The law of conservation of energy refers to the accounting-like concept that the work done on a system alters the system's energy.
Energy cannot be created or destroyed; instead, it can only be changed from one type of energy to another, according to the law of conservation of energy. This indicates that unless energy is introduced from the outside, a system always has the same quantity of energy. In the situation of non-conservative forces, when energy is changed from mechanical energy to thermal energy yet the total energy does not change, this is especially perplexing. Energy must be converted from one form to another in order to be used.
Law of Conservation of Energy Examples:
In a loudspeaker, electrical energy is converted into sound energy.In a generator, mechanical energy is converted into electrical energy.When fuels are burnt, chemical energy is converted into heat and light energy.Learn more about Law of Conservation of energy at,
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in year 1, shell company understated their ending inventory. what is the effect of this error in year 2? (check all that apply).
The effect of this error will be that the Beginning inventory will be understated and the Cost of goods sold will be understated.
Inventory may be defined as the storehouse within the organization or business manufacturing company where all the goods manufactured and ready to be delivered or shipped are kept. It is necessary to keep tract of the inventory as the value of the goods in the inventory may change at any time. If the ending inventory is understated then their will be discrepancies within the beginning inventory for the coming year. This will happen because the calculations of the new year depends on the calculations of the previous year. Also the cost of the goods will be understated because the cost of goods change with time and in determining the new cost, the previous cost plays an important role.
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the transaction used to record the receipt of cash from customers for services to be performed later would include
The transaction used to record the receipt of cash from customers for services to be performed later would include is a debit to cash and a credit to fees income.
A company's finances remain balanced thanks to debits and credits. Every transaction involving them is recorded in pairs, thus a debit to one financial account necessitates a credit to another one or a sum of credits to all other financial accounts, depending on their worth.
The foundation of double-entry accounting is this procedure. Accounts "roll up" into specific lines on a company's balance sheet or income statement, both of which depict a company's financial health, value, and profitability. This makes accuracy essential. They also assist internal and external decision-makers, including as management of the company, lenders, investors, and tax authorities.
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crest toothpaste offers new whitening toothpaste one year, a new gel swirl design the next year, and an improved cleaning formula the year after. crest toothpaste does this because it is
A firm engaging in monopolistic competition in an effort to preserve its economic profit.
What is meant by economic profit?This difference between the proceeds from the sale of a product and the prices of all inputs utilized, or any opportunity costs, is known as an economic gains or losses. Opportunity expenses or explicit costs are subtracted from earned revenues to determine economic profit.
What is an example of economic profit?Let's imagine a business sells plush animals and makes $10,000 in revenue. There are $5,000 in explicit costs and $2,000 in implicit costs to make them. We can calculate the economic gain of creating these toys as $1 million ($10,000 - $7 million - $2,000) using the calculation above.
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joyner company has the following historical collection pattern for its credit sales: 60% collected in month of sale 20% collected in the first month after sale 15% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible budgeted credit sales for the last six months of the year follow. july $ 49,000 august 54,000 september 59,000 october 64,000 november 69,000 december 61,500 required: a. calculate the estimated total cash collections during october. b. calculate the estimated total cash collections during the year's fourth quarter.
An estimate of the anticipated cash payments and receipts during the budget period is known as a cash budget. It is a crucial cash management tool that assists in determining whether there will be cash surpluses or shortages during the period.
How Does a Cash Budget Work?An estimate of a company's cash flows over a specific time period is called a cash budget.This could be done for an annual, quarterly, weekly, or monthly budget.The purpose of this budget is to determine whether the company has enough cash on hand to continue its operations for the allotted amount of time.
How crucial is the cash budget?For determining a company's financial stability, a cash budget is essential. You can keep track of how much money comes into and goes out of a business over time with this budget.
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the expected costs to make replacements, alterations, or improvements to a building that materially prolong its life and increase its value is referred to as
The expected costs to make replacements, alterations, or improvements to a building that materially prolong its life and increase its value are referred to as capital expenditures.
Costs, in common utilization, are the financial fee of goods and offerings that producers and clients purchase. In a simple financial feel, the fee is the measure of the opportunity opportunities foregone inside the choice of one proper or activity over others.
In production, research, retail, and accounting, a fee is the fee of cash that has been used up to supply something or supply a service and for this reason, is not to be had to be used anymore. In a commercial enterprise, the cost may be one in all acquisitions, wherein case the amount of cash expended to accumulate its miles is counted as cost.
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it's not unusual to see a segmentation study comprised of some usage variable (e.g., heavy vs. light users) or some attitudinal variable (e.g., positively inclined toward our brand vs. loyal to a competitor). what type of variable is it usually cross-tabbed with?
It is not uncommon to see a segmentation study consisting of some usage variable or some attitudinal variable. It is usually cross-tabbed with a demographic variable.
Market segmentation is the process of breaking a large consumer or company market, often consisting of present and future customers, into sub-groups of consumers (known as segments) based on some form of shared trait. When separating or segmenting markets, researchers often look for similar traits. Market segmentation assumes that distinct market segments necessitate different marketing programs, such as different products, prices, promotion, distribution, or some combination of marketing elements.
Market segmentation is intended not only to identify the most profitable categories, but also to create profiles of key segments in order to better understand their demands and buying motivations. Insights from segmentation analysis are then utilized to support marketing strategy creation and planning.
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gourmet donuts owns 800 shares of coffee express. coffee express, which issued 100,000 shares of stock, declares a cash divident of $0.50 per share to stockholders. which journal entry correctly records the cash dividend received by gourmet donuts?
Gourmet Donuts holds 800 shares in Coffee Express. Coffee Express, which issued 100,000 shares of stock, declares a cash dividend of $0.50 per share to owners. Cash 400 Dividend revenue 400.
Stock in finance refers to the shares of ownership in a corporation or company. A single share of stock represents fractional ownership of the firm in proportion to the total number of shares. This typically entitles the shareholder to that fraction of the company's earnings, proceeds from asset liquidation (after discharge of all senior claims such as secured and unsecured debt), or voting power, often divided in proportion to the amount of money each stockholder has invested.
Stock can be bought and sold privately or on stock exchanges, and such transactions are often carefully regulated by governments to prevent fraud, protect investors, and benefit the greater economy.
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arion drives 20 miles a day from his first job to his second job. he worked 125 days during 2021 on both jobs. what is marion's mileage deduction rounded to the nearest dollar assuming he uses the standard mileage rate and mileage is incurred ratably throughout the year?
Marion's mileage deduction rounded to the nearest dollar is 1400.
Given,
Marion drives 20 miles in a day
Total working days = 125 days
Marion's mileage deduction is
= Miles driven × total working days
= 20 miles/day×125 days
= 2500 miles
The standard mileage rate for 2021 is:
= 56 cents × total mileage deduction
= 2500×56 = 1400
Hence Marion's mileage deduction rounded to the nearest dollar is $1400. One can calculate the mileage of their vehicle by dividing the miles traveled by the number of gallons it took to refill the tank.
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dan is a project manager and met with two of his team members, ethan and theresa, for an update on the installation of a bathroom remodel. ethan reported the ductwork for the heating system is in bad shape and has to be replaced. they can finish it and get the system up and running in time, but we will have to buy more supplies. based on the information ethan provided about the progress of the project, dan was notified of a change that could negatively impact the . a.) project schedule b.) project scope c.) project budget d.) project deliverables
Based on the information provided about the progress of the project and being notified of any changes that could have a negative impact on the project budget.
The budget is a plan that is systematically arranged in the form of numbers and is expressed in monetary units which includes all activities in a company or organization for a certain period of time in the future. Because it is expressed in monetary units, the budget is also often referred to as a financial plan. A company or organization must have a budget, because it has an important role for monitoring the company's internal economic growth rate. Budgets are usually prepared at the beginning of the year for a period of one year or more.
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Answer: C - project budget
Explanation:
nestor is considered to be tech savvy by his friends. he is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. what type of product adopter is nestor?
Nestor is considered to be tech savvy. He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. Nestor is a innovator type of product adopter.
To be tech savvy is to be comfortable and familiar with using technology. This can mean different things for different people, but generally it means being able to use technology for tasks such as communication, research, problem solving, and entertainment.
For some people, being tech savvy also means having some level of understanding of how technology works and being able to take risk when issues may arise.
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trust becomes an integral part of the learning orientation for all of the following except: question 4 options: hiring a candidate after an internship period. a multi-stage game. a single-stage game. purchasing a new crm for a multi-national company with a tiered rollout.
Trust becomes an integral part of the learning orientation for all of the following except hiring a candidate after an internship period. A learning orientation is a way of thinking that enables participants to assess and adjust inputs as well as the results.
Procedures, and policies necessary for development. A emphasis on outcomes is a crucial element of a learning orientation, according to research, including that conducted as part of ACSI's Flourishing Schools assess. Promotes communication between the supervisor and the new employee, builds employee confidence, aids in faster job acclimatization, and contributes to a more effective, productive staff. A dedication to learning.
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Allison is facing challenges because of changes to the toy product lines and quality goals. Which category of pressure for organization change is she contending with? choose the correct answer.
The category of pressure Allison is contending with in the case above is competition.
In business, competition is the way in which a company or organization compete against another company or organization. It can also be defined as when a company contend with other global competitors by wanting to create unique products.
There are several types of competition in business:
Direct competition: competitors are in the same line of business.Indirect competition: competitors offer same products but have different marketing and business strategy and goals.Replacement competotion: competitors use the same resources but offer different products.Learn more about competition at https://brainly.com/question/24625436
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jacqueline worked at the telephone-sales office. she called 15 people before someone purchased her product. then she called 10 people and the 10th bought what she was selling. when she started again, the fifth person she called bought it. what schedule is she working under thus far? (you need to give the schedule value too)
The schedule is she working under thus far is vr 10.
What is vr schedule?A schedule for reinforcement that rewards a behaviour after a random number of responses is known as a variable ratio schedule. High and consistent response rates are produced by this kind of schedule. The belief that the subsequent response might be the one required to receive reinforcement motivates organisms to respond repeatedly.
A review of your work by your employer: Does your boss visit your office a few times during the day to see how things are going? A schedule with variable intervals would look like this. You never know when these check-ins will take place because they happen at erratic times.
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what are the roles of the states as economic globalization continues to grow? what makes these economies vulnerable?
Globalization additionally creates a sense of interdependence among nations, which should create an imbalance of power amongst countries of specific economic strengths.
The role of the nation-state in a world world is mostly a regulatory one as the chief factor in global interdependence.
What is the role of globalization in monetary development?In general, globalization decreases the fee of manufacturing. This means that organizations can provide goods at a decrease rate to consumers. The common fee of goods is a key component that contributes to increases in the standard of living. Consumers additionally have access to a wider variety of goods
Elements of monetary globalizationThe growth in cross-border economic things to do takes five fundamental forms: (1) global trade; (2) overseas direct investment; (3) capital market flows; (4) migration (movement of labor); and (5) diffusion of technological know-how (Stiglitz, 2003).
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https://brainly.com/question/25499191#SPJ4a problem is listed below. identify its type. after graduation in 3 years, antwone would like to take a much needed vacation to the caribbean islands. he anticipates that the all inclusive vacation package will cost him $3,300. his bank will pay 6% per year compounded semiannually. how much does he need to deposit into this account each semiannual period, so that he can take his vacation in 3 years? a) sinking fund b) amortization c) present value of an annuity d) future value with compound interest e) present value with compound interest f) none of the above.
$500 is the semi-annual deposit.
How is compounded annually determined?In order to compute compound interest, multiply the principle of the original loan by the annual interest rate multiplied by the number of compound periods minus one.
Explanation:
Providing the following details:
He expects to pay $3,300 for the all-inclusive holiday package. His bank will pay 6% annually compounded every two years.
Using the following formula, we can determine the semiannual deposit:
FV= [(1+i)n-1]/i A*
A= a semi-annual payment
Separating A:
A=(FV*i)/[(1 + I n]-1
A= {3,000*0.035) / [(1.035^6) - 1]
A= $458
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oppenheimer beet processors, incorporated, processes sugar beets in batches. a batch of sugar beets costs $59 to buy from farmers and $21 to crush in the company's plant. two intermediate products, beet fiber and beet juice, emerge from the crushing process. the beet fiber can be sold as is for $35 or processed further for $27 to make the end product industrial fiber that is sold for $47. the beet juice can be sold as is for $55 or processed further for $35 to make the end product refined sugar that is sold for $81. what is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?
The financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is $9.
Revenue after processing into refined sugar = $81
Revenue if sold as is = $55
Incremental revenue = Revenue after processing into refined sugar -
Revenue if sold as is
∴ Incremental revenue = $81 - $55 = $26
Processing costs = $35
Incremental income(loss) = Processing costs - Incremental revenue
∴ Incremental income(loss) = $35 - $26 = $9
The profit generated by a rise in sales is known as incremental revenue. It can be used to calculate the extra revenue brought in by a specific product, investment, or direct sale from a marketing campaign when sales volume has increased.It's common to compare incremental revenue to product cost. To turn a profit, businesses have to ensure that incremental revenue outweighs incremental expense for each product. Incremental revenue is primarily used by businesses to examine overall profit margins because it does not take overhead expenses into account.Learn more about Incremental revenue, here
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assume the foreign supply of this product is perfectly elastic at a price of $4 per unit. starting from a free trade equilibrium, a tariff in the amount of $2 per unit would be expected to cause domestic consumption to:
The per unit would be expected to cause domestic consumption to decrease.
What are Imports?Bringing in from foreign or external sources. (as in goods & services. ) To bring into a place or country from another country. when transferring from one format to another, usually in a new file.Importing and exporting goods is not only at the heart of a successful large-scale business. It also helps in the growth and expansion of the national economy. Each country comes with some specific resources. At the same time, the country may lack other resources to develop and improve the economy as a whole.examples of imported goods are:carstv mobilesgemstonescerealspulsesoilspetrolwoodcloths raw materialsfood and vegetablesgemstonesmineral medicinesmachinerypieces of equipmentluxury carsconsumer goodsTo know more about import refer to:
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when capital income increases and everything else stays the same on the labor market group of answer choices labor supply decreases and the real wage increases. labor demand increases and the real wage increases. labor demand decreases and the real wage decreases. labor supply increases and the real wage decreases.
Effect of real wage growth on substitution, w. As w rises, more labour is done to raise income, and a worker performs work in its place.
What happens to the demand for labour as capital rises?
The labour demand curve changes out and right as the capital stock rises, and the production function shifts up. More workers are employed and output rises at a given real wage. The income effect explains why the labour supply curve bends backwards; beyond a particular wage rate, workers can afford to work fewer hours while still earning the same amount of money.
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When capital income increases and everything else stays the same on the labor market group --labor supply decreases and the real wage increase.
What is capital income?
Capital income is income that comes from capital, which is to say, comes from wealth itself, rather than any specific product or direct work. exemplifications are stock tips or any kind of capital earnings, as well as income an proprietor gets from a business he owns but not from the work he does there.
What's the function of capital income?The most important function of the capital is to promote the profitable growth of the country. For the satisfactory development of the country, acceptable finances are veritably essential.
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what are reasons that companies expand into foreign markets? (choose every correct answer.) multiple select question. to educate employees about new cultures to help lower-income countries to gain access to low-cost production to gain access to new customers to achieve lower costs
reasons that companies expand into foreign markets are:
to achieve lower costs
to gain access to low-cost production
to gain access to new customers
Foreign markets are any markets that are not in a company's home country. Selling in foreign markets involves navigating a variety of languages, cultures, laws, rules, and requirements.
International marketing enables social and cultural exchange between many different countries. The newest trends and clothing from one count were sold alongside the products.
Global or international market expansion is the process of expanding your business operations to a new country. It entails more than merely making investments outside of the nation where the business is based. Instead, it refers to establishing a business company legally in another nation and conducting business there.
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by providing lyft passengers an upfront pricing quote for a ride, then actually charging that price for the ride, lyft is able to eliminate which gap in service quality?
Priority mode will give you the opportunity to accept ride requests ahead of other drivers.
According to Lyft, this shortens the gap between rides and enables you to make more money overall.Lyft’s marketing approach relies on variety of communication channels, from direct emails and social media interaction to national broadcast commercials. Positive word of mouth among the current Lyft rider group helps Lyft as well the cost of a Lyft ride depends on the route and nature of the journey, as well as on-demand and availability. The cost of a ride will probably be greater than usual if numerous passengers in your.Neighborhood request one at the same time. Demand will likely be higher during Rush hour, during significant local events,and when inclement weather occurs.
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which of the programmed conflict techniques assigns someone in an organization or group to identify potential issues or challenges with a proposed process?
Devils Advocacy assigns someone in an organization or group to identify potential issues or challenges with a proposed process.
What is Devils Advocacy?When someone engages in "devil's advocate" behaviour, they are promoting a viewpoint that is in opposition to what they actually believe. The idea is to show how the opposite side feels and, perhaps, to help someone else understand why and how that opponent might respond. when someone feigns opposition to a proposal that has broad support in a debate or argument in an effort to find errors or weaknesses. Using a devil's advocate to generate genuine opposition is not only a watered-down method. A devil's advocate might even produce the precise outcome they are trying to avoid. Even in studies where using a devil's advocate prompts more arguments, the new arguments typically favour the group's position.
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nataro, incorporated, has sales of $674,000, costs of $338,000, depreciation expense of $83,000, interest expense of $48,000, and a tax rate of 25 percent. the firm paid out $78,000 in cash dividends. what is the addition to retained earnings?
The addition to the retained earnings is $75,750.
What are retained earnings?
Retained earnings are described as the total earnings in the form of profits after deducting the payment of the dividends. It is important to mention that the concept is highly important in accounting, and the term retained highlights the number of dividends that a company kept with itself and did not pay to the shareholders.
Given that,
sales = $674,000,
costs = $338,000,
depreciation expense = $83,000
interest expense = $48,000,
Tax rate = 25 percent.
cash dividends = $78,000
Retained earnings = 674,000 - (338,000 + 83,000 +48,000) = 674,000 - 469,000 = 205,000
25% of 205,000 = (25 x 205,000)/100 = 51,250
Hence, 205,000 -51,250 - 78,000 = $75,750
The retained earnings are $75,750
It can be concluded that the added to the retained earnings is $75,750.
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when a country does not adopt a formal pegged rate, but tries to keep its currency within some range of a reference currency, this is called a(n) blank system.
A blank system is used, when a nation does not adopt a formal fixed rate but still tries to keep its currency within a certain range of a reference currency.
What is currency?Currency is defined as a unit of account that is issued by a government and is accepted at face value.
The definition of "equivalent amount" gives the term "currency" the definition given there. Reference Currency refers to the currency in which the applicable Sub-underlying Fund's assets are all valued and reported.
When a currency's value is fixed in relation to a reference currency, such as the U.S. dollar, the exchange rate between that currency and other currencies is then set by the exchange rate of the reference currency.
Later, Marshall Shalin's developed the concept of three modes of exchange, which could be detected throughout more specific civilizations than just Capitalist and Non-Capitalist. He did this by using Karl Polanyi's work. These are market exchange, reciprocity, and redistribution.
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the custodian of a $615 petty cash fund discovers that the fund has $117.50 in coins and currency plus $481.50 in receipts at the end of the month. the entry to replenish the petty cash fund will include:
The entry to replenish the petty cash fund will include $497.50 as reimbursement and credit to cash
Define Petty cash fund.A petty cash fund's main objective is to give business units enough money to pay for small expenses. The purpose is to make it easier for staff members and guests to get reimbursed for little costs, often under $25, such as cab tickets, stamps, office supplies, etc.
When a petty cash fund is in use, the expenses paid with it are noted when the fund is refilled. A current asset that appears on the balance sheet as a debit is petty cash. To deposit money into the petty cash account, an accountant will normally issue a check payable to "Petty Cash" and cash it at the business bank.
A credit to Cash for $387.50.
$615 - $117.50 - $481.50 = $16.00 cash shortage
$481.50 + 16.00 = $497.50 reimbursement and credit to cash
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charisma, inc., has debt outstanding with a face value of $5.1 million. the value of the firm if it were entirely financed by equity would be $22 million. the company also has 370,000 shares of stock outstanding that sell at a price of $47 per share. the corporate tax rate is 21 percent. what is the decrease in the value of the company due to expected bankruptcy costs? (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
The decrease in the company value due to expected bankruptcy costs is $581,000
Debt outstanding = $5.1 million
Value of equity = $22 million
Stock outstanding = 370,000 shares
Selling price per share = $47
Corporate tax = 21%
Calculating the value of the levered firm -
= Value of equity + Value of debt × Tax rate
= 22,000,000 + (5,100,000 × 0.21)
= 22,000,000 + 1,071,000
= 23,071,000
Calculating the total market value of the firm:
= Market value of debt + Stock outstanding × Share selling price
= 5,100,000 + (37000 × 47)
= 5,100,000 + 17,390,000
= 22,490,000
In this case, one would anticipate that the value of the leveraged firm and the overall market value of the firm would be equal. However, bankruptcy costs fall under non-marketed claims.
Calculating bankruptcy
= Value of the levered firm - Total market value of the firm
= 23,071,000 - 22,490,000
= 581,000
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how would you justify the use of protective and protective tariffs in today's global markets? give some recent examples.
Protective tariffs are beneficial if they are imposed to safeguard a market. There will be market failure if there is a greater supply of imported items on the market.
The industries of the nations producing goods could fail, which would finally end the manufacturing of goods. For instance, protective tariffs are put on imported Japanese wheelbarrows to compel a price hike if a wheelbarrow built in Japan costs $50 in the US and a wheelbarrow created locally is likewise priced at the same level. Protective tariffs market aim to make imported goods more expensive while protecting domestic producers from overseas rivalry.
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as a marketing manager of kids care, a manufacturer of baby soaps, mateo plans to analyze customer attitudes by using the focus group research approach. how might he conduct the research in this case?
Student answers vary. Eight new moms were selected to represent the users to be reached. Also, appoint an experienced facilitator to ensure everyone is on board and the conversation is on track. Discussions will be recorded for further consideration.
What does "case study" actually mean?A case study is a type of research methodology that brings a complex problem to a comprehensive and comprehensive understanding in its real context. It is a well-known research technique that is widely used in many different fields, especially in the social sciences.
Case studies, for example, include analysis of small data sets from, say, one or two organizations. This may allow researchers to identify important industry trends. For example, the Mitsubishi Motors Group case study can be used to draw conclusions about other automobile companies.
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kava botanicals, a boutique retailer that sells high-end makeup and accessories, is owned by two makeup manufacturers. kava botanicals is an example of which type of strategic alliance?
Two makeup companies own kava botanicals, a boutique store that sells high-end cosmetics and accessories. An illustration of a joint venture-style strategic collaboration is kava botanicals.
What exactly Is a Joint Venture (JV)?A joint venture (JV) is a type of business partnership wherein two or more parties concur to combine their resources in order to finish a specific task. This work could mark the beginning of a brand-new project or any other kind of business venture.
All members of a JV share in the profits, losses, and expenses associated with the JV. But the venture exists independently of the participants' other business ventures. A JV can be established using any legal structure, including corporations, partnerships, limited liability companies (LLCs), and other business entities, despite the fact that it is a partnership in the traditional sense.
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in the management in action case, the potential bonus that arkansas authorities would provide medical workers during the pandemic is an example of a(n) reward
The possible bonus that Arkansas authorities might offer medical professionals during the epidemic is an example of an extrinsic incentive in the management in action instance. Thus, the right answer is Extrinsic.
What is Extrinsic?Extrinsic motivation is motivation fueled by external benefits. These might be material, like money or grades, or intangible, like acclaim or renown. Unlike intrinsic motivation, which comes from inside the individual, extrinsic motivation is only motivated by external incentives. Extrinsic motivation can be achieved through high salaries, periodic pay raises, promotions, and cash bonuses.
Extrinsic motivation may be classified into four types: external regulation, introjected regulation, identification, and integrated regulation.
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a court declares jimi to be mentally incompetent and appoints krispin to be his guardian. later, without krispin's knowledge, jimi signs a contract to sell his lake cabin to lazar for its real market value. the contract is
Jimi signs a contract to sell his lake cabin to lazar for its real market value. the contract is void.
What is meant by void contract ?
A formal contract that is effectively invalid and unenforceable from the moment it is established is known as a void contract.
Although both contracts may be voided for related reasons, a void contract varies from a voidable one.
If a contract cannot be enforced as written, it may be ruled invalid.
Invalid contracts can arise when one of the parties is unable to completely understand the ramifications of the agreement. For example, a person who is mentally ill or intoxicated may not be sufficiently sober to comprehend the terms of the agreement, making it void.
Agreements made by minors or for illicit purposes may likewise be declared void.
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