Based on the information given the depreciation expense for year 2 is $4,500.
First step is to calculate depreciation rate per unit
Depreciation rate per unit = ($160,000 - $10,000)/100,000 hours
Depreciation rate per unit=$150,000/100,000 hours
Depreciation rate per unit = $1.50 per machine hour
Second step is to calculate Year 2 depreciation
Year 2 depreciation=3,000 hours x $1.50
Year 2 depreciation= $4,500
Inconclusion the depreciation expense for year 2 is $4,500.
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Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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A utility company is considering two cash rebate programs to encourage water conservation. Plan 1, which is expected to cost an average of $80 per household, would involve a rebate of the purchase and installation costs of a two-stage flush system toilet. This program is projected to achieve an 8% reduction in overall household water use over a 5-year evaluation period. This will benefit the public to the extent of $2.25 per household per month. Plan 2 would involve grass re-placement with desert landscaping. This is expected to cost $500 per household, but it will result in reduced water cost at an estimated $10 per household per month (on average). At a discount rate of 0.5% per month, which program, if either, should the utility undertake? Use the conv. B/C method via AW (DN considered), and advise which program should be selected.
Based on the conventional B/C method, we select the program with a positive annual worth. In this case, neither Plan 1 nor Plan 2 has a positive annual worth, indicating that neither program should be selected by the utility company.
To determine which program the utility company should undertake, we will use the conventional benefit-cost (B/C) method with the annual worth (AW) approach, considering a discount rate of 0.5% per month.
Let's calculate the annual worth for each program:
Plan 1:
Cost per household: $80Reduction in overall household water use: 8%Benefit per household per month: $2.25The annual benefit per household is calculated as follows:
Benefit per month * 12 months = $2.25 * 12 = $27
Using the annual worth formula, we can calculate the annual worth of Plan 1:
AW = Benefit per household - Cost per household
AW = $27 - $80 = -$53
Plan 2:
Cost per household: $500Water cost reduction per household per month: $10The annual benefit per household is calculated as follows:
Benefit per month * 12 months = $10 * 12 = $120
Using the annual worth formula, we can calculate the annual worth of Plan 2:
AW = Benefit per household - Cost per household
AW = $120 - $500 = -$380
Based on the conventional B/C method, we select the program with a positive annual worth. In this case, neither Plan 1 nor Plan 2 has a positive annual worth, indicating that neither program should be selected. Both programs result in costs that exceed the benefits over the evaluation period.
It's important to note that the utility company may want to consider alternative approaches or reassess the costs and benefits associated with the programs.
They could explore options for reducing the costs or increasing the benefits to make the projects financially viable. Additionally, they may consider other factors, such as environmental impact or long-term sustainability, when making their decision.
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Of the five tools that comprise the IMC, which is typically designed to achieve short-term goals?a) Personal sellingb) Advertisingc) Public relationsd) Sales promotions
Sales promotions is the tool that comprise the IMC, which is typically designed to achieve short-term goals.
This is so that sales campaigns can elicit an immediate response from customers and spur temporary purchases. Coupons, discounts, free samples, and contests are just a few of the activities that fall under the category of sales promotions; all of these are intended to encourage quick purchases.
In general, the long-term objectives of other IMC techniques like advertising, personal selling, and public relations are more the focus than short-term objectives like raising brand awareness, forming customer relationships, and boosting brand reputation. A comprehensive marketing campaign that accomplishes both short-term and long-term goals can be created by combining all of these strategies.
Hence, The IMC tactic most often used to meet short-term objectives is: d) sales promotions.
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what is the only real way that the national debt has a chance to be significantly reduced over time, and what are some consequences of so acting to reduce the debt?
The only real way that the national debt has a chance to be significantly reduced over time is by implementing sound fiscal policies such as decreasing government spending, increasing taxes or a combination of both.
The consequences of reducing the debt can be both positive and negative.National debt refers to the total amount of money that the government owes to its creditors, which may include individuals, banks, or foreign governments. National debt is an accumulation of budget deficits over the years. Debt is different from the budget deficit, which refers to the shortfall between the government’s revenues and expenditures in a given fiscal year.
The only real way to significantly reduce the national debt over time is by implementing sound fiscal policies such as decreasing government spending, increasing taxes or a combination of both. If the government reduces spending and/or increases taxes, it will help to generate revenue that will help to repay the debt. Conversely, if the government does not take steps to reduce debt, it will continue to accumulate, and interest payments will continue to consume a significant portion of the budget.
By reducing debt, the government can free up resources to fund other programs and services that may have been neglected due to budget constraints. Consequences of reducing debt can be both positive and negative. One of the positive consequences is that reduced debt levels can increase investor confidence in the economy, leading to a higher demand for government bonds.
This could help to lower interest rates on borrowing, allowing businesses and individuals to invest and spend more money. However, reducing debt through spending cuts and/or tax increases can lead to economic slowdown, unemployment, and social unrest.
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True or False: Service providers that have high customer satisfaction ratings this year are unlikely to achieve the same level of satisfaction next year.
Answer: False
Explanation:
Explain "Liability loss resulting from President’s
Liability."
Liability loss resulting from President's Liability can be explained as the losses that an organization may face due to the actions or decisions taken by the president of the company.
Such losses occur due to the liabilities that the president may have taken on behalf of the organization or for personal benefits. The liability can arise due to various reasons such as breach of contract, breach of fiduciary duty, fraud, or misrepresentation. The liability losses may be financial or non-financial and can be categorized into two main categories. The first one is the direct liability losses which are the losses that arise due to the actions of the president or his/her decisions. These losses can be quantified in monetary terms and can be easily traced back to the president's actions.
The second category of liability losses is the indirect losses which arise due to the reputational damage or loss of confidence that the organization may face due to the president's actions. These losses are not quantifiable in monetary terms but can have a significant impact on the organization's future prospects. To avoid such liability losses, organizations need to ensure that they have a robust system in place for risk management. They need to have clear policies and procedures in place to ensure that the president's actions are in line with the organization's objectives and do not lead to any liability losses.
In conclusion, the liability loss resulting from President's Liability is a serious issue that can have significant consequences for an organization. Organizations need to take proactive measures to mitigate the risks associated with it and ensure that their presidents act in the best interests of the company. This includes having clear policies and procedures in place, conducting regular risk assessments, and having a comprehensive risk management plan.
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if the elasticity of demand is 5, and the price of a cup of coffee is $2, how much would the seller need to reduce her price in order to increase the quantity sold by 50 percent?
To increase the quantity sold by 50%, the seller needs to reduce the price by $0.2 if the elasticity of demand is 5.
Here are the steps involved in solving this problem:
Percentage price reduction = (Percentage increase in quantity sold) / (Elasticity of demand)
Calculate the percentage increase in quantity sold: 50% / 100% = 0.5
Divide the percentage increase in quantity sold by the elasticity of demand: 0.5 / 5 = 0.1
Multiply the result by the initial price to find the amount of price reduction needed: 0.1 * $2 = $0.2
Therefore, the seller would need to reduce her price by $0.2 in order to increase the quantity sold by 50 percent.
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According to the concept of the invisible hand, what emerges due to the self-interested
choices of buyers and sellers in a free market?
Answer: The invisible hand is a metaphor for how, in a free market economy, self-interested individuals can promote the general benefit of society at large.
Two car wash employees are paid $7. 50 an hour each and are capable of washing 12 cars per hour, using $1 of water and $2 of soap and other cleaning supplies. What is the multifactor productivity of this operation?.
To calculate the multifactor productivity of the car wash operation, we need to determine the output and the inputs involved.
Output:
The output of the car wash operation is the number of cars washed. In this case, the employees are capable of washing 12 cars per hour.
Inputs:
Labor: Two employees are paid $7.50 per hour each, so the labor cost per hour is 2 x $7.50 = $15.
Water: The cost of water used per hour is $1.
Soap and cleaning supplies: The cost of soap and cleaning supplies used per hour is $2.
Now, we can calculate the multifactor productivity using the formula:
Multifactor Productivity = Output / (Labor Cost + Cost of Materials)
Output = 12 cars per hour
Labor Cost = $15 per hour
Cost of Materials = $1 (water) + $2 (soap and cleaning supplies) = $3
Multifactor Productivity = 12 / ($15 + $3)
Multifactor Productivity = 12 / $18
Multifactor Productivity ≈ 0.67
Therefore, the multifactor productivity of this car wash operation is approximately 0.67.
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could someone explain to me what the money market in Italy is, thank you all
Explanation:
Two main markets comprise the Borsa Italiana: the Mercato Telematico Azionario (MTA), which is the segment for mid- and large-size companies; and the AIM Italia, which was established in 2009 to cater for high growth small and medium enterprises needing more flexibility around the reporting and governance requirements.
Assume oil prices rise in the United States, generating concerns that inflation may increase. If the Fed wishes to ensure that inflation does not get out of hand, the Fed could Multiple Choice intervene in the currency markets to push the value of the dollar down. decrease the discount rate. lower the target Fed funds rate. lower the target money supply growth rate. reduce reserve requirements at banks.
If the Fed wishes to ensure that inflation does not get out of hand, the Fed could lower the target money supply growth rate.
Inflation is when the general price levels in an economy increases persistently overtime. The policy tools that the Fed can use to control general price levels in the economy is known as monetary policy.
There are two types of monetary policy :
Expansionary monetary policy : these are steps taken by the Fed to increase the supply of money in the economy. These steps include reducing the target Funds rate, decreasing the reserve requirements and carrying out open market purchase. Contractionary monetary policy : these are steps taken to reduce the money supply in the economy. These steps include reducing the target money supply growth rate and carrying out an open market sales.To learn more about monetary policy, please check: https://brainly.com/question/15566475?referrer=searchResults
Consider a company that sells prescription drugs. I It has sales people who visit doctors and hospitals to encourage physicians to prescribe its drugs. The company sells to drugstores. Sales people are evaluated on their sales on their territories.
Instructions: answer to the following questions
1- To plan operations, this company needs to develop estimates of total sales. Where should it get this information?
2- Budgeting allows an organization to identify potential problems so that plans can be developed to avoid these problems or to deal with them systematically. Give an example of how budgeting might serve this role in this company.
3- Give an example of how could budgeting be used to plan and evaluate performance in this company.
How could be used to motivate their employees?
4. Which type of budgeting will you recommend to be used in this company?
1. To plan operations, this company should get information on total sales from various sources such as market research and historical sales data. By gathering information from market research and historical sales data, the company can develop a realistic estimate of total sales.
2. Budgeting can be helpful in identifying potential problems that may arise and plan a way to avoid or tackle the problem systematically. For example, if the company's sales force is not meeting its sales goals, budgeting can help determine the specific issues that are affecting the sales and to plan how to address those issues.
3. Budgeting can be used to plan and evaluate performance in this company in the following way:If the company sets specific sales goals for each salesperson, then the salesperson can create a budget based on the goals and forecasted sales.
4. The company should use flexible budgeting. Flexible budgeting is a method of budgeting that adjusts the budget as per the actual level of activity. In the case of a company selling prescription drugs, sales volume can be highly unpredictable.
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Who plans, coordinates, and controls a project's progress, or a portion thereof? Group of answer choices Architect Civil engineer Project manager The funding bank
Answer:
Project manager
Explanation:
The project manager is a person who holds a manager position in an organization. His or her duty is to do the planning, coordinates, communicates with the team members, employees regarding the work and also controls the progress of the project. He or she should well aware of how much project is pending and how much it is completed
Hence, the correct option is third.
Marvelous Motor Works sells vehicles directly to businesses for use in their companies. Marvelous Motor Works has a manager for each type of vehicle it sells (cars, trucks, and delivery vehicles). The salespeople for each product report directly to his or her manager but may also consult the financing department and legal department to handle issues relating to financing and liability issues. This is an example of a(n) ______ organization.
Answer:
Line and staff organization
Explanation:
Marvelous Motor practice line and staff organization.
Line and staff organization refers to when specific and supportive roles are attached to the line of command by assigning staff supervisors and staff specialists who are attached to the line authority.
The executives(managers of each type of vehicle) holds the power of command and staff supervisors(financial and legal department) guides, advices and council the line executives.
Leve Amer Suppose a stock index contains the stock of 3 firms: A, B and C. The stock prices for the three fums are $43, $55 and $55, respectively. The firms have 115 million, 115 million and 95 million shares outstanding, respectively. If the index is value-weighted, calculate its initial value. (round your answer to 2 decimal places)
The initial value of the value-weighted stock index is $163.95 billion.
A stock index that contains the stock of three firms is value-weighted. If the firms have different outstanding shares, the firms will have different impacts on the index value. Hence, the initial value of the value-weighted stock index is calculated using the formula below:
Initial Value of the Value-Weighted Stock Index = (Sum of the market values of all firms in the index) / (Divisor)Where Divisor = Scaling factor that normalizes the index value. It is chosen so that the index value is equal to 100 at a certain point in time. It is also used to adjust the index value over time.
Let us calculate the market values of the firms:Market Value of Firm A = $43 * 115 million = $4.95 billionMarket Value of Firm B = $55 * 115 million = $6.325 billionMarket Value of Firm C = $55 * 95 million = $5.225 billion
Now, let us calculate the initial value of the value-weighted stock index using the formula above.Initial Value of the Value-Weighted Stock Index = (Sum of the market values of all firms in the index) / (Divisor)Divisor is not given in the problem.
We can assume it to be 0.1 as this is the commonly used value of the divisor for stock indices.Initial Value of the Value-Weighted Stock Index = ($4.95 billion + $6.325 billion + $5.225 billion) / 0.1= $163.95 billion
The initial value of the value-weighted stock index is $163.95 billion. Therefore, the answer is $163.95 billion.
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In which of the following investment classifications are unrealized gains in marketable securities reflected in the income statement of the investor company?A. Trading securitiesB. Available-for-sale securitiesC. Controlling securitiesD. Influential securitiesE. Held-to-maturity securities
Unrealized gains in marketable securities are reflected in the income statement of the investor company under the investment classification of Trading securities (A).
What are trading securities?Trading securities are securities that are purchased with the intention of being sold in the near future in order to make a profit from price fluctuations.
Trading securities are considered part of the company's current assets and are reported at fair market value. They are reported on the income statement as gains or losses based on changes in fair value.
Trading securities are the only investment category for which unrealized gains and losses are reflected in the income statement of the investor company.
Therefore, in the trading securities classification, unrealized gains in marketable securities are reflected in the income statement of the investor company.
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The stock market represents small businesses. A. True B. False
I would say the answer is Falsr
According to the reading, what might support a premium pricing strategy? a) Forming your business as a corporation b) Fresh ingredients c) 24 hour operation d) None of the above
Answer: Fresh ingredients
Explanation:
how to tell if two goods are substitutes or complements from demand function
Cross-price elasticity determines substitutes or complements from demand functions. Positive value indicates substitutes, negative indicates complements.
To determine whether two goods are substitutes or complements using demand functions, you can examine the signs and magnitudes of the cross-price elasticities.
1. Substitutes: If an increase in the price of one good leads to an increase in the quantity demanded of the other good, they are considered substitutes. In the demand function, the cross-price elasticity of demand should be positive. A higher positive value indicates a stronger degree of substitution.
2. Complements: If an increase in the price of one good leads to a decrease in the quantity demanded of the other good, they are considered complements. In the demand function, the cross-price elasticity of demand should be negative. A more negative value indicates a stronger degree of complementarity.
To calculate the cross-price elasticity of demand, you need the demand function for each good and the prices of both goods. The cross-price elasticity is given by the formula:
Cross-price elasticity = (% change in quantity demanded of one good) / (% change in price of the other good)
If the cross-price elasticity is positive, the goods are substitutes. If it is negative, the goods are complements.
It's important to note that the interpretation of substitutes and complements may also depend on the context and specific market conditions. Market research and consumer behavior analysis can provide additional insights into the relationship between two goods and whether they are substitutes or complements in practice.
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what is the purpose of stop-loss insurance that is used with self-insured group medical expense plans? group of answer choices to have a commercial insurer pay claims that exceed a specified limit. to require employees to buy insurance for losses in excess of some specified amount to exempt self-insured plans from state insurance laws that require mandated benefits. to obtain administrative services from a commercial insurer
Stop-loss insurance plan (also known as excess insurance) is a product that provides protection against catastrophic or unpredictable losses.
It is bought via employers who have decided to self-fund their employee gain plans, but do not want to expect 100% of the legal responsibility for losses arising from the plans.
What is the fundamental purpose of give up loss cover?Essentially, stop-loss insurance plan is a tool used by employers to mitigate towards the risk of catastrophic economic loss. Losses are capped at a positive amount, and any expenses in excess of gotten smaller limits are included by way of the stop-loss insurer.
The stop-loss characteristic in foremost medical contracts serves to assist reduce these costs. The stop-loss feature places a restriction on the maximum out-of-pocket charges an insured ought to incur for health care, above which the policy pays a hundred percent of the final eligible expenses.
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Answer:
hi thank you have a great day
Explanation:
What is one way that technology can improve the production of goods? Websites can allow consumers to purchase goods online. Container ships can transport a number of goods at once. Automation can create goods more cheaply and easily. Airlines can send goods from one place to another. WILL MARK BRAINLIEST
One way that technology can improve the production of goods is : ( C ) Automation can create goods more cheaply and easily
What is AutomationAutomation is the creation and application of technologies to the process of production and distribution of goods and services with minimal or no human intervention. Automation makes the creation of goods easier and with less cost.
Hence we can conclude that One way that technology can improve the production of goods is Automation can create goods more cheaply and easily.
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Annual VC investments reached an all-time high in the year 1990 True False
False. Annual VC investments did not reach an all-time high in the year 1990.
The statement is false. The year 1990 did not see an all-time high in venture capital (VC) investments. While VC investments were gaining traction during that period, the all-time high for VC investments occurred much later. In the late 1990s, during the dot-com bubble, there was a significant surge in VC investments, with an unprecedented influx of capital into technology startups. This period marked the peak of VC investments, as investors were eager to capitalize on the emerging internet industry. Therefore, the claim that annual VC investments reached an all-time high in 1990 is incorrect.
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The average U.S. worker is MOST likely to hold about _____ jobs between the ages of 18 and 25. Please choose the correct answer from the following choices, and then select the submit answer button. three two seven five
ve durel evaluation of your work.
Aa
:)))
Hola
Activity
Lydia is a senior in high school. She works 20 hours a week at a popular clothing store. She is trying to save as much
money as possible for her college tuition. However, she has to buy a dress for prom, pay her car insurance, and get a
birthday gift for her sister. This week she received a $400 paycheck. She wants to deposit the entire check in her
savings account for her college tuition, but she stops herself. She decides instead to put $100 in the bank, spend $200
for her prom dress, pay $80 for her car insurance, and buy her little sister a $20 birthday gift. While shopping, she
sees a doll worth $21, which she thinks her sister will absolutely love. As a result, she decided to buy the more
expensive doll and spend less on her dress.
Did Lydia make an all-or-nothing or a marginal decision while spending her money?
Answer:
marginal decision
Explanation:
Marginal decision involves spending a little more or a little less than what has already been planned for based on the benefit to be gotten. If the marginal benefit exceeds the marginal cost, then the choice is a good choice. Marginal decision are made by using marginal analysis, that is comparing the cost and benefits of spending a little more or a little less.
In this scenario, she spends $1 more to buy her sister a doll because she thinks her sister would love it. The marginal cost in this case is $1. As a result on spending more on the gift, she spends less on her dress.
how much interest expense will the company include in its 2021 and 2022 income statements for this note?
The company will report a liability of $30,800 in its 2021 balance sheet and $26,600 in its 2022 balance sheet for this note.
The journal entry to record the acquisition of the tractor on January 1, 2021:
Tractor (Asset) $44,000
Cash (or Note Payable) $9,000
Note Payable $35,000
To calculate the interest expense for the years 2021 and 2022, we need to determine the interest on the note. The interest is calculated based on the outstanding balance of the note and the interest rate.
Year 2021:
Outstanding Balance (January 1, 2021) = $35,000
Interest Expense = Outstanding Balance * Interest Rate = $35,000 * 12% = $4,200
Year 2022:
Outstanding Balance (January 1, 2022) = $35,000
Interest Expense = Outstanding Balance * Interest Rate = $35,000 * 12% = $4,200
Therefore, the company will include $4,200 as interest expense in its 2021 and 2022 income statements for this note.
The liability reported in the balance sheet is the remaining balance of the note. We need to calculate the outstanding balance at the end of each year.
Outstanding Balance (December 31, 2021) = $35,000 - $4,200 (interest paid) = $30,800
Outstanding Balance (December 31, 2022) = $30,800 - $4,200 (interest paid) = $26,600
Therefore, the company will report a liability of $30,800 in its 2021 balance sheet and $26,600 in its 2022 balance sheet for this note.
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On January 1, 2021, Byner Company purchased a used tractor. Byner paid $9,000 down and signed a noninterest-bearing note requiring $35,000 to be paid on December 31, 2023. The fair value of the tractor is not determinable. An interest rate of 12% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the journal entry to record the acquisition of the tractor.
2. How much interest expense will the company include in its 2021 and 2022 income statements for this note?
3. What is the amount of the liability the company will report in its 2021 and 2022 balance sheets for this note?
Which function of print media do textbooks primarily serve?a. Transmission of cultureb. Diffusion of ideas and knowledgec. Marketingd. Entertainment
Textbooks primarily serve the function of Diffusion of ideas and knowledge.
What is print media?
Print media is a type of media that uses ink and paper or other tangible materials to distribute information to the public. Printed media encompasses a wide range of media such as newspapers, magazines, books, brochures, and other tangible materials.
The printing process of print media can range from traditional letterpress printing to digital printing. The following are the functions of print media:
Diffusion of ideas and knowledge Transmission of culture Marketing Entertainment Function of print media Print media is a medium through which information is conveyed to a vast majority of people. It can be in the form of newspapers, books, magazines, brochures, etc.
The following are the functions of print media; Diffusion of ideas and knowledge Transmission of culture Marketing Entertainment Textbooks primarily serve the function of Diffusion of ideas and knowledge.
It is used to provide knowledge to the students. Textbooks are educational resources that serve as a guide for students in understanding various topics.
They help students to understand the fundamentals of the subject and also build a strong foundation for learning. Therefore, textbooks primarily serve the function of Diffusion of ideas and knowledge.
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Although Zappos has around 900,000 unique products in its warehouse, company executives think there is room for more. Zappos is utilizing ______ for this promotion.
Answer: email marketing
Explanation:
Email marketing is the act of promoting a business, a product or anything worth promoting or an exchange of mail. This emails are sent to existing and prospective customers either telling them of this new product or promoting existing goods and services. Zappos utilizes email marketing for this promotion.
Which of the following is a good suggestion for managers when conducting interviews?
a. Plan which questions you want to ask, and ask them to every interviewee.
b. Do more than half of the talking to make sure you are sharing enough about the company and its culture.
c. Ask questions spontaneously to get the most straightforward answers from the candidate.
d. Ask about the candidate's family to show personal interest
The good suggestion for managers when conducting interviews is to plan which questions you want to ask and ask them to every interviewee.
When conducting interviews, it is important for managers to have a structured approach. This means planning which questions to ask and asking them to every interviewee to ensure that the same information is gathered from each candidate.
This will also help to ensure that the hiring process is fair and objective, as each candidate will be evaluated using the same criteria.
On the other hand, managers should not do more than half of the talking to make sure they are sharing enough about the company and its culture, because the focus of the interview should be on the candidate and their qualifications. Additionally, asking questions spontaneously is not recommended as it can lead to inconsistencies in the interview process. Finally, asking about the candidate's family is not relevant to their qualifications or ability to do the job, and could be seen as intrusive or unprofessional.
Overall, planning which questions to ask and asking them to every interviewee is a good suggestion for managers when conducting interviews. This approach will help to ensure that the hiring process is fair, objective, and consistent, and will help managers to identify the best candidate for the job.
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Ted's pancake kitchen suffers a short-run loss. when should ted decide to shut down rather than continue to produce?
Ted should decide to shut down the produce rather than to continue to produce when the price that is incurred to produce is more in comparison to the price at which the product is sold.
If ted continue to produce more and more units he will incur additional average and variable costs and would not be able to generate enough of revenue to cover the production costs.
The firm will still incur other costs such as fixed costs even if needs to shut down or have loss in produce. It is just no benefit of continuing the things the person was doing to run the process and shut it down temporarily for recovery of its variable costs.
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