If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments).
Answers
If a country's government imposes a tariff on imported goods, that country's current account balance will likely increase. Therefore, the option B holds true.
What is the significance of government tariff?A government tariff can be referred to or considered as the charge imposed by the government authorities on the import of goods to incentivize the generation of its revenues. Higher tariffs lead to an increase in the current account balances of the country.
Therefore, the option B holds true and states regarding the significance of government tariff.
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The missing options to the incomplete question have been added below for better reference.
If a country's government imposes a tariff on imported goods, that country's current account balance will likely ____ (assuming no retaliation by other governments).
a. decrease
b. increase
c. remain unaffected
d. either A or C is possible
Related Questions
in the normative decision model, if a leader is pressed for time in making a decision, but has several options for making the decision as determined by the decision tree, the leader should
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The leader must make his own decisions when there is no time, he has all the information needed, the leader has the support of the group, or the followers cannot agree among themselves on an action. In other situations, leaders must rely on participation to varying degrees.
Leadership is an ability or strength within a person to lead and influence others in terms of work, where the goal is to achieve predetermined targets. While the notion of a leader is someone who is trusted as the chairman (head) in a system in an organization/company. That way, a leader must have the ability to guide and influence a person or group of people.
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13) the budgeted production of capricorn, inc. is 13,000 units per month. each unit requires 30 minutes of direct labor to complete. the direct labor rate is $80 per hour. calculate the budgeted cost of direct labor for the month. (round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) a) $520,000 b) $195,000 c) $1,040,000 d) $34,667
Answers
The budgeted cost of direct labour for the month is $520,000.
To calculate the budgeted cost of direct labour, we first need to determine the total number of direct labour hours required to produce 13,000 units. Each unit requires 30 minutes of direct labour, which is equivalent to 0.5 hours. Therefore, the total number of direct labour hours needed is:
Total direct labour hours = Number of units × Direct labour hours per unit
= 13,000 units × 0.5 hours per unit
= 6,500 hours
Next, we multiply the total direct labour hours by the direct labour rate to obtain the budgeted cost of direct labour:
Budgeted cost of direct labour = Total direct labour hours × Direct labour rate
= 6,500 hours × $80 per hour
= $520,000
Therefore, the budgeted cost of direct labour for the month is $520,000.
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Explain your approach in energy audits in third world countries. In your explanation give give evidence how other countries and companies have implemented the need for energy audits as a business. Also SWOT analysis of implementing energy audits in countries
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The strategy is to increase awareness, set policies, develop capacity, carry out pilot projects, give financial support, and track results. Examples include mandated energy audit programmes in the UK and Germany.
Global energy audit services are provided by businesses like Siemens and Schneider Electric. SWOT evaluation Cost savings and sustainability are its strengths. Lack of knowledge and resources are its weaknesses. Opportunities to bring in investments and achieve goals; Resistance and political instability are threats. Energy audits have the potential to increase energy efficiency and sustainability, but overcoming obstacles calls for all-encompassing policies and cooperation between national and international agencies.
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A flower shop acquired 80 new customers last year. Costs in the marketing and sales areas were the following: Marketing Costs = $1,200 Sales Costs = $9,000 Salaries = $87,000 What was the Customer Acquisition Cost?
Answers
Answer:
$15
Explanation:
To get the customer acquisition cost you divide the marketing cost by the new customers, in this case $1,200 ÷ 80 = $15
The customer acquisition cost is the cost that is used to acquire the cost of new customers in the given case, Customer Acquisition Cost is $15.
What is customer acquisition cost?Customer Acquisition Cost is defined as that cost which is incurred by the business for acquiring a cost of a new customer. Customer Acquisition Cost is the cost of besting a customer to purchase a particular product or service.
Formula:
\(\text{Customer Acquision Cost}=\dfrac{\text{Marketing Costs}}{\text{New Customers}}\)
Computation of customer acquisition cost:
According to the question,
Marketing Costs = $1,200, and
New Customers = 80.
Now, apply the given values in the above formula,
\(\text{Customer Acquision Cost}=\dfrac{\text{Marketing Costs}}{\text{New Customers}}\\\\\text{Customer Acquision Cost}=\dfrac{\$1,200}{80}\\\\\text{Customer Acquision Cost}=\$15\)
Therefore, the customer acquisition cost in the given case is $15.
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Calculate the range of potential annual returns if you invested 10% in bonds and 90% in stocks. How does this compare with the range of potential annual returns if you invested 10% in stocks and 90% bonds?
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Answer:
From the graph, if you invest 10% in bonds and 90% in stocks, the range of potential return is given as +49.8% to -39.0% with a average of 9.9% whereas if investment is made by 10% in stocks and 90% in bonds, then the range of annual returns would become +31.2% to -8.2% with a average of 6%. Therefore, as the investment in stocks increases the average annual returns also increase.
Explanation:
Hope this helps!
What is the primary purpose of ABC's T.R.A.C.E. program?
Answers
The primary purpose of ABC's TRACE program is to identify and investigate where persons under 21 years of age obtained alcohol and who was killed or obtained serious injury or accident.
What is the ABC's TRACE program?The program involves a protocol that allows first responders to respond immediately by notifying ABC when an incident involves a person under 21 and an alcoholic beverage that results in great bodily injury or death.
Hence, the primary purpose of ABC's TRACE program is to identify and investigate where persons under 21 years of age obtained alcohol and who was killed or obtained serious injury or accident.
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What effects did zaha have on guggenheim new york?
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The effects that Zaha had on Guggenheim New York is that her current retrospective at the Solomon R. Guggenheim Museum in New York gives ample evidence of her genius. She has been busy and produced a staggeringly impressive body of work that is without equal for its inventiveness. This saved urban space and merges the elements of its surroundings. It also projects a brand new artificial landscape outweighted by funnel-shaped cones. The Solomon R. Guggenheim Museum, often referred to as The Guggenheim, is an art museum at 1071 Fifth Avenue on the corner of East 89th Street on the Upper East Side of Manhattan in New York City.
Who is Zaha Hadid?Dame Zaha Mohammad Hadid DBE RA was a British-Iraqi architect, artist and designer, recognised as a major figure in architecture of the late 20th and early 21st centuries.
Therefore, the correct answer is as given above
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Case Study: Full-risk models, not shared savings, let
health systems deliver what patients really need
also add the diagram and quote the references at the
end. thanks
Question 2 (25 Marks) One of the key aspects of the Risk Management Process which the HCPs should be using as an essential tool is risk modeling. It can be argued that for the sustainability of the HC
Answers
The article, "Full-risk models, not shared savings, let health systems deliver what patients really need," focuses on the importance of full-risk models in healthcare delivery as opposed to shared savings models.
The authors argue that full-risk models are more effective in addressing the needs of patients and ensuring the sustainability of healthcare systems.The use of full-risk models allows healthcare providers to take on more accountability for patient outcomes and to make decisions based on what is best for the patient rather than what will save money.
This approach also encourages innovation and flexibility in healthcare delivery.Reference:Case Study: Full-risk models, not shared savings, let health systems deliver what patients really need, by Karen K. Davis, Christopher R. Chen, and Michael J. Dowling, Harvard Business Review, September-October 2019.
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the four key attributes of strategic management include the idea that strategy must group of answer choices be directed toward overall organizational goals and objectives. be focused only on long-term objectives. be focused on only one specific area of an organization. focus only on competitor strengths.
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FALSE. The four key attributes of strategic management exclude the idea that strategy should be focused only on long-term goals.
The four main attributes of strategic management are usually identified as:
Direction: Strategy should be directed towards the overall goals and objectives of the organization.Integration: Strategy should integrate and align various functional areas of the organization to achieve common goals.Flexibility: The strategy must be flexible enough to adapt to changes in the external environment.Coordination: Strategy must coordinate the use of resources and efforts throughout the organization.These key attributes are designed to help organizations achieve their goals and objectives by providing a comprehensive and flexible approach to strategic management. By focusing on these four key attributes, organizations can develop and implement strategies that are effective, efficient and aligned with their overall goals and objectives.
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Type a paragraph explaining how you have shown initiative in the past. Use proper grammar, spelling, and punctuation.
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Answer: Your previous place of work or employment. A specific instance where you showed initiative. How your initiative impacted yourself or the company.
Explanation:
instead of highly predatory behaviors i marketing channel relationships in the 21st-century, value chain relationships are characterized by:
Answers
Value chain relationships are built on a foundation of trust and cooperation. Members of the value chain work together to share information, coordinate activities, and solve problems.
In the 21st century, value chain relationships are characterized by collaborative and cooperative behaviors rather than highly predatory behaviors in marketing channel relationships. Value chain relationships focus on mutual benefit for all parties involved. Value chain relationships are typically long-term, strategic partnerships that focus on creating and sustaining value over time.
Value chain relationships are built on a foundation of trust and cooperation. Members of the value chain work together to share information, coordinate activities, and solve problems. Value chain relationships rely on open communication between all parties involved. This means that information is shared freely and transparently to help ensure that everyone is working toward the same goals.
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Sunshine Smoothies Company (SSC) manufactures and distributes smoothies. SSC is considering the development of a new line of high-protein energy smoothies. SSC's CFO has collected the following information regarding the proposed project, which is expected to last 3 years:
The project can be operated at the company's Charleston plant, which is currently vacant.
The project will require that the company spend $4. 9 million today (t = 0) to purchase additional equipment. For tax purposes the equipment will be depreciated on a straight-line basis over 5 years. Thus, the firm's annual depreciation expense is $4,900,000/5 = $980,000. The company plans to use the equipment for all 3 years of the project. At t = 3 (which is the project's last year of operation), the equipment is expected to be sold for $2,300,000 before taxes.
The project will require an increase in net operating working capital of $650,000 at t = 0. The cost of the working capital will be fully recovered at t = 3 (which is the project's last year of operation).
Expected high-protein energy smoothie sales are as follows:
Year Sales
1 $2,400,000
2 7,850,000
3 3,500,000
The project's annual operating costs (excluding depreciation) are expected to be 60% of sales.
The company's tax rate is 40%.
The company is extremely profitable; so if any losses are incurred from the high-protein energy smoothie project they can be used to partially offset taxes paid on the company's other projects. (That is, assume that if there are any tax credits related to this project they can be used in the year they occur. )
The project has a WACC = 10. 0%.
What is the project's expected NPV and IRR? Round your answers to 2 decimal places. Do not round your intermediate calculations.
NPV $
IRR %
Should the firm accept the project?
-Select-The firm should accept the project. The firm should not accept the project. Correct 7 of Item 1
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Set up a time line for the free cash flow analysis.
Refer to the layout in the textbook analyzing revenues and costs in the free cash flow format.
Remember to calculate operating costs.
No interest charges are deducted.
Calculate taxes.
Don't forget to include depreciation impact on the free cash flows.
Don't forget to include the tax credit if EBIT is negative in any year. (Refer to next to last bullet. )
Don't forget to include ΔNOWC in the Year 0 outlay but remember to add it back in the Year 3 termination cash flows. (There is no tax impact. )
Don't forget to include the sale of the machinery, termination free cash flows and the tax effect of selling the machinery.
Calculate the project's NPV and IRR.
Make a decision whether to accept the project or reject it based on the calculated NPV and IRR of the project. Remember, If the project’s NPV is positive then its IRR will be greater than its WACC.
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Solution
SSC is considering another project: the introduction of a "weight loss" smoothie. The project would require a $3 million investment outlay today (t = 0). The after-tax cash flows would depend on whether the weight loss smoothie is well received by consumers. There is a 40% chance that demand will be good, in which case the project will produce after-tax cash flows of $2. 2 million at the end of each of the next 3 years. There is a 60% chance that demand will be poor, in which case the after-tax cash flows will be $0. 52 million for 3 years. The project is riskier than the firm's other projects, so it has a WACC of 11%. The firm will know if the project is successful after receiving the cash flows the first year, and after receiving the first year's cash flows it will have the option to abandon the project. If the firm decides to abandon the project the company will not receive any cash flows after t = 1, but it will be able to sell the assets related to the project for $2. 8 million after taxes at t = 1. Assuming the company has an option to abandon the project, what is the expected NPV of the project today? Round your answer to 2 decimal places. Do not round your intermediate calculations. Use the values in "millions of dollars" to ascertain the answer.
$ millions of dollars
Answers
The expected NPV of the high-protein energy smoothie project is calculated by discounting the project's free cash flows at the weighted average cost of capital (WACC) of 10%. To calculate the free cash flows, we need to consider the initial outlay, annual operating costs, depreciation tax shield, salvage value of equipment, and the recovery of net operating working capital.
The project's cash flows are as follows:
Year 0: Initial outlay = -$4.9 million (equipment purchase) + $650,000 (increase in net operating working capital)
Year 1: Cash flow = Sales - Operating costs - Depreciation tax shield
Year 2: Cash flow = Sales - Operating costs - Depreciation tax shield
Year 3: Cash flow = Sales - Operating costs - Depreciation tax shield + Salvage value of equipment + Recovery of net operating working capital
Using the given sales and operating cost information, we can calculate the cash flows for each year and discount them to the present value using the WACC. The NPV is the sum of the present values of the cash flows minus the initial outlay.
To calculate the IRR, we need to find the discount rate at which the project's NPV becomes zero. By applying the internal rate of return (IRR) calculation, we can determine the rate at which the project breaks even.
Based on the calculated NPV and IRR, we can determine whether the firm should accept the project. If the NPV is positive and the IRR is greater than the WACC, it would indicate that the project is expected to generate positive returns and exceed the required rate of return.
Unfortunately, the given information does not provide the necessary data to calculate the NPV and IRR for the high-protein energy smoothie project. Additional information, such as the annual operating costs as a percentage of sales, tax rate, and salvage value, is required for a comprehensive analysis. Please provide the missing information to proceed with the calculation.
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Leadership ability is important to managers because
a-business will not hire a manager without leadership skills
b-leadership helps managers satisfy employees needs while also meeting the goals of the business
c- managers must get work done whether or not employees want to do it
Answers
Calculate the unpaid balance, finance charge, and new balance using the unpaid balance method. Note: interest rate is given as a monthly rate. Previous balance = $410. 22 Payments/credits = $160. 00 Unpaid balance = $ Monthly rate = 1. 25% Finance charge = $ New purchases = $95. 25 New balance = $.
Answers
The answers are Unpaid balance = $250.00, Finance charge = $3.13, and New balance = $348.13.
According to the information provided, the previous balance is $410.22, and there are payments/credits of $160.00. The unpaid balance is the previous balance minus the payments/credits, which results in an unpaid balance of $250.22. The monthly interest rate is given as 1.25%. To calculate the finance charge, we multiply the unpaid balance by the monthly interest rate, which yields a finance charge of $3.13. Additionally, there are new purchases of $95.25. To determine the new balance, we add the unpaid balance, finance charge, and new purchases, resulting in a new balance of $348.60.
In summary, the unpaid balance method calculates the finance charge and new balance based on the previous balance, payments/credits, unpaid balance, monthly interest rate, and new purchases. The previous balance of $410.22 minus payments/credits of $160.00 gives an unpaid balance of $250.22. The finance charge is determined by multiplying the unpaid balance ($250.22) by the monthly interest rate (1.25%), resulting in a finance charge of $3.13. Adding the unpaid balance, finance charge, and new purchases of $95.25 gives the new balance of $348.60.
The unpaid balance method is commonly used in credit card statements to calculate the finance charge and determine the new balance. It considers the previous balance, payments/credits, and new purchases. First, the unpaid balance is calculated by subtracting the payments/credits from the previous balance. Then, the finance charge is determined by multiplying the unpaid balance by the monthly interest rate. Finally, the new balance is obtained by adding the unpaid balance, finance charge, and new purchases. This method provides a clear breakdown of how the finance charge is applied and allows for tracking changes in the balance over time.
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what three subjects is the financial manager concerned with?
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A financial manager is typically concerned with three main subjects: financial planning and analysis, investment management, and financial risk management.
What is the difference between them?Financial planning and analysis involve creating long-term financial plans and budgets and analyzing the financial performance of the organization. This includes forecasting future revenues and expenses and identifying areas where the organization can cut costs or increase revenue.
Investment management involves making decisions about how to invest the organization's money, such as in stocks, bonds, real estate, or other assets. This includes assessing the potential returns and risks of different investments and making decisions about how much to invest in each.
Financial risk management involves identifying, assessing, and mitigating financial risks that the organization may face. This includes assessing the potential impact of various risks, such as market risk, credit risk, and operational risk, and implementing strategies to minimize or manage those risks. This can include things like hedging, diversifying investments, or purchasing insurance.
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Marketing to businesses employs all the same concepts as marketing to consumers except a. understanding buying behavior. O b. meeting the needs of customers. O c. buying methods. O d. developing effective marketing mixes. Oe. defining target markets.
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Marketing to businesses does not employ all the same concepts as marketing to consumers when it comes to understanding buying behavior, buying methods, developing effective marketing mixes, and defining target markets.
Marketing to businesses does still involve meeting the needs of customers, but these customers are often other businesses or organizations rather than individual consumers. In order to effectively market to businesses, it is important to understand their specific buying behavior, purchasing processes, and decision-making criteria. Additionally, developing a targeted marketing mix that addresses the unique needs and challenges of these businesses is essential for success. Finally, defining a clear and specific target market can help businesses tailor their marketing efforts to reach the most relevant and responsive audience.
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Define store records
Answers
Answer:
this is an important document that helps an organisation to determine the rate of use of raw materials
Payroll Statement Definition
A payroll statement is a list that contains details of the salaries and the wages paid out to the employees of an organization for a specific period of time. The list of employees, the amounts paid out to them, and the deductions made would ideally be included in a payroll statement.
Answers
A payroll statement is a list that includes information on the wages and salaries given to employees of an organisation for a specified time period.
The ideal payroll statement would contain the list of employees, the sums paid to them, and the deductions made. A Payroll Statement typically contains information about the employees of an organisation. Various payroll elements paid to all employees are tabulated on a payroll statement.
It can be organised by department, place, title, etc. The employee number, department, or cost centre can be used to sort the payroll statement. The Payroll Statement report can be used to create a report for a particular Pay Head or Ledger.
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For most people, almost two-thirds of each work day is taken up by work and sleep. Please select the best answer from the choices provided T F
Answers
Answer:
True
Explanation:
For most people, almost two-thirds of each workday is taken up by work, and sleep is a true statement.
What is the statement?Statements are sentences that express a fact, idea, or opinion. Statements do not ask questions, make requests or give commands. They are also not utterances. Statements are sentences that express a fact, idea, or opinion. Statements do not ask questions, make requests or give speech acts. They are also not exclamations.
The term working day refers to the days in the working week, the span of (often five) days that are not the weekend, and when many people work. The word workday means the same thing as a working day
Therefore, By the above statement, for the t two-thirds of each work day is taken up by work and sleep is correct.
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The city of waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city's park. On may 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On may 5, the special revenue fund entered into a short-term loan with the general fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on december 13.
Answers
Answer and Explanation:
The journal entries are shown below:
For May 1
No Entry Required as eligibility should be completed before recognition.
For May 5
Cash $200,000
To Inter fund Loans Payable-Current $200,000
(Being cash is recorded)
During the year
Expenditure $165,000
To Voucher Payable $165,000
(being expenditure is recorded)
Due from State Government $165,000
To Revenues $165,000
(Being revenue is recorded)
On Dec 13
Cash $165,000
To Due from State Government $165,000
(being cash is recorded)
On Dec 31
Revenues $1165,000
To Expenditure $165,000
(being closing entry is recorded)
And other entries are not added as the balance of $35,000 is not fulfilled the eligibility
suppose that the company had sales of $2,751,332 and net income of $86,432 for the year ending december 31, 2022. calculate the dupont identity.
Answers
The DuPont Identity is 0.0477.
Suppose that the company had sales of $2,751,332 and net income of $86,432 for the year ending December 31, 2022. Calculate the DuPont Identity.
The DuPont Identity is a method of breaking down Return on Equity (ROE) into its component parts, allowing analysts to evaluate the sources of the company's profitability.
The formula for the DuPont identity is as follows:ROE = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Shareholders' Equity)
ROE is calculated by dividing Net Income by Sales.ROE = Net Income / SalesROE = $86,432 / $2,751,332ROE = 0.0314
The formula for the DuPont identity is:ROE = Net Income / Sales x Sales / Total Assets x Total Assets / Shareholders' Equity ROE = Net Income / Shareholders'
Equity / Total Assets x Total Assets / SalesROE = (Net Income / Sales) x (Total Assets / Shareholders' Equity)ROE = Profit Margin x Asset Turnover x Financial Leverage
We can then substitute the values for Profit Margin, Asset Turnover, and Financial Leverage:ROE = (Net Income / Sales) x (Sales / Total Assets) x (Total Assets / Shareholders' Equity)ROE = 0.0314 x 1.05 x 1.36ROE = 0.0477 The DuPont Identity is 0.0477.
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While developing a new product, in the product development stage, the first versions of products are used in further consumer testing. These first versions of products are called
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In the product development stage, the first versions of products that are used while developing a new product and in further consumer testing are called: prototypes.
A product life cycle can be defined as the stages (phases) that a particular product goes through, typically from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) main stages in the product-life cycle;
Introduction.Growth.Maturity.Decline.A prototype can be defined as the the first versions of products that are manufacture and used while developing a new product and in further consumer testing.
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how much money does a therapyst make an hour/ and how much would they make in a year
Answers
a year = the median annual salary for clinical, counseling, and school psychologists was $85,340 per year, according to the Bureau of Labor Statistics. The lowest 10 percent of workers earned less than $44,040, and the highest 10 percent earned more than $129,310.
Answer:
Explanation:they make 1,000 dollars per hour. I don’t know how much in a year.
Give the names of different types of offices. Why are they necessary?
Answers
Answer:
Private Office.
Coworking Desk.
Virtual Office.
Enterprise Office.
Explanation:
The primary reason to have an office is collaboration. Every business needs its employees to work together as a team to create and innovate. in addition to productivity, a functional workspace or office contributes to the value of a company and also helps in attracting quality workforce and clients.
The Fed buys and sells bonds as a part of its policy to reach all of the following objectives except: High unemployment. Economic growth. Stability of financial markets and institutions. Price stability
Answers
The Fed buys and sells bonds as a part of its policy to reach all of the following objectives except high unemployment.
The primary objectives of the Fed's bond-buying and selling activities are to promote economic growth, stability of financial markets and institutions, and price stability. By purchasing bonds, the Fed can increase the money supply, lower interest rates, and stimulate economic activity. Conversely, by selling bonds, the Fed can decrease the money supply, raise interest rates, and slow down economic growth to combat inflation.
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What is the Congress or Legislative branch?
Answers
Answer:
The legislative branch is made up of the House and Senate, known collectively as the Congress. Among other powers, the legislative branch makes all laws, declares war, regulates interstate and foreign commerce and controls taxing and spending policies.
Explanation:
how do you feel about testing?
Answers
Well I feel like test give me some much anxiety. I get very nervous and worried even if I had studied for the test. Test also sometimes make me feel shaky lol. But overall I feel like test just stresses students out and it’s not really good
Explanation:
Brad Paisley
Katy Perry
Can you determine the target market for each site?
Answers
here is the answer dude
At a campus party, four friends were discussing their projects for the Business Start-Up class they were attending. "I think it's great that Dr. Bockhorn wants us to come up with actual businesses a college student could start and run," Tiffany stated. "The eBay store Tracey and I intend to start will capture customers from all around the world." Tracey added, "It took us a while to come up with the idea of baby clothing and equipment resale, but I think it's viable." Tom said. "Well, there's nothing too unique about the coffee shop Todd and I are starting other than it'll be on campus and open 24 hours a day." "Don't forget, we're open only for students, faculty and staff of the university." Todd remarked. Among the four friends, they touched on the four basic decisions a potential new business should consider. What were they? Name the four basic decisions. 2) Evaluate the following businesses and decide if these examples are likely to be parallel competition, incremental innovation or pure innovation 1. 1. Bobbie is starting a ski-diving center to serve the greater Valparaiso, Indiana 2. George hand carves bookends from bricks 3. Hester is franchising her coffee shop idea. 4. Lillian has found a way to make bread from recycled plastics 3. Several other students joined the group at the party (question 1). They, too, were in the same class. From their comments can you tell which of the important customer groups they were after? 1. 1. Ray planned to clean offices, 2. Ronald had decided to sell NASCAR memorabilia online to NASCAR fans. 3. Ruthann's plan included a frequent shopper discount. 4. Robbic Ann's manicuring service would target fellow university students.
Answers
It can be inferred that Ray is targeting office owners, Ronald is targeting NASCAR fans, Ruthann is targeting frequent shoppers, and Robbic Ann is targeting university students for her manicuring service.
The four basic decisions that potential new businesses should consider are:
1. Product: This decision involves determining what product or service the business will offer. In the case of the friends, the examples include an eBay store for baby clothing and equipment resale, a coffee shop on campus, and a ski-diving center.
2. Price: This decision involves determining how much customers will be charged for the product or service. The friends did not explicitly mention this decision in their discussion.
3. Place: This decision involves determining where the business will be located and how customers will access the product or service. The friends mentioned that the coffee shop will be on campus and open 24 hours a day, catering exclusively to students, faculty, and staff.
4. Promotion: This decision involves determining how the business will promote and advertise its product or service to attract customers. The friends did not mention specific promotional strategies in their discussion.
In terms of the examples given, Bobbie's ski-diving center would be an example of pure innovation as it introduces a completely new and unique concept. George's hand-carved bookends would likely be considered incremental innovation as it builds upon an existing product in a creative way. Hester's franchising of her coffee shop idea would also be considered incremental innovation as it takes an existing concept and expands it to new locations. Lillian's bread made from recycled plastics could be considered pure innovation due to its unique and unconventional nature.
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Industries X and Y both have four-firm concentration ratios of 90 percent, but the Herfindahl index for X is 7,814, while that for Y is 8,206. These data suggest Multiple Choice greater market power in X than in Y. greater market power in Y than in X. O that X is more technologically progressive than Y. that price competition is stronger in Y than in X.
Answers
The given concentration ratios and Herfindahl index of Industries X and Y suggest greater market power in Y than in X.
The Herfindahl index is a market concentration metric that calculates the market concentration of a group of suppliers. It is the sum of the squares of the percentage market shares of all the firms that operate in a particular industry. It ranges from 0 to 10,000, with higher values indicating greater concentration.
A four-firm concentration ratio is a ratio that calculates the market share of the four largest firms in an industry. In other words, the percentage of total market share that is controlled by the four biggest firms is the four-firm concentration ratio (CR4).
The data provided for Industries X and Y suggests that both have a 90% four-firm concentration ratio. However, the Herfindahl index is 7,814 for Industry X and 8,206 for Industry Y.
A higher Herfindahl index indicates a greater concentration of market power among fewer companies. Therefore, the higher Herfindahl index of Industry Y suggests greater market power in Y than in X.
Therefore, the correct option is "greater market power in Y than in X."
To learn more about concentration, refer below:
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