using the eoq​ model, if a​ firm's order quantity is 500 units and its annual holding cost is greater than its annual setup​ cost, then what can we say about the optimal order​ quantity?

Answers

Answer 1

Firm's order quantity​ < 500 units Since, Holding cost > Set-up value, the order quantity desires to be reduced such that common inventory decreases and consequently keeping fee lower.

Order cost will grow when you consider that no. of orders increases. as a consequence order quantity needs to be decreased to the most reliable order quantity.

as a result most optimal order quantity of < 500

Optimal Order amount

Typically the term is one year. the whole value of a stock is the sum of the acquisition, ordering, and protecting charges. As a system: TC = computer + OC + HC, where TC is the entire price; the laptop is bought value; OC is the Ordering value, and HC is keeping fee.

Using these records, you could calculate your keeping expenses as follows: stock holding sum = stock provider value + capital value + storage area price + inventory danger. inventory conserving sum = $20,000. (inventory keeping sum / total price of inventory) x one hundred = keeping fees (%).

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Related Questions

Which of the following statements is correct?

a. If all the given values in a data set occur twice, then the data is said to be bimodal.
b. If a dataset have three modes, then the given data set is said to be trimodal.
c. If all the values of the given data set occur for the same number of time, then the data set is said to have no mode.
d. None of the above.

Answers

The following statement are correct:

a. If all the given values in a data set occur twice, then the data is said to be bimodal.

b. If a dataset have three modes, then the given data set is said to be trimodal.

c. If all the values of the given data set occur for the same number of time, then the data set is said to have no mode.

For bimodal data, consider the following data set:

10  14  20 18

10  15  15  15

10  20  17  23

Here, there are two values i.e.

10 & 20 occured for the maximum number of times, thus the given data set has two modes and is called bimodal.

Similarly, if three different values occur for the maximum number of times, then the data set is said to be trimodal.

But this is not possible if all the data values occur equal number of times.

Consider another example,

9 9 10 10 11 11 12 12

In this data set, each of the given value occurs for the same number of times, thus by definition this data set is said to have no mode.

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Scope creep is a big issue when managing projects. which of the following is not true regarding scope creep?

A. It is the tendency for the project scope to expand over time
B. It can have both positive and negative impacts on a project
C. It most likely caused by a scope statement that is too broad
D. It is when the cost of the project is more than expected

Answers

If scope creep is a major problem while managing projects, it is not true when the project's cost is higher than anticipated.

Every project should start with a set of agreed-upon project requirements, such as a project timeframe, budget, scope, and deliverables for both the interim and final phases. Project scope creep occurs when the projects requirements exceed those specified in the initial plans without authorization or safeguards. Scope creep may occur as a result of extra features, cash, resources, or workers required to finish the project satisfactorily.

There are countless factors that might lead to scope creep. The most frequent causes, however, include vague scope requirements, an excessive number of decision-makers, a subpar or nonexistent change control procedure, subpar work prioritization, projects and uncontrolled client demands. Each of these dangers is examined in more detail below, along with advice on how to mitigate or avoid them.

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the owner of a duplex charges $2,000 per month for each unit. over the last 12 months, one half of the property was vacant for six months. what was the owner’s effective gross income for this 12-month period? quizlet

Answers

$36000 was the owner’s effective gross income for this 12-month period.

A duplex consists of 2 units.

Rent of duplex for 1 month = $2000 x 2 = $4000

Therefore, rent of a duplex for 12 months = 12 x 4000

                                                                  = $48000

Given: 1 unit vacant for 6 six months

Rent of 1 unit for 6 months = $2000 x 6

                                          = $12000

Therefore, net rent to be paid = Rent of duplex for 12 months - Rent of 1 unit for 6 months

                                              = $48000 - $12000

                                              = $36000 [answer].

Gross pay is what workers earn before levies, benefits and other payroll deductions are withheld from their stipend. The quantum remaining after all withholdings are reckoned for is net pay or take-home pay.

For homes and individualities, gross income is the sum of all stipends, hires, gains, interest payments, rents, and other forms of earnings, before any deductions or levies. It's opposed to net income, defined as gross income minus levies and other deductions. You may hear it appertained to in two different ways gross periodic income and net periodic income. Gross periodic income is your earnings before duty, while net periodic income is the quantum you are left with after deductions.

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the ncaa rule governing the limits on the amount of a scholarship a college can offer an athlete is an effective price floor.

a. true
b. False

Answers

False, The NCAA rule governing the limits on the amount of a scholarship a college can offer an athlete is not an effective price floor.

A nonprofit organisation called the National Collegiate Athletic Association (NCAA) oversees student athletics at over 1,100 schools in the United States, Canada, and Puerto Rico.

Additionally, it supports nearly 500,000 college student athletes who participate in collegiate sports each year by organising the athletic departments of colleges and universities in the United States and Canada. According to the NCAA Constitution, each member institution is in charge of managing its intercollegiate athletics programme in accordance with the Association's rules and regulations.

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Alicia took out a loan through her bank to pay for her son's college. Which loan type does this describe?

Federal loan
Private loan
Subsidized loan

Answers

Alicia has taken a federal loan through her bank to pay for her son's college.

         A federal loan is a loan that allows a student or a parent to borrow money directly from the government for college purposes. Thus, here, Alicia, as the parent, took a loan to pay for her child's college. Hence it is a federal loan.

         Subsidized loans are given by the U.S Department of Education for undergraduate students who are in financial need and need to pay for the tuition fees of their school or college. In the given question, we do not know if Alicia's son is an undergraduate student or not. Thus we cannot be sure about a subsidized loan.

         Private loans are loans taken by people to invest in their businesses or factory. Thus, it will not be the answer.

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Answer:

a) Federal loan

Explanation:

Alicia took out a federal loan through her bank to pay for her son's college. These loans are funded by the federal government. Hence, option (a) is the correct answer.

one of the typical characteristics of management fraud is:

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Management fraud is victimization of investors through the use of materially misleading financial statements.

Falsifying financial statements, such as purchases, agreements, and accounting entries, in a bid to benefit the criminal, such as management fraud. Businesses should be on the lookout for indications of internal fraud. Living above one's means and behavioural changes are two warning signs.

Management fraud effect uncountable individuals from within and out of the organization. People who have debts from drug or gambling addictions or who have lost a lot of money in stocks and shares are also susceptible to engaging in fraudulent activities in an effort to recover their funds.

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When a good belongs to – , it tends to –. That is the problem – exist to solve. A good belonging to – tends to be handled –.

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When a good belongs to no one in particular, it tends to deliver less value. That is the problem property rights exist to solve. A good belonging to a specific person tends to be handled more efficiently.

Human or individual values are the guiding principles, top priorities, and things that deserve priority in life. They assist in decision-making and in knowing how to act.

When a person lives in accordance with their values, they typically experience mental well-being, fulfillment, and high quality of life. However, discomfort and sadness can arise when life does not conform to personal standards.

Knowing your values has the following primary advantages:

Improve your self-awareness, focus, and attention.

Decide and take action.

Integrity in daily life

being aware of how you spend your time (your most limited resource)

In fact, one of the reasons you are so unique from other individuals is because of your values.

The values, on the other hand, are typically relatively stable, yet neither they nor their stability is permanent. Values might alter as you go through life.

For instance, success, as measured by money and status, could be a focus while beginning a profession. However, the family work-life balance might be the most cherished after having children.

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the lower the variability of a currency, the [___] will be the premium of a call option on this currency, and the [___] will be the premium of a put option on this currency, other things being equal.

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The lower the variability of a currency, the lower will be the premium of a call option on this currency, and the lower will be the premium of a put option on this currency, other things being equal.

A contract that grants the buyer the right, but not the responsibility, to purchase or sell a specific currency at a particular exchange rate on or before a set date is known as a currency option (also known as a forex option). The vendor receives a premium in exchange for this right.

One of the most popular strategies used by businesses, people, and financial institutions to protect themselves from unfavourable changes in exchange rates is through the use of currency options.

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having outcomes that are proportionate to the behavior and making sure employees know what to expect are two ways to ensure .multiple choice question.distributive justicemanagerial fairnessoutcome fairnessinteractional justice

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Having outcomes that are proportionate to the behavior and making sure employees know what to expect are two ways to ensure distributive justice. The correct option is A,

What does distributive justice focus on?

The fair distribution of resources among the many community members is at the center of distributive justice. The overall amount of products to be allocated, the method of distribution, and the distribution pattern that follows are often taken into account in a fair allocation.

According to the distributive justice theory, society has a responsibility to assist those in need, and everyone has a responsibility to assist those in need. Distributive justice is linked to human rights by its proponents.

Thus, the ideal selection is option A.

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a salesperson must travel to five cities to promote a new marketing campaign. how many different trips are possible if any route between cities is​ possible?

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If a salesperson must travel to five cities to promote a new marketing campaign. The number of different trips that are possible if any route between cities is​ possible is 120 routes.

Who is a salesperson ?

A salesperson can be defined as the person who role and responsibility is to market or advertise a company product so as to attract potential customers, thereby increasing sales.

Hence,

Given data:

Number of cities = 5

Now let determine the number of possible route

Number of possible route = 5!

Number of possible route = 120 routes

Therefore we can conclude that 120 routes are possible.

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after keeping track of his heating expenses for several winters, a homeowner belives he can estimate the monthly cost from the average daily dahrenheit

Answers

The model predicts that a 1° increase in​ temperature is a $105 decrease in heating costs. The correct option is a.

What are expenses?

Personal expenses are costs that you incur in addition to your housing and board, books and supplies, transportation, and tuition and fees. There are different types of expenses.

Laundry, cell phone service, clothing, personal care items, prescription drugs, car insurance and registration, leisure activities, and more are examples of personal expenses.

Therefore, the correct option is A. The model predicts a $105 decrease in heating costs.

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The question is incomplete. Your most probably complete question is given below:

After keeping track of his heating expenses for several​ winters, a homeowner believes he can estimate the monthly cost from the average daily Fahrenheit temperature using the model cost (with a hat on top) = 105 - 1.82 temp.

​a) Interpret the slope of the line in this context. What does the model predict given a 1° increase in​ temperature?

A. The model predicts a $105 decrease in heating cost.

B.The model predicts a $105 increase in heating cost.

C.The model predicts a $1.82 decrease in heating cost.

D.The model predicts a ​$1.82 increase in heating cost.

which of the motivational theories below proposes that workplace conditions and individual motivation factors both impact the satisfaction of employees? two factor theory hawthorne effect classical theory

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The two factor theory, also known as Herzberg's motivation-hygiene theory, contends that different factors, acting independently of one another, are responsible for both job satisfaction and work dissatisfaction in the workplace. the driving forces

What is motivation?
Motivation is the cause of a behavior's initiation, continuation, or termination in humans and other animals at a particular time. Motivational states are frequently understood as internal forces that produce a disposition to engage in main objective behaviour in the agent. Different mental states are said to compete with one another, and only the strongest state can determine behaviour. This implies that we can be inspired to act even when we don't. Desire is the classic example of a motivating mental state. However, various other states, such as intentions or beliefs about what one should do, can also serve as motivation. The word "motive," which refers to a person's needs, desires, wants, or urges, is the root of the word "motivation." It is the process of inspiring people to act in order to accomplish a goal.

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ustin is hired as a manager at a paper company. on his first day, he is invited to a planning meeting. this meeting will involve forecasting events and determining the best course of action from a set of options or choices.

Answers

It is true to say that Justin, as the new manager, must attend a planning meeting to develop the strategic course of action.

What makes a good manager?

This professional occupies a leadership position that is totally relevant to the success of the business. Through his actions and attitudes, the leader is able to help and motivate his team to be more productive and effective. The manager is responsible for defining the planning and course of action that will lead the company to achieve its objectives and goals.

Therefore, the manager must participate in the development of a company's course of action, as well as have the direction and communication skills to manage a company.

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direct financing works in multiple ways. put the following events in order to show how direct financing can strengthen an economy’s gdp and financial standing.

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Financial market growth and economic growth have a strong positive relationship. Financial markets aid in the efficient flow of savings and investment in the economy, facilitating capital accumulation and the production of goods and services.

What is economy?
An economy is the production, distribution, and trade of goods and services, as well as their consumption. It is defined broadly as a "social domain that emphasises the practises, narratives, and material expressions related to the production, utilise, and management of scarce resources." A given economy is a collection of processes that include as primary factors its culture, values, education, technological evolution, history, social organisation, political structure, legal systems, and natural resources.

Direct financing operates in several ways:
Profit decreases as cost and payoff increase. Carla is also aware that stock prices fluctuate significantly over time; thus, if she prefers to avoid, she will most likely choose to purchase, but it will likely earn less - greater, stocks, fluctuate, risk, bonds, interest. Direct financing is a type of financing in which borrowers borrow money from a friend or buy stock.
The interest rate rises when the price of a $100,000 twenty-year bond rises. This is because bond interest is paid to the bond holder. Profit decreases as cost and payoff increase.


GDP Expands:
Gross domestic product (GDP) is the total amount value of all goods and services exchanged within a particular country over a given time period. Gross domestic product (GDP) has traditionally been used by economists to gauge economic progress. If GDP is increasing, the economy is doing well and the country is progressing. On the other hand, if GDP is falling, the economy may be in trouble and the country is losing ground. A recession is typically defined by two quarters in a row of negative GDP.
* GDP is the monetary value of all products and services exchanged throughout an economy.
* Rising GDP indicates economic strength, while falling GDP indicates economic downturn.

ABC Company raises its monthly output level. GDP. Another option is, but the company will eventually have to repay the loans. ABC Company borrows money from its bank to fund its operations.
When ABC company uses the proceeds from the bond sale to hire two more employees, its GDP rises. As a result, rising GDP demonstrates economic strength.
Financial market growth and economic growth have a strong positive relationship. Financial markets aid in the efficient flow of savings as well as investment in the economy, facilitating capital accumulation and the production of goods and services.

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Because they must deal with large quantities of data from so many different sources, is employees at financial institutions may be at increased risk of failing to comply with government regulations designed to prevent money laundering, such as the _____.

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Because they must deal with large quantities of data from so many different sources, is employees at financial institutions may be at increased risk of failing to comply with government regulations designed to prevent money laundering, such as the Bank secrecy act.

What are BSA violations?

Isolated and technical violations are instances of limited noncompliance with the BSA's financial record-keeping or reporting requirements that occur within an otherwise appropriate system of policies, procedures, and processes.

The Currency and Foreign Transactions Reporting Act of 1970, sometimes known as the "Bank Secrecy Act" (BSA), mandates U.S. financial institutions to help U.S. government authorities in detecting and prevent money laundering.

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true or false: because the cost of obtaining new customers is so much higher that retaining existing customers, many b2b organizations employ key-account sellers to grow and protect their most important customers.

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because the cost of obtaining new customers is so much higher than retaining existing customers, many b2b organizations employ key-account sellers to grow and protect their most important customers. True

Key accounts are a kind of commercial accounts that a supplier firm handles. Through years of repeat business, these accounts bring in significant earnings for the supplier company. Different from global accounts and typical customer accounts are key accounts.

Electronic commerce (e-commerce) is "business-to-business" (B2B) and involves the exchange of goods, services, or information between businesses rather than between businesses and customers (B2C). A business-to-business transaction takes place between two businesses, such as online merchants and wholesalers.

Key account management directs sales efforts on retaining the customers that are most likely to bring in a lot of money and be profitable. Key account managers do this by developing a thorough awareness of the unique requirements of their clients, which enhances the success of their company.

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What conditional programming construct allows a program to select one of three or more distinct outcomes by placing one conditiional construct inside another?.

Answers

When treating a number of circumstances, nested if statements are often used. Nested if statements are an if statement within another if statement. Prior to choosing the reaper action

This is further explained below.

What is conditional programming construct?

Generally,

A "nested if Statement conditional Programming Construct" allows a program to select one of three ar mare distinct outcomes By placing one conditional construct Inside another Nested if function meaning one if function inside of another allows testing multiple criteria and increases the number of possible outcomes.

The if statement is a decision-making statement that Guides a Program to make decisions based on specified Giteria.

In conclusion, A nested if statement is an if statement placed inside another if statement - nested if statements are often used when one must treat a combination of conditions Before deciding on the reaper action

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What methods is used to determine whether a property is enumerable?

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propertyIsEnumerable() The propertyIsEnumerable() method returns a Boolean telling if the specific property is enumerable and is the object's own property.

Enumerable properties are those with an internal enumerable flag set to true, which is the default for properties created through simple assignment or a property initializer. Object-defined properties, such as defineProperty, are not enumerable by default.

We must use the Object. defineProperty() method to create a non-enumerable property. This is a special method for creating objects with non-enumerable properties.

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what do most goals for personal branding have in common?

Answers

Most goals for personal branding have in common:-

It’s become one of the most common subjects in entrepreneurship — and for good reason. Branding isn’t just Why Do You Need to Build Your Personal Brand?… The Time for Brand “You” is Now! So what do I know about personal branding? I have been blogging for almost 10 years and tweeting for just over that many. Well

Personal branding is the deliberate and intentional effort to create and influence public perception of an individual by positioning them as an authority in their industry, elevating their credibility, and distinguishing themselves from the competition, with the goal of ultimately advancing their career, broadening their circle of influence, and having a larger impact.

Personal branding comprises recognizing your uniqueness, building a reputation for the qualities you want to be known for, and then allowing yourself to be known for them. The final goal is to create something with a commercially viable message.

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If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as?.

Answers

Delivery terms are FOB shipping point if the buyer is responsible for covering the cost of transporting the goods.

When purchasing or selling inventory, the delivery conditions are frequently FOB destination or shipping point. To make sure that inventory is being recorded at the appropriate time, it is crucial to be aware of and comprehend the delivery terms.

FOB is defined as the Shipping Point.

The shipping abbreviation "FOB" stands for "free on board." If a shipment is marked FOB (the seller's location), the seller registers the sale as complete as soon as the shipment of goods departs the seller's warehouse.

What exactly does FOB in a purchase order mean?

"Free on Board" is the phrase. When shipping products, the term "F.O.B." is frequently used to denote who is responsible for covering the costs of loading and transportation as well as the moment at which ownership of the items passes from the shipper to the buyer.

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Nontrade receivables differ from trade receivables in that nontrade receivables.

a. true
b. false

Answers

Nontrade receivables differ from trade receivables in that nontrade receivables occur when money is lend to employees.

Non-trade receivables are sums owed to a party other than the usual customer bills for the delivered goods or rendered services. The sums owing to a business by its workers for loans or money advances, tax returns owed to it by taxation authorities, or compensation claims due to it by an insurance company are a few examples of non-trade receivables. Since it is normally expected that non-trade receivables would be paid within a year, they are typically categorized as current assets on the balance sheet. Consider it a non-current asset if you think the payment will take place over a longer time frame.

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which retail growth strategy has the greatest chance of succeeding? retail format development growth opportunity unrelated diversification growth opportunity

Answers

The greatest chance of succeeding in retail growth strategy is market penetration growth opportunity.

Market penetration is one of four growth strategies in Ansoff's product market growth matrix. Market penetration occurs when a company enters a market where current or similar products already exist. One way to do this is to acquire the competitor's customers (a portion of the market share).

A market penetration strategy is when a company seeks to increase its market share by developing an existing product in an existing market. This allows companies (who already have a product on the market) to grow their business by increasing sales from people who are already on the market.

Costco and Kroger have introduced penetration pricing into the organic products they sell, increasing demand for these products.

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marketing ________ focuses on the what and why of marketing activities, while marketing ________ focuses on the who, where, when, and how.

Answers

Marketing planning addresses the what and why of marketing activities, while marketing implementation addresses the who, where, when, and how.

        Marketing planning refers to the process of planning the various marketing techniques, strategies, and target customers to implement the product to the correct range of customers and increase the market value of the product. It keeps in mind the what and why of marketing activities because it has to reason with the policies of the market and the customers to sell the products.

         Marketing implementation refers to the practice of putting marketing planning into execution.  It keeps in mind the who, where, when, and how of the market because it is through these data that the strategies can be executed and the product or services can be sold to the consumers.

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The complete question is given below:

Marketing ________ addresses the what and why of marketing activities, while marketing ________ addresses the who, where, when, and how.

A.analysis; planning
B.implementation; planning
C.organization; implementation
D.planning; implementation
E.control; planning

A monopolist should not sell as much as possible, because eventually the price effect becomes larger than the effect.

Answers

It is not advisable for a monopolist to sell as much as possible since eventually the price effect will outweigh the effect.

The ability of a monopolist to determine the price of an item or service is known as monopoly power. Monopolist industries produce less and charge greater costs than competitive ones.Positive marginal revenue results when the output effect exceeds the pricing effect (MR). The price effect is minimal compared to the output effect at high price levels where demand is elastic. Demand becomes less elastic as the price drops, the output impact weakens, and the price effect grows.To put it another way, when the price decreases, it gets difficult for the business to bring in enough new clients to make up the difference in revenue lost. The price effect eventually outweighs the output effect.

Thus it is not advisable for a monopolist to sell as much as possible since eventually the price effect will outweigh the effect.

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real income in year x is equal to a. (year x nominal income) / (year x real output) - 100. b. (year x nominal income) / (year x real gdp). c. (year x nominal income) / (cpi/100) d. year x nominal income × cpi.

Answers

Real income in year x is equal to year x nominal income × cpi. Option D

This is further explained below.

What is real income?

Generally, After taking into account the effects of inflation, an individual's or nation's "real income" may be defined. To arrive at this number, just divide the nominal income by the whole price level.

Real income is the amount of money that a person or institution earns after taking into account the effects of inflation.

Real income is sometimes referred to as real pay when discussing the income of an individual.

To get the clearest picture possible of their financial situation and ability to make purchases, people often compare and contrast their nominal and real incomes.

In conclusion, In year x, the real income is equal to the nominal income in year x multiplied by the consumer price index. The D Option

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what are some of the reasons for the highly visible failures of some of the early internet enterprises in conversion and optimization? describe how you would use the 4 steps of lead generation in developing an internet marketing plan for a company of your choice

Answers

The Primary reasons were the Medium and Money for the failures.

Internet access was common at the time, but few individuals had high-speed connections that would have allowed them to access such portals. People were cautious about the long waits to enter the gateway. People also found it confusing to make purchases online from a mysterious Black Hole they did not know was watching them.

As a result, even if the supply was present, there was no way to generate demand because there was no way to access those portals. The second was that venture capitalists pushed money into the project while showing no signs of profitability or even breaking even.

Therefore, the traditional failures resulted from no one in the online store having money getting blown away.

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core competencies are derived from the combination of

Answers

The diverse resources and talents that set a company apart in the marketplace are combined to form core competencies.

A vast range of differing viewpoints, in many forms; A diverse student body is one that includes members of many social, cultural, and economic groups, especially diverse those who are ethnically or religiously minoritized. Visible differences in age, ethnicity, gender, physical characteristics, and race are examples of variety. Examples of invisible diversity include sexual orientation, educational background, and employment history. The knowledge, abilities, skills, and behaviors known as competencies support both individual and organizational performance. Knowledge is information that has been acquired via experimentation, study, or other forms of research. Competencies repetition of using knowledge or ability results in skill. Competencies can be divided into three groups: core, cross-functional, and functional. Although everyone is significant, there is a hierarchy.

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the business strategy of acquiring control of every level of production, from, in the case of railroads, the mining of iron to the forging and transportation of rails, was called

Answers

Vertical Integration is the business strategy of acquiring control of every level of production

Vertical integration is a tactic that enables a business to streamline operations by directly controlling different stages of the process of production instead of depending on outside suppliers or contractors.

In addition to common ownership, vertical integration has also been used to describe management strategies that integrate significant elements of the supply chain into a single company.

Vertical integration may occur either downstream or upstream (backward) (forward). It can be done by either acquiring vertically or internally building an additional production line.

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The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in county A's:

a. country A's net factor payments from abroad are positive, and its GDP is larger than its GNP.
b. country A's net factor payments from abroad are positive, and its GNP is larger than its GDP.
c. country A's net factor payments from abroad are negative, and its GDP is larger than its GNP.
d. country A's net factor payments from abroad are negative, and its GNP is larger than its GDP.

Answers

GNP that is higher than the country's GDP

country A's net factor payments from abroad are positive, and its GDP is larger than its GNP.

GNP includes both the country's internal and external funding options. A makes money from both foreign sources and from expatriates, or foreign nationals who live and work in A. Consequently, its GNP is higher than its GDP.

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harley-davidson markets motorcycles, clothes, toys, and restaurants. it uses its strong , which is . a. brand image; an intangible resource b. brand image; a tangible resource c. financial position; an intangible resource d. technological resources; an intangible resource

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Harley-Davidson markets motorcycles, clothes, toys, and restaurants. it makes use of its strong , which is D) emblem image, an intangible resource.

The required details for  intangible resource in given paragraph

An intangible asset is an asset that lacks bodily substance. Examples are patents, copyright, franchises, goodwill, trademarks, and alternate names, as properly as software. This is in evaluation to bodily belongings (machinery, buildings, etc.) and monetary belongings (authorities securities, etc.). An intangible asset is generally very hard to valuate. They be afflicted by normal marketplace disasters of non-rivalry and non-excludability. Today, a massive a part of the company economy (NPV) includes intangible belongings. Intangible belongings can be one viable contributor to the disparity between "employer price as in keeping with their accounting records", as properly as "employer price as in keeping with their marketplace capitalization".

Considering this argument, it's miles vital to recognize what an intangible asset truely is within side the eyes of an accountant. A range of tries had been made to outline intangible belongings.

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