Both Firm A and Firm B should accept the project, as the project's IRR of 13.0 percent is greater than each firm's required rate of return.
Based on the information provided, we need to determine which firm(s) should accept the project with an IRR of 13.0 percent.
We will compare this IRR to each firm's required rate of return, which is calculated using the Capital Asset Pricing Model (CAPM).
Step 1: Calculate the required rate of return for Firm A:
CAPM formula: Required rate of return = Risk-free rate + (Beta × Market risk premium)
Firm A's required rate of return = 4.5% + (1.2 × 7.0%)
= 4.5% + 8.4%
= 12.9%
Step 2: Calculate the required rate of return for Firm B:
Firm B's required rate of return = 4.5% + (0.9 × 7.0%)
= 4.5% + 6.3%
= 10.8%
Step 3: Compare the IRR to each firm's required rate of return:
- Firm A: IRR (13.0%) > Required rate of return (12.9%) -> Firm A should accept the project
- Firm B: IRR (13.0%) > Required rate of return (10.8%) -> Firm B should also accept the project
Know more about the rate of return here:
https://brainly.com/question/1789817
#SPJ11
To assist in first-stage allocations in ABC, employees designated as indirect factory workers should provide the ______. Multiple choice question. wages received for each employee activity non-personnel costs distributed to each cost pool available capacity of the factory and equipment percentage of employee time spent for each activity pool
Indirect factory workers are those employees who do not directly participate in the production process but provide support to the production activities.
In ABC, these workers are assigned to different cost pools based on the activities they perform.
To allocate the indirect costs to the products accurately, it is essential to determine the cost driver for each cost pool.
A cost driver is a factor that causes a particular cost to be incurred.
For example, the cost driver for the cost pool of machine setup activities can be the number of setups performed.
The employees designated as indirect factory workers should provide information on the activities they perform, the time spent on each activity, and the cost driver for each cost pool.
This information helps to calculate the cost of each activity and allocate it to the relevant cost pool.
Know more about Indirect factory workers here:
https://brainly.com/question/15147327
#SPJ11
______ seek firms with a share price that reflects sound economic fundamentals, while ______ seek firms based on whether the share price will rise
Investors seeking long-term investments typically seek firms with a share price that reflects sound economic fundamentals, such as strong financial performance, sustainable competitive advantage, and a solid management team.
On the other hand, investors seeking short-term gains may focus on firms based on whether the share price will rise, often driven by market trends or hype around a particular stock.
However, it's important to note that investment strategies can vary greatly based on individual goals and risk tolerance.
Know more about long-term investments here:
https://brainly.com/question/30099887
#SPJ11
Which of the following statements is true regarding partnership operating distributions? Multiple Choice Partners will never recognize a gain on an operating distribution. Partners receiving a distribution of property other than money will take a basis in the property equal to its fair market value. Partners will never recognize a loss on an operating distribution. None of the statements are true.
The correct answer to this question is: None of the statements are true.
The first statement, "Partners will never recognize a gain on an operating distribution," is not true.
Partners can recognize a gain on an operating distribution if the distribution exceeds their basis in the partnership interest. In this case, the excess amount would be considered a gain.
The second statement, "Partners receiving a distribution of property other than money will take a basis in the property equal to its fair market value," is true.
When a partner receives a distribution of property, their basis in the property is equal to its fair market value at the time of distribution.
The third statement, "Partners will never recognize a loss on an operating distribution," is not true.
Partners can recognize a loss on an operating distribution if the distribution is less than their basis in the partnership interest. In this case, the difference between the distribution and the basis would be considered a loss.
Therefore, the correct answer to this question is: None of the statements are true.
Know more about gains here:
https://brainly.com/question/29547582
#SPJ11
A mails a written order to B, offering to buy specified machinery on specified terms. The order provides, "Ship at once." How may B accept?
B can accept A's order by sending a written confirmation stating their acceptance of the offer.
It is important to note that the terms specified in A's order must be agreed upon by B. If B accepts the order but does not agree to the terms, it would not be considered a valid acceptance.
It is also important to consider the phrase "Ship at once" in A's order. This implies that there is an urgency to the transaction and that A expects B to fulfill the order promptly. If B is unable to ship the machinery immediately, they should communicate this to A and negotiate a new timeline that is agreeable to both parties.
In conclusion, B can accept A's order by confirming their agreement to the specified terms in writing. However, it is crucial that they communicate any potential delays in shipping and negotiate a timeline that satisfies both parties. By doing so, both A and B can ensure a smooth and successful transaction.
To know more about shipping, visit https://brainly.com/question/27465093
#SPJ11
Online customer review may serve as a free and efficient ______ quality-control system. A) crowdsourced. B) statistical. C) individual.
Online customer review may serve as a free and efficient crowdsourced quality-control system. The correct answer is A)
Online customer reviews are a form of crowdsourced quality control, where a large number of customers share their opinions and experiences about a product or service. Online reviews are considered an efficient and free way to collect feedback and improve product quality.
Crowdsourcing is a process where a large group of people collaborates to solve a problem or contribute to a project. In the case of online reviews, customers are contributing their opinions to a shared platform, which can be used by businesses to improve their products or services.
The collective feedback provided by customers can help identify areas for improvement and also highlight strengths and weaknesses of a product or service.
The correct answer is A)
To know more about crowdsourced refer to-
https://brainly.com/question/29331726
#SPJ11
Firms that use a localization strategy have national operations that act as stand-alone entities. This results in Blank______ levels of performance ambiguity.
Firms that use a localization strategy have national operations that act as stand-alone entities. This results in a significant degree of autonomy and decision-making power levels of performance ambiguity.
Since each national operation operates independently, it may be challenging to ensure consistent levels of performance across the entire organization. This is especially true if there is no centralized control or coordination mechanism in place to monitor and manage performance at the national level.
The degree of performance ambiguity may also depend on the level of standardization across national operations. If each national operation follows its unique processes and procedures, it may be difficult to compare their performance against each other or against industry benchmarks.
To mitigate the level of performance ambiguity associated with a localization strategy, firms can consider implementing centralized monitoring and reporting mechanisms. This can help to ensure that each national operation is meeting performance targets and operating within the broader strategic framework of the organization.
Additionally, standardizing processes and procedures across national operations can help to promote consistency and comparability of performance metrics.
For more such questions on localization visit:
https://brainly.com/question/30046199
#SPJ11
A property manager or property management firm is usually a _____ agent.
d. general
e. principal
f. special
g. universal
A property manager or property management firm is usually a special agent. A special agent is an individual or entity that is authorized to act on behalf of the principal for a specific task or purpose.
In the case of property management, the property owner is the principal and the property manager is the special agent. The property manager is given specific authority to manage the property, collect rent, advertise vacancies, screen tenants, maintain the property, and handle tenant complaints, among other tasks.
The property manager is responsible for carrying out these tasks in accordance with the terms of the property management agreement and the instructions of the property owner.
Unlike a general agent, who has broader authority to act on behalf of the principal, a special agent has limited authority and is authorized to act only in specific situations. A universal agent, on the other hand, has unlimited authority to act on behalf of the principal in all matters.
In summary, a property manager or property management firm is typically a special agent, authorized to act on behalf of the property owner for specific tasks related to managing the property.
To know more about management refer here:
https://brainly.com/question/28286399#
#SPJ11
Impersonating legitimate businesses on the web or in email is referred to as phaking. True or False?
The given statement "Impersonating legitimate businesses on the web or in email is referred to as phaking" is false. Impersonating legitimate businesses on the web or in email is referred to as phishing.
The act of impersonating legitimate businesses on the web or in email is referred to as "phishing," not "phaking." Phishing is a type of cyber attack where attackers use fraudulent emails, websites, or other forms of communication to trick individuals into divulging sensitive information, such as login credentials or financial data.
The term "phishing" is a play on the word "fishing" because attackers are trying to lure their victims into taking the bait.
It's important to note that phishing attacks can be very sophisticated and difficult to detect. Attackers may use tactics such as creating websites or emails that look identical to legitimate ones, or using social engineering techniques to convince victims to divulge sensitive information.
To protect against phishing attacks, it's important to be cautious when clicking on links or downloading attachments from unfamiliar sources, and to always verify the authenticity of any requests for sensitive information.
To know more about phishing refer here:
https://brainly.com/question/2880574#
#SPJ11
Which of the following statements describes the "supply functional capability within joint logistics?
The joint logistician manages supplies and equipment, inventory, and supplier networks.
The supported CCDR builds and validates force and movement requirements, whereas the supporting CCDR reports force movement requirements data.
Planning, executing and controlling joint logistic operations
The statement "The joint logistician manages supplies and equipment, inventory, and supplier networks" describes the "supply functional capability within joint logistics."
The management of supplies and equipment, inventory, and supplier networks is a key function of joint logistics, and it involves ensuring that the right resources are available to support joint operations. This includes identifying supply and equipment requirements, sourcing and acquiring supplies and equipment, managing inventory levels, and coordinating with suppliers and vendors to ensure timely and efficient delivery of supplies and equipment.The other two statements describe different aspects of joint logistics operations.
"The supported CCDR builds and validates force and movement requirements, whereas the supporting CCDR reports force movement requirements data" describes the process of identifying and coordinating the movement of military forces and equipment, while "planning, executing and controlling joint logistic operations" refers to the overall process of managing logistics operations in support of joint military operations.
Learn more about functional capability here:https://brainly.com/question/15800506
#SPJ11
Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 9 percent, should the firm accept this project? What if the required return was 21 percent?year cash flow0 -168,5001 86,0002 91,0003 53,000
At a required return of 9%, the NPV of the cash flows is $9,114.79, indicating that the firm should accept the project. The NPV of the cash flows is -$9,197.20, indicating that the firm should reject the project.
To calculate the NPV of the cash flows, you can use the formula: NPV = CF0/(1+r)^0 + CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3, where CF represents the cash flow in each year, r represents the required return, and the superscript represents the year. At a required return of 9%, the NPV of the cash flows is calculated as -168,500/(1+0.09)^0 + 86,000/(1+0.09)^1 + 91,000/(1+0.09)^2 + 53,000/(1+0.09)^3 = $9,114.79. Since the NPV is positive, the project is expected to generate a return higher than the required return and should be accepted. At a required return of 21%, the NPV of the cash flows is calculated as -168,500/(1+0.21)^0 + 86,000/(1+0.21)^1 + 91,000/(1+0.21)^2 + 53,000/(1+0.21)^3 = -$9,197.20. Since the NPV is negative, the project is expected to generate a return lower than the required return and should be rejected. The NPV decision rule helps businesses evaluate investment opportunities based on their expected returns and risks.
Learn more about NPV:
https://brainly.com/question/29423457
#SPJ11
The quantity at which total revenue and total cost are equal is referred to as (the) Group of answer choices break-even point. zero margin. incremental return on investment. tipping point.
The quantity at which total revenue and total cost are equal is referred to as the break-even point.
The break-even point is an essential concept in financial analysis and business planning, as it helps companies determine the level of sales necessary to cover their costs without making a profit or incurring a loss. This is important for business owners and managers, as it provides valuable information for decision-making, pricing strategies, and cost management.
At the break-even point, a company's total revenue equals its total costs, which means there is zero margins, and the company is neither making a profit nor experiencing a loss. To calculate the break-even point, one must know the fixed costs, variable costs per unit, and the selling price per unit.
Once the break-even point is reached, any additional sales will start to generate profit, known as the incremental return on investment. The tipping point, although a related concept, refers to the point where a small change in a situation leads to significant and often irreversible effects, which is not directly related to the break-even point.
In summary, the break-even point is the quantity at which total revenue and total costs are equal, helping businesses understand the level of sales necessary to cover their costs and guiding them in making informed financial decisions.
You can learn more about the break-even point at: brainly.com/question/22871926
#SPJ11
Payments to a fund's shareholders that result from the sale of securities in the fund's portfolio are
Payments to a fund's shareholders that result from the sale of securities in the fund's portfolio are called capital gains distributions.
These distributions represent the net gains from the sale of securities within the fund's portfolio, such as stocks or bonds.
Capital gains distributions are typically paid out annually or semi-annually to shareholders, and they may be subject to capital gains taxes.
Some mutual funds offer the option to automatically reinvest capital gains distributions back into the fund, which can help to increase the investor's total return over time.
learn more about securities here:
https://brainly.com/question/31684033
#SPJ11
true or false through agents, a principal can conduct only one business operation at a time.
The statement is false because a principal can conduct multiple business operations at the same time through their agents, as agents can act on behalf of the principal in various transactions simultaneously.
Agents are individuals or organizations who act on behalf of the principal to carry out various tasks, including conducting business operations. By appointing multiple agents, a principal can delegate different tasks to each agent, allowing them to conduct multiple business operations simultaneously.
For example, a company may appoint one agent to handle sales and marketing in one region while appointing another agent to handle sales and marketing in a different region. This allows the company to conduct multiple business operations at the same time and expand its reach.
Learn more about agents https://brainly.com/question/25358387
#SPJ11
____ data, or the facts and figures that have already been collected about the Coffee Collective prior to the research at hand, would include information relating to budgets, previous marketing activities, sales and customer communications. Multiple Choice
Secondary data, or the facts and figures that have already been collected about the Coffee Collective prior to the research at hand, would include information relating to budgets, previous marketing activities, sales and customer communications.
What's secondary dataSecondary data, consisting of facts and figures previously collected about the Coffee Collective, serves as a valuable resource for researchers. This data may include information such as budgets, previous marketing activities, sales, and customer communications.
By analyzing this secondary data, researchers can gain insights into the company's historical performance, marketing strategies, and customer engagement. This information can then inform decision-making and guide future research efforts.
In some cases, secondary data may be presented in a multiple-choice format, allowing for easier analysis and comparison of different aspects related to the Coffee Collective's operations.
Overall, secondary data plays a crucial role in understanding the context and background of the Coffee Collective.
Learn more about Secondary data at
https://brainly.com/question/29750618
#SPJ11
A schedule is identical to a timeline. T F
The statement a schedule is identical to a timeline is true. The correct option is T.
A schedule or a timetable, as a basic time-management tool, consists of a list of times at which possible tasks, events, or actions are intended to take place, or of a sequence of events in the chronological order in which such things are intended to take place. The process of creating a schedule deciding how to order these tasks and how to commit resources between the variety of possible tasks is called scheduling, and a person responsible for making a particular schedule may be called a scheduler.
Making and following schedules is an ancient human activity.
Learn more about schedule, here:
https://brainly.com/question/31765890
#SPJ4
It's FALSE
Don't listen to the other person.
prior to signing the closing documents, what should the parties have already done?
Prior to signing the closing documents, the parties should have already:
Completed all necessary inspections and due diligence.
Obtained financing and insurance. The buyer should have secured a mortgage or other financing.
Explain necessary steps that should be completed by the parties before they sign the closing documents?Closing a real estate transaction involves a lot of legal and financial paperwork. However, before the parties sign the final documents, there are several important steps that must be completed.
Firstly, both the buyer and seller must ensure that all necessary inspections and due diligence have been conducted.
This may include property inspections, title searches, and other investigations that are relevant to the particular property.
Any issues or concerns that are uncovered during this process should be addressed and resolved prior to signing.
Secondly, the buyer should have secured financing or other necessary funding, and the seller should have provided evidence of title insurance, homeowner's insurance, and any other required policies.
This ensures that both parties are protected and that the transaction can proceed smoothly.
By completing these steps before the closing, the parties can minimize the risk of any unexpected issues or delays arising during the final stages of the transaction.
Learn more about prior to signing
brainly.com/question/29799283
#SPJ11
Cash and investments that can be easily converted into cash are termed
a. capital assets.
b. liquid assets. c. illiquid assets.
d. depositable assets.
e. None of these are correct.
The correct term for cash and investments that can be easily converted into cash is liquid assets.
So, the correct answer is B.
What's liquid assetLiquid assets are important for individuals and businesses because they provide the ability to cover financial obligations or take advantage of investment opportunities quickly.
Examples of liquid assets include cash, checking and savings accounts, money market accounts, and marketable securities such as stocks and bonds.
In contrast, capital assets (a) refer to long-term assets like property and equipment, and illiquid assets (c) are assets that cannot be easily converted into cash, such as real estate and artwork. Depositable assets (d) is not a standard financial term.
Learn more about liquid assets at
https://brainly.com/question/31216973
#SPJ11
In a disparate treatment case involving a disabled employee, one of the employer's defenses is to establish that the employment action was taken as a result of the employee's:
In a disparate treatment case involving a disabled employee, one of the employer's defenses is to establish that the employment action was taken as a result of the employee's job-related qualifications or performance.
In a disparate treatment case, the employer may defend their actions by showing that the employment decision was based on the disabled employee's job-related qualifications or performance rather than their disability. This defense asserts that the employer made the decision based on legitimate reasons unrelated to the individual's disability, such as the employee's ability to perform essential job functions, qualifications, skills, or overall job performance.
By demonstrating that the employment action was motivated by job-related factors, the employer aims to refute any claim of discrimination based on disability and provide a valid defense against the disparate treatment allegation.
You can learn more about disparate treatment case at
https://brainly.com/question/30773247
#SPJ11
The _ section of a business plan describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity. This portion also summarizes the firm's financial condition, and includes past and current balance sheets, income and cash flow statements
A business plan's "Financial Plan" section describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity.
This portion also summarizes the firm's financial condition and includes past and current balance sheets, income and cash flow statements. It is an essential part of the business plan as it provides investors and stakeholders with a clear understanding of the financial health of the company and its potential for growth and profitability.
It is essential to ensure that Financial Plan section of Business Plan is well-written and thoroughly researched to reflect the company's financial situation and future prospects accurately.
Learn more about business plan: https://brainly.com/question/28303018
#SPJ11
TRUE/FALSE. The amount of net income determined for an accounting period will be the same regardless of whether the income statement is prepared under a contribution margin format used in managerial accounting or the product costing format use in financial accounting. This statement is
True. The amount of net income determined for an accounting period will be the same regardless of whether the income statement is prepared under a contribution margin format used in managerial accounting or the product costing format used in financial accounting.
While the formats and presentation may differ, the net income calculation remains consistent across both methods. The amount of net income will be the same regardless of whether the income statement is prepared under a contribution margin format used in managerial accounting or the product costing format used in financial accounting.
However, the two formats will present the information in different ways. The contribution margin format emphasizes the behavior of costs and the contribution margin of each product or segment, while the product costing format emphasizes the cost of goods sold and gross margin of each product or segment.
Learn more about financial accounting here:
https://brainly.com/question/28127387
#SPJ11
True or False: It is best for college students to wait and begin saving once they are "making more money."
The given statement "It is best for college students to wait and begin saving once they are making more money" is False because starting to save early is always the best strategy, even if it is just a small amount.
Compound interest plays a big role in saving, and the earlier you start, the more time your money has to grow. Waiting until you are making more money means you are missing out on the benefits of compounding interest, and it may be harder to save larger sums of money later on.
Even if you are only able to save a small amount each month, it is important to start building the habit of saving early on. This habit will help you stay on track with your financial goals in the future, even when you have more money to work with.
In short, it is never too early to start saving and waiting until you are making more money is not the best strategy. Start saving what you can now and make it a priority to build your savings over time.
You can learn more about Compound interest at: brainly.com/question/14295570
#SPJ11
Customers, employees, suppliers, and investors are examples of: 1: organizations
2: constituents
3: Stakeholders
4: Stockholders
5: Entities
The correct answer is "stakeholders". Customers, employees, suppliers, and investors are all stakeholders in an organization, meaning that they have a vested interest in its success or failure.
As such, organizations need to consider the needs and perspectives of each group when making decisions that may impact them. Customers are important stakeholders as they are the ones who buy and use a company's products or services, while employees are the ones who work for the company and help to deliver those products or services. Suppliers are also key stakeholders as they provide the raw materials or components necessary to produce a company's products. Finally, investors are stakeholders because they have invested money in the company and expect a return on their investment. By considering the needs of each stakeholder group, organizations can make decisions that benefit everyone involved, leading to long-term success and sustainability.
learn more about stakeholders here:
https://brainly.com/question/30463383
#SPJ11
Which of the following is an example of occasion segmentation for a chocolate maker?
Multiple choice question.
The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.
The company sells both regular and sugar-free chocolate.
The company sells white, milk, and dark chocolate to serve different taste preferences.
The company prices its chocolates differently in different geographic areas.
The correct answer is option a. The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.
Occasion segmentation involves tailoring marketing strategies and product offerings to specific occasions or events. In this case, the chocolate maker offering chocolates in heart-shaped boxes for Valentine's Day is an example of occasion segmentation. Valentine's Day is a specific occasion associated with expressing love and affection, and heart-shaped boxes of chocolates are often seen as a traditional gift during this time. By offering chocolates in heart-shaped boxes, the chocolate maker is targeting consumers who are seeking Valentine's Day gifts and looking for products that are associated with romance and love. The other options mentioned in the question are examples of different segmentation strategies, but they do not specifically pertain to occasion segmentation. Selling regular and sugar-free chocolate (option b) is an example of a product attribute-based segmentation strategy. Selling white, milk, and dark chocolate to serve different taste preferences (option c) is an example of taste preference-based segmentation. Pricing chocolates differently in different geographic areas (option d) is an example of geographic segmentation.
To know more about traditional please visit:
https://brainly.com/question/9450983
#SPJ11
A trader owns 299 shares of a stock and plans on selling covered calls using standard contracts on all of his shares. How many contracts could he sell?
Two - Correct
One
Four
Three
A trader owns 299 shares of a stock and plans on selling covered calls using standard contracts on all of his shares. How many contracts could he sell
Two - Correct
One
Four
Three
The trader could sell two covered call contracts since one standard contract covers 100 shares of stock. Therefore, he would need 3 contracts to cover all his shares, but since he can only sell whole contracts, he would sell 2 contracts and leave 99 shares uncovered.
learn more about contract here :
https://brainly.com/question/2669219
#SPJ11
Movie studios are responding to the growth of movie piracy by doing which of the following?
limiting the number of theaters that can show a new movie
having armed guards deliver movie prints to theaters
having employees sign loyalty oaths
releasing the movie to as many theaters as possible
Movie studios are responding to the growth of movie piracy by releasing the movie to as many theaters as possible.
The logic behind this approach is that by increasing the number of theaters showing the movie, it becomes easier for viewers to access it legally, and thus, reducing the incentive to pirate the movie.
In contrast, limiting the number of theaters showing a new movie might increase demand for the movie, which could result in a surge in piracy. Moreover, having armed guards deliver movie prints to theaters or having employees sign loyalty oaths is not a sustainable solution to movie piracy, as these measures only address the symptoms of the problem, rather than the root cause. Ultimately, the most effective way to combat piracy is to make legal access to movies more convenient and affordable than pirating them. This can be done through initiatives such as offering online streaming services and reducing the cost of movie tickets. By doing so, movie studios can win back customers who might have otherwise turned to piracy. Thus correct option is releasing the movie to as many theaters as possible.
Learn more about
#SPJ11
Fulton Corporation adds all materials at the beginning of production and incurs conversion cost evenly throughout manufacturing. The company completed 70,000 units during the year and had 12,000 units in process at year end, 20% complete with respect to conversion cost. Equivalent units for the year total:
The equivalent units for the year total 77,600.
Since the company adds all materials at the beginning of production, the equivalent units for the year will be equal to the number of units completed during the year. Therefore, the equivalent units for the year are 70,000.
However, there were 12,000 units in process at the end of the year, 20% complete with respect to conversion cost. To calculate the equivalent units for these units, we multiply the 12,000 units by 20%, which gives us 2,400 equivalent units.
Adding the equivalent units for completed units and units in process gives us a total of 77,600 equivalent units for the year.
For more questions like Company click the link below:
https://brainly.com/question/30532251
#SPJ11
All of the following would be considered a company with high operating leverage, except O A. Airline company OB. Amusement park C. Hotel chain D. T-shirt kiosk in a mall
All of the following would be considered a company with high operating leverage, except T-shirt kiosk in a mall. Therefore, the correct option is D.
A company with high operating leverage is one that has a high fixed cost and low variable cost. This means that the company has to generate a certain level of sales in order to break even, but once it does, profits increase rapidly as sales continue to rise. Out of the options given, all of them except for T-shirt kiosk in a mall would be considered a company with high operating leverage.
A. Airline companies have high fixed costs such as aircraft, airport fees, and salaries for pilots and flight attendants. Once a certain number of seats are sold, the additional cost per passenger is relatively low. Therefore, airlines have high operating leverage.
B. Amusement parks also have high fixed costs such as rides, maintenance, and staff salaries. Once a certain number of visitors attend the park, the additional cost per visitor is relatively low. Therefore, amusement parks have high operating leverage.
C. Hotel chains have high fixed costs such as the cost of building and maintaining the hotels, and staffing costs. Once a certain number of rooms are booked, the additional cost per guest is relatively low. Therefore, hotel chains have high operating leverage.
On the other hand, a T-shirt kiosk in a mall would have relatively low fixed costs. The kiosk itself may be rented or leased, but there are few ongoing costs such as inventory and labor. Therefore, a T-shirt kiosk in a mall would not be considered a company with high operating leverage. Hence, the correct answer is option D.
In summary, a company with high operating leverage has high fixed costs and low variable costs. Out of the options given, all except for a T-shirt kiosk in a mall would be considered a company with high operating leverage.
Learn more about Operating leverage:
https://brainly.com/question/28500715
#SPJ11
True or False: Research by economist Maurice Allais illustrated that people make decisions consistently according to their risk preference, regardless of their financial circumstances. True False
False.Research by economist Maurice Allais actually demonstrated the opposite of this statement. Allais found that people's risk preferences were inconsistent across different financial scenarios, suggesting that their decisions were not solely based on their risk preferences.
This finding was later supported by other researchers in the field of behavioral economics, who identified a range of cognitive biases and heuristics that can influence decision-making in unpredictable ways. For example, the "framing effect" suggests that people's choices can be influenced by the way information is presented to them. The "endowment effect" suggests that people tend to overvalue items that they own or possess, which can lead to irrational decisions in situations like auctions or negotiations. Additionally, social and emotional factors can also play a role in decision-making, such as peer pressure, emotional attachment, and moral considerations.
Learn more about economist here
https://brainly.com/question/30123521
#SPJ11
Generally, a hypergeometric distribution will be used instead of a binomial distribution when ....
Generally, a hypergeometric distribution will be used instead of a binomial distribution when the sample size is a fixed number and the population size is small, which means the events cannot be assumed to be independent.
In contrast, a binomial distribution is used when the sample size is large and the population size is infinite or very large, which makes the events independent. The hypergeometric distribution calculates the probability of getting a specific number of successes in a fixed sample size drawn without replacement from a finite population of a known size, whereas the binomial distribution calculates the probability of getting a specific number of successes in a fixed sample size drawn with replacement from an infinite or very large population.
For example, if a company has 10 employees and 4 of them are women, and you want to know the probability of selecting 2 women from a sample of 5 employees without replacement, you would use the hypergeometric distribution.
In general, if the sample size is a significant fraction of the population size, or if the events are not independent, then the hypergeometric distribution may provide a better model for the situation than the binomial distribution.
Learn more about hypergeometric distribution: https://brainly.com/question/31307251
#SPJ11
Ace is 25 years old and loves extreme sports and adventure vacations. Fortunately he has a good income to support his spending on exercise and socialization's. he is a _____.
He is an adventure enthusiast. Based on the information provided, Ace can be described as a young adult who is financially stable and enjoys engaging in extreme sports and adventure vacations.
From this description, it is reasonable to assume that Ace is an active and adventurous person who values experiences over material possessions. Therefore, Ace could be described as an adventurous and financially secure young adult.Ace's demographic classification would be a young adult who is in the age range of 18 to 34 years old, which is a highly sought-after consumer group by many companies. This age range is often referred to as the "millennial" demographic, which is known for its interest in experiences, socialization, and self-expression.
In terms of psychographic classification, Ace can be classified as an "adventurer." This group of individuals values experiences over possessions and is willing to take risks in pursuit of excitement and novelty. They tend to be social and seek out opportunities to connect with others who share similar interests.
Read more about psychographic here:https://brainly.com/question/27836077
#SPJ11
