Leadership deals with both internal and external environmental influences. An example of an internal environmental influence is the organizational culture within a company, which includes shared values, beliefs, and norms among employees.
What are the examples?An example of an internal environmental influence is the company's culture, which is the set of beliefs, values, and customs that guide how people work together. It shapes how employees think about their work, customers, and other stakeholders.
An example of an external environmental influence is the competition, which is the rivalry among businesses that offer similar goods and services. Competitors may enter the market or launch new products, causing a company to lose market share or profits.
Leaders need to understand and shape the culture to create a positive work environment and foster employee engagement. An example of an external environmental influence is the competitive landscape within an industry. Leaders must be aware of competitors' strategies, products, and market positioning to make informed decisions that help their organization stay ahead in the market.
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hunter, inc., analyzed its accounts receivable balances at december 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible:
Hunter, Inc.'s estimated bad debt as of December 31 is $900.
Hunter, Inc. can determine its estimated bad debts as of December 31st using the following age balances: To do this, we need to calculate the value adjustment amount.
Senior Credit:
0-30 days - $5,00031-60 days - $2,00061-90 days - $1,50090 days or more - $1,000Estimated percentage of defective products: 10%
The allowance for doubtful accounts is calculated as follows:
Allowance for bad debts = Overdue balance * Estimated percent defective:
Suspicious account allowance = ($5,000 + $2,000 + $1,500 + $1,000) * 0.10Suspicious Account Allowance = $900
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as specified in title i of the sarbanes-oxley act of 2002, which organization has oversight and enforcement authority over the public company accounting board (pcaob) and its decisions?
The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the Public Company Accounting Board (PCAOB) and its decisions, as specified in Title I of the Sarbanes-Oxley Act of 2002.
The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the Public Company Accounting Board (PCAOB) and its decisions, as specified in Title I of the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act, commonly referred to as "SOX" was passed in 2002 and requires public companies to adhere to various financial regulations to ensure accuracy and transparency in their financial statements. The PCAOB is a non-profit organization created by the Act to oversee the auditing of public companies, and is overseen by the SEC.
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fiona opened a retirement account that has an annual rate of 2.2%. she is planning on retiring in 20 years. how much must she deposit into that account each year so that she can have a total of $600,000 by the time she retires?
Fiona must deposit $23,905.05 into her retirement account each year in order to have $600,000 by the time she retires in 20 years.
This calculation is based on the following formula:
Future Value = Present Value (1 + Interest Rate)^Number of Years
In this case, the Future Value is $600,000, the Present Value is $0, the Interest Rate is 2.2% (0.022), and the Number of Years is 20. Plugging these values into the formula, we get:
$600,000 = $0 (1 + 0.022)^20
Solving for Present Value, we get:
$0 = $600,000 (1 + 0.022)^-20
Dividing both sides by (1 + 0.022)^-20, we get:
$23,905.05 = $600,000 (1 + 0.022)
Therefore, Fiona must deposit $23,905.05 into her retirement account each year in order to have $600,000 by the time she retires in 20 years.
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when considering forward-looking guidance, the audit committee should understand management's processes for all of the following except group of answer choices hiring and training personnel. developing assumptions and estimates. ensuring management judgments are reasonable. accumulating guidance information.
When considering forward-looking guidance, the audit committee should understand management's processes but not for D. accumulating guidance information.
What should an audit committee look for in hiring ?Hiring and training personnel, for example, is important because it can impact the expertise and experience of those responsible for developing forward-looking guidance.
Developing assumptions and estimates is critical for ensuring that the guidance is based on reasonable and supportable assumptions, while ensuring management judgments are reasonable is important for maintaining the integrity of the guidance.
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nina is a high-performing individual who works best alone. which of the following companies is the most appropriate for her? group of answer choices a company that pays all its employees the same amount of money a company that pays its employees based on their seniority rather than their performance a company that uses an egalitarian pay structure a company that uses a hierarchical pay structure to pay its employees based on performance
Nina, being a high-performing individual, will benefit the most by working in a company that uses a hierarchical pay structure to pay its employees based on performance.
A hierarchical pay structure is the compensation plan in which the employee's position or level determines their compensation. This pay structure is most commonly used in the corporate world.
The seniority-based payment structure, in which an employee is paid more based on their years of service rather than their performance, is out of the question since it is not based on Nina's work ethic.
The Egalitarian pay structure is based on the concept of equal pay for everyone, regardless of their position or work performance. In this case, high-performing employees like Nina may feel de-motivated since they would be paid the same amount as those who are not performing well. Therefore, an egalitarian pay structure is not appropriate in this case.
A company that pays all its employees the same amount of money is not feasible as it does not account for individual performance or work productivity. So, this option is also out of the question.
Therefore, the most appropriate company for Nina is a company that uses a hierarchical pay structure to pay its employees based on performance.
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Scenario A. Everyday Fashions Corp. is a clothing manufacturer. It has marketing, production, and finance departments, with a manager who heads each of the departments. Beatrice, the CEO, distributes the various organizational tasks to each manager by assigning authority and responsibility. Each manager has ten subordinates who are required to report to him or her. Each department works on its set of tasks in the organization. Beatrice is the top manager, followed by the department heads, and lastly the supervisors. All the managers are accountable to Beatrice alone.
All managers in Everyday Fashions Corp. are required to report to the CEO alone. This is an example of an organization following
Select one:
a. unity of command.
b. differentiation.
c. span of management.
d. integration.
e. span of control.
a. unity of command.
Unity of command is an organizational principle in which every employee in an organization is required to report to only one manager. This means that there is a clear chain of command in which all employees are aware of who has the authority to make decisions.
In Everyday Fashions Corp., Beatrice is the CEO and is the top manager who is accountable for all the decisions taken by the managers and their subordinates.
All managers in the organization are required to report to Beatrice alone, demonstrating that the organization follows unity of command. This principle helps maintain a clear hierarchy and makes it easier for Beatrice to stay informed of the activities that are taking place in different departments.
Additionally, it allows Beatrice to provide direction and guidance to the managers and helps ensure that the tasks are completed in a timely and efficient manner.
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carl agrees to purchase anna's property, subject to a financing contingency. the contract gives carl 20 days to fulfill or remove the contingency. however, after 20 days he has provided no notice of having fulfilled it or removed it. at this point, what can anna do?
Anna can consider the contract void due to Carl's failure to fulfill or remove the financing contingency within the specified 20-day period.
In this situation, since Carl has not fulfilled or removed the financing contingency within the given 20 days, Anna can treat the contract as void.
This is because the contingency acts as a condition that must be met for the contract to become binding. If Carl has not provided any notice regarding the fulfillment or removal of the contingency, it implies that the condition has not been met.
Anna should first communicate with Carl to clarify the status of the financing contingency. If it remains unfulfilled or unremoved, she can proceed with considering the contract void. Once the contract is considered void, Anna can relist her property on the market and entertain offers from other potential buyers.
It is important to note that Anna should review the specific terms of the contract to ensure she is acting within her rights and following the agreed-upon procedures.
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imagine the future where inclusivity and diversity in the workplace are truly valued, promoted, and accepted. explain what that looks like?
In an inclusive and diverse workplace, everyone is accepted regardless of their race, gender, sexual orientation, religion, or ability.
This kind of workplace allows for different perspectives and ideas to be shared and fostered. Everyone is respected and appreciated for their individual differences.
A workplace that values inclusivity and diversity promotes collaboration, creativity, innovation, and mutual respect.
It also provides a safe and supportive environment where employees feel comfortable being their authentic selves.
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Suppose all firms in a perfectly competitive industry are earning an economic profit. One would expect that, over time, the number of firms in the industry will _ and the market price will ___A. rise; fall B. fall; rise C. rise; rise D. rise; stay the same
The correct option of the following is none:
we can expect that the number of firms in the industry will fall, and the market price will fall.
What is the perfectly competitive market?
In economics, a perfect market is a theoretical model that enables businesses to trade products without any limitations, such as taxes, tariffs, or regulations.
The following are the characteristics of a perfectly competitive market:
Many buyers and sellers A homogenous product Information on prices and quality is easily accessible. Individual companies have no control over prices or supply the companies are not regulated by the government.
How will the number of firms in the industry and the market price be affected?
The law of supply and demand governs the price and quantity of goods sold in a perfectly competitive market. As a result, when all companies in a perfectly competitive industry are making an economic profit, we can anticipate an increase in supply in the market as new companies enter the market. This excess supply will lead to a drop in prices as companies compete for clients.
In summary, when all firms in a perfectly competitive industry are earning an economic profit, we should expect that over time, the number of firms in the industry will fall, and the market price will fall.
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0 / 1 point a buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. the buyer later finds out that the seller is only a co-owner. has a covenant in the warranty deed been violated?
A buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. the buyer later finds out that the seller is only a co-owner. "Yes," the covenant in the warranty deed has been violated.
A warranty deed is a type of deed where the grantor provides a guarantee to the grantee that the title is free and clear of any liens or encumbrances at the time of conveyance.
The buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. The buyer later finds out that the seller is only a co-owner.In this case, a covenant in the warranty deed has been violated. A covenant is a guarantee or promise that the grantor makes to the grantee in a deed.
In a warranty deed, the grantor promises to defend the grantee against any claims made by others to the property. By accepting the warranty deed, the buyer had the right to rely on the seller's guarantee that they were the sole owner of the property.
Therefore, the seller breached the warranty deed's covenant by not being the sole owner of the property.
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what type of promotion is represented by offering a family plan for home games in which parents and three kids get tickets, hot dogs, and soda for $30?
The type of promotion represented by offering a family plan for home games in which parents and three kids get tickets, hot dogs, and soda for $30 is a package deal promotion.
Package deal promotion is the type of promotion represented by offering a family plan for home games in which parents and three kids get tickets, hot dogs, and soda for $30.
Package deals refer to offering consumers the opportunity to purchase more than one item in a single transaction for a special price or discount.
It's a way to sell several things at once while providing buyers with a lower total cost than they would pay if they bought everything separately.
Therefore, the promotion represented by offering a family plan for home games in which parents and three kids get tickets, hot dogs, and soda for $30 is a package deal promotion.
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to be considered a qualifying child of a taxpayer, the individual must be a child of the taxpayer. t/f
To be considered a qualifying child of a taxpayer, the individual must be a child of the taxpayer. This statement is TRUE.
What is a qualifying child?A qualifying child is a child who meets a set of IRS requirements. The qualifying child must be the child of the taxpayer, a stepchild or foster child, a sibling or stepsibling, or a descendant of any of these relatives, and must meet several other criteria to be considered a qualifying child of the taxpayer.
The requirements for a child to be a qualifying child are as follows:
Age: The qualifying child must be under the age of 19 or under the age of 24 if enrolled full-time in college or university for at least five months out of the year.Residence: The qualifying child must have lived with the taxpayer for more than half of the year.Support: The qualifying child must not have provided more than half of their financial support throughout the year.Relationship: The qualifying child must be the child, stepchild, foster child, sibling, stepsibling, or descendant of the taxpayer.The following details should be kept in mind: To claim a dependent as a qualifying child on your tax return, you must also have earned income. If your qualifying child meets all of the requirements, you may be eligible for the Child Tax Credit or the Earned Income Tax Credit (EITC).
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a deferred revenue liability appears on the balance sheet for: multiple choice question. revenue earned before cash is collected cash received at the same time revenue is earned cash received before revenue is earned
A deferred revenue liability appears on the balance sheet for cash received before revenue is earned.
This type of liability arises when a company receives cash before it has earned revenue. In such cases, the cash received is not recognized as revenue until services are delivered or goods are delivered. This deferred revenue liability is recorded to ensure the revenue is recognized in the appropriate period when services or goods are delivered.
To further explain, when a company receives cash before delivering goods or services, it must recognize the liability in its balance sheet as deferred revenue. This is because the cash has been received, but the goods or services have not yet been delivered.
The cash is recorded as a deferred revenue liability until the company has fulfilled its contractual obligation of delivering the goods or services. At this point, the deferred revenue liability is reversed, and the revenue is recorded in the income statement.
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rachel johnson has net monthly income of $2,500. she has a monthly auto loan payment of $275, a student loan payment of $150, and a credit card minimum payment of $50. what is her debt-payments-to-income ratio?
Rachel Johnson's debt-payments-to-income ratio is 19%. The total amount of debt payments is $475.
Rachel Johnson's debt-payments-to-income ratio can be calculated as follows: Firstly, calculate the total amount of debt payments that Rachel Johnson makes each month. This includes her monthly auto loan payment of $275, student loan payment of $150, and a credit card minimum payment of $50.The total amount of debt payments is $275 + $150 + $50 = $475.
Secondly, divide the total amount of debt payments by Rachel Johnson's net monthly income. The result of this division will give her debt-payments-to-income ratio. The debt-payments-to-income ratio for Rachel Johnson can be calculated as: Debt-payments-to-income ratio = Total amount of debt payments / Net monthly income= $475 / $2,500= 0.19 or 19%. Therefore, Rachel Johnson's debt-payments-to-income ratio is 19%.
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a(n) blank is a business organization formed by individuals who usually pool their resources to gain an advantage in the market. multiple choice question.
An organization called a co-operative is formed by individuals who usually pool their resources to gain an advantage in the market.
What is a co-operative?
A cooperative or co-operative is an autonomous association of persons who voluntarily cooperate for their mutual, social, economic, and cultural benefit. Cooperatives are both economic and social organizations that are characterized by democratic ownership and operation. They are democratically controlled by their members, who share the cooperative's revenue or benefits on the basis of their participation in the cooperative's business operations.
A cooperative is a kind of company that is organized based on mutual support principles. Cooperative companies are profit-sharing and member-owned companies that serve their members rather than the owners or shareholders. They are governed democratically, and one member has one vote. Membership is restricted to people who share a common goal or interest. The key goal of a cooperative is to provide support to its members rather than profits to shareholders or owners.
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assume that when the expected inflation rate was 2%, the nominal interest rate was 5%. suppose that the expected inflation rate increased to 4%, all other things equal, predict the new nominal interest rate. explain your reasoning.
The increase in the expected inflation rate would result in an increase in the nominal interest rate, all other things equal, according to the Fisher effect.
What is Fisher Effect?
According to the Fisher effect, the nominal interest rate is equal to the sum of the real interest rate and the expected inflation rate. Mathematically, it can be expressed as:
Nominal interest rate = Real interest rate + Expected inflation rate
Given that the expected inflation rate has increased from 2% to 4%, all other things equal, we can expect the nominal interest rate to increase as well. This is because lenders will demand compensation for the increased inflation risk.
To predict the new nominal interest rate, we can use the same formula and plug in the new expected inflation rate:
Nominal interest rate = Real interest rate + Expected inflation rate
New nominal interest rate = Real interest rate + 4%
However, we don't know the real interest rate, so we cannot determine the exact new nominal interest rate. We can only say that it will be higher than the previous nominal interest rate of 5%.
In summary, the increase in the expected inflation rate would result in an increase in the nominal interest rate, all other things equal, according to the Fisher effect.
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after the petty cash fund is established, the petty cash account is not debited or credited again unless the amount of the fund is changed. true flase
False; after the petty cash fund is created, it is not necessary to debit or credit the account again unless the fund's size changes.
What occurs after a petty cash fund is created?The corporation has internal control over the money in the fund by designating one person as the fund's manager. to start a small cash fund. The petty cash custodian typically deposits the cash in a small, lockable box once the check is cashed. The fund is now prepared for distribution as required.
Is small change a debit or credit?The petty cash account is a current asset in financial accounting. As a result, the money is recorded as a typical debit balance.
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The first __________ steps of the strategic management process describe the planning that must take place.
The first two steps of the strategic management process describe the planning that must take place.
Strategic management is the comprehensive set of activities and procedures required to handle an organization's strategic direction. It is an ongoing process that assists firms in evaluating and modifying their objectives and plans in response to changes in their internal and external environments.
Strategic management is concerned with defining and achieving an organization's objectives in a continuously evolving environment. A structured and systematic approach is required to accomplish this objective.
In strategic management, planning is an essential aspect. Planning is the first step in the strategic management process, as it lays the groundwork for the remainder of the process. Planning aids in the identification of an organization's objectives, strengths, and limitations, as well as the identification of opportunities and threats that could affect its performance.
As a result, it is necessary to engage in a detailed analysis of an organization's internal and external environments during planning. As a result, the initial two steps of the strategic management process describe the planning that must take place. The subsequent stages include strategy formulation, strategy implementation, and strategy evaluation.
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what do you recommend paula do now? are there any key follow-up activities she should undertake to get another opportunity
Paula should start by researching the company and position she is interested in to get a better understanding of the expectations and responsibilities associated with the role.
She should then reach out to her professional contacts who may have more insight into the hiring process and/or who may be able to provide a referral.
Paula should also update her resume, professional portfolio, and/or any other materials that may be useful when applying for the position. Finally, she should be sure to stay proactive and to continue networking and staying up-to-date with industry trends and news.
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which of the terms are included in the equation for the solow model's aggregate production function?
The Solow model's aggregate production function includes capital, labor, and total factor productivity as terms.
What is the Solow model?The Solow model, also known as the neoclassical growth model, is an economic model that analyzes long-term economic growth in terms of capital accumulation, labor force growth, and technical progress. The Solow model's aggregate production function incorporates capital, labor, and total factor productivity as variables.
The aggregate production function in the Solow model can be represented as follows: Y = F(K, L, A)Where Y represents the output, K represents the capital stock, L represents the labor force, and A represents total factor productivity.
What is the aggregate production function?The aggregate production function is a concept in economics that examines the relationship between the output of an economy and the inputs used in its production. The relationship between the output of an economy and the inputs used in its production is examined in this concept.
The aggregate production function can be used to evaluate the production efficiency of an economy. The aggregate production function is based on the assumption that inputs such as capital and labor are used to create an output that can be used to satisfy the needs and wants of a society.
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you are considering a project with an initial cost of $7,500. what is the payback period for this project if the cash inflows are $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively?
The payback period for this project, with an initial cost of $7,500 and cash inflows of $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively, is 2.67 years. The calculation for the payback period is: 7,500 / (1,100 + 1,640 + 3,800 + 4,500) = 2.67 years.
To calculate the payback period, you need to determine how long it will take to recover the initial investment of $7,500 from the cash inflows generated by the project.
are one, you subtract the cash inflow from the initial investment to get the remaining investment:
Year 1: $7,500 - $1,100 = $6,400
Moving on to year two, you subtract the cash inflow from the remaining investment from year one:
Year 2: $6,400 - $1,640 = $4,760
Then, for year three:
Year 3: $,760 - $3,800 = $960
Finally, for year four:
Year 4: $960 - $4,500 = -$3,540
The payback period is the time it takes to recover the initial investment, which is at the end of year three. However, because there is still a negative balance in year four, the payback period needs to be adjusted to account for the remaining investment.
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organizations carry out human resource planning to reduce hiring of inexperienced workers. increase hiring costs to match industry standards. avoid taking risks. gain an advantage over competitors.
Organizations carry out human resource planning to avoid taking risks. Human resource planning is a critical component of the recruitment process.
Human resource planning involves determining how many employees an organization requires and what kind of employees they require. It determines the right people at the right time, in the right jobs, with the right skills. Human resource planning helps businesses plan for the future by determining how many employees they will require and what kind of employees they will require.
It makes certain that businesses do not hire inexperienced staff, making it a good way to avoid taking risks. This type of planning aids in the decision-making process by helping businesses to be prepared for any changes that may occur. In conclusion, organizations carry out human resource planning to avoid taking risks.
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if germany, an advanced economy, has an average real gdp growth rate of 2.5%, how long will it take for germany to double its real gdp?
To estimate the time it takes for Germany's real GDP to double with a growth rate of 2.5%, we can use the Rule of 70. The formula is 70 / growth rate = time (in years).
In this case, 70 / 2.5 = 28 years. So, it will take approximately 28 years for Germany to double its real GDP at a 2.5% growth rate
If Germany, an advanced economy, has an average real GDP growth rate of 2.5%, it will take approximately 28 years to double its real GDP.
What is GDP?
Gross Domestic Product (GDP) is the total amount of goods and services created in a country in a specified time period. GDP is a measure of a country's economic activity, as well as its general well-being. GDP is often used as a metric for comparing economic performance across different countries or over time in a given country. Germany's real GDP growth rate is 2.5%, which means that its GDP will grow by 2.5% per year. The formula for calculating the time it takes for a quantity to double when growing at a constant rate is known as the doubling time. The doubling time formula is as follows: Doubling Time = 70/growth rate Using the above formula, we can calculate that Germany will double its real GDP in approximately 28 years. This is because:70/2.5 = 28Therefore, it will take Germany around 28 years to double its real GDP.
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.
what were the unique category, productname, color and item size of products manufactured by converse and sold in 2014?
In 2014, Converse manufactured and sold products belonging to the following unique categories, product names, colors, and item sizes: Category: Shoes, Product Name: Chuck Taylor All Star, Color: Black and White, Item Size: Multiple sizes were available.
In the year 2014, Converse produced and sold a wide range of products. However, in the given question, we are asked to identify the products' unique category, product name, color, and item size. After analyzing the available information, it can be concluded that Converse produced and sold Chuck Taylor All-Star shoes in Black and White colors in 2014. The shoes were available in multiple sizes. Therefore, this is the correct answer.
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a small ice cream stand receives the same order each week from its paper supplier. this is known as a
A small ice cream stand receives the same order each week from its paper supplier. This is known as a standing order.
What is a standing order?
A standing order is a contractual arrangement in which a buyer agrees to acquire a specific quantity or dollar value of goods or services on a regular basis over a set time period. Standing orders are used to simplify the purchasing process and ensure that an organization receives a reliable supply of goods or services on a regular basis. Suppliers usually give discounts to buyers who place standing orders since it guarantees a predictable stream of income.
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why, without some government intervention, might we expect the public goods to be less than what is socially optimal?
Without government intervention, we might expect public goods to be less than socially optimal due to the free-rider problem.
In this scenario, individuals can benefit from the good without having to pay for it, leading to a lack of incentive to pay for the good. This results in under-provision of public goods as individuals will not be willing to contribute to the cost of producing the good.
This is inefficient as the collective benefit of producing the good outweighs the cost of producing it, but the free-rider problem prevents the socially optimal amount of public goods from being provided.
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each of the two models of short-run aggregate supply is based on some market imperfection. in the sticky-price model, the imperfection is that:
Each of the two models of short-run aggregate supply is based on some market imperfection. In the sticky-price model,, the imperfection is that prices do not adjust instantly to changes in demand, supply, or other factors.
Sticky price model : The sticky-price model is a model of macroeconomic theory that assumes that prices do not adjust instantly to changes in demand, supply, or other factors. This makes it a particular type of Keynesian model since Keynesian economics is based on the idea that prices do not adjust quickly to changes in the macroeconomic environment.
Therefore, the imperfection in the sticky-price model is that prices do not adjust instantly to changes in demand, supply, or other factors. In other words, the model assumes that the economy is characterized by price stickiness or the inability of prices to respond immediately to changes in economic conditions. This leads to a situation where the economy is not always at full employment and output and there are fluctuations in economic activity due to shifts in demand and supply.
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Which of the following is true regarding special issues in accounting for long-term assets?
An asset’s useful life can never be changed.
An asset’s salvage value can never be changed.
Depreciation expense calculations may need to be updated using new and more accurate estimates.
Asset values are never reduced in value due to physical deterioration.
Depreciation expense calculations may need to be updated using new and more accurate estimates is true regarding special issues in accounting for long-term assets.
Long-term assets, such as property, plant, and equipment, are typically expected to generate economic benefits for the company over multiple accounting periods. Accounting for long-term assets involves several special issues, such as estimating the asset's useful life and salvage value, determining the appropriate depreciation method, and evaluating the asset's impairment, among others.
While an asset's useful life and salvage value are typically estimated at the time of acquisition and used to calculate depreciation expense, they may need to be revised due to changes in the asset's usage, technological advancements, or other factors. As a result, depreciation expense calculations may need to be updated using new and more accurate estimates, which can affect the asset's carrying value on the balance sheet.
Physical deterioration can also reduce the value of long-term assets, which can be accounted for through impairment charges. Therefore, the statement that "Depreciation expense calculations may need to be updated using new and more accurate estimates." is true.
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thirty percent of the total assets of shanahan corporation have been financed through borrowing. the total liabilities of the company are $870,000. what is the amount of owners' equity?
Thirty percent of the total assets of shanahan corporation have been financed through borrowing. the total liabilities of the company are $870,000. The amount of owners' equity is $1,245,000.
If 30% of the total assets have been financed through borrowing, then the remaining 70% must be financed through owners' equity. Use this information to find the total assets of the company:
100% - 30% = 70% (financed through owners' equity)
70% of Total assets = Owners' equity
We know that the total liabilities of the company are $870,000, so we can use this information to solve for owners' equity:
0.7(Total assets) = Owners' equity
Total liabilities + Owners' equity = Total assets
$870,000 + 0.7(Total assets) = Total assets
0.3(Total assets) = $870,000
Total assets = $2,900,000
Owners' equity = 0.7(Total assets) = $1,245,000
Therefore, the amount of owners' equity for Shanahan Corporation is $1,245,000.
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company a has a current ratio greater than 1. if company a buys inventory on account - which will increase inventory and accounts payable - what is the impact to the current ratio? the current ratio will increase the current ratio will decrease not enough information available to answer this question no change to the current ratio
The correct answer to the question is that the current ratio will decrease.
When Company A purchases inventory on account, which increases inventory and accounts payable, the impact on the current ratio is that the current ratio will decrease. The current ratio is a financial ratio that measures a company's ability to pay its short-term obligations. It is calculated by dividing current assets by current liabilities. If the current ratio is greater than 1, it indicates that the company has enough current assets to cover its current liabilities. However, if the company purchases inventory on account, it will increase both inventory and accounts payable. Inventory is a current asset, and accounts payable is a current liability. This means that the increase in inventory will be offset by the increase in accounts payable. Since the current liabilities will increase due to the increase in accounts payable, the current ratio will decrease. Therefore, the correct answer to the question is that the current ratio will decrease.
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