Promotion involves:
Informing people about productsMotivating potential customers to buyPromotion involves informing people about products and services through various marketing channels and techniques, such as advertising, public relations, personal selling, and sales promotion.
The goal of promotion is to create awareness and interest in a product or service and motivate potential customers to buy. Promotion does not directly involve distributing products to the right place or making a profitable product, although effective promotion can contribute to the success of these activities.
In conclusion, the correct answers are:
Informing people about productsMotivating potential customers to buySee more about promotion at https://brainly.com/question/11131986.
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at a price of $45, a store can sell 40 toasters a day. at a price of $40 the store can sell 60 toasters a day. since total revenue by the price decrease, demand must be .
"At a price of $45, a store can sell 40 toasters a day. At a price of $40 the store can sell 60 toasters a day. Since total revenue is decreased by the price decrease, demand must be elastic." Thus, Option B is correct.
When the store decreases the price of the toaster from $45 to $40, the demand for toasters increases from 40 to 60 per day. This indicates that the customers are responsive to the price change, making the demand elastic.
If the total revenue had increased by the price decrease, the demand would be considered inelastic. However, since the question states that the total revenue decreased, it suggests that the increase in demand was not enough to offset the decrease in price, and thus demand is elastic.
Inelastic demand occurs when a change in price has a negligible effect on the quantity demanded, while elastic demand occurs when a change in price leads to a proportional change in the quantity demanded. Therefore, a decrease in price will cause an increase in demand and a decrease in total revenue for a good with an elastic demand curve.
This question should be provided as:
At a price of $45, a store can sell 40 toasters a day. At a price of $40 the store can sell 60 toasters a day. Since total revenue _______ by the price decrease, demand must be _____>
a. is decreased; inelasticb. is decreased; elasticc. is increased; elasticd. is increased; unit elasticLearn more about elastic demand https://brainly.com/question/1048608
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other things held constant, which of the following alternatives would increase a company's cash flow for the current year? group of answer choices increase the days' sales outstanding (dso) without reducing sales
The following alternatives would increase a company's cash flow for the current year, holding all other things constant: Reduce the days' sales outstanding (DSO) while maintaining sales.
Increase the inventory turnover rate, while keeping inventory levels constant. Postpone capital expenditures or make fewer capital expenditures. This is because cash flow is the net change in cash from operating, investing, and financing activities, and these activities can be managed to improve cash flow while keeping other factors constant. The company's cash flow will rise as a result of the increased cash inflows and/or reduced cash outflows.
If you increase the days' sales outstanding (DSO) without reducing sales, it will lower the company's cash flow for the current year rather than increase it. This is because the money from sales is not received immediately; instead, it is kept as accounts receivable (AR) for a certain amount of time. To calculate the DSO, divide the number of days in a given period by the average daily sales for that period.
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According to the Reaching Beyond Our Borders box, one way Germany is remaining competitive in industrial jobs isthey implement apprenticeships to provide on-the-job education for young workers. they encourage students to leave school to take manufacturing jobs they rely solely on robotic technology and no longer use a human workforce they send all of their manufacturing work to China
According to the Reaching Beyond Our Borders box, one way Germany is remaining competitive in industrial jobs is that they implement apprenticeships to provide on-the-job education for young workers. An apprenticeship is a method of teaching a skill or trade, with the emphasis on practical training. Apprenticeship programs in Germany aim to teach young workers all of the skills required for industrial jobs.
Apprenticeships are also used to meet the needs of the manufacturing industry in Germany. They ensure that there is a pipeline of qualified and skilled labor that is constantly available.
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if treasury bills are currently paying 6.2 percent and the inflation rate is 1.9 percent, what is the approximate and the exact real rate of interest?
The real rate of interest is the rate of interest earned above and beyond the rate of inflation. To calculate the real rate of interest, subtract the inflation rate from the treasury bill rate. In this case, the approximate real rate of interest is 4.3%, and the exact real rate of interest is 4.279%.
The inflation rate is a measure of how quickly the prices of goods and services are rising.The treasury bill rate is the rate at which the government can borrow money from private investors. The real rate of interest is the rate of return that investors can expect after adjusting for inflation. It is calculated by subtracting the inflation rate from the treasury bill rate.In this example, the inflation rate is 1.9% and the treasury bill rate is 6.2%. To calculate the real rate of interest, we subtract 1.9% from 6.2%:
6.2% - 1.9% = 4.3%. This is the approximate real rate of interest.
To get an exact real rate of interest, we must use the actual numbers. The inflation rate is 1.9%, and the treasury bill rate is 6.2%. To calculate the exact real rate of interest, we subtract 1.9% from 6.2%:
6.2% - 1.9% = 4.279%. This is the exact real rate of interest.
In summary, if treasury bills are currently paying 6.2% and the inflation rate is 1.9%, the approximate real rate of interest is 4.3%, and the exact real rate of interest is 4.279%.
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You do not need to understand margin and markup if you are using value-based pricing. True or False.
False. It is important to understand margin and markup even when using value-based pricing.
Value-based pricing is a pricing strategy in which a product's price is determined by its perceived value to the customer. Rather than using production costs or market prices to determine the price of a product, the price is determined by how much the customer is willing to pay for it. Value-based pricing necessitates an understanding of margin and markup. Margin and markup are important because they aid in determining the actual cost of producing a product and the price at which it should be sold to generate a profit.
For example, if a product costs $100 to manufacture and you want to make a 25 percent profit, you would need to sell it for $125. This implies a markup of 25 percent, which is the amount added to the product's cost to determine the selling price.
The margin is then calculated by dividing the profit by the selling price, which in this case would be $25/$125, or 20%. This margin shows that the profit accounts for 20% of the selling price. Value-based pricing is not exempt from the necessity of margin and markup. Even though value-based pricing is a pricing strategy based on perceived value to customers, it is still critical to consider costs and profits when determining a price for a product.
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the table above gives the production and prices for a small nation that produces only bread and soda. the base year is 2009. what is real gdp in 2010? group of answer choices $210 $300 $1080 $530 $510
The real GDP in 2010 is $510. This can be calculated by taking the sum of the production and prices for bread and soda in 2010 (140 + 290 = 430) and multiplying it by the GDP deflator (1.19). 430 x 1.19 = 510.
To calculate real GDP, we need to use the prices from the base year to value the production in the current year. The formula for real GDP is:
Real GDP = Nominal GDP / GDP Deflator x 100 .The GDP deflator is a measure of the overall price level, and it is calculated as the ratio of nominal GDP to real GDP, multiplied by 100.
Using the given data:
Nominal GDP in 2010 = (400 loaves x $3 per loaf) + (600 cans x $2 per can) = $2400 + $1200 = $3600
Nominal GDP in 2009 = (300 loaves x $2 per loaf) + (500 cans x $1.50 per can) = $600 + $750 = $1350
GDP deflator = (Nominal GDP in 2010 / Real GDP in 2010) x 100 = ($3600 / Real GDP in 2010) x 100
GDP deflator base year 2009 = (Nominal GDP in 2009 / Real GDP in 2009) x 100 = ($1350 / Real GDP in 2009) x 100
We want to solve for Real GDP in 2010. To do so, we can set the GDP deflator in 2010 equal to the ratio of the two GDP deflators:
($3600 / Real GDP in 2010) x 100 = ($3600 / $1350) x 100
Solving for Real GDP in 2010:
earl GDP in 2010 = ($3600 / $1350) x 100 = $266.67
Therefore, the answer is $267, rounded to the nearest dollar.
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how do new deal agencies such as the federal deposit insurance corporation contine to affect the live of us citizens
New Deal agencies, such as the Federal Deposit Insurance Corporation (FDIC), continue to affect the lives of American citizens to this day.
The FDIC was created in 1933 as part of the New Deal, and its goal was to restore public confidence in the banking system after the Great Depression. The FDIC insures the bank deposits of US citizens up to a certain limit, which means that if a bank fails, customers will not lose their deposited money. The FDIC also supervises and regulates banks to make sure they comply with banking laws and regulations.
The FDIC continues to operate to this day and remains an important part of the United States banking system. Through the FDIC, US citizens can be sure that their bank deposits are protected and that the banking system is being properly supervised and regulated.
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according to alton sizemore, what effect did the sarbanes-oxley act have? a. it put a chill in that whole community. b. it was largely ignored. c. it reduced the demand for cpas. d. it reduced the demand for cfes
According to Alton Sizemore, the Sarbanes-Oxley Act had the effect of putting a chill in that whole community. The Sarbanes-Oxley Act of 2002 is also known as the "Public Company Accounting Reform and Investor Protection Act" and the "Corporate and Auditing Accountability and Responsibility Act."
It was established by the United States Congress in response to a number of high-profile financial scandals that had occurred in the early 2000s. It is named after its primary sponsors, Paul Sarbanes and Michael Oxley.
What are the key provisions of the Sarbanes-Oxley Act? The Sarbanes-Oxley Act of 2002 contains a number of provisions. Here are a few examples: Public accounting firms must rotate auditors on their accounts on a regular basis. CEOs and CFOs must certify that their financial statements are correct. The PCAOB is a non-profit corporation created to oversee the auditing industry. The SEC has the authority to discipline auditors and impose fines for financial statement misconduct.
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which of the following assets will likely show the greatest increase in value over time? blue-chip stocks savings accounts low-risk corporate bonds treasury bonds
The asset which will likely show the greatest increase in value over time is blue-chip stocks. Blue-chip stocks are shares of companies with a long track record of stable earnings, solid balance sheets, and a history of paying dividends to investors. Due to their stability, they are often considered the least risky type of equity investment.
Because of their stability, blue-chip stocks are less volatile than other types of stocks, making them less likely to lose their value quickly. However, the fact that blue-chip stocks are less volatile than other types of stocks means that they may not provide the highest potential returns. Nonetheless, the returns of blue-chip stocks can still be significant over the long run, making them a good investment option for those who want to grow their wealth gradually.
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all barriers to the free flow of goods and services between member countries are removed, and a common policy toward nonmembers is established in a group of answer choices customs union free trade area common market economic union
A Customs Union, Free Trade Area, Common Market, and Economic Union are all types of international economic agreements. A Customs Union removes all barriers to the free flow of goods and services between member countries.
A Free Trade Area eliminates tariffs and other restrictions on trade. A Common Market allows for the free movement of goods, services, capital, and labor between member countries. An Economic Union is a combination of a Customs Union, Free Trade Area, and Common Market which also includes a common policy toward non-member countries. The term that best describes a situation where all barriers to the free flow of goods and services between member countries are removed, and a common policy toward nonmembers is established, is a common market. A common market is a type of economic integration where countries agree to remove barriers to trade and establish a common policy towards non-member countries. In a common market, member countries not only eliminate tariffs and other trade barriers but also allow the free movement of factors of production, such as labor and capital, across their borders. This allows for greater competition and efficiency within the market.
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True or false : as an intern at the small tech firm you work at, you quickly realize that one of the most important tasks in your role is making sure people get their paychecks on payday, or else they are grumpy for the rest of the week. this is an example of an unstructured process, since it is up to your decision when payday comes.
The statement is false. The task of making sure people get their paychecks on payday is an example of a structured process, not an unstructured process.
A structured process is one that has a defined set of steps, a clear beginning and end, and operates according to a set of established rules or procedures. In this case, the process of distributing paychecks likely follows a well-defined schedule and protocol established by the company's payroll department or human resources department. As an intern, it is important to understand and follow these procedures to ensure that employees receive their paychecks on time and that the company's payroll process runs smoothly.
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a set of tasks or activities that addresses the main value-added activities of an organization is a:
A set of tasks or activities that addresses the main value-added activities of an organization is a business process.
A business process is a set of activities or tasks that help to create value by producing goods or services. Business processes are critical to an organization's success because they help to ensure that tasks are completed efficiently and effectively. Business processes can be grouped into three categories:
1. Management Processes: Processes that monitor, control and manage business activities.2. Operational Processes: Processes that are responsible for the production of goods and services.3. Supporting Processes: Processes that support the operational and management processes.
This is a sequence of activities that starts from the procurement of raw materials and ends with the delivery of a product or service to the customer. It includes activities such as production, marketing, sales, and customer service.
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bill has discovered a method for purifying drinking water that also cleans the air. bill needs financial capital to produce and market his invention. consider the graph of the market for financial capital. use this information to answer the questions. how much financial capital will bill borrow and invest on his own?
The amount of financial capital that Bill will borrow and invest on his own would be $ 20 million.
How to find the amount invested ?The point that would show the amount that Bill would borrow and invest to be able to market his own invention, would be the point where the Supply curve intercpts demand curve for Bill.
Looking at the graph on the rate of return in the market for financial capital , this point would be $ 20 million to the rate of return of 5 %. Bill will therefore ( all else being equal ) borrow and invest $ 20 million.
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true or false? if an expense is recorded in the accounts payable account, it is then cleared from accounts payable when payment is made.
The given statement " if an expense is recorded in the accounts payable account, it is then cleared from accounts payable when payment is made" is True because it is initially debited and then a credit is made when payment is made and effectively clears the debt from the accounts payable account.
In accounting, a “clearing” is the movement of an asset or liability from one account to another. When a company records an expense in their accounts payable account, they debit the account and record a liability. When the company pays the expense, they credit the accounts payable account and clear the liability. This reduces the amount owed in accounts payable, and allows the company to properly track all outstanding liabilities.
It is important to understand the concept of clearing when managing accounts payable. Failing to properly clear the accounts payable can lead to inaccurate records, incorrect tracking of liabilities, and incorrect financial reporting.
In summary, when an expense is recorded in the accounts payable account, it is cleared from the accounts payable when payment is made. This transaction is called a “clearing of the accounts payable” and reduces the amount owed in the accounts payable account.
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if income increases by 10 and in response the quantity of housing demanded increases by 7 then the income elasticity of demand for housing is a 0.7 b 0.7 c 1.0 d 1.43
Given the situation where income increases by 10% and in response, the quantity of housing demanded increases by 7%, the income elasticity of demand for housing is 0.7.
How to calculate income elasticity of demand?
The formula for calculating the income elasticity of demand is given below:
Elasticity of demand = (% change in quantity demanded) / (% change in income)
Let's apply this formula to solve the given problem:
Given that income increases by 10%, so there is a 10% increase in income.
The quantity of housing demanded increases by 7%. Therefore, there is a 7% increase in the quantity demanded of housing.
Income elasticity of demand for housing = (% change in quantity demanded) / (% change in income) = 7 / 10 = 0.7
Therefore, the income elasticity of demand for housing is 0.7. Hence, the correct option is (a) 0.7.
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suppose that the nba expands the size of their team rosters. what will this lead to in terms of labor market demand and supply?
When the NBA expands the size of their team rosters, it will lead to an increase in the demand for labor.
Demand for labor refers to the number of job opportunities available, and supply refers to the number of people available to work. The quantity of labor demanded and supplied will be influenced by various factors such as the wage rate, productivity, and government policies.
When the NBA expands the size of their team rosters, it increases the number of job opportunities available in the sports industry, thus increasing the demand for labor. In addition to the players, there are many other jobs in the industry, such as coaches, trainers, scouts, and broadcasters, that will be created due to the expansion.
This increase in demand for labor is also likely to lead to an increase in supply as more people will be interested in working in the sports industry. This is because, with the increase in job opportunities, there will be a higher likelihood of finding suitable employment.
The expansion of the NBA's team rosters will lead to an increase in labor market demand and supply.
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which policy requires the federal government to implement measures aimed at reinforcing equal access to employment by mandating recruitment procedures that gave qualified minority workers an equal opportunity to gain government jobs?
The policy that requires the federal government to implement measures aimed at reinforcing equal access to employment by mandating recruitment procedures that give qualified minority workers an equal opportunity to gain government jobs is known as the Equal Employment Opportunity Commission (EEOC).
The EEOC was established in 1965 by Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex, and national origin. The EEOC works to ensure that all individuals have an equal chance of gaining employment in the federal government.
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if output grows by 6 percent and per capita output has risen 2 percent, the population has grown by percent. multiple choice question.
By dividing the 6 percent growth of output by the 2 percent the population growth of per capita output (6/2 = 4).
Output is the total amount of goods and services produced by a country over a given period of time. Per capita output, on the other hand, is the total amount of goods and services produced per person over that same period of time.
If the output of a country grows by 6 percent and the per capita output rises by 2 percent, it can be determined that the population of the country has grown by 4 percent.
This is because the growth in per capita output reflects an increase in the average output per person, while the growth in overall output reflects an increase in the total output of the country.
To calculate the percentage change in population, one can divide the growth in overall output by the growth in per capita output. In this case, dividing 6 percent by 2 percent gives a result of 4 percent, indicating that the population of the country has grown by 4 percent.
This calculation assumes that there are no significant changes in the structure of the population, such as changes in age distribution or migration patterns, that would affect per capita output.
This can be determined by dividing the 6 percent growth of output by the 2 percent growth of per capita output (6/2 = 4).
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what is the book value of a company vehicle that cost $62,000, has a salvage value of $8,000 and an expected life of six years. after five years, what is the book value?
The book value of a company vehicle that cost $62,000, has a salvage value of $8,000, and an expected life of six years after five years is $20,000.
The book value of an asset is calculated as the difference between the asset's original cost and its accumulated depreciation. Expected life is an estimate of the amount of time that the asset will be able to generate revenue for the business. It is calculated based on the average lifespan of similar assets or on an estimate of the lifespan of the asset based on its expected usage. The salvage value is used to determine the total depreciation expense for the asset.
The book value of a company vehicle = $62,000
Salvage value = $8,000,
Expected life = six years
After five years, the book value of a company vehicle that cost $62,000, has a salvage value of $8,000, and an expected life of six years is $20,000.
The depreciation expense for the vehicle over the first five years
= $42,000 ($62,000 - $8,000
= $54,000, $54,000 ÷ 6 years
= $9,000
Depreciation expense per year x 5 years = $45,000
Total depreciation expense over 5 years)
=$62,000 original cost - $45,000 accumulated depreciation
= $17,000 book value at the end of year 5
$17,000 book value + $3,000 depreciation expense for year 6 = $20,000 book value at the end of year 6.
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during 1994 and 1995, nominal gdp in the united states grew by 4.8%, and the rate of inflation was 2.1%. what was the growth rate of real gdp between the two years?
During 1994 and 1995, the nominal GDP in the United States grew by 4.8%, and the rate of inflation was 2.1%.
The growth rate of Real GDP between 1994 and 1995 was 2.65%. Nominal GDP refers to a country's total economic output that's not adjusted for inflation, while Real GDP represents the country's overall economic output adjusted for inflation. To calculate the growth rate of real GDP between the two years, we use the following formula: Real GDP Growth Rate = ((Nominal GDP in Year 2 - Nominal GDP in Year 1) - Inflation Rate) / (Nominal GDP in Year 1)Here, we are given that nominal GDP in 1994 and 1995 grew by 4.8%, and the inflation rate was 2.1%.
Therefore, the real GDP growth rate between 1994 and 1995 is:((1.048 × Nominal GDP in 1995) - (Nominal GDP in 1994) - 0.021) / Nominal GDP in 1994= (1.048 × Nominal GDP in 1994 - Nominal GDP in 1994 - 0.021) / Nominal GDP in 1994= (0.048 × Nominal GDP in 1994 - 0.021) / Nominal GDP in 1994= 0.027 / Nominal GDP in 1994The real GDP growth rate between 1994 and 1995 was 2.65% using this formula. Therefore, Real GDP grew by 2.65% during the period from 1994 to 1995.
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what will happen to the rental market in birmingham if the city government decides to set the price for two-bedroom apartments below the market equilibrium price in an attempt to make apartment living more affordable for local families?
Answer:
If the city government of Birmingham sets the price for two-bedroom apartments below the market equilibrium price, it will create a situation of excess demand, which will lead to a shortage of apartments in the rental market.
At a price below the market equilibrium, more people will be interested in renting apartments than the number of available apartments for rent. This will create a situation where some renters will not be able to find apartments and will have to look for alternatives, such as renting smaller apartments or living in other cities.
On the other hand, landlords will face a decrease in the incentive to offer apartments for rent since the lower price will reduce their potential profits. As a result, they may either reduce the quantity or quality of their offerings or may withdraw from the rental market altogether.
Overall, the rental market in Birmingham is likely to become less efficient, with a mismatch between the quantity of apartments supplied and the quantity of apartments demanded. This could lead to a decline in the overall quality of housing and an increase in the number of people facing housing insecurity.
on january 1, 2017, our company accepts a 5-month 5% note for $12,000. what is the dollar amount that we will debit to cash when the note is collected in five months?
The dollar amount that we will debit to cash when the note is collected in five months is $12,250 because it includes the original principal of $12,000 plus the interest of $250. Thus, Option A is correct.
When a company accepts a note, it is essentially lending money to the borrower. In this case, the note is for $12,000 with a 5% interest rate and a 5-month term.
To calculate the interest, you need to multiply the principal by the interest rate and the time the note is outstanding. In this case, the interest is calculated as $12,000 x 5% x (5/12) = $250.
When the note is collected in five months, the company will receive the principal plus the interest, which is a total of $12,250. Therefore, the company will debit $12,250 to cash.
This question should be provided with answer choices:
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bond price movements what is going on here? illustrate your answer by graphing bond prices versus time to maturity
Bond price movements are affected by changes in interest rates, inflation, credit rating, and market conditions.
As interest rates rise, bond prices fall, and vice versa. This is because the value of the fixed interest payments decreases when interest rates rise, making the bond less attractive to investors.
Graphing bond prices versus time to maturity illustrates how bond prices change based on how long it takes for the bond to mature. Short-term bonds have less exposure to changes in interest rates, so their prices fluctuate less. On the other hand, long-term bonds are more sensitive to interest rate changes, and their prices are more volatile.
As seen in the graph, when interest rates are low, bond prices are higher. Conversely, when interest rates rise, bond prices fall. This inverse relationship between bond prices and interest rates is known as the bond price-yield curve.
It is important to understand the relationship between bond prices and interest rates to make informed investment decisions.
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pursell bank offers you a five-year loan for $100,000 at an annual interest rate of 6.8 percent. what will your annual loan payment be?
There will be a yearly mortgage payment of $11,680.
To calculate the annual loan price, we are able to use the method for the present value of an annuity:
[tex]PMT = PV x (r / (1 - (1 + r)^{(-n)))}[/tex]
wherein:
PMT is the annual mortgage price
PV is the present value of the mortgage, that is $100,000 in this case
r is the annual interest fee in decimal form, that's 0.068 in this situation
n is the quantity of payment durations, that's 5 in this situation (considering it's a 5-yr loan)
Plugging inside the values, we get:
[tex]PMT = 100000 x (0.068 / (1 - (1 + 0.068)^{(-5)))}[/tex]
PMT = 100000 x (0.068 / (1 - 0.4174))
PMT = 100000 x (0.068 / 0.5826)
PMT = 100000 x 0.1168
PMT = $11,680
consequently, the annual mortgage payment will be $11,680.
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the underlying cause of ranking conflicts between the net present value (npv) and internal rate of return (irr) methods is the underlying assumption related to the:
The underlying cause of ranking conflicts between the net present value (NPV) and internal rate of return (IRR) methods is the underlying assumption related to the discount rate.
Net present value (NPV) is a calculation method that determines the net present value of a project or investment by comparing it to the initial investment in present-day dollars. NPV is used to decide whether or not a project or investment is worthwhile, and it takes into account a variety of factors including projected future income, inflation, and the time value of money.
The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. The IRR is the rate at which the net present value (NPV) of an investment equals zero. In other words, it is the discount rate at which the present value of future cash inflows equals the present value of the investment's initial outflow. The higher the IRR, the more profitable the investment.
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1. explain the difference in social welfare functions in the case of the efficiency standard, the safety standard, and the sustainability standard, in environmental economics.
Social welfare functions measure the total wellbeing of a society, usually calculated by a combination of economic, social, and environmental indicators.
In the case of efficiency standard, the function is used to measure the economic efficiency of certain activities in terms of the resources they consume.
The safety standard is used to measure the safety of certain activities in terms of their potential to cause harm to people and the environment.
The sustainability standard is used to measure the capacity of certain activities to support ecological, social, and economic wellbeing in the long-term. All three standards consider economic and environmental elements, but they measure them in different ways.
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3-corporations insulate shareholders from liability: a) explain why we, society, give them the legal sheild? b) shoud we? why and why not?
3-corporations insulate shareholders from liability:
a) Why does society provide corporations with a legal shield to insulate shareholders from liability? A corporation is an organization that is owned by a group of people who have agreed to conduct business together. As a result, they gain some legal and financial benefits that are not accessible to other business forms.
The main reason corporations insulate shareholders from liability is that they are given a separate legal personality from the people who own them, known as shareholders. This makes the corporation responsible for its own legal and financial liabilities rather than the individuals who own or manage it.
As a result, it is easier for corporations to attract new investors because they can ensure that they will not be personally responsible for the company's financial obligations. It also promotes the formation of a corporation since the owners have limited liability for the debts of the corporation.
b) Why and why not should we provide corporations with a legal shield to insulate shareholders from liability? Yes, we should provide corporations with a legal shield to insulate shareholders from liability since it is critical for ensuring that investors are not scared away from forming and investing in corporations.
This also allows investors to be more comfortable with investing their money, which helps promote economic development. However, one could argue that it is unfair to allow corporations to insulate shareholders from liability since the company's owners can avoid being held accountable for the company's behavior.
Furthermore, this legal separation may make it difficult to hold corporations accountable for illegal or unethical conduct. As a result, there are some who believe that corporations should be held to a higher standard of accountability, and that the owners should be held accountable for their company's actions.
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when there has been a change in an accounting principle by a public company, but the effect of the change on the comparability of the financial statements is not material, the auditor should
When there has been a change in an accounting principle by a public company, but the effect of the change on the comparability of the financial statements is not material, the auditor should include a footnote to the financial statements to describe the change.
The Statement on Auditing Standards (SAS) No. 22, “Planning and Supervision” mandates that “the auditor should obtain an understanding of the accounting principles and practices of the entity, including the methods of applying the principles and the significant accounting estimates made by management.
The auditor should also obtain an understanding of the effects of significant accounting principles and practices related to the industry in which the entity operates.”
Moreover, the SAS No. 22 also requires that “the auditor should be alert for changes in accounting principles or practices used by the entity and should investigate the circumstances surrounding such changes.
The auditor should evaluate the appropriateness of such changes in relation to the particular circumstances and should determine whether adequate disclosure has been made in the financial statements.”
The Financial Accounting Standards Board (FASB) is the body responsible for setting generally accepted accounting principles (GAAP) in the United States.
The FASB establishes GAAP through the issuance of Statements of Financial Accounting Standards (SFASs), which must be adhered to by publicly held corporations, both foreign and domestic. When a change occurs in accounting principles, publicly held corporations must inform their stakeholders by including explanatory notes in their financial statements.
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When there has been a change in an accounting principle by a public company, but the effect of the change on the comparability of the financial statements is not material, then what should a auditor do?
a customer-oriented firm should focus exclusively on satisfying its internal customers. group of answer choices true false
A customer-oriented firm should not focus exclusively on satisfying its internal customers. This statement is false.
Here's why: What is a customer-oriented company?
A customer-oriented company is one that prioritizes the needs and interests of its clients.
The organization places a premium on consumer satisfaction, and as a result, it is dedicated to delivering high-quality goods and services that are tailored to meet the needs of the clients.
A company that is customer-focused understands the needs of the customer and strives to meet or surpass their expectations. The consumer is placed at the forefront of every choice, decision, and action taken by a customer-centric company.
Why should a customer-oriented firm not focus exclusively on satisfying its internal customers?
An internal customer is a member of the organization's staff or team. Focusing only on the internal customer, in this case, may cause the company to overlook the importance of the external customer.
The internal customer is important, but their satisfaction should not be prioritized over that of the external customer.A customer-oriented firm must focus on both the internal and external customers, and it must make sure that they are both satisfied with the goods and services delivered by the organization.
Focusing solely on internal customers may cause the firm to lose sight of its goal of satisfying its external clients. It is also critical to remember that external customers are the source of revenue for the company, so their satisfaction should be a top priority.
In summary, while the satisfaction of internal customers is crucial, a customer-oriented company must prioritize external customer satisfaction. A balanced approach to satisfying both internal and external customers can help to improve a firm's competitiveness and profitability.
Therefore, the statement that a customer-oriented firm should focus exclusively on satisfying its internal customers is false.
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demand deposits are considered a(n) to a bank. question 4 options: a) asset b) owner's equity c) retained earning d) liability
A demand deposit is a type of bank account where the account holder can withdraw funds from their account at any time without notice. Option D (liability) is correct.
The funds held in this type of account are said to be "demand deposits" since the account holder can demand access to them at any time. They can be used for day-to-day expenses, such as bills and rent.
Demand deposits are funds deposited in a bank account that the depositor may withdraw at any time. The bank does not need to provide notice of withdrawal to the depositor. This is opposed to a term deposit, where the money is locked up for a specified period of time.
Demand deposits are considered a liability to a bank. This is because the bank owes the account holder the amount deposited in their demand deposit account. The bank has an obligation to give the account holder access to their funds whenever they demand them.
This obligation makes it a liability for the bank. Therefore, option D (liability) is correct.
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