A firm's target capital structure values are used in computing the average flotation cost is that the firm will issue securities in these percentages over the long term.
This is because the target capital structure accurately reflects the current levels of debt and equity and provides a framework for the firm to maintain a consistent mix of financing sources.
The target capital structure values, the firm can estimate the costs associated with issuing new securities and adjust its financing decisions accordingly. This helps to minimize the impact of flotation costs on the firm's overall cost of capital. While it may be difficult to compute the market weights of a firm's capital structure, using the target values provides a more reliable basis for estimating flotation costs.
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What are the advantages and disadvantages of the three primary business writing formats?
Answer and Explanation:
The business writing formats benefits and disadvantages of the three primary business writing formats are described below:-
A memorandum is a formal define that it is the way of communication that enables corporations to connect with their workers. This is typically used to distribute updates or issues.
Memos are highly increasingly being replaced by e-mail, so sending a memo is more difficult and costly. Therefore, a Business Letter is a structured communication method that's best used to connect with clients.
It generally takes more time to write and format a business letter than to write an email or memo.
As we know that an Email is easy to send and priceless, and make enable to send message to many people at a time also Many unwritten e-mails etiquette rules and can be too casual for many business purposes.
Business writing formats includes the use of memorandum, email business letters etc. The advantages and disadvantages of the three primary business writing formats are:
A Memorandum: (Advantages)
This is simply a formal, internal communication tool which allows companies to communicate with their employees. It is known to be used to deliver announcements or problems.Disadvantages
Memos are said to be rapidly been replaced by e-mail due to the fact that it is more complicated and expensive to deliver a memo.Business letters (Advantages)
A Business Letter is simply known as a formal communication tool which is utilized for communicating with customers.Disadvantages
Writing and formatting a business letter often takes more time than composing a memo or e-mail.Emails (Advantages)
E-mail is quick, easy and cheap, and allows you to send messages instantly to any number of people.Disadvantages
E-mail has too much unwritten rules to follow (etiquette) and it is too informal for many business purposes.Learn more from
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takeshi, a 17-year-old high school student, wants to buy a pack of marlboro lights. he has the money to purchase them, but he is still not considered to be a market for the product due to his lack of to buy. a. ability b. willingness c. authority d. need e. buying power
High school student Takeshi, 17, wants to purchase a pack of Marlboro Lights. Despite having the money to buy them, he is still not regarded as a market for the product since he lacks the authority to do so.
What is authority?
In sociology and political science, authority refers to a person or group's rightful control over others. In a civil state, power is exercised through the judicial system or the executive branch of the government. The terms authority and power are incorrect synonyms when used in the practice of governance. The term "authority" refers to the political legitimacy that confers and defends the ruler's right to exercise governmental power; the term "power" refers to the capacity to carry out an approved task, either through compliance or obedience; as a result, "authority" refers to the capacity to make decisions and the legal authority to do so and to order their execution.
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You may need to use the appropriate appendix table to answer this question.
Only 0.03% of credit card holders of a company report the loss or theft of their credit cards each month. The company has 20,000 credit cards in the city of Memphis. Use the Poisson probability tables to answer the following questions. (Round your answers to four decimal places.)
What is the probability that during the next month in the city of Memphis, every credit card is lost or stolen?
The probability that during the next month in the city of Memphis, every credit card is lost or stolen is approximately 0.0025.
We are given that the proportion of credit card holders who report loss or theft of their credit cards is 0.03%. We have to find the probability that every credit card is lost or stolen during the next month in the city of Memphis.
To solve the above problem, we have to use the Poisson distribution formula.
Poisson distribution formula is:
P(x; μ) = (e^-μ) (μ^x) / x!
Here,x = 0 (every credit card is lost or stolen)
μ = mean or average number of successes in the given time interval= λ × t, where
λ = rate of success, which is the expected number of successes per unit time or space.
For this problem,λ = number of credit card holders who report loss or theft of their credit cards= 0.03% of 20,000 (credit cards in the city of Memphis)= 0.03/100 × 20,000= 6
t = time interval = 1 month
Now, let’s put the values of λ and t into the formula:
P(x = 0; μ) = (e^-μ) (μ^x) / x
!P(x = 0; 6) = (e⁻⁶) (6^0) / 0
\!P(x = 0; 6) = (e⁻⁶)
Therefore, the probability that during the next month in the city of Memphis, every credit card is lost or stolen is approximately 0.0025.
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In actual practice, managers frequently use the: I. average accounting return method because the information is so readily available. II. internal rate of return because the results are easy to communicate and understand. III. discounted payback because of its simplicity. IV. net present value because it is considered by many to be the best method of analysis
Answer:
45
Explanation:
edg
Frequently managers use the ARR method, IRR method, and NPV method in the process of capital budgeting.
What is a budget?A budget You can prepare for your income and expenses over the course of a specific time period using a budget. Making a monthly budget, for instance, considers where your income and expenses will go each month. "A budget is frequently a dirty term or has a nasty ring to it.
Simply said, a budget is a spending plan that accounts for both present and future sources of income and expenses. A budget ensures that your spending is under control and that your savings are on track for the future.
The reason for using these 3 methods is that they use the concept of the time value of money and are easy to understand.
The ARR method information is readily available.
The IRR method is easy to understand.
Also, many companies use the NPV technique.
Therefore, Thus option (C) is correct.
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What form is used to calculate the penalty if estimated payments were required, but not paid?.
The penalty is calculated on Form 2210.
What is penalty?
An example of a penalty is having to pay a fee for not returning a library book by the due date. A penalty is a punishment as well as consequence for doing something wrong. Players who violate the rules must sit in "the penalty box" in hockey. All penalties are consequences for doing something wrong, just like the penalty box penalises hockey players. Serious crimes are punished by being sent to prison. The consequence for misbehaving in school is detention. People frequently have to pay a penalty when they breach some sort of financial agreement.
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account a has an annual effective interest rate of 5%.account b has an annual effective interest rate of 6%. no deposits or withdrawals occur after time 0. at the end of five years, the total of these two accounts is 5,000. at the end of the 12 years, account b is twice the amount of account a. calculate the amount of account a at the end of ten years.
Without the specific value of x (amount in Account A at the end of 12 years), we cannot provide the exact amount in Account A at the end of 10 years.
To solve this problem, let's break it down step by step:
Step 1: Calculate the amount of Account B at the end of 12 years.
Let's assume the amount in Account A at the end of 12 years is x.
According to the given information, Account B is twice the amount of Account A at the end of 12 years, so Account B has 2x at that time.
Step 2: Calculate the amount of Account A at the end of 5 years.
We know that the total of Account A and Account B at the end of 5 years is $5,000.
Since Account B at the end of 5 years is 2x (as calculated above), Account A at the end of 5 years can be represented as 5000 - 2x.
Step 3: Calculate the annual interest rate factor.
The annual interest rate factor is calculated using the formula (1 + r), where r is the annual effective interest rate expressed as a decimal.
For Account A, the annual interest rate factor is (1 + 0.05) = 1.05.
For Account B, the annual interest rate factor is (1 + 0.06) = 1.06.
Step 4: Calculate the amount of Account A at the end of 10 years.
Using compound interest formula:
Amount = Principal * (Annual Interest Rate Factor\() ^ Number of Years\)
Account A at the end of 10 years = (Account A at the end of 5 years) * (Annual Interest Rate Factor\() ^ 5\)
Account A at the end of 10 years = (5000 - 2x) * \((1.05)^5\)
Simplifying this equation will give you the amount in Account A at the end of 10 years.
As the value of x is not given, we cannot provide the exact amount in Account A at the end of 10 years.
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1. Give the three (3)
business resources
Answer:
Financial Resources
Human Resources
Educational Resources
Explanation:
attending college involves incurring many costs. select the example of a college cost that could be assigned to each of the following classifications.
Attending college involves a range of costs that can be assigned to different classifications. One example of a college cost that could be assigned to the category of direct costs is tuition fees.
These fees are paid directly to the college or university for the cost of instruction, facilities, and administrative services. Another example of a college cost that could be classified as an indirect cost is room and board. This refers to the cost of living on campus, including housing, meals, and other living expenses.
Additionally, books and supplies could be classified as an institutional cost since they are required for academic courses and are provided by the institution. Other college costs such as transportation, personal expenses, and student fees can also be classified based on their nature and purpose.
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how much would you cost to have a good night
Answer:
as much as i need
Explanation:
Which action would a government most likely take to reduce its
unemployment rate?
A. Use tax money to hire workers for government projects
B. Cut taxes on businesses that operate with very few workers
C. Increase taxes on businesses that operate outside the country
D. Cut off loans to businesses in order to reduce the money supply
SUBMIT
The unemployment rate is the unemployed divided by the sum of employed and unemployed, in order to reduce it the government can hire workers for a new project by using tax money.
What is the unemployment rate?It is the rate of unemployment calculated by the number of people unemployed to the total number of people employed and unemployed multiplied by 100.
In order to reduce it, the government can hire workers for a new project by using tax money
Therefore, option A can help in the reduction of the unemployment rate.
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A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation? multiple choice question.
A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in occasion as a form of segmentation
What is occasion segmentation?
Occasion segmentation is a tailored-made form of behavioral segmentation by which segments are devised based on the time the product or service is needed or purchased by the consumer.
In this case, the maternity clothing is specifically required during pregnancy, which means that any non-pregnant woman is not targeted, which means that the occasion in this case is period of pregnancy and may be by extension during child's labor, since the clothing cannot be worn thereafter, in essence, the occasion of child birth brought an opportunity a tailor-made clothing would attract would-be mothers and increase the bottom-line of the clothing company
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Full question:
A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation? multiple choice question
a. psychographic b. age and life-cycle c. occasion d. demographic e. income
Bianca has take-home pay every month of $800. She anticipates having $675 of expenses in August.
In a zero-based budget, why is it important that she put the extra $125 in some budget category?
Where might you suggest Bianca budget that extra $125? Why?
01) How does a manufacturing company use market segmentation and service outputs to differentiate itself from the competition? Give example by choosing a company in Saudi Arabia. 02) Choose a company in Saudi Arabia which does practice the six categories of service outputs in order to satisfy its customers in a competitive marketplace. 03) What is the relationship between product price and service outputs? How does this relationship affect the purchasing decisions of end-users? Explain with suitable example. 04) How can channel managers use the information gathered through service output segmentation for marketing channel design and management? Give example by choosing an international company. 05) What are physical possession costs? What types of physical possession costs are experienced by service providers? How do physical possession costs affect a channel's success?
01) A manufacturing company can use market segmentation to differentiate itself from the competition by dividing the market into distinct groups of consumers with similar characteristics, needs, and preferences. By understanding the unique needs of these segments, the company can tailor its products, marketing strategies, and service outputs to better meet the demands of each segment.
For example, a manufacturing company in Saudi Arabia, such as Saudi Basic Industries Corporation (SABIC), can use market segmentation to target different industries like automotive, construction, or packaging. By offering specialized products and services tailored to each segment's requirements, SABIC can differentiate itself from competitors and gain a competitive advantage.
02) In a competitive marketplace, a company in Saudi Arabia that practices the six categories of service outputs can better satisfy its customers. These six categories include: information, consultation, order facilitation, hospitality, safekeeping, and exceptions.
For instance, Almarai, a leading dairy company in Saudi Arabia, practices these service outputs to satisfy its customers. Almarai provides information about their products through advertising and packaging. They offer consultation services by providing customer support and answering queries. They facilitate orders through various channels like supermarkets and online platforms. They offer hospitality through their customer service centers. They ensure safekeeping by providing quality packaging and maintaining hygiene standards. Finally, they handle exceptions by promptly addressing customer complaints and providing solutions.
03) The relationship between product price and service outputs can influence the purchasing decisions of end-users. Higher prices are often associated with higher levels of service outputs. Customers expect better service, support, and overall value when they pay a premium price for a product.
For example, luxury car manufacturers like Rolls-Royce or Mercedes-Benz offer exceptional service outputs, such as personalized customer assistance, extensive warranties, and exclusive events. The premium price of these luxury cars reflects the enhanced service outputs provided, which may attract customers who value superior customer experience and are willing to pay more.
On the other hand, lower-priced products may have fewer service outputs or less personalized support. Customers who prioritize cost savings over additional service features may be more inclined to choose these products.
04) Channel managers can use the information gathered through service output segmentation for marketing channel design and management. By understanding the specific needs and preferences of different customer segments, channel managers can tailor their channel strategies to effectively reach and serve each segment.
For example, Apple, an international company, uses service output segmentation to design and manage its marketing channels. They segment their customer base based on factors such as purchasing power, preferences, and usage patterns. Apple offers different service outputs through various channels, such as physical stores, online platforms, and authorized resellers. The information gathered from service output segmentation helps Apple determine the optimal channel mix and allocate resources accordingly.
05) Physical possession costs refer to the expenses incurred in physically possessing and delivering a product or service to the end-users. Service providers also experience physical possession costs, albeit in a different context.
For service providers, physical possession costs can include expenses related to storing, handling, and transporting tangible assets used in service delivery. For example, a hotel may incur costs for maintaining and renovating its facilities, managing inventory for amenities, or transporting linens and supplies.
Physical possession costs can affect a channel's success by impacting profitability and customer satisfaction. Higher physical possession costs can result in increased prices, which may deter customers. Additionally, if service providers fail to manage physical possession costs effectively, it can lead to quality issues or delays in service delivery, negatively impacting customer satisfaction and loyalty.
In conclusion, market segmentation, service outputs, product price, service output segmentation, and physical possession costs play crucial roles in a manufacturing company's differentiation, customer satisfaction, and channel management. By understanding and effectively leveraging these factors, companies can gain a competitive advantage and better meet the needs of their target customers.
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is he drinking coke or pepsi ?
As a huge math fan, you think it would be fun to have a prime number of partners in your business (including yourself) and at least 3 partners. If every partner gets one vote on major decisions, can a vote ever end in a tie (2-way, 3-way, 4-way, etc.)?
It would be fun to have a prime number of partners in your business and at least 3 partners. So, if every partner gets one vote on major decisions, a vote can end in a tie.
Prime numbers are considered to be the numbers which are greater than 1. They only have two factors, 1 and the number itself. So which means that these numbers cannot be divided by any number other than 1.
Suppose, you have a prime number of partners in your business with at least 3 partners, and if every partner gets one vote on major decisions, a vote can end in a tie. Prime numbers are used for a number of reasons.
Hence, prime numbers are natural numbers which are divisible by only 1 including the number itself.
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1. Despite the expense, why might a business choose to mail a catalog?
Answer:
Catalogs can promote a business's brand by displaying them in high-traffic areas and distributing them in stores. Customers often have an idea of what they want to buy after looking through a catalog. But, they'll likely find other items they want to buy when they go online or to a brick-and-mortar store to order.
daisy reads her bank statement and finds an error. she should...
Daisy reads her bank statement and finds an error. she should call bank.
A bank statement is a document (also called a bank statement), usually sent monthly by the bank to the account holder, summarizing all the transactions made on the account during the month. Bank statements contain information about your bank account, such as . Account numbers and a detailed list of deposits and withdrawals.
The bank provides the account holder with an account statement with detailed account transactions. Allows the account holder to see all transactions made on their account. Banks usually send monthly account statements to the account holder on a specified date.
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Answer:
Call the Bank
Explanation:
Calling your bank is the most logical and reasonable way to insure and check your account is safe and stacked with how much interest you invested in your account. CALL THE BANK!
g Calculate Company Y's net profit margin ratio based on the following information for the current year: Net income $140,000 Assets at the beginning of the year $100,000 Assets at the end of the year $90,000 Net sales $270,000
To calculate Company Y's net profit margin ratio, we need to divide its net income by its net sales.
How to find?
Net Profit Margin Ratio = (Net Income / Net Sales) x 100%
Net Income = $140,000
Net Sales = $270,000
Net Profit Margin Ratio = ($140,000 / $270,000) x 100%
Net Profit Margin Ratio = 51.85%
Therefore, Company Y's net profit margin ratio for the current year is 51.85%.
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to ""synthesize"" means to combine information to create new information. please select the best answer from the choices provided t f
To "synthesize" means to combine information to create new information. The given statement is true.
Synthesizing is the process of combining or fusing several facts, theories, or notions to produce new information or insights. It entails taking distinct components or sources and combining them in a way that transcends simple summarization. When you synthesize, you evaluate and interpret the data, spot recurring themes or patterns, and create a cogent and thorough understanding.
Critical thinking and creativity are both involved in the higher-level cognitive process of synthesis. Making connections, coming to conclusions, and developing fresh insights or understandings are all part of it; it goes beyond merely repeating or regurgitating information that has already been said.
Thus, the mentioned above-given statement is true.
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Your complete question was as follows.
To synthesize means to form new information by combining parts or elements of other information. Please select the best answer from the choices provided t f
Answer: its true
Explanation:
orange, an online-gaming site, has millions of users. the site has many games which pit users against each other. the relative standing of each user is presented in the form of an elaborate ranking system for each game. users pride themselves on gaining the highest points and the highest rank possible. this rise in user participation has increased the value of orange significantly. this is an example of . guerilla marketing network effects monopolistic competition internal marketing
This is an example of network effects. Orange, an online-gaming site, has become valuable due to its large user base, and the ranking system adds to the network effect by encouraging users to compete against each other to improve their standing.
As more users join and compete, the value of the site increases further, creating a positive feedback loop. Network effects refer to the phenomenon where a product or service becomes more valuable as more people use it. This can be seen in Orange's online-gaming site, where the ranking system encourages users to compete with each other, and the large user base makes the competition more exciting. As more users join and compete, the value of the site increases, attracting even more users, and creating a positive feedback loop. Therefore, this is an excellent example of how network effects can drive the growth of a product or service.
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what is true for consumers when they choose how much to consume of a good? a. as the quantity consumed of a product rises, total utility rises, but marginal utility falls. b. as the quantity consumed of a product rises total utility falls, but marginal utility rises. c. as the quantity consumed of a product rises marginal utility rises. d. as the quantity consumed rises, total utility falls.
The correct answer will be (a), as the quantity consumed of a product rises, total utility rises, but marginal utility falls.
The additional pleasure a consumer experiences from obtaining one additional unit of a good of an item or service is known as marginal utility. Economists employ the idea of marginal utility to predict the amount of something that customers will purchase.
When the total utility is enhanced by the intake of an additional item, positive marginal utility occurs. On the other side, negative marginal utility occurs whenever the overall utility is decreased by the consumption of one additional unit. Whenever the unit consumed by consumers rises, total utility rises whereas marginal utility falls.
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If the fixed costs are $10928 and the variable cost/unit is $13 and the break even is 115 unit, what is the selling price per unit?
10.800 selling per unit
Which action is best if you suspect you're the victim of identity theft?
Change your email address
Get a PO box
Check your credit report
Change your phone number
Answer: contact your bank, change your email and check your credit reports
Explanation:
on which form do you file your taxes? w-2 1099 i-9 1040
The form that you use to file your taxes depends on your individual tax situation. If you are an employee who receives a regular paycheck from an employer, you will likely receive a W-2 form at the end of the year that shows your earnings and the taxes that have been withheld from your paycheck.
On the other hand, if you are a freelancer or independent contractor, you may receive a 1099 form from each of your clients showing your earnings from that work. In this case, you would still use Form 1040 to file your taxes, but you would also need to complete additional forms to report your self-employment income and any expenses related to your work.
The I-9 form is not used for tax filing purposes, but rather for verifying an employee's identity and eligibility to work in the United States. It is completed by both the employer and the employee at the time of hire.
In summary, if you are an employee, you will likely use your W-2 form to file your taxes using Form 1040. If you are a freelancer or independent contractor, you will use your 1099 forms in addition to Form 1040 and other self-employment tax forms.
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how many books will this monopolist produce to maximize profits and how much will it charge? explain. (b) compute the consumer and producer surplus at the maximizing level of output. show your work. (c) compute the deadweight loss at the maximizing level of output.
The number of books a monopolist will produce to maximize profits and the price it will charge depend on the monopolist's cost structure, market demand, and the elasticity of demand.
To maximize profits, a monopolist will typically produce at the level of output where marginal cost (MC) equals marginal revenue (MR). This is because at this level, the additional cost of producing one more book (MC) is equal to the additional revenue generated from selling one more book (MR), resulting in maximum profit.The monopolist will charge a price based on the demand curve it faces. The demand curve represents the quantity of books consumers are willing to buy at different prices. To maximize profits, the monopolist will set the price at a level where the quantity demanded equals the quantity supplied (determined by the level of output).
To compute the consumer and producer surplus at the maximizing level of output, you need information about the demand curve and the monopolist's cost structure. Consumer surplus represents the difference between the price consumers are willing to pay and the actual price they pay for each book. Producer surplus represents the difference between the price the monopolist receives and the cost of producing each book.To compute the deadweight loss at the maximizing level of output, you need to compare the welfare in a perfectly competitive market (where the monopolist does not exist) with the welfare in the monopolistic market.
Deadweight loss represents the loss in total welfare caused by the monopolist's ability to restrict output and charge a higher price.Please note that without specific information about the demand curve and cost structure, it is not possible to provide numerical calculations or a specific answer to this question.
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Creation of a dual chain of command -- explicitly breaking the principles of chain of command is called the:______.
The matrix structure is an organizational layout that defies convention and establishes a dual line of command.
Dual chain of command: what is it?There is a dual chain of command to the operating forces: a command structure that passes authority from the President through the Secretary of Defense to the head of a unified or particular command before reaching the designated operational troops.
What happens if there is a breakdown in the chain of command?If you are the company's owner, you must specify your position in the chain of command and adhere to the rules you establish. You are undercutting the authority you wish to provide your managers if you break the chain. If managers regularly feel overruled, they are less likely to be effective leaders.
What makes the command structure in a company important?Efficiency is produced when a well-established chain of command is used to report issues, consult with staff, and enhance productivity. In some circumstances, it could be more effective to report issues to the lowest-level managers or supervisors rather than raising them to higher levels of management.
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According to the unit, what percentage of shoppers used a coupon in 2012?
A. 78%
B. 85%
C. 93%
D. 100%
today's world, 96% of consumers have used a coupon in the past 90 days. JC Penney tried to break consumers of the coupon habit in 2012 and quickly saw a 23% drop in sales for the first three quarters of 2012. If JC Penney couldn't change people's shopping behavior, you probably can't either.n: so i guess its c
Answer:
78%
Explanation:
I take nutrition and wellness, and this was the correct answer for me. Just took the test as well :P
which of the following loans will typically have the lowest interest
Answer:
ummmmmm I don't know sorry
Question 7, 2008 WAEC. Kofi is a dealer in general merchandise. The following are his transactions for the month of June, 2002. June 1: Sold goods to Mensah Le 20,000 less 10% trade discount. June 4: Purchases from Kwesi the following: 200 iron rods at Le20 each 100 fillers at Le30 each June 6: June 7: June 9: Invoice subject to 10% trade discount. Purchased from Asante Ltd., 10 bottles of gin at Le 30 each. Returned 60 iron rods purchased on 4th June, to kwesi. Sold the following to Kojo: 300 bags of cement at Le15 each, Less 15% trade discount, 150 tins of target at Le10 per tin. June 18: Kojo returned 10 bags of cement bought on the 9th of June. June 20: Sold to Jones 80 iron rods at Le50 each 110 bags of cement at Le16 each 250 fillers at Le35 each Invoice subject to 50% trade discount June 21: Jones was allowed 50% reduction on the total invoice price for goods damaged in transit. June 30: Purchased from Femi: 100 bags of cement at Le 15 each 50 gallon of oil paint at Le20 each 300 metal sheets at Le18 each You are required to write up the following: (a) sales day book (b) sales returns book (d)purchases returns book purchases day book.
Answer: Table uploaded in the Explanation Section
Explanation:
KOFFI SALES DAY BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N) TOTAL (N)
1-Jun Mensah
Goods 20, 000
Less 10% Trade Discount (2, 000) 18, 000
9-Jun Kojo
300 Bags of Cement 15 4, 500
Less 15% Trade Discount -675 3, 825
150 Tins of Target 10 1, 500
5, 325
20-Jun Jones
80 Iron rods 50 4, 000
110 Bags of Cement 16 1, 760
250 Fillers 35 8, 750
14, 510
Less 15% Trade Discount (2, 177) 12, 333
35, 658
KOFFI PURCHASES DAY BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N) TOTAL (N)
4-Jun Kwesi
200 Iron rods 20 4, 000
100 Fillers 30 3, 000
Less 10% Trade Discount -700 6, 300
6-Jun Asante Ltd
Bottles of Gin 30 300
30-Jun Femi
100 Bags of Cement 15 1, 500
50 Gallons of Oil Paint 20 1, 000
300 Metal Sheets 18 5, 400 7, 900
14, 500
SALES RETURNS BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N)
18-Jun Kojo
10 Bags of Cement 15 150
2,250
PURCHASES RETURNS BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N)
7-Jun Kwesi
60 Irons rod 20 1, 200
1, 200
In 2013, Zappos was performing well under the leadership of Tony Hsieh and was getting ready to take on a new challenge that would, among other things, push the boundaries of traditional human resource management. Although business was booming, Tony Hsieh was not a man who wanted to be in status quo mode for too long, so he set out to implement an organizational and cultural change called Holacracy. Zappos was the largest and best known of the 300 companies worldwide that had adopted Holacracy—a new form of hierarchy that is a "flexible, self-governing structure, where there are no fixed jobs but simply temporary functional roles." In a Holacracy, the main unit is called the "circle," which is a distinct yet fluid team. Leadership became similarly fluid with the changing circles. Circles are designed to meet certain goals and are created and disbanded as project needs change. The intent is that people self-select to work on projects that they want to work on and that they have the skills for. Tony also removed all previous titles. The role of manager went away and was replaced with three roles: "lead links" would focus on guiding the work in the circles; "mentors" would work on employee growth and development; and "compensation appraisers" would work on determining employees’ salaries. In 2015, he decided to further break down the divisions between many of the functions, changing them all to business-centric circles. There were changes to almost every human resource management structure that you can think of, and there were quite a few growing pains within the organization. Zappos began to look at employee pay, and Holacracy seemed to have a steep learning curve for many people, even though a "constitution" was created to provide guidance. Zappos was also facing 14% attrition, as some of the rapid and excessive changes were wearing on employees. Tony was a visionary, but for a lot of people it was hard to catch up and see the same vision. From a human resource management perspective, there could be some positive attributes of a Holacracy if it were to succeed—such as building engagement and helping to build talent and skill sets. There were also a few risks that needed to be dealt with carefully. When you create an organization in which people don’t have set teams or projects but instead determine what they want to work on, one of the big challenges is going to be determining the level and nature of their role, as well as the compensation for that role. If Holacracy is compared to a consulting organization, in which consultants are brought into different projects with different requirements, it is critical to first determine the level of their consultant role (based on their education, skills, experience, etc.) so that they can properly move from project to project yet maintain a role of a certain level. That level is then tied to a specific pay scale, so the same consultant will receive the same salary no matter which project he is on. If that consultant is "on the bench," or not placed on a project (or self-placed, in the case of Holacracy), then after a certain defined period that consultant may be at risk of termination. Holacracy is in some ways a challenging concept to think about, and self-management may not be able to work in all environments. A company that is implementing a Holacracy may find that they are able to master the process of selfselection of work in the "circles." The "task" part of the equation may not be much of an issue once people figure out how to navigate the circles. However, the "people" part of the equation may need some work. The greatest challenge may lie in the structures and processes of human resource management that ultimately define the employeremployee relationship.
Critical Thinking Questions
1. What are some of the human resource management processes that might be enhanced by a Holacracy? What processes will be challenged?
2. Do you think that a Holacracy can be compared to a consulting company? How are they similar,s and how are they different? Can you think of work areas or industries in which Holacracy would be very difficult to implement?
Holacracy has the potential to enhance human resource management processes such as employee engagement and talent development. However, it also poses challenges in determining role levels and compensation. While Holacracy shares some similarities with consulting companies, it differs in terms of the self-selection process and the complexities of role definition and compensation. Holacracy may be difficult to implement in industries that require strict hierarchies and clear roles for safety and compliance purposes.
1. Holacracy can enhance certain human resource management processes, such as employee engagement and talent development. In a Holacracy, employees have the freedom to choose which projects they want to work on based on their skills and interests. This self-selection process can lead to higher engagement because employees are more likely to be motivated and invested in their work when they have the autonomy to choose projects that align with their passions.
Additionally, Holacracy can promote talent and skill development as employees have the opportunity to work on a variety of projects and roles within different circles. This allows employees to broaden their skill sets and gain experience in different areas, which can enhance their career growth and make them more versatile.
However, implementing Holacracy can also challenge certain human resource management processes. One of the main challenges is determining the level and nature of employees' roles, as well as their compensation. In a traditional hierarchical structure, job titles and levels are predefined, making it easier to determine compensation and career progression. In a Holacracy, where roles are fluid and temporary, defining job levels and tying them to compensation becomes more complex. This can create uncertainty and potential inequities in pay if not managed carefully.
2. While there are some similarities between a Holacracy and a consulting company, they also have distinct differences. Both Holacracy and consulting companies involve working on different projects with varying requirements. In a consulting company, consultants are typically assigned to projects based on their expertise and experience, and their compensation is determined based on their role level within the company.
In Holacracy, employees self-select the projects they want to work on based on their interests and skills. This self-selection process allows for greater autonomy and freedom, as employees have more control over their work assignments. However, in terms of compensation, Holacracy may face challenges in determining how to fairly reward employees for their roles, especially if roles and projects vary in terms of complexity and importance.
Holacracy may be difficult to implement in certain work areas or industries that require strict hierarchies, such as military organizations or highly regulated industries like healthcare. These industries often rely on clear chains of command and well-defined roles to ensure safety, compliance, and accountability. Implementing Holacracy in such environments may introduce too much ambiguity and complexity, potentially leading to inefficiencies and increased risk.
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