The green revolution helped increase food production, as well as benefiting wealthy farmers in developing countries.
What was the green revolution?It was a process that instituted new technologies in agriculture, modernizing the means of production on a global scale. Some of the contributions were the development of agricultural machinery and genetically modified seeds.
Therefore, some countries such as Mexico and India have benefited from the green revolution, helping in the development of agriculture and economy.
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Heyo! ;D
Farming would be the answer you seek. Hope this helps!
Question:4
Krishna Furnishers Martstarted its operations in the year 1954 and emerged as the market leader in the industry
because oftheir original designs and efficiency in operations. They had a steadydemand fortheir products but overthe
years, they found their market share declining because of newentrants in the field. The firm decided to review their
operations and decided that in orderto meet the competition, they need to study and analyze the market trends and
then design and develop their products accordingly. List any two impacts of changes in business environmernt on
Krishna Furnishers Mart's operations. (Hint: increase in competition and Market orientation)
how to get all one hundreds on report card
Answer:
well thats easy all you have to do is get a good grade on every single assignment in every class
Explanation:
which is very hard
Answer:
To do your work and stop asking how to get around it on Brainly. Please don't cheat, your teacher can see past that, especially when you copy verbatium like I bet you do.
Explanation:
a nonprofit organization has asked michal, a martial arts instructor, to give a speech on self-defense. the organization told him he will be speaking to a group of about forty college women who want to feel more confident walking on campus at night. which basic question should michal ask himself to better define his topic?
What knowledge do I have about self-defense that can help these women feel more secure? is the basic question that Michal should ask himself to better define his topic.
Michal, a martial arts instructor, has been asked to give a speech on self-defense to a group of forty college women who want to feel more confident walking on campus at night.
To better define his topic and create an effective speech, Michal should ask himself the following questions:
What knowledge do I have about self-defense that can help these women feel more secure? What techniques can I share that will give them the skills needed to protect themselves? How can I address any potential concerns or questions they might have?
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Test II. Mag-kompyut tayo.
1. Kompyutin ang Quantity Demanded gamit ang Demand Function na Qd -50-2(P) Ilapat ang mga datos al
kompletuhin ang Demand Schedule. Ipakita ang solusyon. (10 points)
Quantity
Presyo
Demanded
7
9
11
13
15
Sagot:
36; 32; 28; 24; 20
Paliwanag:
Mula sa tanong:
Ang dami na hinihiling ay maaaring makuha gamit ang pagpapaandar:
Qd = 50 - 2p
Kung saan; Qd = Dami ng Hinihingi;
p = presyo
Para sa p = 7
Qd = 50 - 2 (7) = 50 - 14 = 36
Para sa p = 9
Qd = 50 - 2 (9) = 50 - 18 = 32
Para sa p = 11
Qd = 50 - 2 (11) = 50 - 22 = 28
Para sa p = 13
Qd = 50 - 2 (13) = 50 - 26 = 24
Para sa p = 15
Qd = 50 - 2 (15) = 50 - 30 = 20
Requirements 1. Make a list of three items you learnt in this subject( ACC1AIS- Accounting and information system) and discuss them (2 marks). Provide your answer from here:
the subject of Accounting and Information Systems (ACC1AIS) teaches students about the significance of data accuracy, the role of technology, and the importance of internal controls for fraud prevention.
Here are three items that can be learned in the subject of Accounting and Information Systems (ACC1AIS):
1. Importance of Data Accuracy: One key aspect of accounting and information systems is the importance of data accuracy. Students learn the significance of recording financial transactions accurately and maintaining precise information in accounting systems. This ensures that financial statements and reports provide reliable and meaningful information for decision-making.
2. Role of Technology: The subject highlights the role of technology in accounting and information systems. Students learn about various software applications and tools used to streamline accounting processes, such as bookkeeping software, enterprise resource planning (ERP) systems, and data analytics tools. They understand how technology can enhance efficiency, improve data management, and provide timely and accurate financial information.
3. Internal Controls and Fraud Prevention: Accounting and information systems emphasize the need for strong internal controls to prevent fraud and ensure the integrity of financial information. Students learn about control mechanisms such as segregation of duties, access controls, and regular audits. They understand the importance of implementing internal control procedures to safeguard assets, detect and prevent fraudulent activities, and maintain compliance with legal and regulatory requirements. In summary, the subject of Accounting and Information Systems (ACC1AIS) teaches students about the significance of data accuracy, the role of technology, and the importance of internal controls for fraud prevention. These concepts are essential for maintaining reliable financial records, utilizing technology effectively, and ensuring the integrity and security of financial information within an organization.
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In 18th century, what was the main reason of slow down of Indian Foreign Trade
Answer:
Introduction to India’s Foreign Trade:
Even being a typical poor underdeveloped country, India’s foreign trade was in a prosperous state during the period under review. In terms of volume of trade and the range of commodities entering into trading list, India was better placed compared to other contemporary underdeveloped countries. But that must not be viewed as an indicator of prosperity. Above all, her pattern of trade was definitely different from those of other underdeveloped countries.
India’s composition of trade (i.e., pattern of imports and exports) before 1813 included manufactured goods as well as primary articles in export list and metals and luxury products in the import list. But such pattern of trade was supplanted by the import of manufactured goods and exports of agricultural raw materials and food grains during much of the nineteenth and twentieth century. This must not be the sign of prosperity or cause for jubilation.
Explanation:
Rather, this situation generated much heat and controversy because, instead of being an engine of growth, foreign trade, as engineered by the British Government, exacerbated economic exploitation. It hampered the process of industrialization. It brought untold misery to the masses. Most importantly, of course partly the backwardness of Indian industry and agriculture is ‘the effect of its external trade which moulded into shape the productive mechanism of the country.’
To understand the nature of the controversy it will be fruitful to tell something about the history of India’s foreign trade during 1757 and 1947. The growth of foreign trade during the two centuries can be divided into following unequal periods: 1757 to 1813, 1814 to 1857, 1858 to 1914, and from 1915 to 1947.
The first period—the early years of the British East India Company (EIC)—is known as the ‘age of mercantilism’. During the period under consideration trade statistics is not available. However, some sort of institutional changes in trade took place during this period.
In the mid-18th century, Indian foreign trade was mainly conducted by the English, Dutch, French, and Portuguese traders and merchants. But the revolution of 1757 strengthened the supremacy of the British EIC. In the process, the EIC monopolized trade and ousted the other merchants and traders.
What is the term used to describe the fluctuation in demand of a certain product in relation to pricing?
Elasticity is a phrase used to describe how the price affects how much a certain product is in demand.
What is elasticity?In neoclassical economic theory, elasticity is a key idea that aids in understanding a variety of economic concepts, including the incidence of indirect taxation, marginal concepts related to the theory of the firm, wealth distribution, and different types of goods related to the theory of consumer choice. When talking about how welfare is distributed, particularly in terms of consumer, producer, or government surpluses, a grasp of elasticity is crucial.
Elasticity is a key notion in many economic theories, and it may be seen in a number of key indicators. These include the elasticity of demand at different prices, the elasticity of supply at different prices, the elasticity of demand at different income levels, the elasticity of replacement between factors of production, the cross-price elasticity of demand, and the elasticity of substitution across time.
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Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge along at the top of the heap, Chick-fil-A has quietly risen from a South- east regional favorite to become the largest chicken chain and the eighth-largest quick-service food purveyor in the country. The chain sells significantly more food per restaurant than any of its competitors—twice that of Taco Bell or Wendy’s and more than three times what the KFC Colonel fries up. And it does this without even opening its doors on Sundays. With annual revenues of more than $6 billion and annual average growth of 12.7 percent, the chicken champ from Atlanta shows no signs of slowing down.
How does Chick-fil-A do it? By focusing on customers. Since the first Chick-fil-A restaurant opened for business in the late 1960s, the chain’s founders have held tenaciously to the philoso- phy that the most sustainable way to do business is to provide the best possible experience for customers.
Chick-fil-A is dominating the U.S. fast-food market and left behind McDonald's, Subway, Burger King and Taco Bell because they focus on providing the best possible customer experience and taking care of what the customers want.
Without even opening its doors on Sundays, the chain has managed to provide the maximum number of meals and has become the largest chicken chain and the eighth-largest quick-service food purveyor in the country, with its annual revenues ranging of more than $6 billion and annual average growth of 12.7 percent.
Chick-fil-A has been so successful in providing an excellent customer experience.
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Grace wants to auction her livestock without taking them to a terminal market. What method will she MOST likely use?
vertical integration
a commodity exchange
telemarketing
video merchandising
If Grace wants to auction her livestock without taking them to a terminal market, she would have to use the telemarketing. Option C
What is telemarketing?Telemarketing is a form of direct marketing in which a salesperson calls potential consumers and asks them to make a purchase of goods or services. This can be done over the phone, during a scheduled in-person or web conference meeting, or even in person after the call.
The company uses telemarketing to not only create leads and sales, but also to effectively stay in touch with clients who frequently offer feedback on the company's goods and services. This enables the company to accept helpful criticism and enhance its offerings.
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What do behaviorist and cognitivist theories have in common?
a. Praise is an important aspect of learning in both of them.
b. They both rely on a simple stimulus-response system.
c. Repetition is an important aspect of learning in both of them.
d. They both accept that the mind has a conscious role in learning.
cost centers can be a drain on an organization. could internal charge backs be implemented? present specific ideas.
Yes, internal charge backs can be implemented to help mitigate the impact of cost centers on an organization.
Internal charge backs are a mechanism that allocates the costs of a cost center back to the departments or business units that are responsible for generating those costs.
Here are some specific ideas for implementing internal charge backs in an organization:
1) Develop a clear understanding of the costs associated with each cost center. This includes not only direct costs but also indirect costs such as overhead.
2) Establish a clear allocation method for each cost center. This should be based on a fair and reasonable method of allocating costs, such as the use of activity-based costing or cost driver analysis.
3) Implement a system for tracking and reporting the costs of each cost center. This may include using a software system, such as an enterprise resource planning (ERP) system, or a manual system using spreadsheets.
4) Communicate the internal charge back system to all business units and departments. This should include how the costs are calculated and how the charges are to be paid.
5) Regularly review and adjust the internal charge back system as necessary. This may be necessary due to changes in the organization's structure, changes in the cost centers, or changes in the methods used to allocate costs.
By implementing internal charge backs, an organization can better control the impact of its cost centers on its financial performance, and ensure that each business unit is held accountable for its own expenses.
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which of the following statements best describes the long-run adjustment in this market? a. one or more new ice cream shops in fairfield opens and competes with peter for customers, reducing the demand for peter's ice cream. peter's profits decline until he incurs losses and exits the industry. b. one or more new ice cream shops in fairfield opens and competes with peter for customers, reducing the demand for peter's ice cream. peter's profits decline until he earns zero profit. c. one or more ice cream shops in fairfield closes, increasing the demand for peter's ice cream. peter's profits increase and he sustains positive profits in the long run. d. one or more ice cream shops in fairfield closes, increasing the demand for peter's ice cream. peter's profits increase until he earns zero profit.
One or more new ice cream shops in Fairfield opens and competes with Peter for customers, reducing the demand for Peter's ice cream. Peter's profits decline until he earns zero profit.
This is because in the long-run, new firms can enter the market and compete with existing firms, leading to a decrease in demand for the existing firms. As a result, the existing firms may see a decline in profits until they earn zero economic profit, which is the point where the firms are earning a normal rate of return on their investment.
Therefore, in this scenario, the long-run adjustment in the market involves a decrease in demand for Peter's ice cream, resulting in a decline in profits until Peter earns zero profit.
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A massive wrecking ball is to be hung from the end of a crane by a cable. As the site manager for the demolition crew, you have your choice of both materials and thicknesses when ordering the cable. In terms of materials, you have three alloys to pick from: alpha, with Y=3×1010 N/m2; beta, with Y=2×1011 N/m2; and gamma, with Y=4×109 N/m2. As for thicknesses, the cables can be made with diameters of 1 cm,2 cm, and 4 cm. a) You need to keep the cable from stretching too much (and possibly snapping) under the weight of the wrecking ball. Which of the three alloys (alpha, beta, or gamma) would minimize stretching the most, and why? b) The stretching can also be minimized by choosing the right thickness for the cable. Which of the three given diameters (1 cm,2 cm, or 4 cm ) should be chosen, and why?
a) Gamma would be the best choice because it has the lowest value of Y.
When a wire is extended, the stress (tensile stress) develops within it, and the amount of stretch that occurs is proportional to the stress. Young's modulus (Y) is a measure of a material's stiffness or elasticity. It measures the wire's reaction to the tensile stress that develops within it, as well as the amount of stretch that occurs when it is extended. The smaller the value of Y for the alloy, the less the wire will stretch under the same amount of tensile stress. In this case, gamma alloy would be the best choice because it has the lowest value of Y (4 × 109 N/m²), which means it would stretch the least under a given amount of tensile stress.
b) A cable with a diameter of 4 cm should be chosen because it can handle the most weight while also stretching the least.
Consider two wires made of the same material and subjected to the same tensile stress; the larger one will stretch less than the smaller one. This is because the larger one has more cross-sectional area, which can more easily withstand the tensile stress. As a result, a 4 cm diameter cable should be chosen because it has the most cross-sectional area, which means it can withstand the most weight while also stretching the least.
Choosing gamma as the material and a diameter of 4 cm as the thickness would minimize the stretching the most.
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What are the 4 factors that affect the international business environment? Give two examples/characteristics of each
The four factors that affect the international business environment are:
1. Political factors
2. Economic factor
3. Social factors
4. Technological factors
Political factors: Political factors refer to the laws, regulations, and policies of the host country that can affect a company's ability to operate in that country. Examples of political factors include government stability, foreign investment policies, and trade regulations. For example, a company may face political risks in a country with a history of political instability, where there is a high risk of expropriation or nationalization of foreign investments.
Economic factors: Economic factors refer to the economic conditions of the host country, such as inflation, exchange rates, and market size. Examples of economic factors include the availability of natural resources, the level of industrialization, and the purchasing power of consumers. For example, a company may face economic risks in a country with a high inflation rate, where the value of its products may decrease over time.
Social factors: Social factors refer to the cultural, demographic, and lifestyle characteristics of the host country, such as language, religion, and family values. Examples of social factors include the age distribution of the population, the level of education, and the prevalence of consumer culture. For example, a company may face social risks in a country where the culture is not conducive to its products or services, such as a country with a conservative religious culture where the consumption of alcohol is not acceptable.
Technological factors: Technological factors refer to the level of technological development in the host country, such as the availability of infrastructure, the level of Internet penetration, and the availability of skilled labor. Examples of technological factors include the availability of electricity, the level of automation in industries, and the availability of high-speed internet. For example, a company may face technological risks in a country with a poor infrastructure, where it may be difficult to transport goods or access reliable electricity.
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Mandy wants to buy a variety of beverages for her birthday party. She wants to make sure she has enough to drink for all her friends, so she decides to buy 10 liters of beverages. If she buys at least one container of each beverage, what combination of beverages can she buy to equal exactly 10 liters?
Correct Question:
Beverages at the Store
2,000 milliliters of soda, 2.5 liters of apple juice, 1,500 milliliters of fruit punch, 2 liters of lemonade
Mandy wants to buy a variety of beverages for her birthday party. She wants to make sure she has enough to drink for all her friends, so she decides to buy 10 liters of beverages. If she buys at least one container of each beverage, what combination of beverages can she buy to equal exactly 10 liters?
Explanation:
As we know 1000 millilitres = 1 litre
Now writing them in common units.
soda= 2 litres
apple juice = 2.5 litres
fruit punch = 1.5 litres
lemonade = 2 litres
If she takes one of each it will become
= 2+2.5+1.5+2=8
Remaining are 10-2= 2 liters
Now she can have one more soda or lemondade to make a total of 10
which will be
4 (soda) +2.5+1.5+2=10
2+2.5+1.5+4 (lemonade) = 10
Answer:
zubairpu427 is right
I got my question right thanks to him
State
five
features distinguishing Features of servicing
Answer:
The answer is below:
Explanation:
Services are a byproduct of a business firm which is done in exchange for money. However, unlike the products or goods, it has its distinct features or characteristics.
Hence, there are various Features of services, some of which includes the following:
1. Intangibility: they are not tangible or cannot be touched
2. Perishability: they cannot perish like goods
3. Inseparability: services under the ae work or elements cannot be separated like goods
4. Heterogeneity: the quality of services is diverse, hence, the price and time of delivery vary.
5. Ownership: unlike the goods, when it comes to services the person rendering services is the one that tends to move around.
Quattro Lending Company is considering lending a large sum to Eleance Inc. During its decision process, Quattro should especially consider Eleance's existing:
Answer: long-term liabilities
Explanation:
Al-Kamal Company is preparing its master budget for 2010. Relevant data pertaining to its sales, production, and direct materials budgets are as follows: Sales: Sales for the year are expected to total 1,500,000 units. Quarterly sales are 25%, 25%, 25%, and 25% respectively. The sales price is expected to be $60 per unit for the first three quarters and S65 per unit beginning in the fourth quarter. Sales in the first quarter of 2010 are expected to be 10% higher than the budgeted sales for the first quarter of 2011. Production: Management desires to maintain ending finished goods inventories at 25% of next quarter's budgeted sales volume. Direct materials: Each unit requires 4 pounds of raw materials at a cost of $6 per pound. Management desires to maintain raw materials inventories at 5% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2010 are 950,000 pounds. (A) Direct labor hours are determined from the production budget. Al-Kamal Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $15. (B) Al-Kamal Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.50, indirect labor $2.00, utilities $0.50, and maintenance $0.40. Thus, for the 6,500 direct labor hours to produce 3,100 units, budgeted indirect materials are $6,200 (6,500 x $1.50), and budgeted indirect labor is $7,600 (6,500 x $2.00). Al-Kamal also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed (C) Variable expense rates per unit of sales are sales commissions $2.50 and freight-out $1. Variable expenses per quarter are based on the unit sales from the sales budget. Al-Kamal expects sales in the first quarter to be 4,000 units. Fixed expenses are based on assumed data
Al-Kamal Company is preparing its master budget for 2010. In 2010, Al-Kamal Company's sales are expected to total 1,500,000 units. Quarterly sales are 25%, 25%, 25%, and 25% respectively.
The amounts reported for fixed costs are assumed. Al-Kamal expects sales commissions and freight-out to be $2.50 and $1, respectively, per unit sold. Variable expenses per quarter are based on the unit sales from the sales budget. Al-Kamal anticipates selling 4,000 units in the first quarter. Fixed expenses are based on estimated data. The total costs and estimated earnings are calculated on the basis of all the above information.
The cost of goods sold will be $758625, $758625, $758625, and $885575 per quarter, respectively. As a result, the gross margin for the first quarter will be $111375, with a total of $3134200 for the year. The estimated total operating expense is $300,000, including $50,000 in fixed expenses. As a result, the anticipated profit before taxes is $1,132,200.
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A government adopts a more progressive rate on income taxes. According to
the table, which citizen is more likely to have higher taxes as a result of this
fiscal policy?
Citizens
Citizen A: A wealthy business owner
Citizen B: A poor farmer
A. Both citizens
B. Citizen B
C. Citizen A
D. Neither citizen
Answer:
C. Citizen A
Explanation:
Answer: option C.
Explanation:
citizen A
The ________ rule sequences jobs in decreasing order of the ratio of the job's cost per unit of time in the system to its processing time.a. weighted shortest processing timeb. first-come-first-servedc. shortest processing timed. longest processing time
The answer is a) weighted shortest processing time rule. This rule prioritizes jobs based on their cost per unit of time in the system to processing time ratio.
This means that jobs with higher ratios are given priority over those with lower ratios. The processing time refers to the time it takes to complete a job once it has started, while the cost per unit of time in the system refers to the cost incurred while the job is being processed, including the time spent waiting in the queue. The weighted shortest processing time rule takes both factors into consideration, which helps to minimize the overall cost and processing time of the jobs in the system.
In summary, the weighted shortest processing time rule sequences jobs in decreasing order of the ratio of the job's cost per unit of time in the system to its processing time. This rule is effective in optimizing the processing time and cost of jobs in a system, and it is commonly used in manufacturing, scheduling, and project management.
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If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?
Bonds acquired at premiums often have lower yields to maturity than bonds purchased at market rates. This is further explained below.
What is a bond?Generally, Bonds are financial securities that reflect loans made to the issuer by the bondholders themselves. When it comes to borrowing money, governments (at all levels) and companies (of all sizes) often turn to bonds.
In conclusion, If you buy a bond at a discount, the yield to maturity will be lower than its coupon rate.
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careers with adverse working conditions often demand higher wages. Adverse working conditions might include
irregular work schedule
decision making
uncomfortable environment
required experience
Answer:
uncomfortable environment
Explanation:
Adverse working conditions create challenges for employees as they execute their mandate. These conditions may result from extreme weather, either very hot such, extremely cold, floods, snow, or windy. Adverse conditions could also refer to security concerns in place of work.
Political unrest, high crime rate, and civil wars create adverse conditions. The nature of work can also make working a challenge. Miners working many feet underground or soldiers on a battlefield are examples of challenges due to work.
Answer:
C) uncomfortable environment
Explanation:
outline 2 advantages to H&H of using secondary market research
Grants are typically awarded based on
Answer:
Grants are awarded based on Demonstrated Financial Need. Demonstarted Financial Need is based on the cost to attend college as well as how much the family will contribute.
__________________________________________________________
Questions?Ask in the comments box.
with a subscription model, users pay a fixed amount of money per month in order to use software.
True. With a subscription model, users pay a fixed amount per month to access and use software, providing a recurring revenue stream for the software provider.
In a subscription model, users are required to pay a predetermined amount of money on a regular basis, typically monthly, to gain access to and utilize software. This payment structure provides users with ongoing usage rights and often includes updates and support services. The subscription model is popular in various industries, including software and media streaming, as it offers several benefits. For users, it provides a more affordable and flexible way to access software without the need for upfront costs. For software providers, it generates a recurring revenue stream, fostering long-term customer relationships and enabling continuous improvements and updates to the software.
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When markets become competitive, economic rentsA.Experience a slight change up or downB. Approach zeroC.IncreaseD. Remain stable with little change in any direction
The correct answer is B. Approach zero. When markets become competitive, economic rents tend to approach zero, meaning that the profits of a firm are close to its costs.
This is due to the fact that with increased competition, firms have to lower their prices in order to attract customers and increase their market share.
Economic rent is the difference between the amount of money a factor of production (such as labor, land, or capital) earns in its current use and the amount it would earn in its next best use. In a competitive market, there are many buyers and sellers, so no one has the power to set prices.
This means that economic rents approach zero, as firms are unable to earn more than what is necessary to keep them in the market. If a firm were to earn more than this, other firms would enter the market and compete for those extra profits, driving the economic rents back down to zero. Therefore, in a competitive market, economic rents approach zero.
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Rosé ordered a package of macaroons from an out of state bakery. She received the cookies the following week. What type of e commerce product did rose order
Answer:
physical
Physical products are tangible goods that can be shipped or delivered to a customer's location. E-commerce refers to the buying and selling of goods or services online, typically through a website or app. In this case, Rosé likely placed an order for the macaroons through the bakery's e-commerce platform, and the bakery shipped the cookies to her location.
During the meeting, kristof asked, "where is the product typically bought by customers in the international market segments?" what element of the marketing mix is he addressing?.
Where is the product normally purchased by customers in the overseas market segments?, Kristof queried at the discussion. He talks about how important distribution strategy is to the marketing mix.
In the marketing mix, what is the distribution channel?The final consumer purchases a commodity or service through a distribution channel, which is a network of firms or middlemen. Wholesalers, merchants, distributors, and the Internet are a few examples of distribution channels. To sell directly to customers, manufacturers use a direct distribution channel.
What impact does the marketing mix have on distribution?In essence, the distribution process or channel would not be possible without the marketing channel. The entire chain of businesses involved in creating and transporting products up until the final consumer is included in the distribution channel. The marketing channel refers to the marketing strategy each business uses within this strategy.
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What will having the right skills do for you?
Answer:
having the right skills will increase your knowledge and it will help you increase your chances of making your business and be the boss not the worker and you could help inspire people when you do have a business with your skills
Explanation:
Ever the risk taker, max has invested in another of sam’s companies. this time, he pays $3 million for 30 percent of specialstuff (ss). calculate the net payout
Max's net payout for his 30 percent ownership in SpecialStuff would be $1.5 million, assuming the company earns a net profit of $5 million and distributes the profits proportionally among the shareholders.
To calculate the net payout for Max's investment in SpecialStuff (SS), we need to consider the percentage of ownership Max has in the company and the potential returns or profits generated by SS.
Max paid $3 million for a 30 percent stake in SpecialStuff, which means he values the company at $10 million ($3 million divided by 30 percent). This $10 million valuation represents the entire worth of SpecialStuff.
Assuming SpecialStuff is successful and generates a profit, Max's 30 percent ownership entitles him to 30 percent of the company's profits. Let's assume SpecialStuff earns a net profit of $5 million.
To calculate Max's net payout, we multiply his ownership percentage (30 percent) by the net profit ($5 million):
Net Payout = Ownership Percentage × Net Profit
= 0.30 × $5 million
= $1.5 million
Therefore, if SpecialStuff earns a net profit of $5 million, Max would be entitled to a net payout of $1.5 million based on his 30 percent ownership stake. It's important to note that this calculation assumes the entire net profit is distributed among the shareholders in proportion to their ownership percentages.
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