A corporation called a C corp is a legal entity that's separate from its owners. Corporations can make a profit be taxed and can be held legally liable.
Corporations offer the strongest protection to their owners from personal liability, but the cost to form a corporation is higher than other structures.
Rep is paid a base salary plus $10 per unit of product sold. On March, the rep sold 300 units. the total monthly sales cost.
Total Salary paid during March = $4,000
Units sold during March = 300 units
Variable cost = $10 per unit
Total Variable Cost = Units sold in a month * Variable Cost per unit
Total Salary = Total Variable Cost + Total Fixed Cost(Base Salary)
$4,000 = $10 * 300 + Total Fixed Cost
Total Fixed Cost = $4,000 - $3,000 = $1,000
Total Fixed Cost is the base salary that would remain constant every month.
Month March April May June July
Number of units sold 300 320 180 360 200
Total Variable Cost 300*$10 = $3,000 320*$10 = $3,200 180*$10 = $1,800 360*$10 = $3,600 200*$10 = $2,000
Total Fixed Cost $1,000 $1,000 $1,000 $1,000 $1,000
Total Salary Cost $4,000 $4,200 $2,800 $4,600 $3,000
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consumer confidence and willingness to spend begins to increase during periods of , and marketers must remain very flexible to make the necessary adjustments.
Consumer confidence and willingness to spend begins to increase during periods of recovery, and marketers must remain very flexible to make the necessary adjustments.
Consumer confidence is seen to be typically increasing when the economy starts recovering and expanding, and decreases when the economy contracts. In the United States, there is evidence that such measure becomes a lagging indicator of the stock market performance.
Consumer confidence measures that how people are doing financially, and how they look at the overall economy of the country or business conditions in the country.
Hence, the consumer confidence is an important leading indicator of the economy's strength.
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what is the total project budget for design in this time-phased budget? activity july august september october november rfp 34,721 analysis 11,049 33,655 34,388 design 33,718 34,474 26,759 36,328 coding 7,713 34,905 40,244 testing 40,916 896 training 20,958
Cumulative project budget for September
= total cost of September month
= $ 96,052.
Cumulative project budget upto September
= 34,721+11, 049+33, 718+33, 655+34, 474+7, 713+34, 388+26, 759+34, 905
=$251, 382.
Step-by-step explanation
The cumulative project for September in this time-phased budget is:
Sum of July budget + Sum of August budget + sum of September budget
Sum of July budget = 34721 + 11049 +33718 Sum of July budget = $79,488
Sum of August budget = 33655 + 34474+7713
Sum of August budget = $75842
Sum of September budget = 34388 +26759+ 34905
Sum of September budget = $96052
Cumulative project budget for September = 79,488 +75832 + 96052
Cumulative project budget for September = $251382
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raheem bought stock in a tech company that has just announced a dividend. he did not receive the dividend even though the record date had not yet passed when he purchased it. this is because he purchased the stock on or after the date.
Given the circumstances, the fact that he purchased the stock on or after the ex-dividend date is what prevented him from receiving the dividend.
What is a dividend?A corporation's board of directors decides whether to pay a dividend to its shareholders. Quarterly dividend payments are common and can be provided in the form of cash or stock reinvestments. The dividend yield, or dividend per share, is expressed as a percentage of a company's stock price, for instance, 2.5%. A dividend payment is due to a common shareholder of a firm that pays dividends if they owned the shares on the ex-dividend date or earlier.
The dividend is only given to investors who purchased the stock prior to the ex-dividend date, thus Raheem would not be eligible for it if he purchased the stock on or after that date.
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determine the net income of a company for which the following information is available for the month of july. employee salaries expense$ 197,000 interest expense27,000 rent expense37,000 consulting revenue468,000 multiple choice $207,000. $261,000. $281,000. $468,000. $729,000.
The net income of the company is $207,000
What is the net income of the company?
The net income of the company is the consulting revenue minus the salaries expense, the interest expense as well as the rent expense for the month of July.
The net income=consulting revenue-rent expense-interest expense-salaries expense
consulting revenue=468,000
salaries expense=197,000
rent expense=37,000
interest expense=27,000
net income=468,000-197,000-37,000-27,000
net income=$207,000
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the last four weekly values of sales were 80, 100, 105, and 90 units. the last four forecasts were 60, 80, 95, and 75 units. these forecasts illustrate:
The last four weekly values of sales were 80, 100, 105, and 90 units. the last four forecasts were 60, 80, 95, and 75 units. these forecasts illustrate bias.
Forecasting is the procedure of creating predictions primarily based on beyond and present data. Later those may be in comparison to what takes place. For example, an enterprise would possibly estimate its sales within the next 12 months, then compare it in opposition to the actual effects. Prediction is comparable, but the greater widespread time period.
Forecasting is a method that makes use of ancient information as inputs to make knowledgeable estimates which are predictive in figuring out the path of destiny tendencies.
Forecasting is the process of projecting beyond income calls into the future. Implementing a forecasting machine enables you to assess cutting-edge marketplace traits and sales quickly so that you can make knowledgeable decisions approximately the operations.
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1. Despite the expense, why might a business choose to mail a catalog?
Answer:
Catalogs can promote a business's brand by displaying them in high-traffic areas and distributing them in stores. Customers often have an idea of what they want to buy after looking through a catalog. But, they'll likely find other items they want to buy when they go online or to a brick-and-mortar store to order.
Reporting revenues only when cash is received and expenses only when cash is paid is called the.
The term "Cash Basis of Accounting" refers to the practise of only recording revenues when cash is received and costs when cash is paid.
The "cash basis" method of accounting, which is often used, defines revenues and expenses as they are incurred. Contrarily, accrual accounting records expenses as they occur, regardless of when money is received or paid, and recognises income as a liability is created.When is it appropriate to use cash basis accounting?Cash-basis accounting is an easy accounting method designed for small business owners. If your firm is small, you may choose to keep your books utilising the cash-basis method. You must record every transaction using the cash-basis method as soon as money is exchanged.To Learn more about Cash basis of accounting, Click the links.
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a project will have a long payback period. what should the project be linked to thus increasing the chances the project will be approved?
If a project will have a long payback period, strategic facility plans should be linked to the project, thus increasing the chances the project will be approved.
Strategic facility plans are proactive and strategic processes that assist companies in aligning their long and short-term facility plans to their business strategies. Thus if a project has a long payback period, it will increase the chances of it getting approved.
The Strategic facility plan typically involves the whole real estate (facility or network) portfolio, but it can also concentrate on a single element of the plan. It is a high-level, defensible, data-driven examination of what strategic solutions and facilities are required for a company to achieve its business objectives.
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is a bi tool used to explore large amounts of data for hidden patterns to predict future trends and behaviors for use in decision making.
Data mining is a bi tool used to explore large amounts of data for hidden patterns to predict future trends and behaviors for use in decision making.
Data mining is the technique of sorting through big information units to pick out patterns and relationships that can help clear up enterprise problems thru information evaluation. Data mining strategies and equipment enable organizations to expect destiny tendencies and make more-informed enterprise choices.
Where is data mining used?
Data mining is used in diverse fields like research, commercial enterprise, advertising, income, product improvement, training, and healthcare.
What is data mining gear?
Data mining gear are software programs that help in framing and executing statistics mining techniques to create information fashions and check them as nicely. It is also a framework like R studio or Tableau with a set of programs to assist build and take a look at a statistics model.
What are advantages of data mining?
It enables companies make informed selections. It enables locate credit score risks and fraud. It facilitates facts scientists easily analyze giant amounts of records fast. Information scientists can use the information to stumble on fraud, build danger models, and enhance product safety.
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An economy in which a central authority draws up a plan that establishes what will be produced and when, sets production goals, and makes rules for distribution is a.
An economy in which a central authority draws up plans that define what will be produced and when, sets production goals, and makes rules for distribution is a command economy.
The command economy system is a state system that regulates and manages all economic actions of each of its citizens and its business entities are directly owned by the government. This is a change from the traditional economic system where there is a change in terms of production, usually entrepreneurs lack the capital to develop.
Meanwhile, in a command economy system, there will be no shortage of capital because all business entities are directly owned by the government, but it kills the initiative and creativity of the people, and the ownership of economic resources is limited. Countries that still adhere to a command economy system such as Vietnam, Cuba, North Korea and China.
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purchasing and supply chain management (the mcgraw-hill/irwin series in operations and decision) 3rd edition
The Third Edition of Purchasing and Supply Chain Management places particular attention on the interface between marketing, logistics, supply chain management, and operations management.
It also discusses how purchasing relates to the other functional and system areas of the company. Students and professionals can practice analysis-driven purchasing using W.C. Benton's methodical technique.
By looking at some of the more popular Supply Chain Management definitions, frameworks, and terminology, this study aims to present an extended approach to supply chain management.
It should be noted that the methodology of our study was based on content analysis of the most significant and well-known definitions of supply chain management and related terms, using a variety of secondary sources, including scientific papers and publications from practitioners and professional organizations.
In order to set conceptual delimitations that would clarify the scope of the supply chain management concept, we pursued the study and analysis of the definitions of the aforementioned concept, from the perspective of both theorists and practitioners, as well as to find criteria or features based on how the notion has been defined over time by both academics and business representatives, in order to provide new definitions.
Additionally, we considered how the term "Supply Chain Management" from the English language was adopted and adapted to the Romanian language using Romanian literature as a guide. This helped us to determine the right technique for transposing and describing the concept in Romanian literature.
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what is goods and services
Answer:
The output of an economic system
charles lackey operates a bakery in idaho falls, idaho. because of its excellent product and excellent location, demand has increased by % in the last year. on far too many occasions, customers have not been able to purchase the bread of their choice. because of the size of the store, no new ovens can be added. at a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. this new process will require that the ovens be loaded by hand, requiring additional manpower. this is the only production change that will be made in order to meet the increased demand. the bakery currently makes loaves per month. employees are paid $ per hour. in addition to the labor cost, charles also has a constant utility cost per month of $ and a per loaf ingredient cost of $. part 2 current multifactor productivity for 640 work hours per month
The current multifactor productivity for 640 work hours per month is 0.27 loaves per dollar.
How to calculate productivity?From the information given, the bakery currently makes 1800 loaves per month, and each employee is paid $8 per hour. in addition to the labor cost, Charles also has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.40.
Production per unit of combined inputs is referred to as multifactor productivity (MFP). The usual combination of inputs is labor and capital, but it is also possible to include energy, supplies, and services. Changes in MFP reflect output changes that can't be accounted for by input changes.
The information above is needed to calculate the amount. This will be:
Output = 1800
Utility cost = $800
Ingredients = 0.40 × 1800 = $720
Total cost = 5120 + 800 + 720 = 6640
Multifactor productivity = Output / Cost
= 1800/6640
= 0.27 loaves per dollar.
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significant influence over an investee may be indicated by material intercompany trans-actions and interchange of managerial personnel.
Significant influence over an investee may be indicated by material intercompany transactions and interchange of managerial personnel. This statement is True.
What is intercompany?
For example, the purchase of a product by a parent company and its sale to a subsidiary is considered an intercompany transaction, whereas the transaction between two of his subsidiaries of the same parent company is considered an intercompany transaction.
What are intercompany transactions?
Intercompany transactions are transactions between two entities within an organization. Financial Management enables you to track and reconcile details of intercompany transactions across multiple accounts and custom dimensions. Common types of intercompany transactions include: Intercompany sales/purchases.
What is Intercompany in Accounting?
Intercompany accounting involves recording financial transactions between different legal entities within the same parent company.
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distinguish between the roles of the pcaob and the aicpa in: setting audit standards and (b) setting accounting standards.
The roles of AICPA and PCAOB and Distinctiveness are mentioned below
Roles of the AICPA
The association establishes standards for financial statement auditing, professional ethics, private practice, quality control in CPA firms, company valuation, and financial planning. Members who are suspected of misbehavior while engaged in professional activity are also subject to punishment.Functions of PCAOB
The PCAOB is a nonprofit organization that Congress created to monitor the audits of public businesses in order to safeguard investors and advance the general public's interest in the creation of educational, accurate, and independent audit reports.What distinguishes the PCAOB from the AICPA?The PCAOB and AICPA are both associated with the accounting and auditing sector. But they play very distinct roles. The PCAOB is in charge of overseeing accountants and accounting companies, while the AICPA is a professional association for accountants. Both organizations are in charge of providing advice to the audit and account fields.To Learn more about AICPA and PCAOB, Click the links.
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What feature of demand curves is explained by the law of diminishing marginal utility.
on january 1, year 2, a company finances the purchase of equipment by issuing a $15,000 noninterest-bearing note payable. the note will be paid in 10 equal annual installments of $1,500 beginning on december 31, year 2. the market rate of interest for notes of this type is 5%. the following present value factors are provided. for what amount should the company record the equipment on january 1, year 2? the present value of $1 at 5% for 10 periods 0.61391 the present value of an ordinary annuity of $1 at 5% for 10 periods 7.72173 the present value of an annuity due of $1 at 5% for 10 periods 8.10782 a. $9,209 b. $11,583 c. $12,162 d. $15,000
So the correct option is B
= Amount of annual installment × PV of ordinary annuity of $1 at 5% for 10 periods
= (15000/10) × 7.72173
= 1500 × 7.72173
= 11582.595
= 11583
Therefore, the amount will be $11583
What is Installment?
The act of adding something new or an installment is one portion of something that has numerous parts, such a payment or a story, are the definitions of an installment. Installing a new kitchen is an example of an installment. A monthly payment schedule is an illustration of an installment.
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at her current level of consumption a consumer is willing to pay 1.5 dollars for a water bottle or 1500 dollars for a diamond ring
Because the marginal utility of a bottle of water is lower than the marginal utility of a diamond ring at her current consumption level, the consumer is willing to pay up to $1.50 for a bottle of water and up to $1,500 for a diamond ring.
The additional pleasure a consumer has from owning one extra unit of an item or service is known as marginal utility. Economists utilize the idea of marginal utility to estimate the quantity of a good that consumers will buy. When the overall utility is increased by the consumption of an additional item, positive marginal utility occurs. On the other side, negative marginal utility arises when the overall utility is reduced by the consumption of one extra unit.
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the research strategy that originated to study small-scale, relatively isolated societies with simple technologies and economies in order to understand the whole of a particular culture is known as
The research strategy that originated to study small-scale, relatively isolated societies with simple technologies and economies in order to understand the whole of a particular culture is known as Ethnography.
Society is defined because the aggregate of humans dwelling together in an extra or less ordered community; an enterprise or club formed for a selected cause or hobby.
The main varieties of societies historically had been searching-and-accumulating, horticultural, pastoral, agricultural, industrial, and postindustrial. As societies developed and grew larger, they have become extra unequal in terms of gender and wealth and additionally more aggressive or even warlike with other societies.
Examples of societies encompass agrarian societies, hunting and amassing societies, and commercial societies. Agrarian societies are fashioned via folks that produce and preserve agricultural merchandise. An agrarian society can also be depicted by way of how rustic prospers in agricultural manufacturing.
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list different types (models) of diffusion and provided examples/illustrations of each in the real world.
The different types of diffusions are
Expansion Diffusion
Contagious Diffusion.
Hierarchical Diffusion.
Stimulus Diffusion.
Expansion diffusion is while innovations unfold to new places even as staying sturdy in their original places. For instance, Islam has unfold at some point of the sector, but stayed sturdy in the center East, wherein it became based.
Expansion diffusion happens when the spreading phenomenon has a supply and diffuses outwards into new areas, an instance being a spreading wildfire. Relocation diffusion takes place while the spreading phenomenon migrates into new areas, leaving at the back of its beginning or source of the sickness.
Expansion Diffusion is the spread of a concept through a population wherein the amount of these influences grows continuously large. There are 3 sub-styles of growth diffusion: Stimulus, Hierarchical, and Contagious.
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miguel owns a bicycle-based courier service named speed2u. the brand's focus is on fast delivery within 15 minutes from anywhere in the city or delivery is free, which is unique to his company. a customer asks one of his bicycle couriers why she should choose speed2u over the other companies in the city. the employee responds that all of the courier services are the same. where did miguel fail in developing his brand? question 9 options: his brand doesn't focus on what the customer wants. he didn't include his employees in conveying his brand. the brand doesn't differentiate his company from others in the city. his brand name doesn't convey speedy delivery.
Miguel did not succeed in building his brand.
Because Speed2U, a company owned by Miguel, has an advantage in this situation, they will send the courier for free. But when one of his clients asked him why they should pick Speed2U over other businesses, he omitted to clarify this. Miguel was unable to effectively set his brand apart from competing products on the market. He had the opportunity to gain an advantage over rival businesses at this point, but he was unable to seize it.
What is brand?
A commercial and marketing idea known as a "brand" aids consumers in recognizing a specific organization, item, or person. Because brands are immaterial, you cannot physically touch or see them. As a result, they influence how people view businesses, their goods, or particular persons. Identifying markers are frequently used by brands to build their identities in the marketplace. They give the business or person a significant competitive advantage over rivals in the same industry. In order to protect their brands legally, numerous organizations register trademarks.
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direct costs: multiple choice are incurred to benefit a particular accounting period. are incurred due to a specific decision. can be easily traced to a particular cost object. are the variable costs of producing a product.
Correct option is C. direct costs Can be easily traced to a particular cost object.
What is direct cost in accounting?A cost that could be directly related to the creation of a certain commodity or service is referred to as a direct cost. A department, a service, or a product may serve as the cost object and the origin of a direct cost.
Direct and indirect charges are the two basic types of fees or prices that firms may incur. Oftentimes, direct costs are variable costs, meaning they fluctuate in reaction to output levels and stock levels. Other costs, such as indirect costs, are harder to connect to a specific product, though. Office expenses and depreciation are two examples of indirect costs.
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explain why professional skepticism is important in making professional judgments. what are the types of actions that a profession- ally skeptical auditor will take?
According to “The glossary of terms contained within the IAASB’s Handbook of International internal control, Auditing, Review, Other Assurance, and Related Services Pronouncements “professional skepticism is-“An attitude that features a questioning mind, being tuned in to conditions which can indicate possible misstatement thanks to error or fraud, and a critical assessment of evidence.”
The main objective of Professional skepticism is to enhance the auditor’s capability to recognize risks of fabric misstatement and to retort to the risks identified. Professional skepticism is associated with fundamental ethical considerations of auditor objectivity and independence. Additionally, it is associated with the appliance of professional judgment by the auditor.
To use professional skepticism, various actions that a profession- Ally skeptical auditor will take at various stages from client acceptance and at various points during the audit process ,are assessing engagement acceptance , performing risk assessment ,obtaining audit evidence ,evaluating evidence .
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chapter 2 lists four ways you can help protect your client's or your employer's trademark. one is to use the trademark symbol. which one of the following methods is also listed in the chapter?
The another methods listed in the chapter is to Distinguish trademarks from other material, perhaps by setting the trademark in a different typeface or by using boldface type for emphasis.
A trademark is known as distinctive phrase, word, emblem, or symbol that identifies a particular product and legally differentiates it from all other products of its sort. A trademark acknowledges the company's ownership of the brand and solely defines a product as being its own.
To determine the appropriate protection for a product, it is crucial to differentiate between several trademark kinds. Failure to do so could lead to lawsuits as well as cancellation of your trademark registration, both of which would result significant financial loss.
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find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 3.30%. (round your answers to 2 decimal places.)
If the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 3.30% are:3.67%, 4.13%, 4.71%.
Equivalent taxable yieldUsing this formula
Equivalent taxable yield (r) = r/1-t
Let plug in the formula
a. r = 0.033/1 - 0
r= 0.033×100
r= 3.3%
b. r =0.033/1 - 0.10
r=0.033/0.9
r= 0.0367 ×100
r= 3.67%
c. r =0.033/1-0.20
r=0.033/0.8
r= 0.0413×100
r=4.13%
d. r = 0.033/1-0.30
r=0.033/0.7
r= 0.0471 ×100
r=4.71%
Therefore if the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 3.30% are:3.67%, 4.13%, 4.71%.
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Why is it important to review your checking account statement? what fees might this help you avoid? explain your answer.
It is important to review your checking account statement it contains useful information, where your money is manipulated, or the credits and debits are ongoing in your account.
Regularly checking your account gives you information and reminders about the bank charges, such as overdraft charges, transaction fees and the minimum amount charges. By regular seeing your bank statement can also provide past transaction by which you can provide a proof whenever it is required. And this feature also helps you in preventing from fraudulent activities.
If your spending patterns do not match your earning potential, seeing the closing balance on your accounts at the conclusion of your statement cycle can be a frightening experience.
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Reviewing your checking account statement is crucial since it enables you to keep tabs on where your money is going and any potential fees you may have to pay.
In a financial institution, a checking account is a deposit account that permits both deposits and withdrawals. Checking accounts can be accessed using cheques, ATM withdrawals and electronic debits and are also known as demand or transactional accounts.
The ability to identify fraud, such as unauthorized card or electronic debit transactions, discover duplicate payments, and confirm that deposits are properly lodged to your account depends on an ideal review and statement reconciliation.
Overdraft costs, monthly fees, and even late fees are possible expenses that can be avoided.
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suppose the manufacturing labor market, which is nonunionized, is in equilibrium at a wage equal to $25. suppose now that the afl-cio (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. because of the union,
The organizes the workers in the manufacturing market and negotiates a wage of $30 per hour because of the union, which is b. 20 people who were once employed are now unemployed.
Functions related to production operations can also include the design and development of production lines, purchasing raw materials and additives, choice of raw fabric providers and subcontractors, product design, studies and development, manufacturing making plans, production of products, first-class control, and packaging.
Manufacturing has traditionally performed a key role in the economic growth of developing nations. It's been argued in latest years that the significance of manufacturing has dwindled over the last 20-25 years, ensuing in premature deindustrialization or non-industrialization in growing nations.
The production uses tangible raw substances to create items, such as lumber or minerals. Manufacturing, but, uses both tangible uncooked materials and intangible sources, such as cash or credit. Producers and manufacturing organizations also fluctuate in how they purchase their resources.
Disclaimer: The question is incomplete. Please read below to find the missing content.
Question: Suppose the manufacturing labor market, which is non-unionized, is in equilibrium at a wage equal to $30. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $38 per hour. Because of the union,
a. 10 people who were once employed are now unemployed.
b. 20 people who were once employed are now unemployed.
c. 40 people who were once employed are now unemployed.
d. 20 people who were once unemployed are now employed.
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porter’s five forces model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in a(n)
Porter’s five forces model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
What is Profit?This refers to the gain that is made in business after the selling price has been determined and removed from the cost price and expenses.
Hence, we can see that Porter’s five forces model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
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if the supply of green tea rises, the equilibrium quantity will , and the equilibrium price will . this is because
If the supply of green tea rises, the equilibrium quantity will rise, and the equilibrium price will fall.
This is because the equilibrium quantity moves down the demand curve to a lower price and a higher quantity demanded.
Equilibrium is the state in which market supply and demand balance each other, resulting in stable prices. In general, an oversupply of goods or services causes prices to fall, resulting in increased demand, whereas an undersupply or shortage causes prices to rise, resulting in decreased demand.
The equilibrium price is the point at which the supply of goods equals the demand for them. When a major index experiences a period of consolidation or sideways momentum, the forces of supply and demand are said to be relatively equal and the market is said to be in a state of equilibrium.
Thus, Equilibrium is an important aspect of the Demand and Supply concept.
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you loan a friend $5,000. there is a 15% chance your friend will pay you a 3% return, a 40% chance he will pay you a 2% return and a 45% chance he will pay you only a 1% return. what is your expected return after one year?
After a year, a return of 1.70% is anticipated.
There is a 15% chance your friend will pay you a 3% return, a 40% chance he will pay you a 2% return and a 45% chance he will pay you only a 1% return so After a year, a return of 1.70% is anticipated
A loan is a type of debt that a person or other entity incurs. The lender advances the borrower a certain amount of money, typically on behalf of a business, financial institution, or government. The borrower accepts a specific set of terms in return, which may include any financial costs, interest, a repayment schedule, and other requirements.
The lender may occasionally need collateral to protect the loan and guarantee repayment. Bonds and certificates of deposit can also be used as collateral for loans (CDs). Before any money or property is exchanged or disbursed, both parties must agree to the loan's terms. In the loan paperwork, the lender specifies any collateral requirements.
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