers in Greece. We need to assume that taxi drivers used in the study are representative of all drivers who have used the simular We need to assume that taxi drivers used in the study are representative of all drivers in Greece. We need to assume that taxi drivers used in the study are all using the same mobile phone.
a) Interpretation of the interval is as follows: There is a 95% chance that the true average following distance of all the taxi drivers in Greece lies between 3.17 meters and 3.83 meters.
The following interval is obtained by using the formula for a confidence interval where the sample mean following distance is 3.50 meters, the sample standard deviation is 1.13 meters, sample size is 100, degrees of freedom (df) is 99, and t (value for 95% confidence interval) is 1.984 (obtained using t-distribution table). Thus, the interval is calculated as follows: $$(\bar{x}-t_{\alpha/2}\frac{s}{\sqrt{n}},\bar{x}+t_{\alpha/2}\frac{s}{\sqrt{n}})$$$$=(3.50-1.984\frac{1.13}{\sqrt{100}},3.50+1.984\frac{1.13}{\sqrt{100}})$$$$=(3.17,3.83)$$b)
The assumption that must be made in order to generalize this confidence interval to the population of all taxi drivers in Greece is that the taxi drivers used in the study are representative of all taxi drivers in Greece. Therefore, option B is correct. It is important to have a random sample of taxi drivers to ensure that the results of the study can be generalized to the population of all taxi drivers in Greece. If the sample is not random and representative, the results of the study cannot be applied to the population and it would not be valid to generalize the findings.
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For the past year, Kayla, Incorporated, has sales of $45.407, interest expense of $3,464, cost of goods sold of $15,784, selling and administrative expense of $11,291, and depreciation of $5,690. If the tax rate is 21 percent, what is the operating cash flow?
The operating cash flow for Kayla, Incorporated, is $9,987.98. This represents the amount of cash generated from the company's core operations after accounting for taxes and excluding non-operating items.
To calculate the operating cash flow, we need to subtract the tax expense from the earnings before interest and taxes (EBIT). The formula for operating cash flow is as follows:
Operating Cash Flow = EBIT - Tax Expense
First, let's calculate the EBIT:
EBIT = Sales - Cost of Goods Sold - Selling and Administrative Expenses - Depreciation
= $45,407 - $15,784 - $11,291 - $5,690
= $12,642
Next, we calculate the tax expense:
Tax Expense = EBIT * Tax Rate
= $12,642 * 0.21
= $2,654.02
Finally, we can calculate the operating cash flow:
Operating Cash Flow = EBIT - Tax Expense
= $12,642 - $2,654.02
= $9,987.98
Therefore, the operating cash flow for Kayla, Incorporated, is $9,987.98.
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What is the taxable equivalent yield on a municipal bond yielding 6% for an investor in a 12% tax bracket?
Provide your answer in percent, rounded to two decimals omitting the % sign.
The taxable equivalent yield can be calculated by dividing the tax-free yield of the municipal bond by (1 - tax rate). In this case, the tax rate is 12%, so the calculation would be as follows:
Taxable Equivalent Yield = Municipal Bond Yield / (1 - Tax Rate)
= 6% / (1 - 0.12)
= 6% / 0.88
= 6.82%
Therefore, the taxable equivalent yield on a municipal bond yielding 6% for an investor in a 12% tax bracket is approximately 6.82%. The taxable equivalent yield is used to compare the yield of tax-free municipal bonds with taxable investments. In this case, for an investor in a 12% tax bracket, a municipal bond yielding 6% is equivalent to a taxable investment with a yield of 6.82%. This calculation takes into account the tax savings on the municipal bond's interest income due to its tax-free status.
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george is about to buy a variable annuity but concerned about the investment risk he would bear. which of the following woud guarantee him that he would be abe to withdraw funds from the equal to his premium regardless of the separate account performance?
To guarantee that George can withdraw funds equal to his premium regardless of the separate account performance, he should consider a "Return of Premium" guarantee. A Return of Premium guarantee ensures that George will be able to withdraw his premium amount irrespective of how the separate account linked to the variable annuity performs. This guarantee provides a level of protection for his initial investment and reduces the risk of losing the principal.
This feature ensures the protection of his initial investment, allowing him to retrieve his premium amount even if the variable annuity's separate account performs poorly. However, it's important to carefully review associated fees and limitations before making a decision.
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What adjustments are normally made to the pre-retirement budget to arrive at the retirement budget?
I. No longer pay FICA
II. No longer pay Federal Income tax
III. Decreased cost of health care
IV. No longer saving in 401(k)
2.
The historic inflation rate used in the lectures was:
Select one:
a.
2%
b.
3.5%
c.
5%
d.
7%
Select one:
a.
1 and 2 only
b.
2 and 3 only
c.
3 and 4 only
d.
1 and 4 only
e.
1 and 3 only
Adjustments made to the pre-retirement budget for retirement typically involve no longer paying FICA taxes, no longer paying Federal Income tax, experiencing a decreased cost of health care, and no longer saving in a 401(k) retirement account.
When transitioning from a pre-retirement budget to a retirement budget, several adjustments are commonly made. First, retirees no longer need to pay FICA taxes, which include Social Security and Medicare taxes. These taxes are typically withheld from an employee's paycheck during their working years but are no longer applicable in retirement.
Second, retirees may no longer have to pay Federal Income tax. The taxability of retirement income varies based on factors such as the source of income, retirement account distributions, and applicable tax laws. Some retirees may find themselves in a lower tax bracket or qualify for deductions, resulting in reduced or no Federal Income tax obligations.
Third, the cost of health care often decreases in retirement. Medicare, a federal health insurance program primarily for individuals aged 65 and older, typically provides coverage at a lower cost compared to private health insurance plans. Retirees may also qualify for supplemental Medicare plans or other programs that help reduce health care expenses.
Lastly, retirement budgets no longer include contributions to a 401(k) or similar retirement savings accounts. During the working years, individuals typically allocate a portion of their income to retirement accounts. However, once retired, these contributions cease, and retirees rely on their accumulated savings and other income sources to support their retirement lifestyle.
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please help me answer what the throughput capacity for task 1 in customers per minute is and what task(s) would be the bottleneck. will upvote Scenario A: Suppose you are given the following sequential process. Throughput times are shown in parentheses. There are no inventory buffers between tasks, so upstream tasks must wait if downstream tasks are busy. Task 1 (5 minutes) ----> Task 2 (4 minutes) ----> Task 3 (10 minutes) Task 1 can handle 2 customers at once; Task 2 can handle 1 customer at a time; Task 3 can handle 5 customers at a time. What is the throughput time (in minutes) for the entire process (from the start of Task 1 through the end of Task 3)? Pick the closest answer. Refer to Scenario A: What is the throughput capacity for Task 1 in customers per minute? Pick the closest answer. 0.1 02 0.3 04 01 2 3 O 10 Refer to Scenario A: Which task(s) would be the bottleneck(s)? Task 1 O Task 2 O Task 3 O Tasks 1 & 2 O Tasks 1 & 3 O Tasks 2 & 3
To determine the throughput capacity for the tasks in customers per minute, we need to consider the task time and the number of customers it can handle simultaneously. The bottleneck task is considered as the one having the lowest throughput capacity.
The formula for throughput capacity is given as:
Throughput Capacity = [tex]\frac{Number of customers that can be handled at a time}{Throughput time}[/tex]
Therefore, using the formula and the given values, we can calculate the throughput values as:
For task 1 : [tex]\frac{2}{5}[/tex] = 0.4 customers/min
For task 2 : [tex]\frac{1}{4}[/tex] = 0.25 customers/min
For task 3 : [tex]\frac{5}{10}[/tex] = 0.5 customers/min
Therefore, the throughput capacity for Task 1 is 0.4 customers/minute.
The task that will be considered as the bottleneck task would be the one having the lowest throughput capacity. Therefore, the bottleneck task would be Task 2.
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(a) The through put capacity for Task 1 would be 1 customer every 4 minutes.
(b) The answer is "Task 2" as the bottleneck task.
The throughput time for the entire process can be calculated by summing up the individual task times: Task 1 (5 minutes) + Task 2 (4 minutes) + Task 3 (10 minutes) = 19 minutes.
To determine the throughput capacity for Task 1 in customers per minute, we need to consider the slowest task in the process. In this case, Task 2 takes 4 minutes, so Task 1 cannot process customers faster than Task 2. Therefore, the throughput capacity for Task 1 would be 1 customer every 4 minutes.
Based on the given information, the bottleneck(s) in this scenario would be Task 2 because it has the longest processing time compared to the other tasks. Tasks 1 and 3 can handle more customers at a time, but they have to wait for Task 2 to finish before proceeding. Therefore, the answer is "Task 2" as the bottleneck task.
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Shariq is single and made the following gifts this year. How much must he report on his gift tax return? Son Cash gift of $17,473 Daughter Transferred car worth $42,027 Daughter Paid tuition of $22,232 directly to her school ASU Friend Paid the hospital $12,931 to cover a surgery for his friend.
Shariq needs to report a total of $94,663 on his gift tax return, which includes cash gifts, a car transfer, tuition payment, and payment for his friend's surgery
Gift tax is a tax imposed on the transfer of property or money as a gift. In the given scenario, Shariq made several gifts that need to be reported on his gift tax return. The gifts made by Shariq include a cash gift of $17,473 to his son, the transfer of a car worth $42,027 to his daughter, direct payment of tuition of $22,232 to his daughter's school (ASU), and payment of $12,931 to cover a surgery for his friend.
To calculate the total amount Shariq must report on his gift tax return, we add up the values of all the gifts: $17,473 + $42,027 + $22,232 + $12,931 = $94,663. Therefore, Shariq must report a total of $94,663 on his gift tax return for the gifts he made this year. It is important to note that gift tax laws and reporting requirements may vary by jurisdiction, so it is advisable for Shariq to consult a tax professional or refer to the specific tax regulations in his jurisdiction for accurate reporting.
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Discuss the relationship between manufacturing and logistics.
What are the trade offs between the two areas? (Please do not
repeat previous Chegg answers)
The relationship between manufacturing and logistics is quite important for the success of a company. Manufacturing and logistics are two different areas, but they are linked and co-dependent as they have a great impact on each other.
Therefore, it is important to understand their relationship and the trade-offs between them. Manufacturing is the process of making goods from raw materials or other parts. Logistics is the process of managing and coordinating the movement of goods, materials, and people from one place to another. Logistics also involves managing the storage and distribution of goods and materials. Both manufacturing and logistics are vital to the supply chain of a company. Manufacturing is responsible for producing goods while logistics is responsible for transporting and delivering these goods to customers. The relationship between the two can be viewed as a symbiotic one. Logistics is an essential part of manufacturing. Without logistics, manufacturing cannot succeed, and without manufacturing, logistics will have nothing to transport or deliver. Therefore, companies need to find a balance between the two areas. This requires close coordination between the two areas and a good understanding of customer needs.
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Question 3 (5 Marks) Suppose that the government directs the central bank to put into circulation 10 million dollars identical paper notes. The central bank prints the dollars and distributes them to the populace. a) If the reserve-deposit ratio, which is bank reserves divided by deposits, is 10 per cent. What is the money supply in the country? (1 mark) b) During the Christmas season people choose to hold unusually large amounts of currency for shopping. The citizens in the country will hold a total of 5 million dollars in the form of currency and to deposit the rest of their money in banks. With no action by the central bank (Banks keep reserves equal to 10 per cent of deposits), how would this change in currency holding affect the national money supply? (2 marks) c) in part a) what is the money supply in the country, if the reserve-deposit ratio is 5 per cent? Why money supply now is more than that is part b)? (2 marks)
a) The reserve-deposit ratio is 10%. So, the currency deposited will be 90% of the 10 million dollars.The money supply of the country is given by Money Supply = 1/Reserve Ratio * Currency Deposited Money Supply = 1/10% * 9 million dollarsMoney Supply = 90 million dollars.
b) If 5 million dollars are held by the citizens, it means 5 million dollars less are deposited in the banks.As banks keep reserves equal to 10% of deposits, it would lead to a decrease in the national money supply by $50 million.Calculation:Currency deposited = 10 million - 5 million= $5 million Money supply = 1/10% * 5 million dollarsMoney supply = 50 million dollars.c) If the reserve-deposit ratio is 5%, the currency deposited will be 95% of the 10 million dollars.Money Supply = 1/Reserve Ratio * Currency DepositedMoney Supply = 1/5% * 9.5 million dollarsMoney Supply = 190 million dollarsIn this case, the money supply is more because there is more currency deposited in banks than part a).
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- Justify if an alternate development method would have been more appropriate.
In the case of MillerCoors' ERP implementation, the waterfall development method was used, which follows a sequential, linear approach to software development. However, considering the challenges and issues faced during the implementation, an alternate development method such as the agile or iterative approach may have been more appropriate. Here's a justification for this perspective:
Flexibility and Adaptability: The agile development method promotes flexibility and adaptability to changing requirements and circumstances. It allows for iterative development cycles, where feedback and adjustments can be incorporated at each stage. This would have been beneficial for MillerCoors as they faced critical defects and problems during the initial rollout, as well as the extended hypercare period. Agile would have allowed for quicker identification and resolution of issues.
Collaboration and Communication: Agile emphasizes close collaboration and frequent communication between developers, stakeholders, and end-users. This facilitates a better understanding of business processes and requirements, ensuring that the system meets the organization's needs. In the case of MillerCoors, a lack of understanding of their own processes was identified as a root cause of the failure. The agile approach could have facilitated better communication and knowledge sharing, helping to prevent such issues.
Incremental Delivery: Agile development focuses on delivering working software in small increments, providing tangible value early on. This approach could have helped MillerCoors to address critical business needs and achieve partial system functionality sooner, rather than waiting for the entire system to be implemented. It would have allowed for faster identification of gaps and issues, leading to timely adjustments and improvements.
Overall, the use of an alternate development method such as agile could have provided MillerCoors with more flexibility, better collaboration, and incremental delivery, leading to improved outcomes and mitigating the risks and challenges faced during the ERP implementation.
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The following are the unadjusted ledger balances of Alejandra Limited for the
year ended 31 December 2022:
$
Ordinary Share Capital 600,000
Sales 560,000
Trade payables 35,760
Purchases returns 720
Purchases 112,000
Sales returns 484
Distribution Costs 496
Freight Inwards 440
Rental expense 100,000
Insurance expense 37,600
Advertising and Selling costs 51,280
Salaries and Wages 40,000
Cash at Bank 23,380
Opening Inventory 10,800
Trade Receivables 40,000
Plant and Equipment at cost 600,000
Accumulated Depreciation (1st January 2022: Plant and
Equipment) 60,000
Motor Vehicles at cost 240,000
Additional information needed for year-end adjustments, are as follows:
Insurance for January 2023 $2,900
Closing Inventory, at 31 December 2022 $4,500
Irrecoverable debts to be written off $2,200
Rental owing as at 31 December 2022 $20,000
Depreciation for the year – Plant and Equipment $60,000
Depreciation for the year – Motor Vehicles 20% on cost
Required:
a. Prepare an Income Statement for the year ended 31 December 2022
b. Prepare a Statement of Financial Position as at that date.
a. Income Statement for the year ended 31 December 2022
Sales: $560,000
Less: Sales returns: $484
Net Sales: $559,516
Cost of Goods Sold:
Opening Inventory: $10,800
Purchases: $112,000
Less: Purchases returns: $720
Add: Freight Inwards: $440
Cost of Goods Available for Sale: $122,520
Less: Closing Inventory: $4,500
Cost of Goods Sold: $118,020
Gross Profit: $441,496
Operating Expenses:
Distribution Costs: $496
Rental Expense: $100,000
Insurance Expense: $37,600
Advertising and Selling Costs: $51,280
Salaries and Wages: $40,000
Total Operating Expenses: $229,376
Net Profit before Tax: $212,120
b.(Cost): $240,000
Less: Depreciation (20%): $48,000
Net Motor Vehicles: $192,000
Closing Inventory: $4,500
Trade Receivables: $40,000
Cash at Bank: $23,380
Total Assets: $799,880
Liabilities and Equity:
Trade Payables: $35,760
Rental Owing: $20,000
Total Liabilities: $55,760
Ordinary Share Capital: $600,000
Retained Earnings: $144,120
Total Equity: $744,120
Total Liabilities and Equity: $799,880
The Income Statement calculates the net sales by subtracting sales returns from sales. The cost of goods sold is determined by subtracting the closing inventory from the cost of goods available for sale. Gross profit is the difference between net sales and cost of goods sold. Operating expenses include distribution costs, rental expense, insurance expense, advertising and selling costs, and salaries and wages. Net profit before tax is the gross profit minus total operating expenses.
b. The Statement of Financial Position lists the assets, liabilities, and equity of Alejandra Limited. Assets include net plant and equipment, net motor vehicles, closing inventory, trade receivables, and cash at bank. Liabilities consist of trade payables and rental owing. Equity comprises ordinary share capital and retained earnings. The total of liabilities and equity equals the total assets, maintaining the balance sheet equation.
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What are some challenges facing the BRIC framework?
The BRIC framework, consisting of Brazil, Russia, India, and China, faces challenges including economic slowdown, structural issues, geopolitical risks, demographic changes, environmental concerns, technological gaps, and market volatility. Addressing these challenges requires effective governance, policies, investments, and collaborations to unlock their economic potential.
The BRIC framework, which refers to the emerging economies of Brazil, Russia, India, and China, has faced several challenges in recent years. Some of the key challenges include:
1. Economic Slowdown: All four BRIC countries have experienced periods of economic slowdown, which can hinder their growth potential. Factors such as political instability, policy uncertainty, and global economic fluctuations have contributed to these challenges.
2. Structural Issues: Each BRIC country has its own unique set of structural issues that can impede sustainable development. These issues may include income inequality, infrastructure gaps, bureaucratic hurdles, corruption, and inadequate education and healthcare systems.
3. Geopolitical Risks: Geopolitical tensions and conflicts can impact the stability and growth prospects of BRIC nations. Issues like trade disputes, territorial disputes, and regional conflicts can create uncertainties and affect investor confidence.
4. Demographic Changes: Changing demographics, such as aging populations and a decline in working-age populations, pose challenges for sustained economic growth. These changes can strain social welfare systems, impact productivity, and require long-term planning and policy adjustments.
5. Environmental Concerns: Rapid economic growth in BRIC countries has often come at the expense of environmental degradation. Issues like pollution, deforestation, and climate change have gained increasing attention, necessitating a shift toward sustainable and environmentally friendly practices.
6. Technological Advancements: While BRIC nations have made significant technological advancements, there are still gaps in innovation and research and development capabilities compared to more developed economies. Bridging this gap is crucial for long-term competitiveness and growth.
7. Market Volatility: BRIC economies are exposed to global market fluctuations, including commodity price volatility and exchange rate fluctuations. These factors can impact trade balances, inflation rates, and overall economic stability.
Addressing these challenges requires effective governance, sound economic policies, investments in infrastructure and human capital, fostering innovation and entrepreneurship, and strengthening regional and international collaborations. By overcoming these hurdles, BRIC nations can unlock their full potential and continue their trajectory toward becoming major global economic players.
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Bera – A Real World Case Study
From humble beginnings as a small retailer, BERA has grown into a hugely successful eCommerce business making thousands of rupees in sales every single day.
BERA is in the 4th year of its growth journey and Jahangir believes that it is because of the dedication and passion showed by his team. He further stated that they want to become the next louis Vuitton of Pakistan and that can only be possible with a strong will and motivation.
BERA – an online store selling peshawari chapals, scarfs and shawls in a very different manner with very customized themes. These are the traditional and cultural products of Pakistan and there is a lot of competition in these products. However, they at BERA believe, "that it is a conversation between us and our forefathers through their crafts, telling us a great story of modesty, respect and honor".
In an exclusive interview with Jahangir, he told us that it’s the era of ecommerce. Global retailers like Amazon, and local retailers like Daraz are much more than online shopping destinations. They are now powerful advertising platforms, and important stops in the consumer journey. Anyone can take the opportunity to launch and scale up online stores. It is like installing the CNG plants in late 1990s. Whoever started this business made a lot of money until the market got saturated after 2006. Its just a start of the Ecommerce in Pakistan. Today I see a lot of young people earning millions of rupees through selling online and that was very difficult for the youth to earn such kind of revenues in the past.
Hunting the products and launching the online store is really not enough. You have to have an integrated marketing strategy to get massive sales. This is the point where a lot of online sellers get fail. In response to the question related to marketing the product. He responded that, yes we are an ecommerce store and our major focus is on the social media platforms. However, we also do PR and B2B (Business to Business) activities. We pitch to the corporate companies and ask them to giveaway the gifts of BERA to their employees or the clients in order to appreciate their dedication towards the business. So, the offline marketing campaigns are also the part of our marketing plan.
Another very critical aspect in selling the stuff online is the target market. Founders are really passionate about their products but they really don’t understand that who will buy from them. However, our marketing campaigns are very focused and directed to the target market. For example, our target customers are normally, elites and upper middle class. So, if I target low income group in my marketing campaigns then I will just waste the money and never will be able to get the ROI. In our case, we do not have to educate the customers about the product rather they tell us how they want to customize it and all. So, our return rate is only 4%. Although, our refund policy can be stretched up to one year. Customer satisfaction is the key to success of an online store. It will not give you the motivation, it will also give you the repeat and referral sales and that will ultimately lead you to a big number.
From humble beginnings as a small retailer, BERA has grown into a hugely successful eCommerce business making thousands of rupees in sales every single day. And throughout their eCommerce site, you get the feeling that BERA sincerely wants "culturing happiness"— a term coined by Jahangir referring to the cultural experience of local crafts that reflects royalty and ultimate luxury in every detail.
So as all great entrepreneurs do, he advised the budding entrepreneurs to fulfill the brand promise you make with your customers. Youngsters who are coming in this field should know that come straight to the battlefield and start working on your business and learn the ground realities through experiences. Work hard and don’t drive the results too early. Success is not easy, but perseverance is the key.
Q1. Explain how did Bera successfully targeted their potential Market segment?
Q2. Why and how is it beneficial to start an online startup in Pakistan?bu
Bera successfully targeted their potential market segment through the following strategies: Market research, Focused marketing campaigns, Customization and personalization, Return rate management.
a) Market research: Bera conducted thorough market research to understand the preferences and characteristics of their target customers. They identified that their products, such as Peshawari chapals, scarfs, and shawls, had a strong appeal to the elite and upper-middle-class customers who appreciate cultural and traditional products.
b) Focused marketing campaigns: Bera tailored their marketing campaigns to specifically target their intended market segment. Instead of trying to reach a broad audience, they directed their efforts towards the elite and upper-middle-class customers who were more likely to be interested in their products. This approach ensured that their marketing efforts were more effective and efficient in reaching potential customers.
c) Customization and personalization: Bera recognized that their target customers desired customized and personalized products. They allowed customers to provide input and customize their purchases, creating a unique and personalized experience. By catering to this preference, Bera was able to differentiate themselves from competitors and attract customers who sought personalized cultural products.
d) Return rate management: Bera maintained a low return rate by understanding their target market's preferences and requirements. They focused on delivering high-quality products that met customer expectations, reducing the likelihood of returns. Additionally, their refund policy of up to one year provided customers with confidence and satisfaction, contributing to a positive shopping experience.
Q2. Why and how is it beneficial to start an online startup in Pakistan?
Starting an online startup in Pakistan can be beneficial for several reasons:
a) Growing e-commerce industry: Pakistan's e-commerce industry is experiencing rapid growth. With increasing internet penetration and smartphone usage, more people are turning to online shopping. This presents an opportunity for startups to tap into a growing customer base and gain a competitive edge in the market.
b) Lower entry barriers: Compared to traditional brick-and-mortar businesses, starting an online startup requires relatively lower initial investments and overhead costs. Setting up an e-commerce website and establishing an online presence is more cost-effective and accessible, allowing entrepreneurs to enter the market with limited resources.
c) Access to a wider customer base: Online startups have the advantage of reaching a broader customer base beyond geographical limitations. By leveraging digital marketing strategies and online platforms, startups can target customers not only within Pakistan but also internationally, expanding their potential market and customer reach.
d) Convenience and flexibility: Online startups offer convenience to customers by providing a seamless shopping experience from the comfort of their homes. This convenience factor can attract and retain customers, leading to repeat sales and brand loyalty. Additionally, online startups offer flexibility in terms of operational hours and scalability, allowing entrepreneurs to adapt and grow their business according to market demands.
e) Cost-effective marketing: Online startups can leverage digital marketing channels, such as social media platforms and targeted online advertising, to reach their target audience at a lower cost compared to traditional advertising methods. This enables startups to maximize their marketing budget and effectively promote their products or services to their intended market segment.
f) Innovation and differentiation: Online startups have the opportunity to innovate and differentiate themselves in the market by offering unique products, personalized experiences, or exceptional customer service. This can help startups stand out from competitors and attract customer attention in a crowded marketplace.
Overall, starting an online startup in Pakistan offers the advantages of a growing e-commerce industry, lower entry barriers, access to a wider customer base, convenience and flexibility, cost-effective marketing, and opportunities for innovation and differentiation.
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How are top executives paid at state farm insurance?
State Farm Insurance, like many other companies, compensates its top executives through a combination of salary, bonuses, stock options, and other performance-based incentives.
Base Salary: Executives receive a fixed annual salary that compensates them for their day-to-day responsibilities and expertise.
Performance-Based Bonuses: Executives may be eligible for performance-based bonuses tied to individual, team, or company-wide goals and metrics. These bonuses are typically awarded based on predefined targets and performance evaluation.
Stock Options and Equity Awards: Executives may receive stock options or equity awards as part of their compensation package. These grants allow executives to purchase or receive shares of company stock at a predetermined price or as a reward for meeting certain performance goals.
Long-Term Incentives: State Farm may provide long-term incentives such as restricted stock units or performance shares that vest over a specified period. These incentives are designed to align executive compensation with the long-term success and growth of the company.
Benefits and Perquisites: Executives often receive comprehensive benefits packages, including health insurance, retirement plans, and other perks that may be tailored to their position and level within the organization.
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Core values evolve over time.
What do you believe are the three to five core values that best describe Americans today?
Then, list three different American core values that are different from your own core values. Solomon (2019, p. 222) defines persuasion as, "an active attempt to change attitudes." This, too, evolves over time.
List and define three psychological principles related to persuasion, and give a personal example of how each tries to persuade.
Core values evolve over time, and today, some of the core values that best describe Americans are honesty, independence, individualism, equality, and democracy.
Honesty, in terms of upholding moral principles and being truthful. Independence, in terms of being self-reliant, self-sufficient, and self-motivated. Individualism, in terms of being unique, having personal preferences, and being self-reliant.
Equality, in terms of providing equal opportunities and equal rights for all, regardless of their social status or race. Democracy, in terms of having free and fair elections and the freedom of speech, press, and religion.
Three different American core values that are different from my own core values include consumerism, capitalism, and materialism.
Consumerism, in terms of placing emphasis on material possessions and placing more importance on what a person owns than on who they are.
Capitalism, in terms of the belief that businesses should be able to operate without interference from the government.
Materialism, in terms of the belief that one can derive happiness or satisfaction from material possessions or things that one owns.
Three psychological principles related to persuasion include the following:
1. Reciprocity: This principle refers to the idea that people are more likely to comply with a request or buy a product if they feel they are being offered something in return. For instance, when a friend helps you move to a new apartment, you may feel obliged to help them in the future.
2. Social Proof: This principle suggests that people are more likely to comply with a request if they believe that other people are also complying with the same request. For instance, when a customer sees many others buying a particular product, they may feel that it is a good product and decide to purchase it as well.
3. Authority: This principle refers to the idea that people are more likely to comply with a request or accept information from someone who is perceived to be an authority figure. For instance, when a doctor recommends a particular medicine, a patient is more likely to trust and take the medicine.
A personal example of how each tries to persuade include the following:
1. Reciprocity: A salesman may offer a free sample of a product to a customer so that the customer will feel obliged to buy the product later.
2. Social Proof: A clothing store may display images of popular celebrities wearing their clothes so that customers feel that the clothes are fashionable and trendy.
3. Authority: A lawyer may reference a legal case in which a court has ruled in their favor to persuade a judge or jury to rule in their favor.
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Department A had 4,500 units in Work in Process that were 75% completed at the beginning of the period at a cost of $6,400. During the period, 33,900 units of direct materials were added at a cost of $77,970, and 35,600 units were completed. At the end of the period, 2,800 units were 37% completed. All materials are added at the beginning of the process. Direct labor was $27,700 and factory overhead was $5,400. The cost of the 2,800 units in process at the end of the period if the first-in, firstout method is used to cost inventories was a. $7,471 b. $6,956 c. $8,502 d. $6,440
To calculate the cost of the units in process at the end of the period using the first-in, first-out (FIFO) method, we need to determine the equivalent units of production and the cost per equivalent unit.
Given information:
Beginning WIP units: 4,500 units
Beginning WIP completion: 75%
Beginning WIP cost: $6,400
Direct materials added during the period: 33,900 units
Direct materials cost: $77,970
Units completed during the period: 35,600 units
Units in process at the end of the period: 2,800 units
End of the period completion: 37%
Direct labor cost: $27,700
Factory overhead cost: $5,400
Step 1: Calculate the equivalent units of production.
Units completed during the period = 35,600 units
Equivalent units in beginning WIP = Beginning WIP units * Beginning WIP completion
= 4,500 units * 0.75
= 3,375 units
Equivalent units in process at the end = End of the period units * End of the period completion
= 2,800 units * 0.37
= 1,036 units
Total equivalent units of production = Units completed + Equivalent units in beginning WIP + Equivalent units in process at the end
= 35,600 units + 3,375 units + 1,036 units
= 40,011 units
Step 2: Calculate the cost per equivalent unit.
Total cost incurred during the period = Direct materials cost + Direct labor cost + Factory overhead cost
= $77,970 + $27,700 + $5,400
= $111,070
Cost per equivalent unit = Total cost incurred during the period / Total equivalent units of production
= $111,070 / 40,011 units
≈ $2.776 per unit
Step 3: Calculate the cost of the units in process at the end of the period.
Cost of the units in process at the end = Cost per equivalent unit * Equivalent units in process at the end
= $2.776 per unit * 1,036 units
≈ $2,876.736
Therefore, the cost of the 2,800 units in process at the end of the period, using the first-in, first-out (FIFO) method, is approximately $2,876.736, which rounds to $2,877. Answer choice (a) $7,471, (b) $6,956, (c) $8,502, and (d) $6,440 are not correct.
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Which type of reimbursement system is meant to cover historical or retrospective costs? prospective-based reimbursement cost-based reimbursement value-based reimbursement copay-based reimbursement
Cost-based reimbursement system is meant to cover historical or retrospective costs. Cost-based reimbursement system refers to a payment process that is made for health care services that have already been rendered. he system is designed to cover the costs of providing medical care to a patient.
The health care provider sets their price based on the costs they have incurred and receives reimbursement based on those costs. This system is meant to cover historical or retrospective costs. The fee for a service is set based on the actual cost of providing it, which is calculated based on the expenses incurred by the provider. This approach can be beneficial for healthcare providers because they will be reimbursed for the services they provide, plus they can calculate the reimbursement rate to cover their expenses. The cost-based reimbursement system is commonly used by Medicare and Medicaid.The cost-based reimbursement system is different from other types of payment methods. Prospective-based reimbursement, value-based reimbursement, and copay-based reimbursement systems are designed to provide payment for healthcare services before they are rendered.
Cost-based reimbursement is more historical because it is based on the cost of the services that have already been provided and documented. The cost-based reimbursement system is a fee-for-service payment method.
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1. Duke was approved for a 30 year conventional loan for $250,000 at 3.65% fixed rate. He was also approved for a 15 year conventional loan for $250,000 at 3.45% fixed rate. He has $20,000 to put as a down payment. He has to pay insurance of $1400 a year and property tax of $2500 a year. Use time value of money to figure out the best options for Duke. (Be sure to show your work if you are able)
a. To avoid PMI (at least 20% down) what amount would Duke have to put down if he wants to take out the full amount of the loan ($250,000)?
b. If he looks at a house that is $150,000 how much would he pay per month with a 15 year loan?
i. 30 year loan?
c. If he looks at a house that is $150,000, would a 30 year loan or a 15 year loan be the best option?
d. He plans to make mortgage payments of no more than $700 a month (this is including escrow). What price of house can he afford?
e. How much more principal will he have to pay per month in order to pay off his house in 7 years if he does the following: $150,000 value home, 25% down payment, 15 year loan.
Private Mortgage Insurance (PMI) is an insurance policy that protects the lender in case the borrower defaults on their mortgage payments. It is typically required for borrowers who make a down payment of less than 20% on their home purchase.
Based on the provided information, the answers to the questions are as follows: a. To avoid private mortgage insurance (PMI) by putting down at least 20% of the loan amount, Duke would need to put down $50,000 (20% of $250,000). b. For a $150,000 house with a 15-year loan at a fixed rate of 3.45%, the monthly payment would be approximately $1,076.77. For a 30-year loan at a fixed rate of 3.65%, the monthly payment would be approximately $684.03. c. Considering the lower monthly payment and interest rate, a 15-year loan would be the better option for Duke if he looks at a house that costs $150,000. d. Assuming Duke can make mortgage payments of no more than $700 per month.
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Write up a paragraph or two about an improvement you believe can be made in your place of employment. If you are not working at all right now, write about an improvement you think can be made at a business you frequent.
The improvements that can be made in a place of employment are vast and diverse. One of the improvements that can be made is the implementation of telecommuting or remote work to allow for more flexibility.
In this case, it is possible to work from home instead of going to the office all the time.In an office setting, telecommuting would increase productivity, and it can also decrease the need for travel, ultimately saving on time and expenses. Remote work is becoming increasingly popular due to the convenience it offers, as workers have more control over their work-life balance, and it also increases the chances of retaining high-performing employees.
The use of the internet can facilitate telecommuting, as video conferencing and other communication tools can be used to keep in touch with the office while working remotely. These technologies can be used to keep employees connected and up-to-date on the latest developments in their field. Also, it can make communication between remote workers and their colleagues easier and seamless.
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OB studies have shown that a few team structures encourage creativity in the face of team decision setbacks. These team structures include brainstorming, brainwriting, electronic brainstorming, and nominal group technique. Have your teams ever struggled with creative decision-making, and have you employed any of these structures with success?
Employing these team structures can help provide a more inclusive and open environment for idea generation and decision-making, which can lead to more creative and effective solutions.
Brainstorming is a popular method for generating ideas and encouraging creativity in teams. In this technique, team members come together to generate as many ideas as possible without any judgments or evaluations initially. Once the ideas are generated, the team can evaluate and refine them further.
Brainwriting is similar to brainstorming, but instead of verbalizing ideas, team members write them down on paper or a digital platform. This allows for more individual expression and avoids the tendency for dominant personalities to steer the group discussion.
Electronic brainstorming involves using digital tools to facilitate idea generation and sharing. This can include online collaboration platforms or dedicated brainstorming software.
Nominal group technique (NGT) is a structured approach that involves individual idea generation, followed by group discussion and evaluation. Each team member writes down their ideas individually, which are then shared with the group. The ideas are evaluated anonymously, and the group works together to prioritize and select the best ones.
Employing these team structures can help provide a more inclusive and open environment for idea generation and decision-making, which can lead to more creative and effective solutions.
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Last week, Fujio company paid its annual dividend of $1.20 per share. The company has been increasing the dividend by 10% each year. How much are you willing to pay to purchase stock in his company if your required rate of return is 14%?
a. $4.50
b. $33.00
c. $36.50
d. $5.70
e. none
Based on the dividend discount model, you would be willing to pay $30 to purchase stock in Fujio company if your required rate of return is 14%. The correct answer is e. none.
To determine the value you are willing to pay to purchase stock in Fujio company, we can use the dividend discount model (DDM). The DDM calculates the present value of future dividends, taking into account the dividend growth rate and the required rate of return. In this case, Fujio company pays an annual dividend of $1.20 per share. The dividend has been increasing by 10% each year. Your required rate of return is 14%.
Using the DDM formula, we divide the annual dividend by the difference between the required rate of return and the dividend growth rate.
Value of Stock = Dividend / (Required Rate of Return - Dividend Growth Rate)
Value of Stock = $1.20 / (0.14 - 0.10) = $1.20 / 0.04 = $30
Therefore, based on the DDM, you would be willing to pay $30 to purchase stock in Fujio company if your required rate of return is 14%. Since none of the provided options ($4.50, $33.00, $36.50, $5.70) match the calculated value, the correct answer would be e. none.
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A firm has a capital structure with $120 million in equity and $50 million of debt. The expected return on its equity is 6.70%, and the firm has 4.30% Yield-to-Maturity on its debt. If the marginal tax rate is 21%, what is the Weighted Average Cost of Capital (WACC) of this firm? Note: Keep 4 decimals for intermediate results and 2 decimals for your final answer! Market Value of Equity Market Value of Debt = Market Value of Firm = = Weight of Equity Weight of Debt: Cost of Equity Cost of Debt: WACC = =
The Weighted Average Cost of Capital (WACC) of this firm is approximately 4.66%. The WACC is calculated by taking the weighted average of the cost of equity and the cost of debt, considering their respective weights in the firm's capital structure.
In this case, the firm has a market value of equity of $120 million and a market value of debt of $50 million. The weights of equity and debt are calculated by dividing their market values by the total market value of the firm. The cost of equity is given as 6.70%, and the cost of debt is 4.30%. The tax rate is also taken into account to adjust the cost of debt. The WACC is an important financial metric as it represents the average rate of return that a firm needs to earn on its investments to meet the expectations of its shareholders and debt holders. Conversely, a higher WACC suggests higher risk and higher expected returns that investors may demand. Therefore, understanding and managing the WACC is crucial for firms in making strategic financial decisions and optimizing their capital structure.
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involves optimizing a Web site so it will appear near the top of search engine results A)Horizontal Search B) Organic Search C) Vertical Search D) Paid Search
The statement "involves optimizing a Web site so it will appear near the top of search engine results" refers to the practice of paid search.
In paid search, advertisers bid on keywords or phrases relevant to their products or services, and their ads are displayed prominently at the top or side of search engine results pages (SERPs) when users search for those keywords. Advertisers pay a fee whenever a user clicks on their ad, hence the term "pay-per-click" (PPC) advertising. Paid search allows businesses to gain visibility and attract relevant traffic to their websites by targeting specific keywords and leveraging search engines advertising platforms like Ads or Microsoft Advertising.
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Which of the following resources is an example of land (as defined in class)? Printing presses used to make newspapers Trees used to make paper Workers used to make cars Tractors used to plow farmland Which of the following resources is an example of capital (as defined in class)? Printing presses used to make newspapers Trees used to make paper Workers used to make cars Crude oil used to make gasoline Scarcity is a problem measured by the amount of goods available of the poor, but not the rich Economists assume the principal motivation of producers is: Social justice. Social status. Their preference for giving to the community Profit.If marginal revenue (MR)> marginal cost (MC), a perfectly competitive firm should: Produce less output Shut down Produce more output. Incur a loss.
Land is the resource that includes everything that is nature-given and not made by human beings.
Trees used to make paper are an example of land (as defined in class).
The following resources are examples of:
Land: It is the resource that includes everything that is nature-given and not made by human beings. Trees used to make paper are an example of land (as defined in class).
Capital: It is the resources made and used by people to produce and distribute goods and services, including machines, tools, factories, and transportation.
Printing presses used to make newspapers are an example of capital (as defined in class). Workers used to make cars are an example of labour (as defined in class).
Crude oil used to make gasoline is a natural resource (as defined in class).
Scarcity is a problem measured by the amount of goods available of the poor, but not the rich is not a correct definition. Scarcity exists when there are limited resources to satisfy unlimited wants.
The definition is not specific to the poor or the rich.
Economists assume the principal motivation of producers is to make a profit. Profit is the financial gain made by a producer as a result of production and sales.
If marginal revenue (MR) is greater marginal cost (MC), a perfectly competitive firm should produce more output. Because at this level, the producer can increase profits by increasing the production level.
If marginal revenue is less than the marginal cost, a perfectly competitive firm should reduce the level of production because this will decrease the profits.
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Land resources include printing presses used to make newspapers, trees used to make paper, workers used to make cars, and tractors used to plow farmland. Capital resources include printing presses used to make newspapers, trees used to make paper, workers used to make cars, crude oil used to make gasoline, and tractors used to plow farmland.
Explanation:Printing presses used to make newspapers, trees used to make paper, workers used to make cars, and tractors used to plow farmland are all examples of resources classified as land. Land refers to natural resources and physical space that are used in production.
On the other hand, printing presses used to make newspapers, trees used to make paper, workers used to make cars, crude oil used to make gasoline, and tractors used to plow farmland are examples of resources classified as capital. Capital refers to man-made resources that are used in production.
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