Based on the financial data given by Midwest Outdoor Equipment Corporation, the following are true:
Receivable turnover ratio - 5.45.Inventory turnover ratio - 4.38.Asset turnover ratio - 2.31.What is the Receivable turnover ratio?This can be found as:
= Credit sales / Average Receivables
= 18,785,000 / 3,445,000
= 5.45
What is the inventory turnover ratio?This is found as:
= Cost of goods sold / Average inventory
= 12,600,000 / 2,875,000
= 4.38
What is the asset turnover ratio?= Total sales / Total assets
= 24,324,000 / 10,550,000
= 2.31
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macroeconomics. monitary policy
Central banks will buy bonds to take money out of their respective banking systems
true or false
The statement "Central banks will buy bonds to take money out of their respective banking systems" is a true statement, and it is a part of the monetary policy in macroeconomics.
Macroeconomics is a branch of economics that studies the economy as a whole rather than individual markets.
Macroeconomics focuses on various large-scale economic aspects such as inflation, economic growth, gross domestic product (GDP), interest rates, and unemployment.
Monetary policy-
Monetary policy is the process by which a country's central bank manages the supply and availability of money in the economy, often targeting inflation and economic growth.
Central banks implement monetary policy to influence the economy by influencing interest rates, the supply of money, and credit availability.
Central banks may use various monetary policy tools to achieve their goals. Central banks buying bonds to reduce the supply of money in circulation is one such tool.
This helps to keep inflation under control and maintain economic stability.
Hence, the statement "Central banks will buy bonds to take money out of their respective banking systems" is a true statement, and it is a part of the monetary policy in macroeconomics.
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why are intermediate products excluded from the macroeconomic calculations of GDP?
Intermediate products are excluded from the macroeconomic calculations of GDP because their worth is incorporated into the final products.
Intermediate products are goods that are utilized by businesses to produce goods or services. These are also referred to as producer goods. In other words, intermediate products are used in the production of final products or consumer products.
They can also be regarded as ingredients in final products as well as inputs into the production of other items. A corporation may manufacture intermediate products for the production of final or finished goods, or it may sell them to another company involved in the production of final products.
Intermediate products may become a component of the end product or undergo significant changes during the manufacturing process of making finished items.
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At Ancestry, even in a job as seemingly specialized as that of genealogist, the component parts of the job are quite varied. If Ancestry asked you to advise the company on restructuring job design, how would you explain a recommendation for further specialization?
The workers in highly specialized jobs tend to report higher levels of job satisfaction.
When workers perform small, simple tasks, they become very proficient at each task.
Specialization increases the transfer time between tasks.
Highly specialized workers may feel their jobs are too stimulating.
A recommendation for further specialization within the job of a genealogist would involve breaking down the job into smaller and more specific tasks. By doing this, the genealogist would be able to focus and become more proficient in certain specialized areas.
What does a genealogist do?A genealogist is a person who studies and traces family histories and lineages. They use a variety of sources such as birth, marriage, death and census records to build family trees and track down historical information about ancestors.
This would allow for a higher transfer time between tasks, resulting in increased job satisfaction. For example, a genealogist may specialize in researching a particular geographic area or time period.
In addition to increasing job satisfaction and providing the opportunity to specialize, further specialization also has the potential to increase the efficiency and quality of the genealogists’ work. By breaking down the job into smaller tasks and becoming more proficient in certain areas, the genealogist is better able to focus on the quality of their work and deliver results more quickly.
By breaking down the job into smaller tasks, the genealogist is able to focus, become more proficient, and specialize in certain areas. This leads to increased job satisfaction and improved work quality.
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Complete the following sentence.
A traditional cover letter's format includes an introduction, a ______ and a ______ paragraph.
Answer:
body, closing
That was easy
Explanation:
george has a gross estate valued at $1.8 million. his estate consists almost entirely of publicly held stock owned solely by him. he owes no debts. george's only living relative is a nephew whom he hasn't seen or heard from in 30 years. george has not executed a valid will. if george were to die in the current year without change in any of the related facts, which one of the following is a disadvantage of the probate process for george? a) it will not allow distribution of his estate without incurring considerable cost in attempting to locate his nephew. b) it will not allow george's estate to claim a marital deduction to reduce the taxable estate. c) it will not allow payment of a personal representative's fee to reduce his estate tax so that it can be covered by the allowable unified credit. d) it will not allow george's estate to be subject to court supervision regarding payment of claims and distribution.
It will not allow distribution of his estate without incurring considerable cost in attempting to locate his nephew.
Which are the disadvantage of the probate process?
1. Cost: The probate process can be time consuming and expensive. Probate fees and costs can add up quickly, and the process can be delayed due to paperwork and other issues.
2. Time: The probate process can take a long time to complete, often lasting for months or even years in some cases.
3. Complexity: The probate process can be complex and confusing, especially for those unfamiliar with the process.
4. Exposure: During the probate process, the estate will be exposed to creditors and other claims, which can reduce the amount of money available to heirs and beneficiaries.
5. Privacy: The probate process is a matter of public record, meaning that the details of the estate and the proceedings are a matter of public knowledge.
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come up with a one-page plan for your financial ambitions
No links
A plan for financial ambitions can be broken down into several key components: setting financial goals, creating a budget, developing a savings plan, and investing for the future.
Start by setting financial goals, which can be short-term, medium-term, or long-term. These goals should be specific, measurable, achievable, relevant, and time-bound. By monitoring your income and expenses, create a budget. This will make it easier to find places where costs can be reduced and money can be saved. A budget can also help prioritize expenses and allocate money towards goals.
Develop a savings plan that aligns with the set financial goals. This could include saving a certain percentage of income each month or using automatic savings plans to save regularly. It is also important to consider emergency savings, which can help cover unexpected expenses. Consider options like stocks, bonds, mutual funds, and retirement accounts. Investment diversification is crucial for reducing risk and maximizing rewards.
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According to mintzberg, information handling is the most important part of a manager’s job because:.
Information handling is important because : Accurate information is vital for making intelligent decisions.
What is Mintzberg views on information handling?Mintzberg is of the opinion that Managers should have a good spoken communication like phone calls and meetings at all times instead of written communication.
According to him, in the leader role, managers receive a great deal of unsolicited information because of their personal contacts.
Therefore, information handling is the most important part of a manager’s job because accurate information is vital for making intelligent decisions.
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an open-market purchase of bonds by the central bank question 5 options: increases monetary base and reduces the nominal interest rate. increases monetary base and reduces bond prices.
An open-market purchase of bonds by the central bank is a monetary policy tool that involves the purchase of government bonds from the market using newly created reserves. . Option a
When the central bank buys bonds, it injects new money into the economy, which increases the monetary base. This increase in the monetary base leads to a decrease in the nominal interest rate.
This happens because when the central bank buys bonds, it reduces the supply of bonds in the market. This reduction in the supply of bonds leads to an increase in bond prices, which in turn reduces the yield or interest rate on these bonds.
As a result of the open-market purchase of bonds, the central bank creates more money in the economy, which leads to lower interest rates. This lower interest rate environment stimulates borrowing and investment, which in turn stimulates economic activity and growth.
The increased investment and spending can also lead to an increase in inflation, which is why the central bank must be careful when implementing this policy.
In summary, an open-market purchase of bonds by the central bank increases the monetary base and reduces the nominal interest rate. This policy is a powerful tool that can be used to stimulate economic growth, but it must be used carefully to avoid inflationary pressures in the economy. Option a
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Note the complete question is
An Open-Market Purchase Of Bonds By The Central Bank: A. Increases Monetary Base And Reduces The Nominal Interest Rate. B. Increases Monetary Base And Reduces Bond Prices. C. Has No Effect On The Monetary Base Or The Nominal Interest Rate. D. Increases The Monetary Base But Reduces The Nominal Money Supply.
An open-market purchase of bonds by the Central Bank:
A. increases monetary base and reduces the nominal interest rate.
B. increases monetary base and reduces bond prices.
C. has no effect on the monetary base or the nominal interest rate.
D. increases the monetary base but reduces the nominal money supply.
Suppose the government imposes a tax on three products with differing demand elasticities. Match the product to the group that will most likely bear the incidence of the tax.
When a government imposes a tax on a product, the burden of the tax falls on the consumers and/or producers, depending on the demand elasticity of the product.
Here's a brief explanation of how the tax burden is likely to be shared for each of the three products with differing demand elasticities:
Inelastic product: A tax on an inelastic product like medicine or fuel is likely to be borne mostly by consumers. This is because they will continue to purchase the product even if the price increases due to the tax, as the product is considered essential.Unit elastic product: A tax on a unit elastic product like water or electricity is likely to be shared equally between consumers and producers. Both parties will respond to the price increase caused by the tax by reducing their consumption and production, respectively.Elastic product: A tax on an elastic product like designer clothing or high-end electronics is likely to be borne mostly by producers. The price increase caused by the tax will result in a reduction in demand, and producers will have to reduce their prices to maintain demand, thereby bearing the cost of the tax.Learn more about demand elasticity
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How does increasing the size of your down payment impact your auto loan?
Down payments and auto loans have an inverse relationship, and making a larger down payment will help you pay off your loan more quickly.
Define down paymentA down payment is the sum of money paid by a buyer at the beginning of the process of buying a costly commodity or service. Hence, the buyer will frequently take out a loan to finance the balance of the purchase price as the down payment only covers a percentage of the entire cost.
A down payment is the first, upfront portion of the cost for the acquisition of expensive goods or services, such a car or a home. At the moment the transaction is completed, it is often paid in cash or an equivalent. The remaining cost of the project will then need to be financed through a loan of some kind.
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Abbott Company purchased $7,100 of merchandise inventory on account. Abbott uses the perpetual inventory method. How does this transaction affect the financial statements
Suppose Congress passes a law that that caps the price of gasoline at $3.00 per gallon. (4 pts) a. Draw the supply and demand curves for gasoline, using $3.75 as the market price b. Explain the impact the gasoline law would have on the market, and show it on your graph c. Who will the law benefit? d. What macroeconomic concept is illustrated here?
a. The graph of the supply and demand curves for gasoline at a market price of $3.75 per gallon would show the quantity of gasoline demanded and supplied at that price level.
b. The gasoline law that caps the price at $3.00 per gallon would have a significant impact on the market. The new price ceiling is below the equilibrium price of $3.75, meaning that it is below the market-clearing price. As a result, there will be excess demand or a shortage of gasoline in the market. Consumers will be willing to buy more gasoline at the lower price, but suppliers may not be willing or able to produce and supply the quantity demanded at that price.
This impact can be shown on the graph by drawing a horizontal line at $3.00, intersecting the demand curve above the equilibrium point. The quantity demanded at this price would exceed the quantity supplied, indicating a shortage in the market.
c. The gasoline law will benefit consumers who can purchase gasoline at a lower price of $3.00 per gallon. They will enjoy savings on their fuel expenses. However, it may not benefit suppliers or producers in the gasoline industry who may face reduced profitability due to the price cap.
d. The macroeconomic concept illustrated here is price control or price ceiling. A price ceiling is a government-imposed limit on the price of a good or service, set below the equilibrium price. It is designed to protect consumers by keeping prices affordable but can lead to market distortions such as shortages, reduced supply, or quality deterioration. In this case, the price ceiling on gasoline creates a shortage in the market.
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The figure below shows the monthly demand curve for a good in a duopoly market. There are no fixed costs. Price $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 MC D 0 MR 08000%90 Quantity Instructions: Enter your answers as a whole number. a. If the duopolists evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is: $ b. If the duopolists evenly split the quantity a monopolist would produce, the deadweight loss is: $ c. If duopolist A decides to increase production by 10 units, the monthly profit for duopolist A is: $ The monthly profit for duopolist B is: $ d. If duopolist A increases production by 10 units, the deadweight loss is: $
a. The profit for each duopolist would be: $1800
b. If the duopolists evenly split the quantity a monopolist would produce, the deadweight loss is: $2250
c. If duopolist A decides to increase production by 10 units, the monthly profit for duopolist A is: $1500
d. If duopolist A increases production by 10 units, the deadweight loss is: $1000.
a. If the duopolists evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is:
The monopolist would produce 90 units, and charge a price of $100. The profit for each duopolist would be:
Profit = (Price - MC) * Quantity / 2
= ($100 - $60) * 90 / 2 = $1800
b. If the duopolists evenly split the quantity a monopolist would produce, the deadweight loss is:
The deadweight loss is the difference between the total surplus that would be created by a perfectly competitive market and the total surplus that is actually created. In this case, the deadweight loss is:
Deadweight loss = (Price - MC) * Quantity - (1/2) * (Price^2 - MC^2)
= ($100 - $60) * 90 - (1/2) * ($100^2 - $60^2)
= $2250
c. If duopolist A decides to increase production by 10 units, the monthly profit for duopolist A is:
If duopolist A increases production by 10 units, the market price will fall to $90. The profit for duopolist A will be:
Profit = (Price - MC) * Quantity
= ($90 - $60) * 100 = $1500
The profit for duopolist B will be:
Profit = (Price - MC) * Quantity
= ($90 - $60) * 80 = $1200
d. If duopolist A increases production by 10 units, the deadweight loss is:
The deadweight loss will be:
Deadweight loss = (Price - MC) * Quantity - (1/2) * (Price^2 - MC^2)
= ($90 - $60) * 100 - (1/2) * ($90^2 - $60^2)
= $1000
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The following question may be like this:
The figure below shows the monthly demand curve for a good in a duopoly market. There are no fixed costs. Price $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 MC D 0 MR 08000%90 Quantity Instructions: Enter your answers as a whole number. a. If the duopolists evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is: $ b. If the duopolists evenly split the quantity a monopolist would produce, the deadweight loss is: $ c. If duopolist A decides to increase production by 10 units, the monthly profit for duopolist A is: $ The monthly profit for duopolist B is: $ d. If duopolist A increases production by 10 units, the deadweight loss is: $
common approaches to pricing are oriented around which four elements?
Profit, Competition, Cost and Demand are the element which the approaches for pricing fixing are oriented around.
Pricing refers to the process of determining the value that a producer will receive in the exchange of services and goods produced with final consumers or middle men.
The aim of generating profit is one of the element considered for price fixing.Competition levels with other companies in the industry will influence price fixing because consumers pocket have to be considered.Level of Cost incurred during production of the goods and services also play a great role in price fixing.Demand from the market also influence price setting on a product.Read more on this here
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Managers facing job candidates who lack team skills should do all of the following except ________. A) avoid hiring the job candidate B) hire the candidate, but assign them to tasks where teamwork is not important C) provide the candidate with the type of training that can help improve his or her ability to be a successful member of a team D) choose the individual with the best technical skills regardless of his or her ability to perform as a member of a team E) bring the candidate on board, but assign the individual to an area where teamwork is not a priority
Managers facing job candidates who lack team skills should do all of the following except avoid hiring the job candidate. The correct answer is option (A). it is tempting to simply avoid hiring someone who lacks team skills, it is not always the best solution.
Managers should recognize that team skills can be improved through training and coaching, and therefore they should provide the candidate with the type of training that can help improve his or her ability to be a successful member of a team. Additionally, it may be possible to hire the candidate and assign them to tasks where teamwork is not important, or to bring the candidate on board and assign the individual to an area where teamwork is not a priority.
However, managers should avoid choosing the individual with the best technical skills regardless of his or her ability to perform as a member of a team, as this can lead to long-term problems within the organization. Ultimately, managers should take a balanced approach that considers both the candidate's technical skills and their ability to work well as part of a team. Hence the right answer is option (A).
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A PDF file is used to display a file as it will look when _______.
Answer:
a pdf file is used to display a file as it will look when _____.
Refresh produces soft drinks and sodas. Production of 101715 liters was started in February, 86190 liters were completed. Material costs were $38,360 for the month while conversion costs were $17080 There was no beginning work-in-process, the ending work in process was 40% complete. What is the cost of the product that was completed and transferred to finished goods? Multiple a. $51.714 b. $38.780 c. $55.370 d. $47.040
The cost of the product that was completed and transferred to finished goods is option A. $51.714.
To find the cost of the product that was completed and transferred to finished goods, we need to follow these steps:
1. Determine the total production cost: Add material costs and conversion costs.
Total production cost = Material costs + Conversion costs
Total production cost = $38,360 + $17,080
Total production cost = $55,440
2. Calculate the equivalent units of production (EUP) for completed and transferred units.
EUP = Completed liters + (Ending work-in-process liters * Percentage of completion)
EUP = 86,190 + (15,525 * 40%)
EUP = 86,190 + 6,210
EUP = 92,400
3. Calculate the cost per equivalent unit:
Cost per equivalent unit = Total production cost / EUP
Cost per equivalent unit = $55,440 / 92,400
Cost per equivalent unit = $0.60
4. Determine the cost of the product that was completed and transferred to finished goods:
Cost of completed and transferred product = Completed liters * Cost per equivalent unit
Cost of completed and transferred product = 86,190 * $0.60
Cost of completed and transferred product = $51,714
The cost of the product that was completed and transferred to finished goods is $51,714 (Option A).
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If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids. What is the change in quantity demanded?
Answer:
12
Explanation:
At the price of $24, the demand is 36
At the price of $30, the demand is 24
change in quantity demanded
= 36-24
= 12
Which of the following money market investments is a short-term, unsecured debt obligation issued by a large corporation? The minimum denomination is $25,000, but most have a face value of $100.000 or more O A repurchase agreement OB banker's acceptance OC. Treasury bills OD. commercial paper O E certificates of deposit
The money market investment you are referring to is commercial paper (option D). Commercial paper is a short-term, unsecured debt obligation issued by large corporations.
These instruments typically have a minimum denomination of $25,000, but most have a face value of $100,000 or more. Companies use commercial paper to meet their short-term financing needs, such as managing cash flow or funding working capital. Other money market investments mentioned in the options include repurchase agreements, banker's acceptances, Treasury bills, and certificates of deposit. These investments vary in terms of their issuers, security, and maturity. Repurchase agreements involve short-term loans backed by securities, usually issued by financial institutions. Banker's acceptances are time drafts drawn on a bank, typically used in international trade. Treasury bills are short-term government-issued debt securities with maturities up to one year. Certificates of deposit are interest-bearing, time deposit accounts offered by banks and credit unions. In summary, commercial paper is the money market investment that best fits the description you provided: a short-term, unsecured debt obligation issued by a large corporation with a minimum denomination of $25,000 and face values typically over $100,000.
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Kenny lives in greenpoint, where the cost of living increases by 8% every year. If kenny spends $50,700 this year, how much can he expect to spend 11 years from now to maintain the same standard of living?.
To calculate the cost of living in 11 years, you can use the formula for compound interest: A = P * (1 + r/100)^n
where: A = final amount (the cost of living in 11 years). P = initial amount (the cost of living this year). r = annual interest rate (the increase in the cost of living each year, 8%) and n = number of years (11)
Plugging in the values: A = $50,700 * (1 + 8/100)^11,
A = $50,700 * 1.08^11
A = $50,700 * 2.072904
A = $105,541.27
So Kenny can expect to spend approximately $105,541.27 in 11 years to maintain the same standard of living.
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Sales tax is deducted from your gross wage.
True
False
Answer:
False
Explanation:
Sales Tax is applied when you purchase something.
Sales tax is deducted from your gross wage is the false statement, as sales and gross wages are two different things.
What is Sales tax?The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the shop, and paid to the government.
Thus, the statement is not true.
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If supply increases and demand stays the same, there will be a
A) higher equilibrium price and quantity
B)lower equilibrium price and higher quantity
C) lower equilibrium price and quantity
D) higher equilibrium price and lower quantity
Answer:
B) lower price increase quantit
Explanation:
Help me, please.
⇒ Debt you've seen in your everyday life
⇒ Potential debt you plan to get into and why. What are the potential benefits of getting into this debt? What do you hope to get out of it?
Answer:
1) Auto loan - a lot of people take auto loans to purchase their dream car although it considered as a bad debt as a car usually is very expensive.
2) potential debt I wouldn't mind getting into would probably be something for myself aka self development. investing in yourself by borrowing for more education or to consolidate debt. it can increase your ability to save for the future, build wealth, etc.
Which problem would be best addressed by a business bank?
A. A college graduate needs to open a checking account with the
lowest fees available.
B. A corporation needs help with cash management for its large
staff.
C. A person with a poor credit history needs a short-term loan to pay
a medical bill.
D. A couple needs to get a mortgage loan to buy a home after
moving to a new city,
SUBMIT
Answer:
B. A corporation needs help with cash management for its large
staff.
Explanation:
Business banking can be defined as the financial services such as business loans, cash management, lines of credit, trade finance, savings and checking accounts, tax planning, and securities trading provided by a commercial bank to business entities, corporations or companies.
This ultimately implies that, a business bank is only focused on providing financial services to corporations rather than individuals.
Hence, the problem which would be best addressed by a business bank is, a corporation that needs help with cash management for its large
staff.
In a nutshell, a business bank is saddled with the responsibility of meeting the financial needs of corporations found in different sectors such as agriculture, engineering, medical, trade, oil and gas etc.
Answer: B
Explanation:
Select all that apply Review the following statements and select the ones which accurately describe a Petty Cash fund. Select all answers which apply. Multiple select question. It is established to pay for small payments like postage, shipping fees, etc. It is used to avoid the time and cost of writing checks for small amounts. It is an account used to record small sales amounts. It is an expense reported on the income statement. It is an asset reported on the balance sheet.
Answer:
It is established to pay for small payments like postage, shipping fees, etc.
It is an asset reported on the balance sheet.
It is used to avoid the time and cost of writing checks for small amounts
Explanation:
A Petty Cash is simply any amount of cash kept on hand and used for making small payments. It is usually placed on the asset account and it account also increases on the debit side and decreases on the credit side.
The Petty Cash fund is set up with the use of the following:
1. Date
2. Debit
3. Credit
4. Source Document
Businesses promote use of Petty Cash funds due to it having some small payments for which writing a check is not time or cost effective. It is increase by replacimg or putting more money back in the petty cash box. Before putting money, an evidence of the fund being put in to the box must be complete.
Answer:
It is established to pay for small payments like low-cost supplies and shipping fees, etc.
It is an asset reported on the balance sheet.
Explanation:
first answer is incorrect
A network manager assists with developing a policy to protect the company from data exfiltration. The employee devises a list of focus points to include. Which plans, when consolidated, provide the best protection for the company? (Select all that apply.)
The plans that provide the best protection for the company are:
New employees complete initial and refresher trainings on document confidentiality and the use of encryptionOnly allow removable media if it is company property, if it is required to perform a task, and if it has been cleared through the proper channelsEncrypt all sensitive data at rest and disconnect systems that are storing archived data from the networkWhat is a data exfiltration?This refers to a technique used by malicious actors to target sensitive data remotely or which can be extremely difficult to detect given it often resembles business-justified network traffic.
Therefore, the Option B, C and D are correct.
Missing options "Store backups of critical data that may be targeted for destruction or ransom on site within a secure space.
New employees complete initial and refresher training on document confidentiality and data loss prevention.
Only allow removable media if it is company property, required to perform a task, and has been cleared through the proper channels.
Encrypt all sensitive data at rest and disconnect systems that are storing archived data from the
network"
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How does feedback of players influence the development of a game?
Answer:
Evaluative Feedback Increases.Explanation:
While comparative feedback decreases future game play. Furthermore, negative feedback decreases players’ feeling of competence, but also increases immediate game play. Positive feedback, in contrast, satisfies competence and autonomy needs, thereby boosting intrinsic motivation.
The feedback of players influence the development of a game they use the feedback and fix it. From this evaluation of feedback may increases.
What is feedback?When a system's outputs are used again as inputs in a cause-and-effect circuit or loop, this is known as feedback. The system is said to feed back on itself in this case.
Anything you discover prior to the game's release will save you from having to deal with it later. You can save time later on by using player feedback to pinpoint the problems with the game.
There is a very significant likelihood that players may become frustrated and, as a result, find the game confusing and worthless if they don't receive prompt and accurate feedback when playing games.
Therefore, the feedback of players influence the development of a game they use the feedback and fix it. From this evaluation of feedback may increases.
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what is the formula for total depreciation
Answer:
annual depreciation = (purchase price - salvage value) / useful life.
Current business segment operations for Whitman, a mass retailer, are presented below. Merchandise Automotive Restaurant Total Sales $ 500,000 $ 400,000 $ 100,000 $1,000,000 VC 300,000 200,000 70,000 570,000 Fixed Cost 100.000 100,000 50.000 250,000 Operating Income (loss) 100,000 100,000 (20,000) 180,000 Management is contemplating the discontinuance of the Restaurant segment since "it is losing money." If this segment is discontinued, $30,000 of its fixed costs will be eliminated. In addition, Merchandise and Automotive sales will decrease 5% from their current levels. What is the shutdown point of the restaurant segment?
The shutdown point of the restaurant segment can be calculated as follows: Calculation of shutdown point: Current total sales $1,000,000. . Therefore, the shutdown point of the restaurant segment is $12,605.04.
Current variable costs $570,00, Current contribution margin $430,000, Current fixed costs $250,000, Current operating income $180,000, Less: Fixed costs that will be saved $30,000, Operating income without restaurant $150,000, New total sales (decrease 5%) $950,000, New total variable costs $551,500, New contribution margin $398,500, New total fixed costs $220,000O, operating income without restaurant $178,500
Shutdown point = Fixed costs ÷ (Unit contribution margin = Contribution margin ÷ Sales units). The contribution margin percentage is the ratio of contribution margin to total sales. In this case, the contribution margin percentage is:
Contribution margin percentage = Contribution margin ÷ Total sales. New contribution margin percentage = $398,500 ÷ $950,000 = 42%.
The contribution margin per dollar of sales percentage is the reciprocal of the contribution margin percentage. The contribution margin per dollar of sales percentage in this case is: Contribution margin per dollar of sales percentage = 1 ÷ Contribution margin percentage = 1 ÷ 42% = 2.38.The fixed costs that will be saved are $30,000. The contribution margin per dollar of sales percentage is 2.38. Therefore, the shutdown point is:
Shutdown point = $30,000 ÷ 2.38 = $12,605.04. Therefore, the shutdown point of the restaurant segment is $12,605.04.
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What is the difference between position management and job management.
The difference between position management and job management lies in the fact that;
In Position Management, a position is created for each new employee/opening while In Job Management, no positions are necessary in order to create a job requisition.Staffing ModelsConventionally, there are two types of staffing models:
Position Management and Job Management.In Position Management, it is necessary that a position is created for each new employee/opening. In such cases, reports show open positions and vacancy rates.
However, In Job Management, no positions are needed in order to create a job requisition.
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