separation of duties is an internal control procedure. Internal control is a process, effected by an reality’s board of directors, operation and other labor force, designed to give reasonable assurance
That information is dependable, accurate and timely
Of compliance with applicable laws, regulations, contracts, programs and procedures
Of the trustability of fiscal reporting
Internal controls are intended to help crimes and irregularities, identify problems and insure that corrective action is taken. In numerous cases, process possessors within your department perform controls and interact with the control structure on a diurnal base, occasionally without indeed realizing it because controls are erected into operations.
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compare the interest earned by $9,000 for five years at 8% simple interest with interest earned by the same amount for five years at 8% compounded annually. explain why a difference occurs. (4.2)
Simple interest is 3,600. Compound interest can be calculated as follows. Compound interest is $4,223.7. The compound interest is greater by $823.7 than the simple interest.
Interest is the amount paid over and above the original amount to a lender or depositor by a borrower or deposit-taking financial institution at a predetermined rate in the domains of finance and economics (the amount borrowed). simple interest It differs from any fees the borrower may be required to pay to the lender or another party. It also contrasts from a dividend, which is cash distributed to shareholders (owners) by a corporation from its profit or reserve, but not at a predefined rate or proportionally; rather, it is a portion of the reward gained by risk-taking businessmen when revenue is made that surpasses all expenditures.
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south korea was considered an impoverished country in 1960. yet in 2017, it was the world's fifth largest economy. this demonstrates how international businesses must consider future potential as well as the
International businesses must consider the present/current wealth of customers as well as the likely future wealth of the consumers.
International business refers to the trading of goods, services, technology, capital and/or knowledge across borders on a global or cross-border scale. These are cross-border transactions of goods and services between two or more countries.
Trading in economic resources involves capital, skills and people for the purpose of producing physical goods and services such as finance, banking, insurance and construction internationally. International business is also called globalization.
In order for a multinational company to do business abroad, it has to consolidate its separate domestic markets into his one global market. There are two macroscopic factors that underscore the trend towards increasing globalization.
The first is to remove barriers to facilitate cross-border trade. The second is technological change, especially in communications, information processing, and transportation technology.
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acme company carries an additional level of inventory beyond the expected demand during reorder lead times. this additional inventory is called:
Acme company carries an additional level of inventory beyond the expected demand during reordering lead times. this additional inventory is called 'Safety stock or buffer stock'.
The inventory such as Safety stock or buffer stock' is that stock generally kept by companies or organizations to protect itself from any unexpected change in demand or in the supply of products they sell. It is used to ensure that the business has enough inventory to meet the customer demand at the time of any situation of emergency or change of the previously supplied goods.
By carrying the extra inventory the acme company reduces the risk of stockouts or lost sales which may lead to dissatisfaction among their loyal customers.
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How did the Emergency Banking Act stabilize the US banking system?
All 12 Federal Reserve Banks will be able to answer every legitimate call thanks to the new law, which permits them to issue more money based on sound assets.
What acceptable methods?being in line with the law or even with established legal standards and formalities. a trustworthy government. 4.: Adhering to established norms, guidelines, or principles. a rightful assertion of entitlement.
What are trustworthy clients?The term "Legitimate User" refers to a user of a Client Product who I received it lawfully and (ii) uses the Integral Software only to the extent reasonably necessary to use the Models and also in compliance with applicable copyright laws.
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the buying process usually begins with and ends with . group of answer choices recognition of a need or problem; post-purchase evaluation recognition of a need or problem; purchase decision alternative evaluation; purchase decision information search; purchase decision information search; post-purchase evaluation
The buying process usually begins with recognition of a need or problem and ends with post-purchase evaluation.
Determine the issue The buying procedure begins at this point. A consumer won't start shopping unless they are aware of their needs or wants. A buyer will make a purchasing choice if he feels compelled to acquire a specific product. The buying process is a term used in marketing to describe the typical processes a consumer takes while making a purchasing decision. Learn about the stages of the purchase process and how marketers attempt to influence them. The series of actions a consumer will take to decide what to buy is known as a buying process.
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What is business?In this project, we use a thorough examination and selection of the performers. To get more tasks and earn more money, please be attentive and patient.
Business is the activity of making, buying, or selling goods or providing services in exchange for money.
Businesses are organizations that use resources to produce goods and services that are sold to customers for profit. In the context of your project, it sounds like you are selecting performers to be a part of a business venture. It is important for these performers to be attentive and patient in order to complete tasks and earn money.
By doing so, they can contribute to the success of the business and potentially earn more money in the long run.
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assuming that this is a closed economy with no crowding out, which of the following best describes the impact that a$100$100dollar sign, 100 billion increase in government spending will have on this economy?
Option a) Aggregate demand and real output will eventually increase by only $400 billion, and the price level will increase.
Gross domestic product is the monetary value of all finished goods and services produced within a country over a specified period of time.
GDP can be calculated in three ways using expenditure, production or income, and can be adjusted for inflation and population for greater insight.
GDP provides a snapshot of a country's economy. It is used to estimate the size of the economy and its growth rate.
Real GDP takes into account the effects of inflation, but nominal one/GDP does not.
Despite its limitations, GDP is an important/pious tool to guide policy makers, investors and businesses in making strategic decisions.
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Complete question:
An economy is currently producing real GDP that is $500 billion more than it's full employment output. It is also experiencing an undesirable amount of inflation. Its marginal propensity to consume is 0.750.750, point, 75.
Assuming that this is a closed economy with no crowding out, which of the following best describes the impact that a $100 billion increase in government spending will have on this economy?
a) Aggregate demand and real output will eventually increase by only $400 billion, and the price level will increase
b) Aggregate demand and real output will eventually increase by only $300 billion, and the price level will increase
c) Aggregate demand and real output will eventually increase by only $100 billion, and the price level will increase
as vp of sales and marketing, debra is very interested in the likely impact of corporate social responsibility (csr) on theo chocolates. she asks you for your opinion. what do you tell her?
Corporate social responsibility (CSR) can have both positive and negative impacts on businesses, including on Theo Chocolates.
CSR involves companies taking responsibility for their social and environmental impacts beyond their legal obligations. It can lead to increased brand loyalty and customer trust, improved reputation, and potential cost savings through increased efficiency and reduced risk.
For Theo Chocolates, which is an organic and fair trade chocolate manufacturer, CSR is particularly important as their target market is likely to be socially and environmentally conscious consumers. Demonstrating its commitment to responsible sourcing, environmental sustainability, and ethical labor practices can help Theo Chocolates differentiate itself from competitors and strengthen its brand.
However, implementing CSR initiatives can also be costly, particularly for small businesses. It is important for Theo Chocolates to carefully consider the potential costs and benefits of different CSR initiatives and prioritize those that align with their values and business goals.
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What is the main reason that business organizations buy products?
Businesses purchase products to promote operational effectiveness, satisfy consumer requests, maintain competitiveness, boost sales and revenue, and enhance quality.
Business entities purchase goods to fulfil a variety of requirements and accomplish a variety of objectives. Among the main causes of this are: To increase operational efficiency: Businesses may purchase goods to enhance their operational procedures and make them more effective, for instance by investing in software or automation solutions to expedite workflow. To satisfy customer demands: Businesses may purchase goods in order to satiate the wants and needs of their clients, for instance by investing in cutting-edge goods that they can sell to them. These are some of the basic justifications for product purchases by commercial enterprises. The organization's goals and objectives, as well as the particular market and industry they compete in, will ultimately determine the precise reason.
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jeff offers to buy ann's camera for $200. jeff tells ann that he will give her the money for the camera next friday, when he gets paid. ann accepts jeff's offer and promises to give him the camera when he pays her on friday. this is an example of a(n)
Ann accepts jeff's offer and promises to give him the camera when he pays her on Friday. this is an example of a bilateral contract.
What is an illustration of a bilateral agreement?
A bilateral contract can be any sales arrangement. In return for the title to the car, a buyer may consent to pay the seller a specific sum of money. In return for the agreed-upon sale price, the seller consents to hand over the car title.
Ann agrees to Jeff's offer and guarantees to send him the camera after receiving payment from him on Friday. A bilateral agreement might resemble this.
Therefore, Expanding market access and boosting economic growth are the objectives of bilateral trade agreements.
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a local comedian earn $80 at a performance where 25 people attend. the performer uses 32% of the money earned to pay the costs involved in putting on the perfformance. the rest of the money earned is the performer's profit. what is the profit the performer makes at a performance where 25 people attend
To determine the profit that the comedian makes at a performance where 25 people attend, we need to start by calculating the amount of money earned from the performance. We know that the comedian earned $80 from the performance.
Next, we need to calculate the cost of putting on the performance. We know that the performer used 32% of the money earned to pay the costs involved in putting on the performance. So we can find the cost by multiplying the amount earned by 0.32:
Cost = $80 x 0.32 = $25.60
Therefore, the cost of putting on the performance is $25.60.
Now that we know the cost, we can calculate the profit that the comedian makes. We know that the profit is equal to the amount earned minus the cost:
Profit = $80 - $25.60 = $54.40
Therefore, the profit that the performer makes at a performance where 25 people attend is $54.40.
It's important to note that in real-world scenarios, there may be other costs associated with putting on a performance that are not accounted for in this calculation. These costs could include things like transportation, lodging, and equipment rental. Additionally, the amount earned from a performance can vary depending on factors such as the location, audience size, and ticket prices.
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question 1 imagine you are a project manager and two of your team members disagree about how to approach a workflow problem. the debate leads to a personal conflict, so you listen to their arguments and propose a compromise that will move the project forward. during which stage of team development does this scenario take place?
This scenario takes place in the storming stage of team development.
What is storming stage?Storming is the stage of group development during which team members begin to challenge each other's ideas, opinions, and authority. During this stage, teams may experience tension, conflict, and disagreements as team members jockey for position and power. It is important for the team leader to be able to effectively manage the conflict that arises during this stage and ensure that the group progresses towards its goal.
This is the stage where teams work to establish roles and relationships, and often comes with a period of conflict or tension as team members negotiate their working styles and approaches. In this case, the project manager is helping the team to move forward by facilitating a compromise solution that will help to resolve the dispute and keep the project on track.
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why would consumer satisfaction be very high in a market economy?
By providing the goods that customers demand, a market economy serves consumers' needs and wants.
Why do consumers have such sway in a capitalist economy?This is thus because every business competes with the others, and new businesses will come in and go out until there is no longer any economic profit. Customers don't have to purchase a good because there are many alternatives they can use, but businesses fail if they don't offer customers the products they want at the prices they desire. Good levels of customer satisfaction can improve sales from your current customer base and draw in new clients.
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financial support for infrastructure projects came from all the following except: question 5 options: a) state legislatures. b) the federal government. c) european investors. d) counterfeiting schemes.
Financial support for infrastructure projects may come from state legislatures, the federal government, and European investors.
Financial help is commonly used to describe any sort of monetary assistance given to individuals or organizations in need. Loans, grants, subsidies, and other sources of finance can all be used to assist projects or efforts. Financial support in the context of business may include investments, venture capital, or other sorts of cash offered to help establish or grow a business. In the context of public infrastructure, government bodies, private investors, or other organizations may provide financial assistance to fund the building or maintenance of roads, bridges, public transportation systems, and other critical services.
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When actual unemployment is less than its natural rate
A. the economy is expanding beyond its long-run capabilities.
B. the economy is producing within its long-run capabilities.
C. the numbers must be wrong because the actual unemployment rate can never be less than the natural rate.
D. the economy is in a recession.
E. the economy must be experiencing high inflation.
Option A is correct, when actual unemployment is less than its natural rate the economy is expanding beyond its long-run capabilities
What causes an expanding economy?The two primary forces behind economic growth are, in general, the growth of the labour force and the productivity (output per hour worked) of that workforce. Either would increase the overall size of the economy, but only strong productivity growth would increase per capita GDP and income.
When the unemployment rate is lower than the natural rate the output gap is?When real GDP is higher than potential GDP and the unemployment rate is lower than the natural unemployment rate, the output gap is positive (blue sections in both parts). The graph shows the estimated natural unemployment rate from the Congressional Budget Office.
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portfolio d has a standard deviation of 17% and a correlation with the market of 1.00. if the standard deviation of the market is 15%, what is the beta for d?
The beta for portfolio d is 1.13, portfolio d has a standard deviation of 17% and a correlation with the market of 1.00. if the standard deviation of the market is 15%
Variance is a measurement of how widely distributed a set of data is. The variance is said to be zero if all the data values are the same. Variances that are not zero are all regarded as positive. A small variance shows that the data points are near the mean and one another, whereas a large variance shows that the data points are far dispersed from the mean and one another. The average of the squared distance between each point and the mean is, in essence, how the variance is defined. The standard deviation is a metric that reveals how much variance from the mean there is, including spread, dispersion, and spread.
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fc.04 it could be said the forecasts drive the planning process, the lining up of resources to support those plans. which purchasing/investment decision would you feel most comfortable making without having some sort of related forecast?
buying goods for the office Which purchase or investment decision do you feel most confident making without any kind of corresponding forecast?
What is an investing decision and an illustration?Both long-term and short-term investments are available. The purchase of production-related machinery is an illustration of a long-term capital choice. As it influences the company's long-term earnings, this is significant. Stock levels, inventories, and other factors affect short-term investments.
What are the top three investment choices?Capital planning and long-term investment choices 2. The choice of capital structure and financing 3. The Dividend Choice 4.
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which type of lack of capacity is easiest to prove? intoxication mental incompetence contracting for necessities minor status assessment question samuel has mental competency issues. samuel entered into a contract with beth, but now samuel is petitioning the court to terminate the contract. what options does the court have in ruling in the case? choose 2 answer choices. the contract is void if samuel was incompetent at the time the contract was formed. the contract is void if samuel has been previously determined to be mentally incompetent. the contract is voidable if a court has previously determined samuel to be mentally incompetent. the contract is voidable if samuel was incompetent at the time the contract was formed.
Options 1 and 2 are correct. Mental incapacity or incompetence refers to a person's inability to enter into a contract due to mental illness or intoxication and is the easiest to prove as a lack of capacity.
There are a couple of reasons an individual lack the capacity to go into an agreement. Minors, the insane, and people who are inebriated or drug-dependent are for the most part rejected from going into lawful arrangements. Mental incapacity just implies that an individual doesn't have the capability to go to an agreement. Notwithstanding inebriation, mental insufficiency can result from psychological maladjustments, like schizophrenia, infirmity, and, surprisingly, bipolar condition.
Most courts view contracts with people of Mental incapacity as voidable agreements, or agreements that might be voided by the weakened party. Yet, an individual can't simply make a case of mental insufficiency. There are two tests used to assist with deciding if involved with an agreement is unequipped to satisfy its commitments: a mental or emotional test, or an inspirational test. The court will oversee a mental or full-of-feeling test to decide if the individual grasps the agreement language and the results of going into the agreement.
In some cases, the individual grasps the language and the outcomes, so the court will test persuasive explanations behind going into the agreement. The test might demonstrate a condition like an insanity or preposterous reasoning as an inspiration. On account of an inebriated individual, the court views different things also.
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Correct Question -
which type of lack of capacity is easiest to prove?
1. intoxication
2. mental incompetence
3. contracting for necessities
4. minor status
why is the official measure of the unemployment rate not necessarily an accurate depiction of a country's joblessness?
Since it doesn't count people who aren't working or those who aren't seeking for work, the official unemployment rate is frequently criticized for underestimating the true amount of unemployment.
What is the US's official unemployment rate at the moment?You may find further details in the notes just at beginning of page 4. Both the unemployment rate and the overall number of unemployed persons, which were both 5.7 million in January, did not move significantly. The unemployment rate hasn't changed significantly overall since the beginning of 2022.
In 2022, what will be the unemployment rate?Uttar Pradesh's unemployment rate for the previous month was 4.22%. Even though the unemployment rate in Uttar Pradesh has been fluctuating a lot lately, it tended to rise from February 2022 to January 2023, when it reached 4.22% last month.
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winnebagel corporation currently sells 23,000 motor homes per year at $61,000 each, and 8,500 luxury motor coaches per year at $98,000 each. the company wants to introduce a new portable camper to fill out its product line; it hopes to sell 18,000 of these campers per year at $10,500 each. an independent consultant has determined that if winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,300 units per year and reduce the sales of its motor coaches by 1,000 units per year. what is the amount to use as the annual sales figure when evaluating this project?
When evaluating this project, the annual sales figure that should be used is $231,300,000.
To determine the amount of sales to evaluate a new project, add the total sales of the new product line to the additional sales of another product line and subtract the reduced sales of the other product line.
Product line Annual sales volume Sales price per unit
RV 23,000 $61,000
Luxury Coach 8,500 $98,000
Introduction of new product lines
Sales volume:
Portable camper 18,000 to $10,500 = $189,000,000
RV sales increased from 2,300 to $61,000 = 140,300,000
Motorcoach $1,000 sales reduced to $98,000 = (98,000,000)
Reportable revenue Generated by Portable = $231,300,000
Therefore, when Winnebagel Corporation evaluates the new product line, it should generate sales of $231.3 million.
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Molto stancha corporation had zero earnings this fiscal year; in fact, it lost money. Must the corporation file a tax return? multiple choice no, corporations are not required to file an income tax return if they have zero earnings. No, corporations are not required to file a tax return if they have a book loss. Yes, all corporations are required to file an income tax return regardless of their taxable income. Yes, return filing is mandatory for corporations that have a book loss
Yes ,all corporations are required to file income tax return irrespective of their income.
Income Duty return is the form in which assesses lines information about his/ her income and duty thereon to Income Tax Department. colorful forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a delinquent return, you aren't allowed to carry forward certain losses.
The Income Tax Act, 1961, and the Income duty Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every fiscal time. These returns should be filed before the specified due date. Every Income duty Return Form is applicable to a certain section of the Assesses. Only those Forms which are filed by the eligible Assesses are reused by the Income Tax Department of India. It's thus imperative to know which particular form is applicable in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assesses and the order of the Assesses.
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In terms of opportunity, blacks in the united states today are:__________
Answer: not equal in terms of opportunities for better life for their children
Explanation:
In terms of opportunity, blacks in the united states today are: both opportunities there have been significant strides towards racial equality and justice in recent decades, including legal protections against discrimination, increased representation in government and other institutions.
What is government?A government is the system of politics for running the nation. There are different forms of government like democracy, aristocracy, monarchy, and oligarchy.
A government makes rules and order for running the nation, state, or any political unit. A government makes defense laws, foreign policy, budget and sources of revenue and expenditure for a nation.
There are opportunities for black Americans to achieve success and advancement in various fields, like access to education, government representation and employment opportunities.
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There are opportunities for black Americans to achieve success and advancement in various fields, like access to education and employment opportunities.
suppose you purchase a bond with a face value of $1,000 and a coupon rate of 6 percent. you bought this bond for $1010, and you sell it one year later for $900. what rate of return did you earn over that year?
The investor experienced a negative return of 4.95% over the year.
To calculate the rate of return earned over a year, we need to take into account the income received from the bond, as well as the change in its value.
In this case, the bond has a face value of $1,000 and a coupon rate of 6 percent. This means that the bond pays $60 in interest income ($1,000 x 0.06) each year.
The bond was purchased for $1,010 and sold for $900 after one year, resulting in a capital loss of $110 ($900 - $1,010).
Therefore, the total return over the year was the interest income of $60 minus the capital loss of $110, which gives a total loss of $50.
To calculate the rate of return, we need to divide the total loss by the initial investment and express the result as a percentage.
So, the rate of return earned over the year is:
($50 / $1,010) x 100% = 4.95%
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why part of our brains (the mesolimbic dopamine system) makes it difficult to keep a consistent customer focus
The MIT researchers discovered that the insular cortex, in contrast to the visual cortex, is the remote brain region most impacted by dopamine.
When the brain has more dopamine than it can handle, what occurs in the brain?Being overdopamined, or having too much dopaminergic concentrated in some areas of the brain while having insufficient dopamine in other areas, is associated with being impulsive, aggressive, and more competitive. ADHD, binge eating, addiction, and gambling are just a few of the diseases it can cause. The perception of a body's thoughts and feelings, both physical and emotional ones, depends on this region for many cognitive processes.
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how did economics play an important role in appeasement?
Answer:
Britain and France did not want to spend money to enforce the Treaty of Versailles. They hoped that appeasement might encourage Italy and Germany to become strong trading partners, benefiting the economies of all involved.
Explanation:
Hope this helps.
In her speech about declining high school graduation rates, jada focus on the contributing factors of the nuclear family decline, drug addiction, and teen pregnancy. Which organizational strategy is jada using?
Jada is using a topical organizational strategy in her speech about declining high school graduation rates.
In this strategy, the speech is organized around topics or themes. In Jada's speech, the three topics or themes are contributing factors of declining high school graduation rates, and each topic is discussed in detail.
A topical organizational strategy is a common approach to structuring speeches and presentations. It allows the speaker to group ideas together based on similar themes or topics, making the presentation more organized and easier to follow for the audience.
This strategy is especially useful when the speaker has a lot of information to present, and the topics or themes have a clear relationship to one another. By using a topical organizational strategy, Jada is able to provide a clear and organized framework for her speech on declining high school graduation rates.
Each of the three topics she discusses is related to the central theme, and the audience can easily follow along and understand the relationships between the topics and the overall message of the speech.
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consumers most often use ____ when purchasing low-cost, frequently purchased products.
Consumers most often use routine response behavior when purchasing low-cost, frequently purchased products.
When making purchasing decision, there are some factors that influence the customers decisions. The study to understand these factors is called customer behaviors. There are few types of customer behaviors, such as:
Routine responseLimited decision-makingExtensive decision-makingImpulsive buyingRoutine response behavior involves making quick and automatic decisions based on past experiences and familiarity with the product. Consumers do not spend a lot of time or effort researching or comparing options for these types of products, as they are typically low-risk and low-involvement purchases. Routine response behavior depends heavily on brand recognition and repetitions.
Limited decision-making involves occasional buying decision with some research and little amount of pre-purchase thought.
Extensive decision-making occurs when the purchased product has a great impact for the buyer's life. Big financial investment is the major example of this type of decision. Buyer will spend a great efforts and time on researching the potential products before making a decision.
Impulsive buying happens when the purchasing activity is impulsive. A customer buys a product on a whim and without any thought. This kind of buying is mostly irrational and in the moment.
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What are the requirements for drawing unemployment benefits in Missouri?
You must either quit with good reason linked to the job or the employer OR lose your unemployment through no fault of your own. Earn at least $2,250 from an insured employer throughout your base period.
At least $1,500 during one of the calendar quarters and at least $750 throughout the rest of the year. Each week, you must be capable of working and available. This indicates that you are healthy and have no personal issues that would prevent you from working a full-time schedule. Benefits for unemployment may not be granted if a job offer is rejected.
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which one of the following statements is correct concerning the standard deviation of a portfolio? group of answer choices the greater the diversification of a portfolio, the greater the standard deviation of that portfolio. the standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio. standard deviation is used to determine the amount of risk premium that should apply to a portfolio. the standard deviation of a portfolio is equal to the geometric average standard deviation of the individual securities held within that portfolio. the standard deviation of a portfolio is equal to a weighted average of the standard deviations of the individual securities held within the portfolio.
The answer is b. The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio.
In finance, the standard deviation is viewed as a proportion of chance as unpredictability. Standard deviation is determined by taking the square foundation of the separation from the mean, likewise alluded to as difference. The more spread separated the information is, the more unstable is the standard deviation.
a. False. The more noteworthy the expansion of a portfolio, the lower the standard deviation of that portfolio.
c. False. The market decides how much gamble premium ought to apply to a portfolio.
d. False. Standard deviation estimates every one of the dangers of a portfolio.
e. False, this isn't the means by which the portfolio standard deviation is determined.
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Complete Question -
Which one of the following statements is correct concerning the standard deviation of a portfolio?
a. The greater the diversification of a portfolio, the greater the standard deviation of that portfolio.
b. The standard deviation of a portfolio can often be lowered by changing the weights of the securities in the portfolio.
c. Standard deviation is used to determine the amount of risk premium that should apply to a portfolio.
d. Standard deviation measures only the systematic risk of a portfolio.
e. The standard deviation of a portfolio is equal to a weighted average of the standard deviations of the individual securities held within a portfolio.
2.37 a no-load (commission-free) mutual fund has grown at a rate of 11% compounded annually since its beginning. if it is anticipated that it will continue to grow at that rate, how much must be invested every year so that $15,000 will be accumulated at the end of five years?
Approximately $3,428.79 must be invested every year to accumulate $15,000 at the end of 5 years, assuming the mutual fund continues to grow at a rate of 11% compounded annually.
To calculate how much must be invested every year to accumulate $15,000 in 5 years, we can use the future value formula for an annuity:
FV = PMT x (((1 + r)^n - 1) / r)
where:
FV = future value (in this case, $15,000)
PMT = payment amount (what we need to calculate)
r = annual interest rate (11%, or 0.11)
n = number of periods (5 years)
Plugging in the values, we get:
[tex]$15,000 = PMT x (((1 + 0.11)^5 - 1) / 0.11)[/tex]
Solving for PMT, we get:
[tex]PMT = $15,000 / (((1 + 0.11)^5 - 1) / 0.11)[/tex]
PMT = $15,000 / 4.37554
PMT = $3,428.79 (rounded to the nearest cent)
So, approximately $3,428.79 is the amount that must be invested every year to accumulate $15,000 at the end of 5 years, assuming the mutual fund continues to grow at a rate of 11% .
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