The assertion that can be made about expanding a company's product lines is that product line expansion can help to cut production and marketing costs.
One valid assertion about expanding a company's product lines is that it can help to cut production and marketing costs. When a company expands its product lines, it can benefit from economies of scale. By offering a wider range of products, the company can achieve higher production volumes, which often leads to cost savings in terms of raw materials, manufacturing processes, and distribution. Additionally, marketing efforts can be leveraged across multiple products, reducing the overall cost per product in terms of advertising, promotion, and brand management. Therefore, expanding product lines can result in cost efficiencies and contribute to improved profitability for the company.
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Feb 1 balance 450, 14 sales 1,200, Feb 8 drawings 150, 24 wages 990. Calculate the balance on 28 february. Record the balance to carry down on the side with the smaller total value. Record totals on the debit and credit sides of the account. Complete the double - entry by recording the balance brought down dated 1 March
Answer:
hi
Explanation: ajsd;lfjas;dfj;lad;leajl;jf;lwjf;welfj;wlejflwejflkwjlfkj;lajlkfjsdlkfjlsdkjf;llsadjfjdf;lklasjflkasdjf;lkajsf;lkjasddfjsdlfkja;lkjflkaskdjdf;ksdjdflksdjfljklkasddfjklsdfjkldsfjdfklsjjdsfakasjl;k
How can you get your money back if you send a p2p payment to the wrong person?.
When a payment is sent to the wrong person using p2p, the money cannot be gotten back since it is equivalent to giving money to a wrong account. However, the person can lay a complaint to the customer service to take action.
What is P2P Payment?P2P payment is a system of payment where money is sent to another member of the crypto community in exchange for a coin to be sent to the individual's wallet. It is equivalent to giving someone cash.
When a user mistakenly sends money to the wrong person, the money cannot be gotten back. But if the sender has the details of the wrong receiver, an appeal can be made for the money to be reversed. However, if this is not the case, then the money would have to be forfeited.
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Positive economic growth is realized when a country's production possibilities curve
(frontier) shifts outwards, however, can be calculated as the percentage increase in
either the real gross domestic product or the real gross domestic product per capita.
Answer:
True
Explanation:
It is TRUE that Positive economic growth is realized when a country's production possibilities curve
(frontier) shifts outwards.
This is evident in the fact that the outwards shifts of the production possibilities curve of a country indicate an increase in output or production level of that country.
Also, such production possibilities can indeed be estimated as the percentage increase in either the real gross domestic product or the real gross domestic product per capita.
Tennyson's ultimate goal is to work as the CEO of an advertising agency. One of her goals is to "gain the required experience for the position." What type of goal would this be?
OA performance-based
OB. time-based
O C.
OD. long-term
mid-term
The type of goal that is been used when Tennyson's ultimate goal is to work as the CEO of an advertising agency and one of her goals is to "gain the required experience for the position is B. time-based goal.
What is time-based goal?
Time-based goal can be described as the goal that is been focused so that it can be achieved on a target date, it involve focusing on a particular thing at a time so as to be successful in it.
In conclusion, from the case above , we can see that her goal is to work as the CEO of an advertising agency which is specific and have time.
Therefore, option B is correct.
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The _____ is a production period long enough for the firm to adjust the
quantities of all its ________, including capital.
Answer:
long run, productive resources
7. What scenario the best way to prevent yourself from having the most investment loss?
Investing in a couple of strong stocks
Investing in one company's stock whose products you most often purchase
Having a diversified portfolio with a variety of investments
All of the above
Answer:
Having a diversified portfolio with a variety of investments .
Explanation:
The best alternative to avoid losses when making investments is to have a diversified portfolio, in which you have several stocks, bonds and other investment instruments that are not linked to each other, so that, in the event of a fall In one sector of the economy, the eventual gain of other sectors will keep the investor's money relatively stable. Thus, for example, you can have a portfolio with shares of technology companies, banks, raw materials and retail chains, together with bonds of economically stable countries, with which a negative result at the technological level, for example, would be placated by a positive result of the other investments.
The Economist article "What Pandemic Border Closures Say About Japan’s View of Outsiders" discusses the impact of Japan's strict Covid measures since 2020, especially with regard to foreigners entering the country. Although Japan has now relaxed some travel restrictions for foreigners, the unintentional consequences of such measures will adversely impact Japan for years to come. According to the article, why has Japan traditionally been hesitant in accepting foreigners into the country and why will foreigners be important for Japan’s future?
The article highlights Japan's historical hesitancy in accepting foreigners and discusses the reasons behind this cautious approach. Japan's cultural homogeneity, concerns about social cohesion, and past experiences with foreign invasions have shaped its traditional reluctance towards immigration.
Japan's hesitancy in accepting foreigners stems from various factors. Firstly, the country has a long history of cultural homogeneity and a strong sense of national identity. This has led to a preference for maintaining social cohesion and preserving traditional values, making it challenging for Japan to embrace a large-scale influx of foreign residents. Secondly, Japan's historical experiences, such as the forced opening of its borders in the 19th century and the negative impacts of World War II, have left a lasting impression on the nation's psyche. These events have fostered a cautious approach towards immigration and foreign involvement.
However, the article argues that Japan's future depends on the inclusion of foreigners. Japan faces significant demographic challenges, including an aging population and a declining birth rate, which have resulted in labor shortages and a shrinking workforce. To sustain economic growth and address these issues, Japan will need to attract foreign talent, expertise, and labor. Furthermore, foreigners can bring diverse perspectives, innovation, and international connections that are vital for Japan's competitiveness in the global economy.
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prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of july 31.
To make the company's book balance of cash equal to the reconciled cash balance as of July 31, journal entries should be made to adjust any discrepancies between the two balances.
The process of reconciling the book balance of cash with the reconciled cash balance involves identifying and correcting any differences between the two. These differences can arise due to various reasons, such as timing discrepancies, bank fees, outstanding checks, or deposits in transit.
To adjust the book balance of cash, several journal entries may be required. The specific entries will depend on the nature of the discrepancies identified during the reconciliation process. For example, if outstanding checks were not recorded in the book balance, an entry would be made to decrease the book balance by the amount of the outstanding checks. Conversely, if deposits in transit were not recorded, an entry would be made to increase the book balance by the amount of the deposits in transit.
By making the necessary journal entries to adjust the book balance of cash based on the reconciled cash balance, the company can ensure that the two balances are in alignment and accurately reflect the actual cash position as of July 31.
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What is a subcontractor
Answer:
business or person that carries out work for a company as part of a larger project.
Explanation:
A hun
I will mark as brainliest! PLEASE HELP ASAP!¹
Net value is:
a. the total value of the portfolio
b. a share price of the mutual fund
c. the total value of bonds in the portfolio
d. none of the above
¹if applicable and appropriate
Answer:
b
Explanation:
The correct answer would be a share price of the mutual fund.
The Net Asset Value (NAV) is defined as the total assets less the total liability of a mutual fund or an exchange-traded fund. Mathematically, it is represented as:
NAV = asset's value - liability's value
The net asset value, when it concerns the mutual fund is represented on a per-share basis and is used to determine the value of assets held by investors.
Hence, the net asset value can be viewed as a share price of the mutual fund.
Correct option: b
Including ______
in a sales strategy is important.
A. customer rewards
B. employee feedback
C. customer support
D. employee support
What is one method that helps control online fraud? O A. Deleting odd emails before reading B. Reporting odd emails to police • C. Reporting odd emails as spam • D. Signing into email in many locations
Answer: C. Reporting odd emails as spam
Explanation:
If you are interviewed by more than one person, you should send a thank-you note to _____.
each person in the interview
each person you see in the building
the first person you are introduced to
the person who is obviously leading the interview
Answer:
option A is correct.
i.e.
each person in the interview.
Explanation:
Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.
What do you avoid paying if you pay your full credit card bill by the due date
every month?
O A. Late fees
O B. Interest
C. Interest and late fees
O D. The entire balance
B. which is "Interest", If you pay your full credit card bill by the due date every month, you will avoid paying any interest charges.
However, if you miss the due date, you may be charged a late fee and interest on any remaining balance. Therefore, option C, which is "Interest and late fees", is incorrect. Option D, which is "The entire balance", is also incorrect because you still need to pay the full amount of your credit card bill, but without any additional charges.
By paying your full credit card bill by the due date every month, you avoid both interest and late fees. Interest is charged when you carry a balance from month to month, and late fees are charged when you do not make at least the minimum payment by the due date. By paying the full balance on time, you avoid both of these charges.
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the ceo at green inc. has established that employees should adhere to a vertical communication process and a fixed work flow system, and she strictly monitors these processes. the steps taken by the ceo at green inc. reflect the behavior of leaders suggested by the ohio state studies. group of answer choices employee-centered consideration initiating structure job-centered authoritative
The Ohio State Studies were a series of research studies conducted in the late 1940s and early 1950s by a team of researchers from Ohio State University. The studies aimed to identify the key behaviors exhibited by effective leaders in order to provide a framework for leadership development.
One of the key findings of the Ohio State Studies was that effective leaders exhibited two types of behavior: consideration and initiating structure. Consideration refers to the extent to which a leader is supportive, friendly, and approachable toward their employees. Initiating structure, on the other hand, refers to the extent to which a leader is task-oriented, organized, and focused on achieving goals.
Now, to connect this to the behavior of the CEO at Green Inc., it appears that the CEO is exhibiting a high degree of initiating structure. By establishing a fixed workflow system and monitoring it closely, she is demonstrating a focus on achieving goals and ensuring that tasks are completed efficiently. This is in line with the behavior of job-centered leaders identified in Ohio State Studies.
However, it is unclear from the information provided whether the CEO is also exhibiting consideration toward her employees. The fact that she is strictly monitoring the communication process could suggest that she is not particularly approachable or supportive towards her employees, which would be at odds with the behavior of employee-centered leaders identified in Ohio State Studies.
In conclusion, the steps taken by the CEO at Green Inc. reflect the behavior of job-centered leaders suggested by Ohio State Studies. However, without more information about her behavior towards her employees, it is difficult to determine whether she is also exhibiting consideration toward them.
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2) Moonlight Company wrote off the account of one of its customers, X, in 2018 for $500. On January 21, 2019, X unexpectedly repaid his account in full. The company uses the direct write-off method to account for uncollectible receivables. Journalize the entries required for Moonlight Company on January 21, 2019
Answer:
A journal entry was carried out for Moonlight Company for January 21, 2019, and is shown below in the explanation section
Explanation:
Solution
Given that:
Moonlight Company Journal Entries on January 21, 2019
JOURNAL ENTRY
Date Account name Debit Credit
Jan. 21, 2019 Cash 500
(Income statement -Bad debts recovered) 500
(record the bad debts recovery from customer X)
Suppose Jill Johnson operates her pizza restaurant in a building she owns in the center of the city. Similar buildings in the neighborhood rent for $4,000 per month. Jill is considering selling her building and renting space in the suburbs for $3,000 per month. Jill decides not to make the move. She reasons, "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3,000 per month." What do you think of Jill's reasoning?Suppose Jill Johnson operates her pizza restaurant in a building she owns in the center of the city. Similar buildings in the neighborhood rent for $4,000 per month. Jill is considering selling her building and renting space in the suburbs for $3,000 per month. Jill decides not to make the move. She reasons, "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3,000 per month." What do you think of Jill's reasoning?
Answer: Jill is incorrectly ignoring the opportunity cost of using the building she owns.
Explanation:
Based on the information given, Jill is incorrectly ignoring the opportunity cost of using the building she owns.
Here, opportunity cost refers to the cost of what an individual forgoes when such person decides to choose another alternative. Even though he thinks that he's paying no cos for the restaurant, he actually does through the opportunity cost.
Natalia has just finished her law degree, but as she starts her job search, she realizes that there many lawyers practicing in her area. What might that mean for Natalia
She will therefore need to put in more effort to become the top attorney in the region or relocate to a region with fewer attorneys might that mean for Natalia.
Why are lawyers called attorneys?Lawyers are those who have completed legal education, frequently after passing the bar exam. The word "attorney" has French roots and comes from a verb that means to represent someone else. Attorney is a shortened version of the official title "attorney at law."
Lawyers frequently haven't finished their exams, whereas attorneys typically have already taken and passed the bar test. Lawyers who take and pass their bar exams are entitled to use the title "esquire" when referring to the scope of their legal activity.
A person who offers legal advice is referred to as a "lawyer" in general. There are many distinct types of qualified lawyers in the legal field. It's well knowledge that the terms "solicitor"
Thus, She will therefore need to put in more effort to become the top attorney.
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Which nims management characteristic includes documents.
The NIMS management characteristic that includes documents is standardization. Standardization is the ability to standardize terminology, forms, and procedures to ensure that all entities understand and use the same concepts, thus ensuring effective coordination and response during an emergency.
In simple terms, standardization ensures that everyone speaks the same language during a crisis or incident. This is why NIMS requires that all levels of government adopt a common language and framework. It is a critical part of ensuring that resources can be effectively shared and deployed in response to an incident.Standardization is also why NIMS places such a high emphasis on documentation. To be effective, responders need to be able to access a wide range of information quickly.
By standardizing documentation, we can ensure that everyone can access the information they need in a format that they understand. In addition, standardizing documents ensures that everyone knows where to find information when they need it. Overall, standardization is a critical component of effective emergency management.
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Amanda is 20-years-old and looking to invest $1000. She has always played it safe with very low-risk investments, but now she is ready to take a bigger risk to see if she can earn a bigger return on her investment. She is comfortable having this money tied up for several years, but she would like to withdraw the money sometime in the next 5 to 10 years. Which type of investment will BEST fit Amanda’s needs?
money market mutual fund
certificate of deposit
bond
401k
Given,
Amanda is 20-years-old and looking to invest $1000. She is comfortable having this money tied up for several years, but she would like to withdraw the money sometime in the next 5 to 10 years.
Solution,
Know that the duration of the certificate of deposit has a period of seven days to one year.
Know that bonds have a duration depending upon the issuer but there is no gain in that period.
Therefore, mutual funds in the money market are the best option as it shall give a high return in the said time period.
Hence, the correct option is (A) i.e. money market mutual funds.
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What is the relationship between costs of materials and distribution channels?
Answer:
A distribution channel is the set of steps it takes for a product to get in the hands of the key customer or consumer. Distribution channels can be direct or indirect. Distribution can also be physical or digital, depending on the kind of business and industry.
Explanation:
Under the budget-execution authority granted in a 1985 constitutional amendment, in which ways can appropriations be changed between legislative sessions?.
The legislature is crucial in shaping the annual budget and providing budgetary oversight. When fiscal policies and medium-term budgetary goals are debated in parliament and annual budget laws are passed.
What is Role of the Legislature in Budget Processes ?Constitutions define the legislative role and its relationship with the executive. Constitutions and budget system laws elaborate on the legislature's budgetary roles and powers.The legislature's active participation in the budget process is critical for promoting good governance and fiscal transparency. Budget strategies and policies are more widely "owned" when fiscal policies and medium-term budgetary objectives are debated in parliament. However, increased legislative participation risks deterioration of fiscal discipline.The primary functions of Parliament are to review and debate the government's draught ex ante budget and to authorise spending to carry out the annual budget plan. Parliament also examines budget implementation and, in some countries, formally approves and discharges the government following annual budget implementation.To learn more about legislative sessions refer :
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The PESTEL framework is a model regarding a firm'sA. internal issuesB. strategic groupC. industry conditionsD. external macro-level environment
The correct answer is D. The PESTEL framework is a model used to analyze and assess the external macro-level environment of a firm.
PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors that can impact a company's operations, profitability, and success. This model helps firms identify opportunities and threats in their external environment, and develop strategies to respond to them. This framework helps businesses analyze and understand the various external factors that can impact their operations and decision-making. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors, all of which are considered to assess a firm's external macro-level environment.
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How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
The K. Ledecky Company sells Olympic swimming medals. It started its operations in the 20th
century. Many years later, the balance sheet for December 31, 2020, showed the following account
balances (there were no other accounts listed):
Accounts receivable 100, Dividend payable 12, Cash 469, Accumulated
depreciation 85, Prepaid advertising 30, Rent payable 7, Accounts payable 100,
Retained earnings 287, Loan from bank 38, Inventory 100, Wages payable 5,
Paid in capital 500, Loan to ABC 25, PP&E 410, Advances from customers (?).
During 2021 the following transactions occurred:
1. Depreciation expense for the year was $60.
2. Dividend payments were $62. There was no dividend payable at the end of the year.
3. Ledecky purchased $607 worth of inventory and paid its suppliers $706.
4. Total collections from customers were $1,270 and the ending balance of accounts
receivable was $120.
5. Costs of goods sold amounted to $611.
6. In addition to the transactions described in items 4 and 5 above, a special sale was made
to the customer who paid in advance in 2020 (see December 31, 2020 balances). The
selling price was $150 and the costs of the goods sold were $96. The customer paid the
remaining balance in cash.
7. Ledecky won many Gold medals in 2021 and expects an increase in promotional campaigns
that will result in a sales increase of 35%, starting next year.
8. The employees of Ledecky earned $70 and were paid $65 as wages.
9. Ledecky purchased, in cash, the right to use the trademark iMBA from iCBS for $200. This
trademark is amortized using equal annual amounts over 40 years, starting January 1, 2021.
10. Ledecky paid the bank $13: $3 as interest and $10 to reduce the principal. The interest paid
equals the interest due to the bank.
11. Ledecky earned, but did not collect, $5 of interest on its loan to the ABC Company.
12. Rent expense for 2021 was $36, while rent payments were $50.
13. $20 of the prepaid advertising were used during 2021.
Required:
a. What was the balance of the account Advances from customers on December 31, 2020?
b. Record all transactions that occurred during 2021.
c. Prepare an Income Statement for the year ended December 31, 2021.
d. Prepare a Balance Sheet for December 31, 2021.
a. The balance of the account Advances from customers on December 31, 2020 was 0 (zero).Explanation:As per the question, the balance sheet for December 31, 2020 showed the following account balances (there were no other accounts listed):
Accounts receivable $100 Dividend payable $12 Cash $469 Accumulated depreciation $85 Prepaid advertising $30 Rent payable $7 Accounts payable $100 Retained earnings $287 Loan from bank $38 Inventory $100 Wages payable $5 Paid in capital $500 Loan to ABC $25 PP&E $410 Advances from customers (?)Now, during 2021 the following transactions occurred:1. Depreciation expense for the year was $60.2. Dividend payments were $62. There was no dividend payable at the end of the year. 3. Ledecky purchased $607 worth of inventory and paid its suppliers $706.4. Total collections from customers were $1,270 and the ending balance of accounts receivable was $120.5. Costs of goods sold amounted to $611.6. In addition to the transactions described in items 4 and 5 above, a special sale was made to the customer who paid in advance in 2020 (see December 31, 2020 balances). The selling price was $150 and the costs of the goods sold were $96. The customer paid the remaining balance in cash.7. Ledecky won many Gold medals in 2021 and expects an increase in promotional campaigns that will result in a sales increase of 35%, starting next year.8. The employees of Ledecky earned $70 and were paid $65 as wages.9. Ledecky purchased, in cash, the right to use the trademark iMBA from iCBS for $200. This trademark is amortized using equal annual amounts over 40 years, starting January 1, 2021.10. Ledecky paid the bank $13: $3 as interest and $10 to reduce the principal. The interest paid equals the interest due to the bank.11. Ledecky earned, but did not collect, $5 of interest on its loan to the ABC Company.
12. Rent expense for 2021 was $36, while rent payments were $50.13. $20 of the prepaid advertising were used during 2021.b. Recording transactions that occurred during 2021: Date Particula Debit Credit 1 Depreciation Expense$60 Accumulated Depreciation$602 Dividend Paid$62 Cash$624 Inventory$607 Accounts Payable$7063 Accounts Receivable$1,270 Sales$1,2704 Cost of Goods Sold$611 Inventory$611 Accounts Payable$611 Prepaid Advertising$964 Sales$150 Cost of Goods Sold$96 Cash$544 Account Receivable$1507 No entry required 8 Wages Expense$70 Wages Payable$65 Cash $6599 Trademark Expense$5 Cash$20010 Interest Expense$3 Loan from Bank$10 Cash$1311 No entry required 12 Rent Expense$36 Rent Payable$36 Cash$50 Rent Payable$50 Prepaid Advertising$20 Prepaid Advertising Expense$20c. Income Statement for the year ended December 31, 2021: Revenue Sales$1,420 Cost of Goods Sold$707 Gross Profit$713 Operating Expenses Rent Expense$36 Wages Expense$70 Prepaid Advertising Expense$20 Trademark Expense$5 Total Operating Expenses$131 Net Income$582 d. Balance Sheet for December 31, 2021: Assets Liabilities and Shareholders' Equity Cash$420 Accounts Payable$100 Accounts Receivable$120 Rent Payable$7 Inventory$96 Wages Payable$5 PP&E$350 Loan from Bank$25 Less:
Accumulated Depreciation$145 Dividend Payable$0 Total Assets$841 Total Liabilities$137 Shareholders' Equity Paid-in Capital $500 Retained Earnings$287 Total Shareholders' Equity$613 Total Liabilities and Shareholders' Equity$750 + $613 = $841 Hence, the answers are:a. The balance of the account Advances from customers on December 31, 2020 was 0 (zero).b. Recording transactions that occurred during 2021:Date Particulars Debit Credit 1 Depreciation Expense$60 Accumulated Depreciation$602 Dividend Paid$62 Cash$624 Inventory$607 Accounts Payable$7063 Accounts Receivable$1,270 Sales$1,2704 Cost of Goods Sold$611 Inventory$611 Accounts Payable$611 Prepaid Advertising$964 Sales$150 Cost of Goods Sold$96 Cash$544 Account Receivable$1507 No entry required 8 Wages Expense$70 Wages Payable$65 Cash$6599 Trademark Expense$5 Cash$20010 Interest Expense$3 Loan from Bank$10 Cash$13 11 No entry required 12 Rent Expense$36 Rent Payable$36 Cash$50 Rent Payable$50 Prepaid Advertising$20 Prepaid Advertising Expense$20
c. Income Statement for the year ended December 31, 2021:Revenue Sales $1,420 Cost of Goods Sold$707 Gross Profit$713 Operating Expenses Rent Expense$36 Wages Expense$70 Prepaid Advertising Expense$20 Trademark Expense$5 Total Operating Expenses$131 Net Income$582 d. Balance Sheet for December 31, 2021: Assets Liabilities and Shareholders' Equity Cash$420 Accounts Payable$100 Accounts Receivable$120 Rent Payable$7 Inventory$9 Wages Payable $ 5PP & E $350 Loan from Bank$25 Less: Accumulated Depreciation$145 Dividend Payable$0 Total Assets$841 Total Liabilities$137 Shareholders' Equity Paid-in Capital$500 Retained Earnings$287 Total Shareholders' Equity$61 Total Liabilities and Shareholders' Equity$750 + $613 = $841
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How education is medium to enhance the ability of human beings?
which of these is mos likely outcome of a financial crisis
Answer:
More bankruptcies
Explanation:
Financial crises are caused by number of reasons such as stock market crash, liquidity shortage, over-valued assets which make investors sell off their investments hence causes panic withdrawals for customers due to rumored banking collapse etc.
When financial crises occur, the profit due to firms will be eroded because the revenue expected by them is not coming forth. Moreso, the overall corporate profit would also be affected by the financial crises hence bring about loss and subsequent bankruptcies.
Financial crises creates unemployment or massive lay-offs, loss of money hence increase chances of creating more bankruptcies.
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Amanda works as an accountant at a small-sized firm that sends out multiple invoices daily. She wants to ensure that the firm's invoices have a professional look and format. Further, she wants to customize such invoices with the firm's logo. Which accounting program is most suitable for
Amanda's requirements?
A. OpenOffice Calc
В. QuickBooks
C. NetSuite
D. FreshBooks
E. Intact
Answer:
Netsuite
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Who might request your credit report besides you? Why?
Answer: See explanation
Explanation:
Credit report and history are used to know ones creditworthiness. Apart from the individual who owns the account, it can also be requested by creditors or lenders such as mortgage lenders so that they can know if one is eligible and creditworthy for a loan. Creditors review ones credit report when loans are applied for.
You just received your financial aid offer and you see that you’ve been offered a Direct Subsidized Loan and a Direct Unsubsidized Loan. Assuming you accept both loans, explain how interest is handled differently between these two types of loans and how that can impact your monthly payments.
The way that interest is handled in Direct Subsidized Loan and a Direct Unsubsidized Loan is that:
Interest accrues (additionally) on loans with daily interest every day. You are not liable for paying the interest that accrues while you are in school if your loans are subsidized. Even when you're in school, if your loans are unsubsidized, you're still responsible for paying all accumulated interest.
While you are enrolled in school at least half-time or even during deferment periods, interest on your subsidized loans does not accrue.
Have interest-bearing loans, subsidized or unsubsidized?Subsidized loans clearly prevail when compared to unsubsidized loans. A subsidized loan will save you money throughout the course of the loan if you are eligible for one. You will pay less in interest costs. Nevertheless, not everyone will be eligible for a subsidized loan.
While enrolled at least half-time in school or during deferment periods, interest is not charged on subsidized loans. Loans that aren't based on financial need are known as unsubsidized loans, and they are available to both undergraduate and graduate students.
Therefore, with the use of a subsidized direct loan, the lender or government (for Federal Direct Subsidized Loans, also known as Subsidized Stafford Loans) pays your interest while you're in school (a minimum of one year).
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