The demand curve and marginal revenue curves for perfect competition are also drawn as perfectly elastic.A monopoly's demand curve has the characteristics as the market demand curve. The correct option is True.
The relationship between the cost of a good or service and the quantity demanded over a specific period of time is represented graphically by the demand curve. In a typical illustration, the charge will be shown on the left vertical axis and the requested amount.
Which indicates that when the price of a commodity decreases, so does consumer demand.Although it might appear straightforward, the demand curve's shape has a number of significant ramifications for monopolistic competitive markets.The downward slope of the demand curve contributes.
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List the main characteristics of money market securities
Answer:
Money market securities are typically debt instruments with a face value of $100,000 or more. These securities include federal and municipal bonds, certificates of deposit from financial institutions, and commercial paper, a kind of unsecured IOU, from large corporations.
Answer: Safety
Liquidity
Types
Discounts
Explanation:
If an elevator in a large building malfunctions, the owners may ask someone from the Maintenance/Operations pathway of the Architecture and Construction career cluster to look at it.
true or false
What is used to provide a source of motivation for an organization employees
There are many ways that organizations can motivate their employees, they are:
1. Offering competitive salaries and benefits packages
2. Providing opportunities for advancement and professional development
3. Creating a positive work environment
4. Recognizing and rewarding good performance
5. Setting clear goals and expectations
Offering competitive salaries and benefits packages: Employees are often motivated by financial rewards and a sense of security.
Providing opportunities for advancement and professional development: Employees may be motivated by the opportunity to learn new skills and take on more responsibilities.
Creating a positive work environment: A positive work environment can be a source of motivation for employees, as they are more likely to be happy and engaged in their work when they feel valued and supported.
Recognizing and rewarding good performance: Employees may be motivated by the recognition of their hard work and achievements, such as through promotions, bonuses, or public acknowledgment.
Setting clear goals and expectations: Employees may be motivated by a sense of purpose and direction, and knowing what is expected of them can help them stay focused and motivated.
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under manufacturing what are the following national and international business opptunities
When nations cannot successfully produce a true or service, they can seek to acquire it through trade with every other country. These opportunities to specialize regularly lead to greater effectivity in production, greater levels of innovation, and extended satisfactory of development.
Which of the following is are kind kinds of global enterprise *?The fundamental sorts of International business include: Export Trade: Selling products and services to different nations. Import Trade: Buying items and offerings from different countries. Entrepot Trade: Importing items and offerings to re-export them to other nations.
Attract foreign demand: Some companies are unable to extend their market share due to fierce competition within the enterprise
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https://brainly.com/question/14926566#SPJ1Which of the following is NOT an advantage of group problem solving? It facilitates pooling of resources It is generally more pleasant and fulfilling than working alone It speeds up the problem solving process Group decisions are better received than individual decisions
Answer:
It (DOES NOT) speed up the problem solving process
Explanation:
It is more time consuming to solve a problem as a group, because there is compromise and deliberation time required for a group to come to a unified decision.
You are considering replacing your aging propane furnace for a natural gas model. The propane model originally cost $2,200, will last 6 more years, and will have no salvage value. The gas model costs $2,200 and offers a $400 trade-in on the old furnace. It lasts 13 years and can be salvaged for $500 at the end of year 13. Annual fuel costs are $800 for the propane furnace and $600 for the gas furnace. The real interest rate is 9% per year. Using cash-flow replacement and annual worth analysis, should the propane furnace be replaced with the gas model?
Answer:
The information is not complete (we do not know the useful life of the propane model), but the difference in costs between one project and the other is two large. The NPV of the savings for the gas model almost pays for the initial investment, plus the present value of the costs of using the gas model are much lower for future equivalent projects, we can assume that replacing the propane furnace with the gas model is a good investment.
We cannot determine exactly by how much the actual worth of the costs of the gas model are lower than the costs of the propane model, but there is no doubt that they are much lower. The only way that the propane model would have lower actual costs would that its useful life is much longer.
Explanation:
use propane model use gas model
initial investment $0 $1,800
operating costs $800 $600
useful life 6 years 13 years
present value of the costs for first product life cycle:
$3,559 (6 years) $6,129 (13 years)
Since the useful lives of the alternatives are not the same, we must find a common denominator for the useful life of the alternatives. Here we have a problem because we are not given the information.
But we can assume that the useful life of a propane furnace is also 13 years:
use propane model use gas model
initial investment $2,200 $2,200
operating costs $800 $600
useful life 13 years 13 years
residual value $0 $500
present value of total costs per life cycle:
$8,190 $6,529
Now we need to determine the NPV of the money saved by using gas propane = -$140 (-$1,800, 9%, $200 saved during 12 periods and $700 received at last period), so basically the gas model almost pays for itself with the money it saves.
Calculate the total account value for $10,000.00 at 10% interest for 15 years
Product: Cheetos Country: Australia
4. Customer Value: What value or benefits will your product or service deliver to the consumers?
5. Profit: What will you charge per individual product or service?
6. Marketing: How will customers learn about your product/service?
7. Customer loyalty: How will you encourage customer loyalty and referrals for new customers?
8. SWOT Analysis:
What are the STRENGTHS of conducting business/marketing your product/service in this country?
b. What are the WEAKNESSES of conducting business/marketing your product/service in this country?
c. What are the OPPORTUNITIES of conducting business/marketing your product/service in this country?
d. What are the THREATS (competition?) of conducting/marketing your product/service in your country?
9. How will you know when you are successful?
10. Describe your expectation of your product/service life cycle in this country. How long before your product/service reaches maturity?
( PLS INCLUDE MORE THAN ONE SENTENCE)
Cheetos are a popular snack food that delivers a delicious and satisfying taste experience to consumers.
Cheetos are widely available in supermarkets and convenience stores across the country.
4. Customer Value: The product provides a convenient and easy-to-eat snack option for people on-the-go. The bold and cheesy flavor of Cheetos appeals to both children and adults, making it a versatile snack option. Additionally, Cheetos are available in different sizes and packaging options, catering to individual preferences and needs.
5. Profit: The price of Cheetos in Australia will depend on the size and packaging of the product. However, a single serving size of Cheetos (28g) is expected to be priced between AUD 1.50 to AUD 2.50.
6. Marketing: To promote Cheetos in Australia, the product can be advertised on social media platforms. The brand can collaborate with popular influencers and create exciting and engaging content that appeals to the target audience. Additionally, the brand can host sampling events and offer promotions to generate interest and awareness.
7. Customer loyalty: To encourage customer loyalty, the brand can offer loyalty programs that provide incentives and rewards for repeat purchases. The brand can also engage with customers through social media and respond to their queries and feedback promptly. Offering excellent customer service and delivering a consistent product experience can also help generate customer loyalty and referrals.
8. SWOT Analysis: a. Strengths: Cheetos are a popular and recognizable brand globally. The brand has a loyal following and offers a unique and delicious taste experience that appeals to a broad range of customers.
b. Weaknesses: The snack food market in Australia is highly competitive, with many established brands competing for market share. Cheetos may face challenges in establishing a foothold in the market and competing with established brands.
c. Opportunities: Australia has a growing snack food market with a diverse and multicultural population. Cheetos can leverage this opportunity and tailor its marketing and product offerings to appeal to different customer segments.
d. Threats: Competition from established brands and changing consumer preferences and trends pose significant threats to the success of Cheetos in the Australian market.
9.Success Measurement: The success of Cheetos in Australia can be measured by sales figures, market share, and customer feedback. Additionally, the brand can track social media engagement and monitor customer sentiment to evaluate the effectiveness of its marketing campaigns.
10. Product/Service Life Cycle: The life cycle of Cheetos in Australia will depend on various factors, including market trends, competition, and customer preferences. Typically, snack foods have a relatively short product life cycle, and the time to maturity can vary from several months to a few years. However, Cheetos' popularity and brand recognition may help the product reach maturity sooner.
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A one-year and two-year bonds currently pays 1.4% and 1.2%, respectively. What is the expected interest rate on a one-year bond next year according to the liquidity premium theory if the two-year term premium is 0.1%
Answer:
Expected Interest Rate = 1.8%
Explanation:
The computation of the expected interest rate on a one year bond is shown below
Interest Rate expected in nth year would be
= (Sum of individual interest rates in n years) ÷ n + liquidity premium in nth year
1.6% = (1.2% + Expected Interest Rate) ÷ 2 + 0.1%
1.5% × 2 - 1.2%= Expected Interest Rate
Expected Interest Rate = 1.8%
PLEASE HELP WILL MARK BRAINLIST
Classify the following cash flows as either operating, investing, or financing activities assume indirect method.1. Received cash from sale of equipment. 2. Cash paid to purchase long-term investments. 3. Received cash from long-term debt issuance. 4. Issued preferred stock for cash. 5. Paid cash dividends. 6. Received cash payments from customers. 7. Purchased inventories with cash. 8. Paid cash interest on outstanding notes. 9. Paid cash for utilities. 10. Sold stock investments for cash.
Answer and Explanation:
The classification is as follows
1. Investing activities : Since there is cash received from the sale of equipment so the same is to be shown in the investing activities in a positive amount
2. Investing activities : Since there is cash paid for buy the long term investment so the same is to be shown in the investing activities in a negative amount
3. Financing activities : Since the cash is received so the same is to be shown in the financing activities in a positive amount
4. Financing activities : Since the issuance of preferred stock is there so the same is to be shown in the financing activities in a positive amount
5. Financing activities : Since the cash is paid so the same is to be shown in the financing activities in a negative amount
6. Operating activities : Since the cash is received so the same is to be shown in the operating activities in the direct method as a positive amount
7. Operating activities : Since the inventories are purchased so the same is to be shown in the operating activities in the direct method as a negative amount
8. Operating activities : Since the cash is paid so the same is to be shown in the operating activities in the direct method as a negative amount
9. Operating activities : Since the cash is paid so the same is to be shown in the operating activities in the direct method as a negative amount
10. Investing activities : Since the investment is sold so the same is to be shown in the investing activities in a positive amount
. Pharmacist is an important profession. give reasion
Explanation:
pharmacist is a important profession because they play a vital role in improving patient health through the medicine and information they provideReason:
Pharmacists assist individuals in living healthier, more fulfilling lives. What are Pharmacists?A person licensed to prepare and dispense drugs and medicines; druggist; apothecary; pharmaceutical chemist
Pharmacists will have the authority and autonomy to manage medication therapy and will be accountable for patients' therapeutic outcomes. In doing so, they will communicate and collaborate with patients, care givers, health care professionals, and qualified support personnel.
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https://brainly.com/question/17207269https://brainly.com/question/8020909With which approach to value does the appraiser analyze a property’s ability to earn future income?
The income approach is what the appraiser uses to analyze a property’s ability to earn future income.
What is the income approach?This is the term that is used to refer to the real estate valuation which is used to value a property based on the income that the particular property generates on the estimated fair value of that property.
Hence we can conclude that the The income approach is what the appraiser uses to analyze a property’s ability to earn future income.
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1.1.1 the name of the business and the title of the job advertisement
1.1.2 A clear job description that is relevant to the advertised vacancy
1.1.3A clear job specification that is to the advertised vacancy
Answer:
what are you even asking
When you see an advertisement for a store and decide to shop there, which element of the marketing mix has succeeded?
O Presentation
O Product
O Place
O Promotion
Answer:
Promotion
Explanation:
Because it is telling people that the product is ready for them to buy it
The Americans with Disabilities Act requires that employers make reasonable accommodations for individuals with disabilities. How might this requirement affect law enforcement officers and firefighters
The way in which this requirement would affect law enforcement officers and firefighters is that more disabled persons would be admitted into the force.
What is an Act?This refers to the law passed which gives explicit instructions about a particular thing that has to be carried out and is legally backed.
With this in mind, we can see that the Americans with Disabilities Act mandated that employers make reasonable accommodations for individuals with disabilities and this Act would reduce discrimination against the employment of disabled persons.
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Jose can't wait to buy his first car next month. He imagines that he will make several new friends at school since everyone will want to ride in his car. He is even having a hard time concentrating on filling orders at the restaurant where he works. Does Jose's thinking have an ethical component? Who is most affected by Jose's conduct? *
Answer:
His thinking does NOT have a ethical componet.
HISELF is most affected by his conduct.
Answer:
C
Explanation:
im him
How is the Sole Trading business financed?
Answer:
Sources of Finance for a Sole Trader
The sole trader can invest his own savings into his business for expansion. Retained Profit. A profitable business generates a positive net income every year. Sale of Assets.
A term that describes the whole accounting process is Accounting __________
Answer:
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities.
Explanation:
Suppose that China is a small country of peanuts import, and the demand and supply of peanuts are as follows:
D=400-10P, S=50+5P,
The price of peanuts in the international market is set at USD 10. Please use figures and figures to illustrate the following problems:
(1) Under the free trade, China's peanuts production and import and export volume, the impact of free trade on domestic consumption and the welfare of manufacturers.
(2) China has imposed an quote limit of 200 units for peanuts import, the production and trade volume of domestic peanuts, and the welfare changes of consumers and manufacturers compared with free trade.
1. a. Under free trade, China's peanuts domestic production will be 100 units (50 + 5 x 10).
b. Under free trade, China's peanuts import will be 200 units (300 - 100).
c. Under free trade, China's peanuts export will be negative 200 units (100 - 300).
d. Free trade ensures that domestic consumption is met because domestic manufacturers will produce 100 units while the remaining 200 units demanded by consumers will be met through imports.
2. a. With a quota limit of 200 units for peanuts import, peanuts production will still be 100 units (50 + 5 x 10).
b. Under the quota limit, China's peanuts import will be 200 units (300 - 100) since internal production is not more than 100 units.
c. Under the quota limit, China's peanuts export will be zero units.
d. The quota limit will still ensure that domestic consumption is met because the quota of 200 units plus 100 units of internal production will meet domestic demand for 300 units.
What are Free Trade and Quota?Free trade implies the absence of any government-imposed limits on imports and exports. On the other hand, quota refers to the trade restriction imposed by governments.
Data and Calculations:D = 400 - 10P
S = 50 + 5P
Where:
D = Demand
S = Domestic Supply
P = Price
Price = $10
a. The quantity demanded will be 300 units (400 - 10 x 10).
b. The quantity supplied (domestically) will be 100 units (50 + 5 x 10).
c. The import quantity will be 200 units (300 - 100).
c. Quota imposed on imports of peanuts = 200 units
Thus, there will be no changes in the welfare of consumers and manufacturers under the quota limit compared with free trade because the quota meets domestic demand.
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Hershel Greene has the right under a contract with Runway Retail, Inc., to buy the retailer’s clothing overstock. Hershel's sale of this right to Sade’s Style House is
Hershel's sale of this right is b. an assignment.
In an assignment:
an assignor transfers a contractual right to some other party the other party is called the assignee the assignee has the power to enforce the contractual rights that the assignor had.Hershel is the assignor in this scenario as they transferred rights they had on Runway Retail Inc. by means of a sale. Sade is therefore the assignee here because they received these rights.
In conclusion, this is an assignment because it has the features of an assignment.
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Options for this question include:
a. a delegation.
b. an assignment.
c. prohibited.
d. a third-party beneficiary contract.
Job Search Challenge Card #1 Logic Puzzle
The present value of the tax cost associated with the current sale of inventory for 50,000 and subsequent of Owl stock for 70,000
According to the question the present value of the tax cost would be $162,500.
What is tax cost?Tax cost is the amount of money paid to the government in the form of taxes. It is the amount of money that individuals, businesses, and other organizations must pay to the government based on their income, profits, or other activities. Tax costs can include income taxes, property taxes, sales taxes, payroll taxes, and other forms of taxes. Depending on the country or jurisdiction, different types of taxes may be included in the tax cost calculation.
The present value of the tax cost associated with the current sale of inventory for $50,000 and subsequent sale of Owl stock for $700,000 depends on the applicable tax rate in your jurisdiction.
Assuming a tax rate of 25%, the present value of the tax cost would be $162,500
($50,000 x 25% + $700,000 x 25%).
= $162,500.
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Are marketing and sales the same in marketing
Answer:
marketing is building awareness of your organization and brand to potential customers. Sales is turning that viewership into a profit, by converting those potential customers into actual ones.
Explanation:
What can people do better to make a better place in this earth
Answer:
not be so selfish and quit worrying about materialistic things and worry about the better being of others but be kind n respectful to your self at the same time
I NEED HELP PLEASE PLEASE I BEG
The article claims "Import taxes from 60% to 100% in the world's fourth-largest car market rank among the highest globally, drawing criticism from companies such as Tesla Inc (TSLA.O)Links to an external site., which shelved entry plansLinks to an external site. because of the high tariffs." Why is it that the Indian government has allowed so far 60% - 100% tariffs on imported cars? Your answer needs to be found in the article OR in the chapter that you learnt (3). NOT in Internet desktop research! (50-75 words, 5 pts).
Why are Maruti Suzuki, Tata Motors and Mahindra resisting this change? Again, use the article and what you have learnt in class. NO desktop research. (50 words max, 4 pts).
All else equal, would the WTO - a priori - be pleased about this potential development? Meaning a possible reduction of Import Taxes or Tariffs. If yes why? If no why? (50 words max, use your arguments based on the textbook material AND/OR Internet research here!, 3 pts)
Say you're a resident of India, and you were planning to buy a Range Rover made in the UK. All else equal, and given this article, and given you have the money available to buy the car - would you, a priori, buy the car or postpone your purchase? If yes why? If no why? (50 words max, 3 pts)
PLEASE I NEED HLEP
The Indian government has allowed such high tariffs on imported cars in order to protect domestic car manufacturers such as Maruti Suzuki, Tata Motors and Mahindra, who would otherwise face competition from foreign companies and face a possible decrease in their market share.
What is domestic?Domestic refers to activities or relationships that occur within a country or nation, such as domestic policy, domestic trade, domestic travel, and domestic affairs. Domestic activities are usually distinguished from international activities, as those that occur between two or more countries. Domestic activities are generally related to the internal affairs of a country and its citizens, including political, social, and economic issues.
Maruti Suzuki, Tata Motors and Mahindra are resisting the potential change because they are concerned that they would be unable to compete against foreign companies, who would be able to offer cheaper cars due to the lower tariff rates.
The WTO would not be pleased with this potential development because it is against their objective of free trade and would create an uneven playing field between domestic and foreign companies.
If I were a resident of India and planning to buy a Range Rover made in the UK, I would postpone my purchase because the high tariff rates would make the car much more expensive than it would normally be. This would mean that I would have to pay significantly more for the same car than if I had bought it from a domestic manufacturer.
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what is it you would want to find in a friend
A Loyalty
B Kindness
C Intelligence
D Braveness
Answer: Loyalty
Explanation: I would want a loyal friend because in all sorts of situations they will be there for you, even if they are not intelligent or kind, they are still your friend and would stand up for you, be there at your lowest, but sometimes you have to return the favor.
The coupon rate on a debt issue is 9%. If the yield to maturity on the debt is 8%, what is the after-tax cost of debt in the weighted average cost of capital if the firms tax rate is 35%?
The after - tax cost of debt, based on the firm's tax rate and the yield to maturity is 5.2 %
How to find the after - tax cost of debt?The after - tax cost of debt refers to the interest rate paid on the debts that a company has, after the tax has been adjusted for. This is an important rate because debt is a tax deductible expense.
The after - tax cost of debt is found by the formula:
= Cost of debt x ( 1 - tax rate)
The cost of debt is the yield to maturity.
The after - tax cost of debt is:
= 8 % x ( 1 - 35%)
= 5.2%
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SELECT AN ORGANISATION OF YOUR CHIOCE.
1.1 SUMMARISE THE NATURE OF BUSINESS
1.2 SUMMARISE THE BUSINESS MODEL
1.3 WHAT ARE THE KEY BUSINESS DRIVERS
2.1 NATURE OF DECISION DESCRIBING WHAT DECISION NEEDED TO BE MADE AND WHY
2.2 SUMMARISE HOW WAS THE DECISION MADE
2.3 ANALYSE THE DECISION MADE AND DESCRIBE IF A QUALITATIVE OR QUANTITATIVE APPROACH WAS USED AND JUSTIFY YOUR RESPONSE
2.4CONFIRM WHY WAS THIS APPROACH TAKEN BY THE BUSINESS AND APPRAISE THIS APPROACH FROM RISK MODELLING PERSPECTIVE
3.1 USING THE SELECTED BUSINESS DECISION FROM ABOVE, IDENTIFY AT LEAST 5 RISKS THAT NEEDED TO BE CONSIDERED TO MAKE THE SAME
3.2 USING THE RISK REGISTER IN THE PREVIOUS SECTION, CONDUCT A QUALITATIVE RISK ANALYSIS FOR THESE 5 RISKS BY PROPOSING THE PROBABILITY OF OCCURRENCE AND IMPACT FOR EACH RISK
3.3 USING A MATRIX INCLUDED IN APPENDIX A, PLOT THE RISKS ON A HEAT MAP AND EXPLAIN WHAT THE MAP MEANS
4.1 USING THE REGISTER DERIVED IN QUESTION 3.1, CALCULATE THE AVERAGE IMPACT (EXPECTED MONETARY VALUE) USING AGGREGATION OF STATIC VALUES
4.2 SUMMARISE WHAT DOES THIS AVERAGE IMPACT VALUE MEANS FOR THE ORGANISATION
5.1 USING THE REGISTER FROM 3.1, CALCULATE THE 5 POSSIBLE EXPECTED MONETORY VALUES USING THE AGGREGATION OF THE RISK DRIVEN OCCURRENCES METHODOLOGY
5.2 DESCRIBE THE RESULT OF THIS METHODOLOGY USING AN APPROPRIATE DIAGRAM
5.3 SUMMARISE WHAT DOES THIS AVERAGE IMPACT VALUE MEANS FOR THE ORGANISATION
An organization that will be analyzed in this context is Coca-Cola.1.1 Summary of the nature of the business:Coca-Cola is one of the most well-known beverage manufacturers in the world. They create fizzy drinks, juices, and water for a variety of markets.
Their drink portfolio includes more than 200 brands sold in over 200 countries.1.2 Summary of the business model:Coca-Cola Company follows a business model based on creating strong brands that generate significant customer demand.
Their main goal is to build and enhance brand equity. They engage in extensive advertising and promotion campaigns to attract more consumers.1.3 What are the key business drivers:Coca-Cola's essential business drivers are its brand, extensive distribution network, market reach, product innovation, customer satisfaction, and product differentiation.2.1 Nature of decision describing what decision needed to be made and why:The business decision that was taken by Coca-Cola was regarding the selection of the right marketing mix, which is a critical decision.
This allowed them to gain valuable insights into how the consumers perceive their products, which they could use to develop targeted marketing strategies. From a risk modeling perspective, the approach is beneficial because it allows the company to minimize the risks by identifying the issues that consumers may face with their products.3.1 Using the selected business decision from above, identify at least 5 risks that needed to be considered to make the same:1. Competition from other beverage manufacturers2. Consumer preferences and behavior3. Changes in market trends4. Fluctuating economic conditions
5. Changing health and safety regulations3.2 Using the risk register in the previous section, conduct a qualitative risk analysis for these 5 risks by proposing the probability of occurrence and impact for each risk:The following table shows the qualitative risk analysis for the five risks that were identified:RiskProbabilityImpactCompetitionMediumHighConsumer preferences and behaviorHighHighChanges in market trendsLowHighFluctuating economic conditionsHighMediumChanging health and safety regulationsLowMedium3.3 Using a matrix included in Appendix A, plot the risks on a heat map and explain what the map means:The risks were plotted on a heat map, as shown below:The heat map shows that the competition and consumer preferences risks have a higher probability of occurrence and impact, while the changes in market trends and health and safety regulations have a lower probability of occurrence and impact.4.1 Using the register derived in question 3.1, calculate the average impact (expected monetary value) using aggregation of static values:
The five possible expected monetary values are calculated by multiplying the probability of each risk and the range of possible impacts.RiskProbabilityImpactRange of possible impactsExpected Monetary ValueCompetitionMedium$2,000,000-$4,000,000$1,200,000Consumer preferences and behaviorHigh$3,000,000-$5,000,000$3,000,000Changes in market trendsLow$1,000,000-$3,000,000$300,000Fluctuating economic conditionsHigh$1,000,000-$2,000,000$1,200,000Changing health and safety regulationsLow$500,000-$1,000,000$50,000Total Expected Monetary Value$5,750,0005.2 Describe the result of this methodology using an appropriate diagram:The following diagram shows the possible expected monetary values for the five risks:5.3 Summarize what does this average impact value mean for the organization:
The average impact value means that the Coca-Cola Company could potentially lose an estimated $5,750,000 due to the five risks that were identified. This value represents the range of possible impacts that the company may face, given the probability of occurrence of each risk. The company can use this information to identify the risk mitigation strategies that are required to minimize the impact of these risks.
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How does a low credit score affect a person who applies for a loan?
A. It makes banks more likely to give the person a large, long-term
loan.
B. It causes banks to charge the person higher interest rates on the
loan.
OC. It makes it easier for the person to get a loan with a poor debt-to-
income ratio.
D. It allows banks to give the person a loan without checking his or
her tax records,
A person who requests for a loan and has a low credit score will be subjected to higher interest rates from banks. As a result, choice (B) is accurate.
Between 300 and 550 is regarded as a low credit score. You must make significant efforts to raise your credit score if it is in this area. You will not be qualified to apply for a loan or a credit card if you have a low credit score.
Whether it's a car loan, mortgage, or credit card account, borrowing can be more difficult if you have a poor score interest rates. And even if you are approved, your high risk of default means that you will probably have to pay higher interest rates.
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