Sticky wages and prices refer to the phenomenon where they do not immediately respond to changes in supply and demand, causing a delay in market equilibrium.
Sticky wages and prices are what is meant when they do not react swiftly and completely to changes in supply and demand in a market. As a result, market equilibrium may take longer to reach since fluctuations in supply and demand will cause either a temporary shortfall or a surplus.
Long-term contracts or societal conventions, for example, might contribute to this delay by preventing salaries and prices from quickly responding to market realities. Economic inefficiencies and inefficient use of resources may emerge from this.
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The correct question will be: What are consequences of sticky wages/prices not adjusting to supply/demand, and how might this impact stakeholders in the market?
Sticky wages and prices refer to the phenomenon where they do not immediately respond to changes in supply and demand, causing a delay in market equilibrium.
Sticky wages and prices are what is meant when they do not react swiftly and completely to changes in supply and demand in a market. As a result, market equilibrium may take longer to reach since fluctuations in supply and demand will cause either a temporary shortfall or a surplus. Long-term contracts or societal conventions, for example, might contribute to this delay by preventing salaries and prices from quickly responding to market realities. Economic inefficiencies and inefficient use of resources may emerge from this.
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. What kinds of issues might managers in the company face where the mission statement could be used to justify an initiative, expenditure of funds, or other resources? _______________________
As the mission statement, may be ignored by the all senior management. As there are causing employees to become misanthropical.
What is management?As, the management is referring as In order to achieve desired goals and objectives, a person or group of people must be challenged and managed, according to the concept of management. Furthermore, the capacity to organize.
Expenditure of funds - As in the mission statement the finance play a vital role in it, as by the financial missions, the goals and reminds you why you're looking to accomplish them.
Therefore, As a result, there are several issues are faced by the mission statement (Generalization, Confusion, The 3 C's of Communication) are there in it.
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Which of the following is a way to track your spending?
A. Spreadsheet budget
B. Envelope method
C. An app
D. All of the above
All of the above that is spreadsheet budget, envelope method and an app is a way to track your spending.
What is a budget?
A budget is a calculation plan, typically money but not always, for a specific time frame, typically one year or one month. Predicted sales and revenue amounts, resource quantities (such as time, costs, and expenditures), environmental impacts (such as greenhouse gas emissions), other impacts, assets, liabilities, and cash flows are all possible inclusions in a budget. Budgets are a measurable way for businesses, governments, families, and other organizations to communicate their strategic plans of action. Although budgets are used by both businesses and governments to keep track of revenues and expenses, you may be most acquainted with them as a tool for managing your personal finances.
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vaughn's cvp income statement included sales of 5000 units unit selling price of 300, unit variable cost of 180 and fixed expenses of 150000. contribution margin is
If Vaughn's CVP income statement shows sales of 5,000 units with a selling price of $300, unit variable cost of $180, and fixed expenses of $150,000, then the contribution margin is $120 per unit.
The contribution margin represents the amount of revenue available to cover fixed expenses and contribute towards profit after deducting variable costs. To calculate the contribution margin per unit, we subtract the unit variable cost from the unit selling price.
Given:
Unit selling price = $300
Unit variable cost = $180
Contribution margin per unit = Unit selling price - Unit variable cost
Contribution margin per unit = $300 - $180
Contribution margin per unit = $120
The contribution margin of $120 per unit indicates that for each unit sold, $120 is available to contribute towards covering fixed expenses and generating profit.
It represents the amount that can be allocated to cover fixed costs, such as rent, salaries, and other expenses, while still leaving room for profit.
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choose the best word or phrase to complete each sentence
The best word or phrase to complete each sentence is option D. in. There’s no point in staying up all night if your exam is tomorrow. The correct answer is in.
What is a preposition?A preposition is a word that shows relationship between two nouns. Preposition also indicate relationship between the elements of a clause or words. Preposition also indicates position, location and direction. For examples, in, of, at, into, above, over, etc.
Therefore, in the above sentence, preposition 'in' is used to express involvement in an activity.
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There’s no point _________ staying up all night if your exam is tomorrow.
a) On
b) With
c) Of
d) In
What is a product mix ?
Your office is hosting a big meeting with some of its international
clients. During the meeting, one of the clients asks numerous,
very detailed questions. She also wants to see your risk
management plan. Which of these countries is she probably
from?
O Mexico
O United States
O Germany
O Ireland
Using ________, consumers choose messages to which they pay attention.
Using Selective attention the customers choose messages to which they pay attention.
Selective attention is a natural and automated manner that occurs whilst customers are presented with a massive amount of facts and stimuli, but the best pick is to focus on a small subset of them.
This selection manner is stimulated by way of different factors, together with private interests, motivation, relevance, and novelty, in addition to the context wherein the facts are supplied.
For example, clients may additionally pay greater interest to commercials that are relevant to their desires and pursuits, or which can be offered in an appealing or attractive way. in addition, consumers can be much more likely to notice new services or products which might be innovative or distinct from what they're used to.
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The dataset below eBayAuctions.csv contains information on 1972 auctions transacted on eBay.com during May–June 2004. The goal is to use these data to build a model that will distinguish competitive auctions from non-competitive ones. A competitive auction is defined as an auction with at least two bids placed on the item being auctioned. The data include variables that describe the item (auction category), the seller (his or her eBay rating), and the auction terms that the seller selected (auction duration, opening price, currency, day of week of auction close). In addition, we have the price at which the auction closed. The goal is to predict whether or not an auction of interest will be competitive.
eBayAuctions.csv
In R Your Job is To:
Step 1:
Preprocess the Data:
Create dummy variables for the categorical predictors. These include Category (18 categories), Currency (USD, GBP, Euro), EndDay (Monday–Sunday), and Duration (1, 3, 5, 7, or 10 days).
Bin the scheduled departure time into eight bins (in R use function cut()).
Use these and all other columns as predictors (excluding DAY_OF_MONTH).
Partition the data into training and validation sets.
Step 2:
Once you've preprocessed the data, complete the following:
Create pivot tables for the mean of the binary outcome (Competitive?) as a function of the various categorical variables (use the original variables, not the dummies). Use the information in the tables to reduce the number of dummies that will be used in the model. For example, categories that appear most similar with respect to the distribution of competitive auctions could be combined.
Split the data into training (60%) and validation (40%) datasets. Run a logistic model with all predictors with a cutoff of 0.5. If we want to predict at the start of an auction whether it will be competitive, we cannot use the information on the closing price. Run a logistic model with all predictors as above, excluding price. How does this model compare to the full model with respect to predictive accuracy? Then:
Run a logistic model with all predictors as above, excluding price. You need to do this because if we want to predict at the start of an auction whether it will be competitive, we cannot use the information on the closing price. Then:
Tell me: How does this model compare to the full model with respect to predictive accuracy? Then:
Interpret the meaning of the coefficient for closing price. Does closing price have a practical significance? Is it statistically significant for predicting competitiveness of auctions? (Use a 10% significance level.)
Use stepwise selection (use function step() in the stats package or function stepAIC() in the MASS package) and an exhaustive search (use function glmulti() in package glmulti) to find the model with the best fit to the training data. Which predictors are used?
Use stepwise selection and an exhaustive search to find the model with the lowest predictive error rate (use the validation data). Which predictors are used? Then Tell Me:
What is the danger of using the best predictive model that you found?
Why the best-fitting model and the best predictive models are the same or different.
If the major objective is accurate classification, what cutoff value should be used?
Based on these data, what auction settings set by the seller (duration, opening price, ending day, currency) would you recommend as being most likely to lead to a competitive auction?
I'm sorry, but as a text-based AI, I don't have the capability to directly pre process and analyze data or perform specific tasks in R. However, I can provide you with some guidance on how to approach the given tasks.
Step 1: Pre processing the Data
Load the dataset (eBayAuctions.csv) into your R environment.
Create dummy variables for the categorical predictors (Category, Currency, EndDay, and Duration) using appropriate functions in R (e.g., dummyVars() or model.matrix()).
Bin the scheduled departure time into eight bins using the cut() function in R.
Partition the data into training and validation sets, using a 60% - 40% split. You can use the createDataPartition() function from the caret package to achieve this.
Step 2: Model Building and Evaluation
Create pivot tables to analyze the relationship between the binary outcome (Competitive?) and the various categorical variables. Use these tables to identify categories that can be combined to reduce the number of dummy variables used in the model.
Split the data into training and validation datasets (already done in Step 1).
Fit a logistic regression model with all predictors (including the generated dummy variables) using the training dataset.
Assess the predictive accuracy of the logistic model by evaluating it on the validation dataset.
Fit another logistic regression model excluding the closing price variable and compare its predictive accuracy to the full model. Use the validation dataset for evaluation.
Interpreting the coefficients and significance:
Examine the coefficient for closing price in the logistic model that includes it. Determine its practical significance and statistical significance at a 10% significance level.
Interpret the meaning of the coefficient for closing price, considering its influence on the competitiveness of auctions.
Stepwise selection and exhaustive search:
Use stepwise selection (e.g., step() function) and an exhaustive search (e.g., glmulti() function from the glmulti package) to find the model with the best fit to the training data. Identify the predictors included in this model.
Use the same stepwise selection and exhaustive search techniques to find the model with the lowest predictive error rate using the validation data. Identify the predictors included in this model.
Danger of using the best predictive model:
Explain the potential danger of relying solely on the best predictive model found. Consider issues like overfitting, sensitivity to data changes, and generalization to new data.
Comparison between best-fitting and best predictive models:
Discuss whether the best-fitting model and the best predictive model are the same or different, based on your findings.
Cutoff value for accurate classification:
Determine the optimal cutoff value that should be used for accurate classification. You can use evaluation metrics like ROC curves, precision-recall curves, or cost-sensitive analysis to determine the cutoff.
Recommended auction settings for competitiveness:
Analyze the coefficients and significance of the predictors related to auction settings (duration, opening price, ending day, currency) to identify the settings most likely to lead to a competitive auction.
Remember to refer to R documentation and relevant statistical packages for specific syntax and functions to perform the required tasks.
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Given an actual demand of 63 a previous forecast of 58 and an alpha of .3 what would the forecast for the next period be using simple exponential smoothing ?
Answer:
The forecast for the next period based on simple exponential smoothing is 59.50
Explanation:
In determining the forecast for the period using the exponential smoothing approach, the below formula is of utmost importance:
forecast=(α*prior period actual)+(1-α)*prior period forecast
α =alpha=smoothing constant =.3
prior period actual=63
prior period forecast=58
forecast for the next period=(.3*63)+(1-.3)*58
forecast for the next period=18.90+40.60
forecast for the next period=59.50
what term is used to describe the approach taken by companies such as magicleap.com where physical and digital objects are able to co-exist and interact in real time?
The technological approach which enables the coexistence of digital and physical objects using immersive technology is a middle ground between Augmented and virtual reality called MIXED REALITY.
Augmented reality technology is capable of producing a real world representation of physical world using 3D representation.
Virtual reality on the other hand creates a visual experience of a computer simulated digital environment. Virtual reality usually requires the use of headset and sensors.
Mixed reality technology is inbetween virtual and Augmented reality as it allows the interaction between virtual and physical objects in real time. Applications of mixed reality the DAQRI smart helmet which allows communication and collaboration between teams in field such as Engineering and Architecture.
Therefore, mixed reality allows the coexistence of the virtual and physical world on real time.
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19- Substitute goods are goods that are:
Question 19 options:
a- jointly consumed.
b- competing for consumer spending.
c- used late in the game.
d- inferior.
e- normal.
Substitute goods are goods that are:
Option b- competing for consumer spending.
Explanation:
Substitute goods are products that can be used as alternatives to each other and are typically in direct competition for consumers' spending. For instance, if beef becomes more expensive, people might opt to buy chicken instead.
What are substitute goods and examples?
Substitute goods are defined as "Products that can satisfy some of the same customers' needs as each other" by the Cambridge Dictionary. The traditional examples of replacement goods include butter and margarine. Those without access to a car can get around by bus or bicycle.to allow device connectivity with age.
What are substitute goods in economics?
A substitute, or substitutable good, is a good that consumers perceive to be significantly similar to or sufficiently equivalent to another item in economics and consumer theory. A product that can be used in place of another is called a replacement.
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a company's ability to make interest payments and repay debt at maturity is referred to as a.profitability b.solvency c.liquidity d.leverage
Solvency is the capacity of a business to pay its debts, including interest, when they are due.
What is solvency?A company's capacity to meet its financial obligations is referred to as its "solvency." It involves more than just a company's ability to settle its current debts, though. Long-term financial stability is a prerequisite for financial solvency.
How does solvency get measured?The solvency ratio enables us to evaluate a company's capacity to fulfill its long-term financial commitments. After deducting depreciation, divide an industry's after-tax net income by the total of its liabilities to arrive at the ratio (short-term and long-term).
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A friend comes to you seeking advice. He got into trouble at work for not being a team player. He really likes his job and isn’t quite sure what to do. What suggestions would you give to your friend to help him improve? How might he respond to his boss? paragraph... hurry need it by tomorrow
Answer:
well he should apologize to his boss and everyone he wasn't a team player to because someone must have told his boss, and then proceed to say he with work with others better and mean it. hope this helps your "friend"
Explanation:
The response to hie boss is advice by a friend is that he should justify to his boss and everyone else who knew he wasn't a team player, and then proceed to say he will work better with others and mean it.
What is the team player?Effective team players hold themselves and others accountable. They accept responsibility for their actions or mistakes and comprehend how their decisions affect the team.
Adapting to change is an essential component of team success. If they have the backing of a team, people are more likely to take calculated risks that lead to innovation.
Working as part of a team promotes personal development, increases job satisfaction, and reduces stress. In the given case, his boss's response is advice from a friend that he should justify to his boss and everyone else who knew he wasn't a team player, and then proceed to say he is a team player.
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suppose the market for apples has a price elasticity of 0.43 and the market for pears has a price elasticity of 0.76. a correct comparison of the two markets would be suppose the market for apples has a price elasticity of 0.43 and the market for pears has a price elasticity of 0.76. a correct comparison of the two markets would be the market for pears is inelastic compared to the market for apples. the market for pears is more inelastic than the market for apples. the market for pears is elastic compared to the market for apples. no comparison can be made in regard to elasticity. the market for pears is more elastic than the market for apples.
Option c) The correct comparison of the two markets would be that the market for pears is more elastic than the market for apples. This is because the price elasticity of the market for pears is 0.76, which is higher than the price elasticity of the market for apples, which is 0.43.
Price elasticity measures the responsiveness of the quantity demanded of a good or service to a change in its price. A higher price elasticity means that the quantity demanded is more responsive to changes in price, meaning that the market is more elastic. Therefore, the price elasticity for pears is more than the market for apples because the quantity demanded of pears is more responsive to changes in price than the quantity demanded of apples.
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How does free trade benefit businesses? For example, how does it encourage
investment?
Answer:
Liberating exchange decreases imported-input costs, consequently diminishing businesses creation costs and advancing financial development. Deregulation improves proficiency and advancement. The outcomes are higher wages, interest in such things as foundation, and a more unique economy that keeps on making new openings and openings.
Josh runs a kayak rental company in Florida keys. his career would fall under the education and training career cluster true or false.
Answer:
The answer is False
Which words means finds its food; a consumer.?
Answer:
The word that means finding its food is hunting
A factory is considered what type of resource?
land
labor
physical capital
human capital
A factory falls under the category of physical capital, representing tangible assets and infrastructure utilized in the production process. Option C.
Physical capital refers to the tangible assets that are used in the production process to create goods or services. These assets include machinery, equipment, buildings, vehicles, and infrastructure. They are essential resources that contribute to the production capacity and efficiency of a business or organization.
A factory is a prime example of physical capital as it represents a dedicated space or facility equipped with machinery, tools, and equipment designed for manufacturing or production activities. It provides the necessary infrastructure and resources for transforming raw materials into finished products.
Factories typically house specialized equipment and machinery specific to the industry or production process they serve. This physical capital enables businesses to carry out mass production, streamline operations, and achieve economies of scale.
Physical capital is an important factor of production alongside other resources such as land, labor, and human capital. It plays a crucial role in enhancing productivity, output, and overall economic growth.
Effective management and investment in physical capital can lead to improved efficiency, cost reduction, and technological advancements in production processes.
In summary, a factory is categorized as physical capital, representing the tangible assets and infrastructure used in the production process. So Option C is correct.
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What type of innovation focuses on the supply side, looking for opportunities to remove non-value-adding steps from the workflow?.
Process Innovation type of innovation focuses on the supply side, looking for opportunities to remove non-value-adding steps from the workflow.
What is an example of process innovation?A process innovation is the introduction of a new or significantly improved method of production or delivery. Significant changes in techniques, equipment, and/or software are included.A company, for example, can modify the software used in its supply chain and delivery system. You can use PI to create new products or improve existing ones. Processes in areas such as information systems, manufacturing, and customer service can all be innovated by organizations.Process innovations can be designed to reduce unit costs of production or delivery, improve quality, or create or deliver new or significantly improved products. Process innovations include new or significantly improved methods for service creation and delivery.Product innovation refers to the development and release of a new product or service to the market, as well as an improved version of an existing product. Process innovation, on the other hand, is the implementation of a new or improved production or delivery method.To learn more about Process Innovation refer to
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Look at the following email (attached). Name two good email netiquette practices used in the
email. Name two poor email netiquette practices
Two good email etiquettes practices used in email are:
Inserting a SubjectKeep the email short and restricted to three paragraphs.Two bad email etiquettes used in the email above are:
Indiscriminate use of the exclamation markDiscussing personal issues in a formal email.What are email etiquettes?The use of acceptable language, standards, and politeness in an email is referred to as email etiquette. Business emails often need formal language as well as rigorous respect to appropriate grammar and spelling.
Five useful E-mail Etiquette are:
Address your addressee appropriately. Check, double-check, and triple-check that you have the right spelling of the recipient's name and title.Proper greetings and closing statements should be used.Format correctly.Avoid using ALL CAPS.Large files should be compressed.Learn more about email etiquette:
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why did the cotton embargo placed on the confederacy hurt them economically?
The cotton embargo placed on the Confederacy during the American Civil War severely impacted their economy for several reasons.
Firstly, cotton was the primary cash crop and major export of the Confederacy. With the embargo, they lost access to their main source of revenue, crippling their financial stability. Additionally, the embargo disrupted their trading relationships with European nations, who relied heavily on Southern cotton. This led to a decline in foreign investment and strained diplomatic ties.
Furthermore, the sudden absence of cotton in the global market caused prices to plummet, exacerbating the Confederacy's economic woes. Overall, the cotton embargo dealt a devastating blow to the Confederacy's economy by crippling their revenue, trade, and international relations.
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Select the correct answer.
Dorothy has been operating a small florist shop in a particular location for years. Recently, a new florist started a business two blocks away from
Dorothy's shop. Dorothy seems to be losing most of her old and regular customers. She is unable to recover her business in the presence of a
strong rival. Considering the traits of a good entrepreneur, which statement about Dorothy would be appropriate?
OA She is not opportunistic.
ОВ.
She is not competitive.
Ос.
She is not energetic.
OD
She is not confident.
Reset
Next
Answer:
B. She is not competitive
Explanation:
She doesn't have the competitive characteristic to expand her market past the new florist.
Answer:
b.
Explanation:
A She is not opportunistic.
В.
She is not competitive.
с.
She is not energetic.
D
She is not confident.
6 different organizational arrangements are examined, including chronological, spatial, causal, narrative, problem-solution, and:________
The additional organizational arrangement is the comparative or contrastive arrangement, which involves highlighting similarities and differences between subjects or ideas.
How many organizational arrangements are there?The six organizational arrangements you mentioned are commonly used in various forms of communication, such as writing, presentations, and speeches. However, if you're looking for an additional organizational arrangement to complete the list, one commonly employed is the comparative or contrastive arrangement.
Comparative or contrastive arrangement involves presenting information by highlighting the similarities and differences between different subjects or ideas. This arrangement allows for a clear comparison and helps the audience or readers understand the distinctions and similarities between various concepts.
By including the comparative or contrastive arrangement, the complete list of organizational arrangements becomes:
1. Chronological arrangement
2. Spatial arrangement
3. Causal arrangement
4. Narrative arrangement
5. Problem-solution arrangement
6. Comparative or contrastive arrangement
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Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
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Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
l
l
∨
Explanation:
Here's the picture and I hope this helped!
Have a nice day!
according to joseph campbell, what is a very common scenario found in myths across cultural lines?
Joseph Campbell identified the "monomyth" or the "hero's journey" as a very common scenario found in myths across cultural lines.
The hero's journey is a basic pattern that can be found in many narratives from around the world. It typically involves a protagonist who goes on an adventure, faces challenges and obstacles, learns important lessons, and returns transformed. The hero's journey is often divided into three stages: the departure, initiation, and return.
Campbell believed that the hero's journey was a reflection of the human psyche and that it represented a universal pattern of growth and transformation. He argued that myths and stories from different cultures all contained variations on this basic pattern and that understanding the hero's journey could help us better understand ourselves and our place in the world.
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Larry is part of the Board of Governors that manages U.S. Monetary policy. He has been elected by the President to serve a single 14-year term. In addition to setting the monetary policy, he is responsible for extending banking services to commercial banks. I
Answer:
Federal Reserve
Explanation:
Federal Reserve System is the financial institution and the central bank of the U.S. The institution provides financial aid to the country. It helps in regulating and maintaining the financial and banking service of the country. All the requirements and responsibilities of the Federal Reserve are laid on the Board of Governors. They help in setting the rate of the discount and rate of interest on the loans.
In the given excerpt, Larry is the part of the Board of Governors in the Federal Reserve System.
The primary purpose of using the subsidiary motion to Amend is toanswer choiceseliminate the main purpose of the main motion.modify the wording of a pending motion.lengthen the debate time on the main motion.call for an immediate vote on the original main motion.
The primary purpose of using the subsidiary motion to Amend is to Alter the original main motion.
What is subsidiary motions?A subsidiary motion is one that can be used in conjunction with another motion to change, postpone, or dismiss it. Privileged motions are those that are made without reference to the present motion yet are so urgent or significant that they are taken into consideration right away.The replacement (subsidiary) motion is voted on before the main motion and modifies or influences how the main motion is handled. Subsidiary motion examples include the following: • Decide whether to postpone for all time or until a certain date.A primary motion is used to introduce every item for consideration by an assembly. Only if there is no other business on the table will this kind of motion be taken into consideration. A subsidiary motion is one that can be used in conjunction with another motion to change, postpone, or dismiss it.Learn more about Privileged motions refer to :
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tire valet case is there a growing need for this service? what conditions in the economy would support the growth of this service
Growth in both the workforce's size and productivity are generally understood. Either one can grow the economy overall, but only substantial productivity growth can raise per capita GDP and income.
The gross domestic product of a country is often used as a proxy for the value added produced via the production of goods and services over a given time period (GDP). It also also takes into consideration the revenue generated by such manufacturing, or the total amount spent on finished goods and services (less imports). Gross domestic product, more commonly abbreviated as GDP, is one of the most significant. This economic indicator measures the total monetary value of goods and services produced in the nation over a specific time period, including health care, education, and textiles, machinery, and food products. 2% to 3% is the best range for GDP growth. How robust the economy is can be determined by GDP growth.
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What conditions in the economy would support growth of this service?
The following are the trial balance ind the other information related to Perez Consulting Engineers. Perez Consulting Engineers Trial Balance December 31, 2020 Debit Credit Cash $29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts $750 Supplies 1,960 Prepaid Insurance 1,100 Equipment 25,000 Accumulated Depreciation-Equipment 6,250 Notes Payable 7,200 Common Stock 10,000 Retained Earnings 25,010 Service Revenue Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expenses 1,080 Office Expense 720 $149,210 $149. 210 1. Fees received in advance from clients $6,000, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,900. 3. Bad debt expense for the year is $1,430. 4. Insurance expired during the year $480. 5. Equipment is being depreciated at 10% per year. 6. Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 7. Rent of the building is $750 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2020, $2,510. Instructions:A. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. (Omit explanations). B. Prepare an income statement for 2020, a retained earnings statement, and a classified balance sheet. Perez paid a $17,000 cash dividend during the year (recorded in Retained Earnings)
The adjusting entries for Perez Consulting Engineers as of December 31, 2020, are as follows: Total Liabilities and Equity $102,880
1. To recognize unearned revenue:
Debit: Unearned Revenue $6,000
Credit: Service Revenue $6,000
2. To recognize services performed but not recorded:
Debit: Accounts Receivable $4,900
Credit: Service Revenue $4,900
3. To record bad debt expense:
Debit: Bad Debt Expense $1,430
Credit: Allowance for Doubtful Accounts $1,430
4. To recognize expired insurance:
Debit: Insurance Expense $480
Credit: Prepaid Insurance $480
5. To record depreciation expense:
Debit: Depreciation Expense - Equipment $2,500
Credit: Accumulated Depreciation - Equipment $2,500
(Calculation: $25,000 * 10% = $2,500)
6. To record the note payable:
Debit: Notes Payable $7,200
Credit: Cash $7,200
7. To recognize accrued rent expense:
Debit: Rent Expense $750
Credit: Accrued Rent Payable $750
8. To recognize accrued salaries and wages:
Debit: Salaries and Wages Expense $2,510
Credit: Salaries and Wages Payable $2,510
B. Financial Statements:
Income Statement for 2020:
Revenue:
Service Revenue $10,900 ([$6,000 + $4,900] - $1,430)
Expenses:
Rent Expense $9,750
Salaries and Wages Expense $30,500
Utilities Expenses $1,080
Office Expense $720
Depreciation Expense - Equipment $2,500
Insurance Expense $480
Bad Debt Expense $1,430
Total Expenses $46,460
Net Income $10,900 - $46,460 = (-$35,560) (Loss)
Retained Earnings Statement:
Retained Earnings, January 1, 2020 $25,010
Net Loss ($35,560)
Dividends ($17,000)
Retained Earnings, December 31, 2020 ($27,550)
Classified Balance Sheet (December 31, 2020):
Assets:
Cash $29,500
Accounts Receivable $54,500 ($49,600 + $4,900)
Less: Allowance for Doubtful Accounts ($750)
Supplies $1,960
Prepaid Insurance $620 ($1,100 - $480)
Equipment $25,000
Less: Accumulated Depreciation - Equipment ($8,750 [$6,250 + $2,500])
Total Assets $102,880
Liabilities:
Notes Payable $7,200
Accrued Rent Payable $750
Salaries and Wages Payable $2,510
Total Liabilities $10,460
Equity:
Common Stock $10,000
Retained Earnings ($27,550)
Total Equity ($17,550)
Total Liabilities and Equity $102,880
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When it comes to determining the appropriate quantity of physical capital to use, the firm employs a decision rule that is conceptually ____________ the approach it takes in choosing the number of workers to hire. A firm will employ physical capital until ____________ A. the value of marginal product of capital (VMPK) equals the value of marginal product of labor (VMPL). B. the ratio of capital's marginal product to the rental price of capital equals 1. C. the value of marginal product of capital (VMPK) equals the rental price of capital. D. capital's contribution to the firm's profit is maximized. The following table gives the value of marginal product of capital (VMPK) for a competitive firm. If the rental price of capital is $180 per machine, this firm will employ ____________ machines.
When it comes to determining the appropriate quantity of physical capital to use, the firm employs a decision rule that is conceptually similar to the approach it takes in choosing the number of workers to hire.
A firm will employ physical capital until the ratio of capital's marginal product to the rental price of capital equals 1.
The firm's decision on the quantity of physical capital to employ is guided by the principle of maximizing its profits. Just like how the firm hires workers until the value of marginal product of labor equals the wage rate, it will employ physical capital until the ratio of capital's marginal product (the additional output generated by an additional unit of capital) to the rental price of capital is equal to 1. This means that the firm will continue to add capital until the additional output generated by each unit of capital justifies the cost of renting that capital.
To determine the number of machines the firm will employ, we need to refer to the given value of marginal product of capital (VMPK) table. Given that the rental price of capital is $180 per machine, the firm will employ as many machines as necessary to reach the point where the VMPK equals $180.
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