the effective-interest method of amortization results in varying amounts of amortization and interest expense per period but a constant interest rate. true or false?

Answers

Answer 1

The given statement "The effective-interest method of amortization results in varying amounts of amortization and interest expense per period, but it uses a constant interest rate." is true because the varying amounts of amortization and interest expense is because the book value of the asset decreases over time, so the amount of interest expense and amortization expense also decreases.

The constant interest rate is used to calculate the interest expense for each period, based on the book value of the asset. This method is used to provide a more accurate representation of the true cost of an asset over its useful life, rather than simply allocating the cost evenly over the life of the asset.

The effective-interest method of amortization is widely used in accounting and is an important concept to understand for financial reporting purposes.

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Related Questions

Which of the following is false with regards to corporations? O Many privately held corporations are referred to as a closely held corporations. The stock of publicly held corporations are traded on stock exchanges. O Privately held corporations tend to have more shareholders than publicly traded corporations. As a legal entity, corporations have not only many rights and privileges but also many duties and responsibilities. O All of these are true.

Answers

Privately held corporations tend to have more shareholders than publicly traded corporations.

Thus, A corporation has a different legal position than its shareholders. Numerous legal rights and obligations apply to corporations just as they do to people. They have the capacity to sign contracts, disburse and receive loans, bring legal actions, hire staff, possess property, and file taxes.

One of a corporation's distinguishing characteristics is its restricted liability. Although they are not individually responsible for the company's debts, shareholders benefit from dividends and stock appreciation.

Corporations make up the majority of large companies like Microsoft and Coca-Cola. Some businesses, such as Alphabet Inc., conduct business both under their own names and multiple trade names.

Thus, Privately held corporations tend to have more shareholders than publicly traded corporations.

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Which of the following phrases best describes the accomplishment to be listed on a résumé?
a Top producer
b. The leading producer
C. Top producer of 37 employees
d. Top producer by a lot

Answers

Top producer of 37 employees. Achievements help prospective employers identify individuals who are results-oriented and committed to the best way to describe an achievement on a resume.

This action research study then found that by sharing TED Talk sequences, student public speaking productions are more organized and Text analysis includes searching for keywords, relationships between meaning and meaning, translation, interpretation and extrapolation. I owe the greatest debt of gratitude to my colleague Jennifer Jenkins, who runs the At Least the Giant Culture Producers Can You hit the nail on the head and defined the whole thing. Most of the voices, producers and directors are emotionally attached to these teams.

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roughly 5% of all taxes paid by business in the united states are to state, local

Answers

The statement 'Roughly 5% of all taxes paid by businesses in the United States are to state, local, and municipal jurisdictions' is false as it is underestimation.

While the exact percentage of taxes paid by businesses to state, local, and municipal jurisdictions may vary, it is generally higher than 5%. Businesses in the United States are subject to various taxes, such as property tax, sales tax, and income tax, which contribute to their overall tax burden.

The distribution of these taxes across federal, state, and local levels depends on the specific tax policies and regulations of each jurisdiction. In some cases, the combined state and local tax burden can be substantial, making the 5% figure an underestimation.

It is estimated that about 40% of all business taxes are paid to state, local, and municipal jurisdictions. Hence, the statement is false.

Note: The question is incomplete. The complete question probably is: Roughly 5% of all taxes paid by businesses in the United States are to state, local, and municipal jurisdictions. True or False.

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part of the explanation for why the aggregate-demand curve slopes downward is that a decrease in the price level group of answer choices decreases the interest rate. all the options listed here are correct increases the real value of the dollar in foreign exchange markets. decreases the real value of money.

Answers

The aggregate-demand curve slopes downward is that a decrease in the price because b)"Increases the real value of the dollar in foreign exchange markets."

The wealth effect, which holds that when prices drop, the actual value of money rises, may be one of the causes of the aggregate-demand curve's downward slope.

This, therefore, causes interest rates to drop, which encourages investment and consumption spending.

The real value of the dollar may, however, rise as a result of a fall in money demand and an increase in demand for other currencies as a result of the interest rate reduction.

U.S. products and services become comparatively more expensive for foreign consumers when the real value of the dollar rises, which lowers exports and, as a result, lowers the total demand for goods and services in the economy.

This feedback mechanism is captured by the downward slope of the aggregate demand curve.

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Correct question:

Part of the explanation for why the aggregate-demand curve slopes downward is that a decrease in the price level

a) decreases the real value of money.

b) increases the real value of the dollar in foreign exchange markets.

c) decreases the interest rate.

d) All of the above are correct.

Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $64,000 per year for 8 years. At the beginning of the project, inventory will decrease by $23,200, accounts receivables will increase by $24,600, and accounts payable will increase by $17,700. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $276,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $66,000. What is the net present value of this project given a required return of 10.9 percent?

Answers

The first step in calculating the net present value (NPV) of the project is to determine the total cash flows, both inflows and outflows. In this case, the initial outflow is the cost of the molding machine, which is $276,000. Therefore, the net present value of the project is $28,467.90  indicating that the project is expected to generate a return that exceeds the 10.9%. Therefore, Jasper Metals should undertake the project.

The annual operating cash flows are $64,000, but we need to adjust for the changes in net working capital (NWC). The decrease in inventory of $23,200 and the increase in accounts receivable of $24,600 both represent cash outflows, while the increase in accounts payable of $17,700 represents a cash inflow. Therefore, the total annual cash flows are:
$64,000 - $23,200 + $24,600 - $17,700 = $47,700
These cash flows occur for 8 years, so the total cash inflows are:

$47,700 x 8 = $381,600
At the end of the project, there is also a cash inflow of $66,000 from salvaging the equipment. To calculate the NPV, we need to discount these cash flows back to the present using the required return of 10.9%. Using a financial calculator or spreadsheet, the NPV is calculated to be:
NPV = -$276,000 + ($47,700 / 1.109) + ($47,700 / 1.109^2) + ... + ($47,700 / 1.109^8) + ($66,000 / 1.109^8)
NPV = -$276,000 + $311,643.08 + $279,330.08 + ... + $95,611.21 + $24,882.43
NPV = $28,467.90

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an employee can be dismissed if their job surplus to requirements' outline why this state ment is false

Answers

Hiring labour is different from buying other goods and services, and the contract between the employer and the employee is incomplete. It does not cover what the employer really cares about, which is how hard and well the employee works.

High-Low Cost Estimation and Simple Regression Analysis


Assume we have the following observations relating to overhead costs and direct labor hours for Department A of the ABC Company.


Direct Labor Hours Overhead Costs

15 40

20 50

14 35

13 30

18 44

15 36

12 31

16 41

18 42

19 45

Required:


1. Determine the budgeted overhead costs for Department A in a month where there are 13 direct labor hours if the high-low method of estimating cost behavior patterns is used.


2. Using regression analysis determine what the budeted overhead cost should be in a month when Department A should work 13 direct labor hours.


3. Does the regression line in #2 explain the data well? Why?


4. What is the range within which 95 percent of the observations should lie?

Answers

a) Equation: Y = 2.5 + 2.375x

b) Overhead = $32.511

c) The output's adjusted r square value is 92%.

d) The z value is 1.96 for 95%.

Equation:

Y = a + bx

Y = overhead cost

X = direct labor hours

b = (highest overhead cost - lowest overhead cost) / (labor hrs at highest cost-labor hrs at lowest cost)

b = (50 - 31) / (20 - 12)

b = 2.375

at 20 labor hrs cost is 50

50 = a + (2.375 * 20)

a = 2.5

The equation is Y = 2.5 + 2.375x

for 13 labour hrs the cost is = 2.5 + (13 * 2.375) = 33.375

b) overhead cost = 2.65 + 2.297 * direct labour hours

Overhead = 2.65 + (13 * 2.297) = 32.511

c) Adjusted r square value from the output is 92% which says how well the dependent variable is explained by the independent variable. Since it is high it explains the data well

d) for 95% the z value is 1.96

Z = (x - mean) / std

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High-Low Cost Estimation and Simple Regression AnalysisAssume we have the following observations relating

Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?

Answers

Answer:

Option A

Explanation:

The complete question is

Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?

a) 2 hours

b) 1 hour

c) 1 hour and 40 minutes

d) 90 minutes

Solution

There are four lanes.

Capacity of one lane is equal to 1,000 vehicles/lane/hour.

Let us say that each lane will provide access to equal number of vehicles

Thus, each lane will allow 10,000/4 = 2500 vehicles per hour

Time taken by 2500 vehicles on road to reach parking is equal to 2.5 hours.

The nearest answer to this option A i.e two hours

Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.

Answers

25 tickets

($14)(25)=$350
($25)(11)=$275
$350+$275= $625

Which of the following includes a list of the sources of capital and the projected income and expenses of the business?
answer choices
Financial plan
Executive Agenda
Marketing Plan
Business Agenda

Answers

The concept here is a Financial plan, these are documents an individual's long-term financial goals and creates a strategy for achieving them. An answer is option, A.

A financial plan is a comprehensive assessment of an individual's current salary and future financial situation using currently known variables to predict future income, assets, and payment schedules.

A financial plan is sometimes referred to as an investment plan, but in the area of ​​personal finance, a financial plan may focus on other specific areas such as risk management, wealth, education, or retirement. Financial planning helps you achieve your financial goals, such as: buying a family home, saving for your children's education, and securing a comfortable retirement or a dream vacation.

It also prepares you for unexpected situations and emergencies, such as Illness, job loss, or the need to renovate your home. Identification of future investment needs, and determination of funding sources. The effective management or use of these funds.

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QUESTION 5 of 10: Since you rely on your parent/guardian for your food, shelter, and clothing, you are considered:
a) Lucky
b) Resourceful
c) Adependent
d) An independent

Answers

Answer:

C) A dependent

Explanation:

You depend on other people for what you want

Depend = rely = same thing different way that it is written

You are depending on your parent/guardian for food, shelter, and clothing.

d is incorrect because you are not being independent, since you are not doing it yourself

Resourceful, nahh.

Lucky...how is that considered lucky, I mean yh ur lucky you have them but in this case no

Hope this helped!

Have a supercalifragilisticexpialidocious day!

C. Adependent

Means your Co dependent

Convenience goods like Coke are available almost everywhere in the United States. Thus, Coke uses ______ distribution:

Answers

Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.

This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.

Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.

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13. When talking about interest with saving and investing, which option below is correct?
a)Both saving and investing interest works the exact same.
b)Risk and interest have no correlation, so you can do either one and always get a return.
c)) Savings interest is simple, while investing interest is compounded.
d) Investing interest is simple, while saving interest is compounded.

Answers

The correct option is c) Savings interest is simple, while investing interest is compounded.

When it comes to interest with saving and investing, it's important to understand the key differences between the two.

Saving interest refers to the amount earned on the principal amount deposited into a savings account, typically calculated using a simple interest formula. This means that the interest earned is based solely on the initial principal and does not accumulate over time.

On the other hand, investing interest involves the growth of funds through various investment vehicles such as stocks, bonds, or mutual funds. Investing interest is usually compounded, meaning that the interest earned is added to the principal and then reinvested to generate additional returns. This compounding effect allows investments to potentially grow at an accelerated rate over time.

It's crucial to note that risk and interest are indeed correlated in the realm of investing. Higher-risk investments tend to offer the potential for higher returns but also carry a greater chance of loss. In contrast, savings accounts are generally considered low-risk investments with lower interest rates.

Therefore, option c) accurately captures the distinction between saving and investing interest by highlighting that savings interest is simple (not compounded) while investing interest is typically compounded.

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Conduct a SWOT analysis for IBM’s ""Let’s Put Smart To Work"" initiative. What are the relevant trends to consider?

Answers

Such relevant trends to consider are as follows:

StrengthWeaknessOpportunitiesThreats

Strength - IBM would be strongly responsible for collecting and analyzing information to enhance a firm, organization, city.Weakness - There are no links between the other technologies that are weak throughout the IBM Intelligent Planet program.Opportunities - Throughout the economies such as China, India, as well as Africa, IBM attempts to take over.Threats - IBM will face the change from natural resource companies to more customized companies.

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SWOT analysis helps organization to identify their strengths and grow their business by availing the opportunities.

IBM is International Business Machine which is an American technology organization having head quarter in New York.

The SWOT analysis is give below :

Strength : The company have expertise in designing intelligent computers which enable the users to run different business applications.

Weakness : The company has not worked for compatibility and they have not designed laptops which are more easy to carry and handle than the desktop computers.

Opportunity : By using economies of scale technique the company can grow its business to different parts of the world and can gain from International market.

Threats : There can be cyber crime or hacking of intelligence programs which are designed at IBM. There is need for strict cyber controls in the organization.

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A Web site is an example of a cross channel of communication.
A. True
B. False

Answers

true would be the correct answer

Two qualities that a good ___________ should have are to be persistent and not accept rejection.
A). product manager
B). founder
C). salesperson
D). account manager

Answers

i say C makes the most since in the sentence

Assume the exchange rate between the U.S. and India is $1= Rs73.58. If currently selling in India for Rs 7,358 . holds, an item that sells for $100 in the US. is Multiple Choice a) international Fisher effect. b) unbiesed forward rates condition. c) uncovered interest rate parity. d) interest rate parity. e) purchesing power parity.

Answers

The purchasing power parity theory holds true in this scenario, as the price of the item in India is equal to the price of the item in the US when converted to the same currency.

Purchasing power parity (PPP) is a theory that states that the prices of goods and services should be the same in different countries when they are converted to a common currency. In this case, the price of the item in India (Rs 7,358) is equal to the price of the item in the US ($100) when converted to the same currency (USD). This means that PPP is holding true in this scenario.

The other answer choices are incorrect because they do not refer to PPP. International Fisher effect is a theory that states that the difference in interest rates between two countries should be equal to the expected rate of change in the exchange rate between those two countries.

Uncovered interest rate parity is a theory that states that the difference between the spot exchange rate and the forward exchange rate should be equal to the difference in interest rates between two countries. Interest rate parity is a theory that states that the interest rate on a foreign currency deposit should be equal to the interest rate on a domestic currency deposit plus the expected rate of change in the exchange rate between the two currencies.

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According to the video, which qualities do Lawyers need? Select all that apply.

x mechanical skills
x aggressiveness
intelligence
x physical fitness
determination
moral and ethical integrity
people skills

According to the video, which qualities do Lawyers need? Select all that apply.x mechanical skillsx aggressivenessintelligencex

Answers

Answer:

C E F G

Explanation:

According to the video, The qualities Lawyers need, The first is intelligence, the second one was determination, moral and ethical integrity people skills.

What are skills?

A skill is the acquired capacity to move with deliberate intent and good execution, frequently in a pre-determined window of time or energy or both. Domain-general and domain-specific skills are two common categories of skills.

As, The qualities the lawyer needs in the Curveballs will probably be thrown throughout a case session, and they must be able to understand them and react accordingly.

As, The important quality, the lawyer needs is zeal for one's work. Successful attorneys nearly usually have a genuine enthusiasm for what they do as a profession.

Therefore, The right option (C, E, F, G)) is correct.

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Specialty Products Company has a high turnover rate among its employees, especially those
who are young parents. Solution to this problem

Answers

The company has to first investigate the reason why young parents are leaving the company. This is the first step towards resolving the issues of high turnover.

If it is because of the inability to care for their kids while at work, then the company can solve this problem by:

First modifying the company policy to allow mothers to bring their babies to work;Second, providing a safe place within the workspace for the children to play during work hours.Third, a flexible work structure can be given to young parents.

What is high turnover?

Turnover in human resources refers to the act of replacing one employee with a new employee. Termination, retirement, death, interagency transfers, and resignations are examples of separations between organizations and personnel.

Turnover in human resources refers to the act of replacing one employee with a new employee. Termination, retirement, death, interagency transfers, and resignations are examples of separations between organizations and personnel.

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HELP ASAP PLEASE
The CPI is calculated by comparing
the spending levels at the beginning of
each year to the end of each year. In
this way, the calculation is similar to
what?
A. Unemployment
B. Inflation
C. Circular Flow Model

Answers

C . Circular Flow Model is an economic model that shows the flow of money through the economy.

Answer:inflation

Explanation:

1. Buyers, sellers, and producers all have someone else they are competing with for economic benefits. This is known as:
O competition
O monopoly
O collusid
O cartels

Answers

Answer:monopoly

Explanation:

More conservative adjusting entries usually lead to better predictors of a.future earnings or cash flows. b.retained earnings. c.tax payments.

Answers

More conservative adjusting entries usually lead to better predictors of future earnings or cash flows.

Adjusting entries are made at the end of an accounting period to ensure that the financial statements accurately reflect the company's financial position and performance. The level of conservatism in adjusting entries can impact the predictors of future earnings or cash flows. Here's an explanation for each option:

a. Future Earnings or Cash Flows: More conservative adjusting entries, which involve recognizing expenses or losses earlier and recognizing revenues or gains later, can lead to a more conservative estimation of future earnings or cash flows.

By being more cautious and conservative in recognizing income and expenses, the financial statements provide a more realistic picture of the company's future performance.

b. Retained Earnings: Retained earnings represent the accumulated profits of a company that are not distributed to shareholders as dividends. More conservative adjusting entries can impact retained earnings by reducing reported income and, consequently, the amount available for retention.

Conservative adjustments help ensure that retained earnings reflect a more accurate representation of the company's financial position.

c. Tax Payments: While conservative adjusting entries can impact tax payments indirectly by affecting reported income, they do not directly determine tax payments. Tax payments are primarily based on tax regulations and applicable tax rates, rather than the level of conservatism in adjusting entries.

In summary, more conservative adjusting entries generally lead to better predictors of future earnings or cash flows by providing a more realistic and cautious representation of a company's financial performance.

The impact on retained earnings is also influenced by conservative adjustments. However, tax payments are primarily determined by tax regulations and rates, rather than the level of conservatism in adjusting entries.

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PLZ HELP: FIND THE PROFIT
Fixed costs are £26,000 per year, and variable costs include wages at £10 per
unit, raw materials at £12 per unit and delivery/packaging at £3 per unit. It is expected that a business will make and sell 750 units during the year, with
a selling price of £26.

Answers

Answer:

Net loss -£25,250

Explanation:

The computation of the profit is shown below:

Sales (750 units × £26) £19,500

Less: Variable cost  (750 units × £25) £18,750

Contribution margin £750

Less: Fixed cost £26,000

Net loss -£25,250

The £25 could be calculated below:

= £10 + £12 + £3

= £25

Basically applied the above format

Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends.
Required:
1. Prepare a statement of cash flows for the year.
2. What does this statement tell you that an income statement does not?

Answers

Based on the given figures for Colorado Corporation, the statement of cash flows for the year would be:

Cash flow for Operating Activities

Cash from customers                                                                  93,970  

Less:

Cash for inventory                                                65,600

Salaries and Wages                                             20,400

Taxes                                                                       3,100           ( 89,100)

Net Cash from Operating Activities                                            4,870  

Cash flow from Investing Activities

Purchase of office building                                                      (210,000)

Net cash used for Investing Activities                                     (210,000)

Cash flow from Financing Activities

Issuance of Common stock                                                     250,000

Note Payable                                                                              60,000

Dividend payment                                                                      (5,600)

Net cash from Financing Activities                                        304,400

Net increase in cash                                                                 99,270

Opening cash balance                                                                      0

Closing cash balance                                                                99,270

What does the statement of cash flows show?

It shows transactions that involve actual cash being spent or gained by the company.

This allows Colorado Corporation to know the actual amount of cash it has for operations.

An Income statement on the other hand, shows the transactions that a business gets involved in regardless of whether they involve actual cash or not. This means that it cannot show the actual amount of cash that a business has.

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bouvous corp has two regional offices. the data for each are as follows: bouvous corp data maryland new jersey revenues $291,000 $303,000 operating assets $2,700,000 $4,700,000 net operating income $1,000,000 $1,500,000 what is the return on investment for the new jersey division?

Answers

To calculate the return on investment (ROI) for the New Jersey division of Bouvous Corp, we need to divide the net operating income by the operating assets. ROI = 0.3191 or 31.91%

So, the ROI for the New Jersey division can be calculated as follows:
ROI = Net Operating Income / Operating Assets
ROI = $1,500,000 / $4,700,000
ROI = 0.3191 or 31.91%
This means that the New Jersey division of Bouvous Corp has generated a return of 31.91% on its investment in operating assets. This is a healthy ROI and indicates that the division is performing well in terms of generating income from its assets.
However, it's important to note that we don't have any context for this ROI. We don't know what the industry benchmark is, or how this ROI compares to other divisions within Bouvous Corp. Without this information, it's difficult to assess whether the New Jersey division is performing exceptionally well or just meeting expectations.

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Why is it important for employees to be motivated at work?

Answers

Answer: I think it's essential for employees to be motivated because If not then co-workers and customers will look at you as if you don't care. If you want to keep the job I think you should always at least try to stay motivated. Get the job done then go home.

Explanation: If you want to keep your job you should always try to stay motivated.

Benny's Baos had an edge in the market, but other companies began to enter the market. Benny is now losing customers even though he has launched an aggressive marketing campaign in an attempt to attract customers. Benny's Baos is likely in the ______ stage of the industry life cycle.

Answers

Since the company is losing customers despite aggressive marketing campaign, then, it is most likely in the decline stage of the industry life cycle

What is an industry life cycle?

The industry life cycle is a cycle that depict the an industry based based on the business characteristics in different phases.

The phases of the industry life cycle includes:

introductiongrowthmaturitydecline stages.

In conclusion, because the company is losing customers despite aggressive marketing campaign, then, it is most likely in the decline stage of the industry life cycle.

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Two partners are working on a project together. Each partner works on her own part, and each can put in effort or not, after which the project outcome is realized. Neither partner observes the effort put in by the other before making their effort choice. The project is most successful if both put in effort, somewhat successful if only one partner puts in effort, and least successful if neither puts in effort. Both partners rank the outcome where they both put in effort the highest---effort is costly, but is worth it with joint effort. Both partners rank the outcome in which neither put in effort second-best---even though the project is not that successful, neither feels guilty or let-down by the other. However, each partner would rather be the only one who did not put in effort rather than the only one who did.

Answers

Answer:

The two partners did not put efforts in the project and the project is unsuccessful.

Explanation:

The both partners should put the efforts in the project to make it successful. The both partners are in a chance that other will make efforts and the project will be somewhat successful but since both the partners did not make efforts the project becomes unsuccessful.

The number of minorities in the workforce is?

Answers

Answer:

increasing

Explanation:

i got it from quizlet so if its not right im sorry i tried my best !!

Although using a multi-car insurance policy can be a great way to reduce premium costs, when does bundling actually increase rates?
PLz help will mark brainlies

A. None of these
B. After Jack and Diane finally got married, they bundled their automobile insurance policies and moved into a small town far from the city
C. Adding a 17-year-old driver to the account that has 3 points issued by the State of New Jersey
D. Taking off a 20-year-old driver on the policy that began college in New York City and has less need for a vehicle

Answers

Answer:

I believe it's C.

Explanation:

Insurance policies usually have a higher cost for Young drivers because they are seen as more of a risk so this would be the option where the cost would increase by bundling

B. seems like it would save money or at least just keep the same rates

D. seems like it would decrease rates

hope this helps and if im wrong comment <3

The bundling rate will increase when a 17-year-old driver is added to the account that has 3 points which are issued by the State of New Jersey.

An insurance is a protection against a financial loss. A multi-car insurance policy is a policy whereby different vehicles are covered under one insurance policy.

Under the multi-car insurance policy, there is a discount gotten for every car that's added. Despite this, adding a 17 year old driver to the account is a high risk and this will be taken into consideration by the insurance company.

It should be noted that getting married and taking off the 20 year old driver will not increase the rates.

Therefore, due to the addition of the 17 year old, there may be an increase in rate.

In conclusion, the correct option is C.

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https://brainly.com/question/13769098

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