Price Elasticity and Deadweight Loss Using two separate demand and supply graphs, show the difference in deadweight loss between a. a market with inelastic demand and inelastic supply b. a market with elastic demand and supply. Hint: Be sure to keep the tax size the same for both graphs. Also, use the tax wedge style of showing the tax (i.e., don't shift S or D)
Answers
Consider two scenarios: one with inelastic demand and inelastic supply (a) and another with elastic demand and supply (b). In both cases, we'll introduce a tax on the market. I'll use the tax wedge style to show the tax. a) Market with Inelastic Demand and Inelastic Supply:
In this scenario, both the demand and supply curves are relatively steep, indicating inelasticity. Here's the graph:
In this graph:- Pe represents the equilibrium price without the tax. Qe represents the equilibrium quantity without the tax. Ps represents the price paid by consumers after the tax.- Qs represents the quantity supplied after the tax.The deadweight loss in this scenario is relatively small because both the demand and supply are inelastic. Due to the inelastic nature of the curves, the tax burden is shared between consumers and producers, and the market adjusts to the new equilibrium relatively smoothly. Consequently, the loss in consumer and producer surplus, represented by the deadweight loss, is minimal.
b) Market with Elastic Demand and Elastic Supply: In this scenario, both the demand and supply curves are relatively flat, indicating elasticity. Here's the graph:
In this graph: - Pe represents the equilibrium price without the tax.- Qe represents the equilibrium quantity without the tax. - Ps represents the price paid by consumers after the tax. - Qs represents the quantity supplied after the tax. The deadweight loss in this scenario is relatively large because both the demand and supply are elastic. Due to the elastic nature of the curves, the tax burden leads to a significant reduction in consumer and producer surplus, resulting in a substantial deadweight loss. The decrease in quantity exchanged (Qe to Qs) is more pronounced, and the loss in economic efficiency is greater compared to the inelastic case.
In summary, the deadweight loss is larger in a market with elastic demand and supply compared to a market with inelastic demand and supply when the same tax is applied. Elasticity determines how much the market can adjust to the tax burden and how efficiently resources are allocated.
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Related Questions
How can supervisors lead employees through a difficult period such as a corporate merger, acquisition, or other major changes?
Discuss types of leadership strategies / tools / theories that can be modeled to create a positive work environment
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Organizations today face a lot of challenges due to continuous changes that are a part of the business environment. Corporate mergers, acquisition, or other major changes are one of the most challenging and stressful experiences that an organization and its employees face. In such situations, a supervisor can help to lead the employees through a difficult period by using various leadership strategies and tools. Here are some ways in which supervisors can lead employees through a challenging period:Be transparent: In a situation of a merger, acquisition, or other major changes, the uncertainty and lack of information can lead to stress and anxiety among employees. Thus, supervisors should be transparent and communicate all information with their employees. This helps to reduce ambiguity, reduces stress, and builds trust among employees.Lead by example: During a difficult period, employees look to their supervisors for guidance. Thus, supervisors should lead by example. They should demonstrate calmness, resilience, and positivity. By doing so, employees are likely to emulate these behaviors, and this creates a positive work environment and improves productivity.Encourage collaboration: During difficult times, the supervisors should encourage collaboration among employees. Collaboration increases teamwork and helps to build relationships among employees. When employees feel a sense of belongingness, they are more likely to work towards achieving the organization's goals.Supportive leadership: Supervisors can use supportive leadership strategies such as coaching, mentoring, or counseling during a difficult period. These strategies provide employees with emotional and psychological support, reduce stress and anxiety, and promote resilience.In conclusion, during difficult times, supervisors should be transparent, lead by example, encourage collaboration, and use supportive leadership strategies. By using these strategies and tools, supervisors can create a positive work environment and lead employees through a challenging period.
"i’ve been at my job for four days, and i’ve already met all my coworkers!" amber says. which type of business does ember most likely work for?
Answers
Based on Amber's statement, it is likely that she works for a small-sized business or a company with a limited number of employees.
In larger organizations, it is generally challenging to meet and become acquainted with all coworkers within just four days, as there are typically numerous departments, teams, and employees spread across different locations or floors.
In a small business or a startup, with a smaller workforce, it is more feasible to interact with and get to know everyone in a short period. The close-knit environment of such organizations often allows for easier and quicker integration into the team.
However, it's important to note that the context provided is limited, and there could be other factors at play. It's always advisable to gather more information to make a more accurate determination about the type of business Amber works for.
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Bing, Incorporated, Has Current Assets Of $5,000, Net Fixed Assets Of $23,300, Current Liabilities Of $4,450, And Long-Term Debt Of $11,000. A. What Is The Value Of The Shareholders' Equity Account For This Firm? B. How Much Is Net Working Capital?
Answers
Bing, Incorporated has a shareholders' equity of $12,850 and a net working capital of $550.
A. The shareholders' equity account represents the residual value of a company's assets after deducting its liabilities. In the case of Bing, Incorporated, the shareholders' equity is calculated by subtracting the total liabilities (current liabilities and long-term debt) from the total assets (current assets and net fixed assets). This calculation ensures that the company's equity is accurately reflected on the balance sheet. In this scenario, Bing, Incorporated has a shareholders' equity of $12,850.
B. Net working capital is a measure of a company's liquidity and represents the difference between its current assets and current liabilities. It indicates the company's ability to meet its short-term obligations and finance its day-to-day operations. In the case of Bing, Incorporated, the net working capital is calculated by subtracting the current liabilities from the current assets. Bing, Incorporated has a net working capital of $550, indicating that it has a positive working capital position.
Therefore, Bing, Incorporated has a shareholders' equity of $12,850 and a net working capital of $550. These financial indicators provide insights into the company's financial health and its ability to meet its obligations and fund its operations.
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what pieces of equipment are typically used when working on the micro–scale? select all that apply.
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The typical pieces of equipment used when working on the micro-scale include microscope, micro pipettes, and microcentrifuge.
When working on the micro-scale, precise and specialized equipment is required to manipulate and analyze materials at a small scale. Some of the commonly used equipment in micro-scale work are:
Microscope: Microscopes are essential tools for magnifying and observing objects at a microscopic level. They enable researchers to visualize and analyze tiny structures and samples.
Micro pipettes: Micro pipettes are used for precise and accurate measurement and transfer of small volumes of liquids. They are designed to handle microliters (µL) or even smaller volumes.
Microcentrifuge: A microcentrifuge is a compact and high-speed centrifuge used for separating and pelleting small volumes of samples. It is commonly used in molecular biology and biochemistry research.
These pieces of equipment are specifically designed to handle the small scales and volumes encountered in micro-scale work. They play a crucial role in various scientific fields, including microbiology, molecular biology, nanotechnology, and microelectronics, among others.
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How can I make a projected profit-and-loss statement
for Apple Airpods?
My expected costs are development, production, labor, and
distribution?
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To make a projected profit-and-loss statement for Apple Airpods with expected costs for development, production, labor, and distribution, you can follow these steps:
Step 1: Determine the selling price of the product, in this case, Apple Airpods. For example, let's say the selling price is $150.Step 2: Estimate the cost of development, production, labor, and distribution for each unit of the product. Let's say these costs add up to $75 per unit. Step 3: Subtract the cost per unit from the selling price per unit to get the gross profit per unit. In this case, the gross profit per unit would be $75 ($150 - $75).Step 4: Determine the number of units you expect to sell within a certain period of time, for example, one year. Let's say you expect to sell 100,000 units in a year. Step 5: Multiply the gross profit per unit by the expected number of units sold to get the projected gross profit. In this case, the projected gross profit would be $7,500,000 ($75 x 100,000).Step 6: Estimate the expenses related to running the business and producing the product, such as marketing, research and development, salaries, rent, utilities, and taxes. Let's say these expenses add up to $2,500,000. Step 7: Subtract the expenses from the projected gross profit to get the projected net profit. In this case, the projected net profit would be $5,000,000 ($7,500,000 - $2,500,000).Therefore, the projected profit-and-loss statement for Apple Airpods with expected costs for development, production, labor, and distribution is:Revenue (100,000 units x $150 per unit) = $15,000,000Cost of goods sold (100,000 units x $75 per unit) = $7,500,000Gross profit = $7,500,000Expenses = $2,500,000Net profit = $5,000,000.
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batang LOR Asta 342 27 89 51 63 167 899 312 573 5740 563 206 277 5435 Cash and cash equivalente Accounts receivable Inventory Total current ansets property, plant, and equipment Las accumulated depreciation et property, plant, and equipment Total aseta abilities and stockholders' equity Current liabilities Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonde payable Total liabilities Stockholders' equity. Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 544 33 56 133 140 273 63 26 48 137 14 285 manual 98 369 467 $ 740 57 150 5435 of the year was 385. Cash dividends were $73. The company did not sell of retire any property, anno equipment during the year. The net cash provided by used in operating activities for the year was Multiple Choice $31 $553 $354
Answers
Net cash provided by or used in operating activities for the year= $734 ;The correct option is B. $553.
Batang LOR Asta has a few accounts and liabilities for the year.
It is essential to determine the net cash provided by or used in operating activities for the year. The net cash provided by or used in operating activities for the year is calculated using the indirect method.
In the given question, the net income is not given, so we will calculate it first.
Net income= Revenue- Expenses- Taxes
Net income= 544+33+56+133+140+273+63+26+48-137-14-285
Net income= $438
Cash dividends= $73
Net income after dividends= $438- $73
Net income after dividends= $365
Net cash provided by or used in operating activities for the year= Net income after dividends+ Depreciation
Net cash provided by or used in operating activities for the year= $365+ $369
Net cash provided by or used in operating activities for the year= $734
Therefore, the correct option is B. $553.
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how much variable overhead would have been allocated to production? how much fixed overhead would have been allocated to production?
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Typically, overhead costs are allocated based on predetermined rates or formulas that take into account various factors such as direct labor hours, machine hours, or some other relevant allocation base.
Variable overhead costs fluctuate in direct proportion to the level of production activity. Examples of variable overhead costs include direct materials, direct labor, utilities, and supplies.
Fixed overhead costs, on the other hand, do not vary with production levels and typically include items such as rent, insurance, property taxes, and salaries of supervisors.
Without more details about the specific allocation methods, it is not possible to determine the exact amount of variable overhead and fixed overhead allocated to production.
The allocation process varies from business to business and depends on the nature of the industry and the company's accounting policies.
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An important application of -Select-compound real simple interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is -Select-smallest largest Correct 2 of Item 1 in the first period and -Select-declines increases over the life of the loan, while the principal repayment is -Select-smallest largest in the first period and it -Select-declines increases thereafter.
Quantitative Problem: You need $19,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 7% annual return.
What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.
$
How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.
Interest: $
Principal repayment: $
Answers
Answer: Annual loan payment = $3,000.41 Interest paid for the first period = $1,330.00 Principal repayment for the first period = $1,670.41.
An important application of compound real simple interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is largest in the first period and declines over the life of the loan, while the principal repayment is smallest in the first period and it increases thereafter.
The formula for calculating the amortized loan payment is:
PMT = r(PV) / 1 - (1 + r)-n
where PV is the loan amount r is the interest rate n is the total number of payments
The above formula gives the annual loan payments for 6 years given that the loan amount is $19,000, the annual interest rate is 7%, and the number of payments is 6 × 1 = 6.
The annual loan payment is PMT = 0.07($19,000) / 1 - (1 + 0.07)-6= 0.07($19,000) / 0.456390252= $3,000.41
The annual loan payment is $3,000.41.
The interest paid for the first period is calculated using the formula:
Interest = r(PV)
where PV is the loan amount r is the interest rate
The amount of principal repaid for the first period is the difference between the first payment and the interest amount. Principal repayment = First payment - Interest The first payment for the first year is $3,000.41, the interest is 0.07($19,000) = $1,330.00.
Principal repayment = $3,000.41 - $1,330.00= $1,670.41
The amount of interest paid for the first period is $1,330.00, and the amount of principal repaid for the first period is $1,670.41
.Answer: Annual loan payment = $3,000.41Interest paid for the first period = $1,330.00Principal repayment for the first period = $1,670.41.
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The bond market requires a return of 9.8 percent on the five-year bonds issued by JW Industries. The 9.8 percent is referred to as which one of the following? 1.Current yield. 2. Call rate. 3. Yield to maturity. 4. Face rate. 5. Coupon rate.
Answers
The bond market requires a return of 9.8 percent on the five-year bonds issued by JW Industries. The 9.8 percent is referred to as yield to maturity (option 3).
The term “yield to maturity” refers to the total return expected on a bond if the investor held the bond until its maturity date and received all the interest payments and face value due. The bond market requires a return of 9.8 percent on the five-year bonds issued by JW Industries. The 9.8 percent is referred to as the yield to maturity (YTM) since it is the average annual rate of return anticipated on a bond if it is held till maturity.
Face value or par value is the bond’s initial price. Coupons are periodic interest payments that the bondholder gets. The coupon rate is the amount of annual interest that is paid as a percentage of the bond’s face value. The current yield is the interest rate divided by the bond’s market price. Yield to maturity (YTM) is the anticipated return on a bond if it is held until maturity. The yield to maturity is the sum of the bond’s interest rate, coupon, and gain or loss of principal when it matures.
Call rate: The rate at which a central bank lends money to commercial banks is known as the call rate. When banks face a liquidity crisis, they turn to the central bank, which lends money at a rate known as the call rate. The call rate is used in some countries instead of the federal funds rate (FFR).
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.For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet for the month ended July 31, 2019. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet for the month anded July 31, 2019. "Be sure to read the instructions for each financial statement carefully 9. A Journalize the closing entries on page 4 of the journal Closing entries are recorded on July 31, B. Use the spreadsheet to post the closing entries to the ledger of four column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the closing entries in the journal in CengageNOW 10. Prepare a post-closing trial balance
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However, I can provide you with a general overview of the financial statements and the closing process.
To prepare the financial statements for Arborvite Consulting for the month ended July 31, 2019, you would typically follow these steps:
Income Statement: Prepare an income statement to show the revenues, expenses, and the resulting net income or net loss for the month of July. Revenues represent the income generated from the consulting services provided, and expenses include any costs incurred in operating the business.
Statement of Owner's Equity: Prepare a statement of owner's equity to show the changes in the owner's equity during the month. This statement would include the owner's initial investment, any additional investments made, withdrawals taken by the owner, and the net income or net loss for the month.
Balance Sheet: Prepare a balance sheet to present the financial position of the business as of July 31, 2019. The balance sheet includes the assets, liabilities, and owner's equity of the business. Assets would include items such as cash, accounts receivable, and office equipment, while liabilities may include accounts payable and any loans or debts.
As for the closing entries, these are journal entries made at the end of an accounting period to close temporary accounts, such as revenues and expenses, into the owner's equity account. The purpose of closing entries is to reset the temporary accounts to zero and transfer their balances to the appropriate permanent accounts.
Lastly, the post-closing trial balance is prepared after the closing entries have been made. It includes only the permanent accounts, such as assets, liabilities, and owner's equity. The purpose of the post-closing trial balance is to ensure that the books are in balance after the closing process.
Please note that the specific details and figures for Arborvite Consulting's financial statements and closing entries would need to be provided in order to prepare the requested documents accurately.
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For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July:
Jul. 1 The following assets were received from Samantha Hogan: cash, $25,700; accounts receivable, $30,200; supplies, $5,100; and office equipment, $12,100. There were no liabilities received.
1 Paid three months’ rent on a lease rental contract, $8,100.
2 Paid the premiums on property and casualty insurance policies, $6,100.
3 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $10,800.
5 Purchased additional office equipment on account from Office Necessities Co., $6,900.
6 Received cash from clients on account, $17,300.
10 Paid cash for a newspaper advertisement, $680.
12 Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100.
12 Provided services on account for the period July 1–12, $19,200.
14 Paid receptionist for two weeks’ salary, $2,000.
Jul. 17 Received cash from cash clients for fees earned during the period July 1–17, $14,100.
18 Paid cash for supplies, $1,400.
20 Provided services on account for the period July 13–20, $12,200.
24 Received cash from cash clients for fees earned for the period July 17–24, $11,500.
26 Received cash from clients on account, $16,300.
27 Paid receptionist for two weeks’ salary, $2,000.
29 Paid telephone bill for July, $440.
31 Paid electricity bill for July, $910.
31 Received cash from cash clients for fees earned for the period July 25–31, $9,600.
31 Provided services on account for the remainder of July, $7,400.
31 Samantha withdrew $27,100 for personal use.
Enumerate the 7 types of Market Structures and define each.
2. What type of market economy does the Philippines have?
3. What is a monopsony simple definition?
What is meant by production function?
2. What are the types of production functions?
3. What are the features of Production Function?
Answers
1. The 7 Types of Market Structures and their definitions:
a) Perfect Competition – is a market structure where there is a large number of small firms producing homogeneous products. No single firm has a significant market share, and entry and exit to the industry are easy.
b) Monopolistic Competition – is a market structure where there are many firms producing a differentiated product. The entry of new firms is relatively easy and, therefore, firms have some degree of control over the price of their product.
c) Oligopoly – is a market structure where there are few dominant firms in the industry, and each firm’s actions have a considerable impact on the others. Barriers to entry are high, and pricing decisions of one firm affect the others.
d) Monopoly – is a market structure where there is a single firm producing a good or service with no close substitutes. The firm has complete control over the price, and there are significant barriers to entry.
e) Duopoly – is a market structure where there are two dominant firms in the industry. Pricing decisions of one firm affect the other, but barriers to entry are not high.
f) Monopsony – is a market structure where there is a single buyer in the market with many sellers. The buyer has significant market power and, therefore, can dictate the price at which it purchases goods and services.
g) Oligopsony – is a market structure where there are few buyers in the market, each with a significant market share. Barriers to entry are high, and each buyer’s actions have a considerable impact on the others.
2. The Philippines has a mixed economic system where both the government and the private sector play important roles. The government regulates various industries and provides services such as healthcare, education, and infrastructure. However, the private sector is the main driver of economic growth and employment.
3. A monopsony is a market structure where there is only one buyer of a good or service. It is the opposite of a monopoly, where there is only one seller. In a monopsony, the buyer has significant market power and can dictate the price at which it purchases goods and services.
4. The production function is a mathematical expression that shows the relationship between inputs and output. It is used to determine the maximum output that can be produced given a set of inputs.
5. There are three types of production functions:
a) Linear production function – output increases linearly with input.
b) Cobb-Douglas production function – output increases at a decreasing rate with input.
c) Leontief production function – output is limited by the scarcest input.
6. The features of a production function are:
a) The inputs used in production
b) The amount of output produced
c) The level of technology used to produce output
d) The efficiency with which inputs are used.
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The Securities Exchange Act of 1934 controls the public trading of stocks in which of the following ways? Choose 2 answers. Your response is not entirely correct by requiring annual discosures of financial Information Х by requiring public companies to file one initial disclosure of financial information by countries with over 200 employees to rester their stock Dyre
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The Securities Exchange Act of 1934 controls the public trading of stocks in the following two ways:
1. **By requiring annual disclosures of financial information:** The Act mandates that public companies submit regular reports, including annual reports, which provide comprehensive financial information to investors and the general public. These disclosures help ensure transparency and provide investors with relevant information to make informed investment decisions.
2. **By requiring public companies to file ongoing disclosures of financial information:** In addition to the initial disclosure, the Act mandates that public companies continue to file periodic reports, such as quarterly reports and current reports, to disclose significant events, financial updates, and material changes in their business operations. These ongoing disclosures help maintain transparency and keep investors informed about the company's performance and any developments that may impact the value of their investments.
It is important to note that the answer options "by requiring countries with over 200 employees to register their stock" and "by requiring public companies to file one initial disclosure of financial information" are not accurate representations of the provisions under the Securities Exchange Act of 1934.
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Ethics and corruption is increasingly important in the construction sector. You are requested to discuss the issues involved in ensuring the highest ethical standards, from the perspective of a UK based cost management professional services company planning to open a regional office in Abu Dhabi, to operate in the Middle East and Sub-Saharan Africa
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As the construction sector grows, the importance of ethics and corruption control becomes increasingly important. Ethics is a critical aspect of any construction company, particularly those that want to operate in different parts of the world, such as the Middle East and Sub-Saharan Africa.
The United Arab Emirates has enacted strict legislation against corruption in the construction sector, and businesses that operate in the region must adhere to these regulations to avoid legal consequences. The construction industry is subject to various risks, including environmental challenges, economic and legal challenges, and risk management. However, businesses can establish internal control mechanisms to ensure compliance with ethical regulations.
The following measures may be taken to ensure compliance: • Companies should establish clear ethical standards and rules, ensuring that all employees are aware of them. • The introduction of comprehensive training programs for employees to ensure they understand the ethical policies. • Companies can establish an anonymous reporting mechanism for employees to report any unethical practices without fear of retaliation. • The establishment of policies and procedures to ensure that the company complies with ethical regulations. • Employing external auditors to conduct regular inspections of the company's operations to ensure compliance. Companies must have appropriate procedures in place to manage risk and guarantee ethical standards compliance. To expand operations into the Middle East and Sub-Saharan Africa, cost management professional services companies must work closely with regulatory authorities and consider various internal control mechanisms.
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With the help of a table, present one difference between
Modigliani and Miller (M&M) Proposition 1 and the following
theories of capital structure:
i. Modigliani and Miller (M&M) Proposition I
Answers
Here's a table presenting one difference between Modigliani and Miller (M&M) Proposition I and the theories of capital structure:
Theories of Capital Structure Modigliani and Miller (M&M) Proposition I Trade-off Theory The cost of capital increases with the use of debt due to financial distress costs and the risk of bankruptcy.
Modigliani and Miller (M&M) Proposition I states that the value of a firm is independent of its capital structure. It implies that, under certain assumptions, the cost of capital remains constant regardless of the mix of debt and equity financing.
One key difference between M&M Proposition I and the trade-off theory is the view on the relationship between the cost of capital and the use of debt. According to the trade-off theory, the cost of capital increases with higher levels of debt due to potential financial distress costs and the risk of bankruptcy. In contrast, M&M Proposition I suggests that the cost of capital is unaffected by the capital structure, assuming perfect capital markets and no taxes. It implies that the value of a firm is determined by its underlying business operations and expected future cash flows, rather than the specific mix of debt and equity financing.
It's important to note that this is just one difference, and there are other variations and theories within the realm of capital structure that may have additional distinctions compared to M&M Proposition I.
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pursuing continuous quality improvement as a uniqueness factor is sound because it:
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Continuous quality improvement (CQI) involves an ongoing effort to enhance the quality of care, services, and operations of an organization. It is done by taking a systematic and data-driven approach to identifying areas for improvement and implementing solutions. Continuous quality improvement has been proven to be a successful method for improving performance and customer satisfaction. Continuous quality improvement (CQI) is a key component of quality management, which involves an ongoing effort to enhance the quality of care, services, and operations within an organization.
Continuous quality improvement helps organizations to become more efficient, effective, and competitive. By focusing on improving quality, organizations can reduce waste, improve customer satisfaction, and increase profitability. Moreover, CQI helps to ensure that organizations meet regulatory requirements, enhance staff morale, and promote a culture of excellence. Therefore, pursuing continuous quality improvement as a uniqueness factor is sound because it provides numerous benefits to organizations and enhances their ability to compete.
Continuous quality improvement is a methodology used by organizations to improve their performance and enhance customer satisfaction. CQI involves a continuous cycle of planning, implementation, measurement, and evaluation to identify areas for improvement and implement solutions. Organizations that pursue CQI as a uniqueness factor can gain numerous benefits, including increased efficiency, effectiveness, and competitiveness. Additionally, CQI can help organizations meet regulatory requirements, enhance staff morale, and promote a culture of excellence. Therefore, pursuing continuous quality improvement is sound and can provide organizations with a competitive advantage.
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It is important to rationalize the supply base to leverage buying power and when sourcing professional services, a single-source strategy frequently maximizes the value O True O False I QUESTION 16 The 1042" rule has improved supply chain efficiency O True O False QUESTION 17 If a company seldom uses a 3PL provider, it is recommended that the company still negotiates with the provider regardless the size of need. O True O False Indirect spend is typically managed by the purchasing function within an organization. True False I QUESTION 19 Items comprising indirect spend for one company would be similarly classified by all other companies. O True O False.
Answers
The statement "It is important to rationalize the supply base to leverage buying power, and when sourcing professional services, a single-source strategy frequently maximizes the value" is True.
Rationalizing the supply base involves streamlining and optimizing the number of suppliers a company works with to leverage buying power and improve efficiency. By consolidating suppliers and reducing duplication, a company can negotiate better pricing, improve quality control, and foster stronger relationships with key suppliers. This, in turn, can lead to cost savings, improved service levels, and increased value.
When sourcing professional services, a single-source strategy often maximizes value by selecting one trusted provider that best meets the company's needs. This approach allows for better coordination, collaboration, and continuity in service delivery. It simplifies management and communication, reduces complexity, and enables the company to build a strong working relationship with the chosen service provider.
Regarding the other statements:
The "1042" rule is not a recognized rule in supply chain management, so the statement is False.
It is recommended to negotiate with a 3PL provider, regardless of frequency of use, to ensure favorable terms and conditions, so the statement is True.
Indirect spend is typically managed by the purchasing function within an organization, so the statement is True.
Items comprising indirect spend can vary between companies based on their specific needs and operations, so the statement is False.
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if Qatar National Bank (QNB) decided to reduce its lending rates. The impact on profitability for QNB depends to some extent upon the action of one of its competitors such as Barwa bank Refer to the below information and answer the followings questions: 1. Construct the payoff matrix using the following hypothetical information: - If QNB reduces but Barwa bank does not: QNB (due to large increase in the number of customers) eams 600 million and Barwa bank earns $350 million per year in profits. - If QNB and Barwa banks reduce their lending rates: each banks earns $400 million per year. - If neither QNB nor Barwa bank reduce their lending rates each bank earns $500 million per year. - If QNB does not reduce but the Barwa bank does: QNB earns 200 million and Barwa bank earns $550 million per year in profits. 2. Is there a dominant strategy for Barwa bank and if so, what is it? - If QNB reduces but Barwa bank does not: QNB (due to large increase in the number of customers) cams 600 million and Barwa bank earns $350 million per year in profits. - If QNB and Barwa banks reduce their lending rates: cach banks earns $400 million per year. - If neither QNB nor Barwa bank reduce their lending rates, each bank carns $500 million per year. - If QNB does not reduce but the Barwa bank does: QNB earns 200 million and Barwa bank earns $550 million per year in profits 2. Is there a dominant strategy for Barwa bank and if so. what is it? 3. Is there a dominant strategy for QNB if so, what is it 4. Is there a Nash equilibrium to this rate reduction exercise? If so, what is it?
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The payoff matrix will be: If QNB reduces but Barwa bank does not: QNB (due to large increase in the number of customers) earns 600 million and Barwa bank earns $350 million per year in profits.
QNB doesn't benefit as much as Barwa bank.
If QNB also reduces its lending rates, both of the banks receive less profit, i.e. [tex]$400[/tex] million.
On the other hand, if both of them don't reduce the lending rates, they both will receive [tex]$500[/tex] million.
if QNB reduces its lending rates while Barwa bank doesn't, QNB gets the most profit, i.e. [tex]$600[/tex] million.
If Barwa bank reduces the lending rates while QNB doesn't, Barwa bank receives the most profit, i.e. [tex]$550[/tex] million.
Yes, Barwa bank has a dominant strategy, and that is not reducing its lending rates. Because if they don't reduce the lending rates, and QNB reduces, Barwa bank still earns [tex]$350[/tex] million.
Yes, QNB also has a dominant strategy, and that is reducing its lending rates. Because if they reduce the lending rates and Barwa bank reduces, QNB still earns[tex]$400[/tex] million.
Yes, there is a Nash Equilibrium, which is when both banks don't reduce their lending rates and earn [tex]$500[/tex] million each.
In this case, neither bank has an incentive to change its strategy, given the strategy of the other.
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A company has two locations: North and South. Additional data from the most recent month are below: North- Actual sales 372,000 $ Break-even sales Traceable fixed costs South 228,000 120,000 36,000 S 187,500 $ $ 75,000 $ Contribution margin ratios 40% 30% The company's net operating income for the month is $63,000. $ 4 Assuming a constant sales mix, what is the company's break-even sales? (Do not round the intermediate calculations. Round the final answer to the nearest dollar.) A. $ 307,500 B. $ 306,630 C. $ 425,967 D. $ 119,337 E. None of the above.
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The correct option is B. $306,630.In this question, we are asked to calculate the break-even sales of a company with two locations, North and South. For this, we need to take into account the actual sales, break-even sales, traceable fixed costs and contribution margin ratios.
First, we need to calculate the contribution margin of North and South, by using the formula:Contribution margin = Actual sales - (Traceable fixed costs + Net operating income)North:Contribution margin = 372,000 - (Break-even sales + 0.40 * Break-even sales + 63,000)Contribution margin = 0.60 * Break-even sales - 63,000South:Contribution margin = 228,000 - (120,000 + 0.30 * 228,000 + 63,000)Contribution margin = 0.70 * 228,000 - 63,000Next, we are given that the sales mix is constant. Therefore, the contribution margin of the company as a whole will be a weighted average of the contribution margin of North and South.Contribution margin = (40/70) * Contribution margin of North + (30/70) * Contribution margin of South63,000 = (40/70) * (0.60 * Break-even sales - 63,000) + (30/70) * (0.70 * 228,000 - 63,000)Solving this equation, we get:Break-even sales = $306,630Therefore, the correct option is B. $306,630.
The contribution margin of the company can be calculated as follows:Contribution margin of the company = (40% x Contribution margin of North) + (30% x Contribution margin of South)Given that the contribution margins of North and South are $309,000 and $45,000, respectively, the contribution margin of the company is:Contribution margin of the company = (40% x $309,000) + (30% x $45,000)Contribution margin of the company = $156,600 + $13,500Contribution margin of the company = $170,100Break-Even Sales of the Company
Using the contribution margin and the net operating income of the company, we can calculate the break-even sales of the company. The formula for break-even sales is:Break-even sales = (Traceable fixed costs + Net operating income)/Contribution margin of the companyGiven that the net operating income of the company is $63,000, and the contribution margin of the company is $170,100, the break-even sales of the company can be calculated as follows:Break-even sales = ($0 + $63,000)/$170,100Break-even sales = $63,000/$170,100Break-even sales = 0.3703The break-even sales of the company is 0.3703. Rounding the value to the nearest dollar, we get the answer as $306,630. Thus, the correct option is B. $306,630.
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15. Castells stated that the world remains filled with societal black holes. This statement reminds us to question which of the following ideas:
The Panopticon Globalization
Social Shaping
Green Computing.
Knowledge Management
16. The degree of security employed within an organization is in large part a decision about the level of risk with which leaders feel comfortable.
True / False
17. Data brokers are firms that collect and resell data about consumers to other organizations.
True / False
18. Companies consider safeguarding customer data as helping to build customer loyalty and trust.
True / False
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The statement by Castells about societal black holes reminds us to question the idea of: The Panopticon Globalization
The other statements are-
16. True
17. True
18. True
The correct answer for question 15 should be "The Panopticon Globalization." The statement by Castells about societal black holes prompts us to question the idea of the Panopticon Globalization.
The concept of the Panopticon, originally introduced by philosopher Jeremy Bentham, refers to a hypothetical prison design where inmates are constantly under surveillance, leading to self-discipline and control. In the context of globalization, it raises questions about the extent of surveillance, power imbalances, and potential social inequalities that may exist in a globalized world.
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5.3 TASK THREE Office Accounting Procedures [15] You been doing research on the salary of an office manager who is in a legal field. Your research findings indicated that the average gross salary is R400 000 per annum. Now calculate the monthly net salary, provide all the necessary steps and details of how nett remuneration is calculated (Use the study guide for guidance) (15 marks)
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To calculate the monthly net salary, we need to take into account various deductions and taxes. Here is a step-by-step calculation:
Step 1: Determine the gross monthly salary.
To convert the annual salary to a monthly salary, divide the annual salary by 12.
Gross monthly salary = Annual salary / 12
= R400,000 / 12
= R33,333.33
Step 2: Calculate income tax.
Income tax rates vary depending on the country and specific tax laws. Without specific information about the tax rates and deductions applicable in your jurisdiction, I cannot provide an accurate calculation of income tax. You should refer to the tax laws and regulations in your country or consult a tax professional to determine the exact income tax amount.
Step 3: Calculate employee contributions.
Employee contributions may include deductions for social security, medical insurance, retirement plans, and other benefits. The specific contribution amounts depend on the employee's individual circumstances and the company's policies. Without this information, I cannot provide an accurate calculation of employee contributions. You should refer to your company's policies and any applicable laws or consult with your HR department to determine the exact amounts.
Step 4: Subtract income tax and employee contributions from the gross monthly salary.
Net monthly salary = Gross monthly salary - Income tax - Employee contributions
Using the calculated gross monthly salary (R33,333.33) and the determined amounts for income tax and employee contributions, you can subtract those amounts to find the net monthly salary.
Please note that the exact calculation of net salary may involve additional factors specific to your jurisdiction, such as allowances, bonuses, and other deductions. It is recommended to consult with a tax professional or refer to the applicable tax laws and regulations in your country for accurate calculations.
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What firm-specific resources and capabilities could account for Aldi's performance? With an appropriate framework, develop this analysis to identify the strengths and weaknesses of the firm, as well as the sustainability of its competitive advantage.
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Aldi's performance is driven by firm-specific resources such as an extensive store network, strong supplier relationships, and operational efficiency, contributing to its competitive advantage.
Aldi's performance and competitive advantage can be attributed to several firm-specific resources and capabilities. One key resource is its extensive network of stores, which allows for broad market coverage and convenient access for customers. Aldi's strong supplier relationships and efficient supply chain management are also important capabilities that contribute to its success. These enable Aldi to offer high-quality products at competitive prices, as well as maintain a consistent and reliable supply.
Furthermore, Aldi's operational efficiency and cost leadership strategy are vital resources and capabilities. It has developed a streamlined and simplified store format, emphasizing cost control, minimalistic store layouts, and limited product assortment. This approach enables Aldi to reduce operational costs, optimize inventory management, and pass on savings to customers.
Aldi's commitment to quality and customer satisfaction is another important factor. It focuses on product quality, freshness, and value for money, which has built trust and loyalty among its customer base. Additionally, Aldi's strong brand reputation and customer-centric approach contribute to its competitive advantage.
However, Aldi also faces certain weaknesses and challenges. Its limited product selection and store layout may not appeal to customers seeking a wider range of choices or a more immersive shopping experience. Aldi's focus on cost reduction may result in limited innovation and differentiation compared to competitors who prioritize product variety and unique offerings.
The sustainability of Aldi's competitive advantage depends on its ability to continuously leverage and enhance its firm-specific resources and capabilities. It must adapt to changing customer preferences and market trends, while maintaining its cost leadership position and commitment to quality. Aldi's success lies in its ability to balance efficiency, innovation, and customer satisfaction, ensuring its competitive advantage remains relevant and sustainable in the long run.
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Payments Of $10,000 In One Year And $25,000 In Four Years Are To Be Rescheduled With A Payment Of $5000 Today And The Balance In Three Years. Calculate The Payment Required In Three Years To Complete The Transaction If Money Earns 5.2% Compounded Quarterly
Payments of $10,000 in one year and $25,000 in four years are to be rescheduled with a payment of $5000 today and the balance in three years. Calculate the payment required in three years to complete the transaction if money earns 5.2% compounded quarterly
Answers
The payment required in three years to complete the transaction is approximately $22,806.95.
The payment required in three years to complete the transaction can be calculated using the concept of present value. We need to find the present value of the future payments at a discount rate of 5.2% compounded quarterly.
First, let's calculate the present value of the $10,000 payment in one year. We'll use the formula for the present value of a single amount:
PV = FV / (1 + r/n)^(n*t)
PV = 10,000 / (1 + 0.052/4)^(4*1)
PV = 10,000 / (1.013)^4
PV = 10,000 / 1.0525621
PV ≈ $9,492.07
Next, let's calculate the present value of the $25,000 payment in four years: PV = FV / (1 + r/n)^(n*t)
PV = 25,000 / (1 + 0.052/4)^(4*4)
PV = 25,000 / (1.013)^16
PV = 25,000 / 1.070847
PV ≈ $23,314.88
Now, let's calculate the payment required in three years to complete the transaction. We'll subtract the present value of the $5,000 payment made today from the total present value of the future payments:
Payment in three years = (PV of $10,000 payment in one year + PV of $25,000 payment in four years) - Present value of $5,000 payment made today
Payment in three years = ($9,492.07 + $23,314.88) - $5,000
Payment in three years ≈ $27,806.95 - $5,000
Payment in three years ≈ $22,806.95
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Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Zimmer Company owns an executive plane that originally cost $2,560,000. It has recorded straight-line depreciation on the plane for seven full years, calculated assuming a $320,000 expected salvage value at the end of its estimated 10-year useful life. Zimmer disposes of the plane at the end of the seventh year. a. At the disposal date, what is the (1) cumulative depreciation expense and (2) net book value of the plane?
(1) Cumulative depreciation expense $
(2) Net book value $
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(1) The cumulative depreciation expense on the executive plane at the disposal date is $1,792,000.
(2) The net book value of the plane at the disposal date is $768,000.
To calculate the cumulative depreciation expense, we need to determine the annual depreciation expense and multiply it by the number of years of depreciation. The annual depreciation expense can be calculated by subtracting the expected salvage value from the original cost and dividing it by the useful life.
Original cost of the plane = $2,560,000
Expected salvage value = $320,000
Useful life = 10 years
Annual depreciation expense = (Original cost - Expected salvage value) / Useful life
Annual depreciation expense = ($2,560,000 - $320,000) / 10
Annual depreciation expense = $224,000
Cumulative depreciation expense = Annual depreciation expense * Number of years of depreciation
Cumulative depreciation expense = $224,000 * 7
Cumulative depreciation expense = $1,568,000
At the disposal date, the cumulative depreciation expense is $1,568,000.
To calculate the net book value at the disposal date, we subtract the cumulative depreciation expense from the original cost.
Net book value = Original cost - Cumulative depreciation expense
Net book value = $2,560,000 - $1,568,000
Net book value = $992,000
Therefore, the net book value of the plane at the disposal date is $992,000.
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1-Incentives are everywhere in an economic sense. True/ False
2-There is a direct relationship between Quantity Supplied and the Price, but an Inverse relationship between Quantity Demanded and the Price. True/ False
3- If consumer income rises we are willing and able to buy more of any given good. True/ False
4-When the outline power points show a number in parentheses it denotes that there are that many sub points. (4) for example True/ False
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Incentives play a crucial role in motivating individuals to make economic decisions. They are the backbone of the market economy. Incentives can be positive, such as financial rewards, or negative, such as fines. Economists use incentives to understand how people respond to different economic situations.
1. True. There are incentives everywhere in an economic sense. An incentive is something that motivates an individual to take action. Incentives are an integral part of any economic system. They encourage individuals to act in ways that benefit themselves and others.
2. True. There is a direct relationship between Quantity Supplied and the Price but an Inverse relationship between Quantity Demanded and the Price. The law of supply and demand is one of the most fundamental concepts in economics. It states that there is a direct relationship between price and quantity supplied, but an inverse relationship between price and quantity demanded. Yes, there is a direct relationship between Quantity Supplied and the Price, but an Inverse relationship between Quantity Demanded and the Price. According to the law of supply, if the price of a good or service rises, suppliers will produce more of that good or service. The law of demand, on the other hand, states that as the price of a good or service increases, the quantity demanded decreases.
3. True. If consumer income rises, we are willing and able to buy more of any given good. When consumer income rises, people are more willing and able to purchase more goods and services. This leads to an increase in demand and higher prices. Yes, if consumer income rises, we are willing and able to buy more of any given good. When consumer income rises, individuals are more willing and able to buy more goods and services. This increase in demand leads to higher prices.
4. True. When the outline power points show a number in parentheses, it denotes that there are that many subpoints. For instance, (4) denotes that there are four subpoints in that section. Yes, when the outline power points show a number in parentheses, it denotes that there are that many subpoints. This helps to organize and break down information into manageable sections. It also makes it easier for the reader to understand the main points being made.
Hence incentives are everywhere in an economic sense and they play a crucial role in motivating individuals to make economic decisions. The law of supply and demand states that there is a direct relationship between price and quantity supplied, but an inverse relationship between price and quantity demanded. Consumer income rises if we are willing and able to buy more of any given good. When the outline power points show a number in parentheses, it denotes that there are that many subpoints.
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1. If profisses are one diminal a the project most fand by everyone 4. m not affect the production fati f's prodati h ill al 70- x panttively shaped the wage levels and leth leh effect always the labe A their ppottony the individ to trade thes mptable aflation None of the abo Se Wandy Checks prio per and lot is $5000 Noe MP- 4 18 A 138-7 *20 h 25 =10 430 h A Chick 16 A J4 and low labor so he hid ID.C eft dates Seppo Woody Chock's is one of many fes clearing 2005 hy works will Woody NE ParScore Test Form amer 19. It is usually assumed that a perfectly competitive firm's supply curve is given by its marginal on onder for this to be true, which of the following additional aumptions are necessary? L That the firm seek to maximize profits 11. That the marginal cost curve be positively sloped III. IV. That price exceeds average variable cost That price exceeds average total cost a. II and II, but not IV b. I and I but not and IV C I and I only d. I and Il but and IV 28. The principal difference between economic profies for a monopolist and for a competitive firm is the monopoly profits are considered a deadweight loss but competitive profies are not consumer surplus when competitive monopoly profits present a transfer o profits do not competitive profits long rin as well. monopoly profess exist only in the short rm whereas monopoly profits may exist in the major problems of equity whereas competitive profits do not 21. The notion that when the price of an input falls, a firm's marginal cost curve shifts down and overall production incremes so that more of every input is employed is known a the cost effect the input effect the substitution effict the opt effect 22 An input's marginal revenue product is given by the input's marginal physical productivity times marginal revenus of the firm's output the inputs marginal expense times marginal marginal revenue times the number of units employed the input's marginal expense times the inputs marginal physical productivity. 23. The accountant's cost of producing a bicycle refers to a the out of pocket payments made to produce the bicycle b the bicycle's retail price the marginal cost of the last bicycle produced the value of the goods that were given up to produce the bicycle 24 For any given output level, a firm's long-un costs are always greater than or equal to its short bare always less than or equal to its short run costs cont really greater than or equal to its shon-except in the case of diminishing return to scale dare ally less than or equal to its short rum cots except in the case of diminishing returns to scale Name: ID: C 25. The shape of a firm's expansion path depends upon the cost of labor input. 1. b. the cost of capital input. the shape of the firm's production function. all of these factors. 26. If the market for hula-hoops is characterized by a very inclastic supply curve and a very elastic demand curve, an inward shift in the supply curve would be reflected primarily in the form of 8. lower output. e b. higher prices. c. higher output. d. lower prices. LH Q 27. In the monopolistic competition model barriers to entry maintain some monopoly "rents" in the long run. b. firms are price takers C. one dominant firm acts as the monopolist that is followed by the fringe of competitors. none of these. d. 28. For the practice of price discrimination to be successful, the monopoly must have a downward sloping marginal cost curve. face similar demand curves for various markets. have similar costs among markets. be able to prevent resale of its product. 29. If an unregulated (because it produces electricity from hydroelectric power) electric company is a monopolist and faces demand of Q-50-10P. TC-10 MR-5-30 The profit maximizing output is a. 25 b. 10 C. 50 d. 5 30. If a monopoly is maximizing profits price will always be greater than marginal cost. b. price will always equal marginal cost. e. price will always be greater than average cost. d. price will always equal marginal revenue.
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Question 19: It is usually assumed that a perfectly competitive firm's supply curve is given by its marginal cost. In order for this to be true, the additional assumption necessary is that the price exceeds average variable cost. Therefore, the correct answer is (D) I and II, but not IV.
Question 20: The principal difference between economic profits for a monopolist and for a competitive firm is that monopoly profits are considered a deadweight loss but competitive profits are not. Consumer surplus is present when competitive profits are present, but not when monopoly profits are present.
Competitive profits exist in the long run as well, while monopoly profits may exist only in the short run. One of the major problems of equity is that monopoly profits exist only in the short term, whereas competitive profits do not.
Therefore, the correct answer is (B) monopoly profits present a transfer of profits.
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James purchases a $20,000 6-month certificate of deposit. Is this counted in M1 only, M2 only, M1 and M2, or neither?
A. Neither M1 nor M2.
B. M1 and M2.
C. M2 only.
D. M1 only.
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The purchase of a $20,000 6-month certificate of deposit (CD) would be counted in M2 only. M1 refers to the narrowest definition of money supply, which includes currency (coins and paper money) held by the public and demand deposits (checking accounts) in banks.
Since a certificate of deposit is a time deposit, it is not immediately available for use as a medium of exchange in transactions. Therefore, it is not considered part of M1. On the other hand, M2 includes M1 and adds certain types of near-money or highly liquid financial assets. These assets include savings deposits, money market accounts, and time deposits such as CDs with maturities of less than $100,000. Thus, the purchase of the $20,000 6-month CD would be included in M2 but not in M1. Therefore, the correct answer is C. M2 only.
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scenario 2: Imagine you start an entrepreneurial venture that sells mouthwatering nasi lemak from a food truck. You need SGD 50k external capital to reconfigure your truck. In your own words, explain what type of entrepreneurial financing you think is most suitable to your needs—and why.
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This is particularly useful for businesses that need to make significant investments in order to grow and expand. In the case of the food truck, equity financing would be the most suitable type of entrepreneurial financing because it requires a significant amount of capital to reconfigure the truck and get it up and running. By selling shares of the business to investors, the entrepreneur can raise the necessary funds to achieve their goals.
For this entrepreneurial venture that sells mouth-watering nasi lemak from a food truck, a type of entrepreneurial financing that is most suitable to its needs is equity financing. Equity financing is the process of raising capital by selling shares of a business to investors in exchange for ownership in the business. This type of financing is ideal for businesses that have high potential for growth but lack the resources to finance their own expansion.The main advantage of equity financing is that it does not require repayment like a loan does. Instead, investors become partial owners of the business and share in its profits. This means that the entrepreneur does not have to worry about repaying the loan, and can focus on growing the business instead. Additionally, equity financing can provide access to valuable expertise and experience from investors who are also passionate about the business.Another advantage of equity financing is that it is a good way to raise large amounts of capital quickly. This is particularly useful for businesses that need to make significant investments in order to grow and expand. In the case of the food truck, equity financing would be the most suitable type of entrepreneurial financing because it requires a significant amount of capital to reconfigure the truck and get it up and running. By selling shares of the business to investors, the entrepreneur can raise the necessary funds to achieve their goals.
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Managers are the people in a organisation responsible for developing and carrying out the management roles and functions.
2.1 Define the term 'Management.
2.2 In light of the above and with the use of examples critically discuss the importance of management to current business practice.
2.2 With the aid of examples, outline each of the general management functions that are undertaken by management
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For example, managers use management functions like planning, organizing, leading, and controlling to ensure that an organization is effective.
2.1 Definition of ManagementManagement is the process of organizing, directing, controlling, and planning resources to accomplish certain objectives. Managers set objectives, create strategies, develop budgets, design plans, and assign responsibilities for implementing these plans in order to achieve the predetermined objectives.2.2 The Importance of Management to Current Business PracticeManagement is critical to contemporary business practice. It helps to enhance productivity, maintain employee morale, coordinate activities, reduce waste, control costs, manage change, and achieve objectives. It also helps to ensure that the organization is run in an ethical, legal, and socially responsible manner. For example, managers use management functions like planning, organizing, leading, and controlling to ensure that an organization is effective. Planning involves setting goals and objectives, analyzing opportunities, assessing resources, and developing strategies to achieve goals and objectives.Organizing refers to the process of arranging resources, setting up systems, and delegating tasks to achieve organizational goals and objectives. Leading refers to the process of motivating, guiding, and inspiring employees to achieve organizational goals and objectives. Controlling refers to the process of monitoring performance, identifying deviations from standards, and taking corrective action to address problems.2.3 Management FunctionsAs noted earlier, management is concerned with a variety of activities and functions. Each management function plays a crucial role in organizational success and helps to achieve organizational objectives. The following are the management functions:Planning: Planning is the process of setting objectives, analyzing opportunities, assessing resources, and developing strategies to achieve objectives.Organizing: Organizing is the process of arranging resources, setting up systems, and delegating tasks to achieve organizational goals and objectives.Leading: Leading involves motivating, guiding, and inspiring employees to achieve organizational goals and objectives.Controlling: Controlling refers to the process of monitoring performance, identifying deviations from standards, and taking corrective action to address problems.
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13 A company is facing a problem with their 4th quarter absorption costing net operating income on December 25. Their net operating income target is $260,000 and the data so far is as follows: Sales Revenue Variable COGS Fixed manufacturing OH Fixed S&A $800,000 ($200/unit) $320,000 ($80/unit) $120,000 Variable S&A: Commission on Sales $90,000 3% Up until this quarter, the company has had a policy of having zero inventories at the end of each quarter. No further sales are possible during this year. The CEO is planning to produce more units for inventory in the last week of December to meet the net operating income target. How many additional inventory units must be produced in the fourth quarter to meet the net operating income target if the sales commission is left unchanged? (Round up your answer to the nearest whole number of units.) A. 308 units B. 265 units: C. 1,058 units 529 units D. E. None of the above.
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The company is facing a problem with their 4th quarter absorption costing net operating income on December 25. Their net operating income target is $260,000 and the data so far is as follows:Sales RevenueVariable COGSFixed manufacturing OHFixed S&A$800,000 ($200/unit)$320,000 ($80/unit)$120,000Variable S&A:
Commission on Sales$90,0003%Up until this quarter, the company has had a policy of having zero inventories at the end of each quarter. No further sales are possible during this year. The CEO is planning to produce more units for inventory in the last week of December to meet the net operating income target.How many additional inventory units must be produced in the fourth quarter to meet the net operating income target if the sales commission is left unchanged. (Round up your answer to the nearest whole number of units.)
In order to calculate the additional inventory units must be produced in the fourth quarter to meet the net operating income target if the sales commission is left unchanged, we need to calculate the required Sales revenue and the total contribution margin per unit. Contribution margin is the difference between Sales revenue and Total Variable Costs (TVC) - i.e. CM = Sales revenue - TVC. CM per unit = Sales price per unit - TVC per unit.Contribution Margin per unit = Sales price per unit - TVC per unit= ($200 - $80) = $120.Contribution Margin Ratio (CMR) = CM/Sales PriceCMR = $120/$200 = 60%. Target Operating Income (TOI) = Fixed Costs + Target Net IncomeTOI = $120,000 + $260,000 = $380,000.Break-Even Point (BEP) in Sales units = Fixed Costs/CM per unit. BEP = $440,000 / $120= 3,666.67 units.
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The number of additional units to be produced in the fourth quarter to meet the net operating income target if the sales commission is left unchanged is 123 units. Thus, the correct answer is option E, none of the given options are correct.
A formula known as net operating income (NOI) is used to assess the profitability of real estate assets that produce income.
NOI is the sum of all property earnings less all running costs that are supposed to be nicely reasonable. The detailed calculation showing the number of units to be produced is attached below. The balance income is divided by the net cost of production per unit is used to calculate the additional units.
Therefore, 123 units are to be produced in the fourth quarter.
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Cill assis Cash and marketable securities Accounts receivable Inventory Total current assets Current liabilities Accrued wages and taxes Accounts payable Notes payable Total current liabilities $9.9 $39.3 $60.3 $109.5 $5.3 $34.8 $30.4 $70.5 (Related to Checkpoint 4.1) (Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here: a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.49 and 1.22, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. Raconteurs' current ratio is (Round to two decimal places.)
Answers
a) Raconteurs' liquidity, as measured by the current ratio which is 1.55, However, the acid-test (quick) ratio which is 0.70. The benchmark ratios provided are 1.49 for the current ratio and 1.22 for the acid-test (quick) ratio.
To calculate Raconteurs' current ratio, we divide the total current assets by the total current liabilities:
Current Ratio = Total Current Assets / Total Current Liabilities
Current Ratio = $109.5 / $70.5
Current Ratio = 1.55 (rounded to two decimal places)
To calculate Raconteurs' acid-test (quick) ratio, we subtract inventory from the total current assets and then divide the result by the total current liabilities:
Acid-Test (Quick) Ratio = (Total Current Assets - Inventory) / Total Current Liabilities
Acid-Test (Quick) Ratio = ($109.5 - $60.3) / $70.5
Acid-Test (Quick) Ratio = $49.2 / $70.5
Acid-Test (Quick) Ratio = 0.70 (rounded to two decimal places)
b. The benchmark ratios provided are 1.49 for the current ratio and 1.22 for the acid-test (quick) ratio.
Based on the calculations, Raconteurs' current ratio is 1.55, which is higher than the benchmark of 1.49. This indicates that the company has sufficient current assets to cover its current liabilities, suggesting good liquidity.
However, Raconteurs' acid-test (quick) ratio is 0.70, which is lower than the benchmark of 1.22. This implies that the company may face challenges in meeting its short-term obligations without relying on the sale of inventory.
LEARN MORE ABOUT liquidity here: brainly.com/question/30715681
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