The marginal cost of producing the 900th gadget is $2.78.
In economics, marginal cost is the cost associated with producing an additional unit of a product or service. It is calculated by taking the total cost of producing an additional unit and subtracting the total cost of producing the previous unit.
In other words, the marginal cost of producing the 900th gadget is the cost associated with producing that particular gadget compared to the cost associated with producing the 899th gadget.
To calculate the marginal cost of producing the 900th gadget, we first need to know the total cost of producing the 899th gadget.
Once we have that, we can calculate the total cost of producing the 900th gadget, subtract the total cost of producing the 899th gadget, and get the marginal cost of producing the 900th gadget. In this case, the marginal cost of producing the 900th gadget is $2.78.
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Gross domestic product (GDP) in Marthland is decreasing, plunging Marthaland into a recession. How will the response of automatic stabilizers to decreasing GDP in Marthaland affect the economy of Marthaland?
Automatic stabilizers are measures that activate automatically in order to counteract business cycle fluctuations without requiring legislative approval.
When GDP decreases in Maryland, the automatic stabilizers' response will be beneficial to the economy of Maryland in the following ways:Increased government spending on unemployment benefits: As GDP decreases, many people may lose their jobs, resulting in increased unemployment rates.
When the unemployment rate increases, the automatic stabilizers will kick in, increasing the number of unemployment benefits offered by the government. This is to ensure that those who are unemployed are able to pay their bills and have sufficient cash to spend on basic necessities. By increasing government spending, the economy of Marthaland will improve because the people receiving these benefits will spend them, thus contributing to economic growth.
Decreased tax revenue: When GDP decreases, people earn less money, which means that they will pay less tax. This decline in revenue collection will result in less tax being paid. The amount of taxes collected is influenced by various factors such as income, unemployment, and the general condition of the economy. The automatic stabilizers will assist in minimizing the damage caused by this decline in tax revenue by decreasing the amount of tax payable, resulting in more money being available for consumers to spend on other goods and services. This extra spending will contribute to the economic growth of Marthaland.
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Financial statement data for the years ended December 31 for Black Bull Inc. follow:
20Y6 20Y5
Net income $2,485,700 $1,538,000
Preferred dividends $50,000 $50,000
Average number of common shares outstanding 115,000 shares 80,000 shares
a. Determine the earnings per share for 20Y6 and 20Y5.
b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend?
The earnings per share (EPS) for 20Y6 and 20Y5 are $21.26 and $18.85, respectively and the change in earnings per share from 20Y5 to 20Y6 is favorable.
a) Determination of earnings per share for 20Y6 and 20Y5:
Earnings per share (EPS) is the portion of a company's profit that is allocated to one share of common stock. It is calculated as follows:
EPS = Net income - Preferred dividends / Average number of common shares outstanding year 20Y6
EPS = ($2,485,700 - $50,000) / 115,000 shares
EPS = $21.26Year 20Y5
EPS = ($1,538,000 - $50,000) / 80,000 shares
EPS = $18.85
Thus, the earnings per share (EPS) for 20Y6 and 20Y5 are $21.26 and $18.85, respectively.
b) Analysis of the change in earnings per share from 20Y5 to 20Y6:
To determine whether the change in earnings per share from 20Y5 to 20Y6 indicates a favorable or unfavorable trend, we need to calculate the percentage change in EPS. It is calculated as follows:
Percentage change = (New EPS - Old EPS) / Old EPS x 100%
Percentage change = ($21.26 - $18.85) / $18.85 x 100%
Percentage change = 12.8%
The percentage change in earnings per share from 20Y5 to 20Y6 is 12.8%. Since the percentage change is positive, it indicates a favorable trend. Therefore, the change in earnings per share from 20Y5 to 20Y6 is favorable.
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is a key activity performed by operations managers that involves deciding the best way to assign people to work tasks and responsibilities. a. forecasting b. process design c. job design
Job design is a key activity performed by Operations Managers that involves deciding the best way to assign people to work tasks and responsibilities. The correct answer is c. Job Design.
Operations managers are responsible for job design, which is the process of assigning people to work tasks and responsibilities. Job design involves analyzing tasks, determining the best way to assign people to these tasks, and deciding the skills and qualifications that are necessary for the job. Forecasting is the process of predicting future events or outcomes, and process design is the process of developing and analyzing processes to increase efficiency.
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grandma has decided to give her grandson some stock that she bought many years ago. when the grandson sells the stock, how is the tax liability figured?
When the grandson sells the stock, the tax liability is figured by determining the gain or loss on the sale. If the grandson sells the stock for more than what his grandmother paid for it, then he will have a gain, and he will owe taxes on that gain
When the grandson sells the stock, how is the tax liability figured?When a person sells stock they received as a gift, their tax liability is calculated based on the fair market value (FMV) of the stock at the time they received it. The FMV of the stock on the day of the gift becomes the basis for the grandson's capital gains tax liability.
Here's an example:
Let's say Grandma purchased the stock for $1,000 several years ago. At the time of the gift, the stock was worth $10,000. If the grandson sells the stock for $11,000, he will owe capital gains tax on the $1,000 increase in value ($11,000 - $10,000 = $1,000).
The grandson's tax rate will depend on how long he held the stock before selling it. If he held the stock for more than one year before selling it, he will owe long-term capital gains tax. If he held the stock for less than one year before selling it, he will owe short-term capital gains tax.
Note: Capital gains tax is only assessed when the stock is sold, not when it is gifted.
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for the service system at stickley adhesives, who are the main customers? a company who purchases stickley's adhesives hardware store customers stickley executives scoping scientists
Answer: For the service system at Stickley Adhesives, the main customers are hardware store customers.
Stickley Adhesives is a fictional company and there is no available data on their customer base. However, given that they manufacture adhesives, their primary customers are most likely hardware stores and other retail outlets that specialize in selling adhesives.
What are adhesives?
Adhesives are substances that stick two or more things together. They are applied in many products and can be used to bond materials such as paper, wood, glass, metal, and plastic. Adhesives come in a variety of forms, including liquids, gels, and solids. In addition, there are many different types of adhesives available, each designed to work with specific materials and in specific applications.
It is possible that Stickley Adhesives also has hardware store customers who purchase their products directly, but this would not necessarily be part of their service system. Stickley executives and scoping scientists would be internal stakeholders within the company, rather than customers of the service system.
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assuming a 10 percent capitalization rate, a $1 per month reduction in rent (in one unit) will reduce the value of the property by how much over a period of one year?
The property's value will be reduced by $120 over a period of one year.
According to the problem statement, if the capitalization rate is 10% and the value of the property is reduced by $1 per month in one unit,
we can calculate the decrease in value of the property over a period of one year as follows.
The capitalization rate is calculated by dividing the net operating income (NOI) by the market value of the property. Capitalization rate = (Net Operating Income / Market Value) x 100
Thus, the net operating income (NOI) can be calculated by multiplying the monthly rent by 12 and then subtracting the $1 reduction in rent per month.
Net Operating Income = (Monthly Rent x 12) - $1The market value of the property can be calculated by dividing the net operating income by the capitalization rate.
Market Value = Net Operating Income / Capitalization Rate
Substituting the values we have, Monthly Rent = $1
Capitalization Rate = 10%
Net Operating Income = ($1 x 12) - $1 = $11
Market Value = $11 / 10% = $110
Hence, we can see that the $1 reduction in rent per month will result in a decrease in the value of the property by $120 ($1 x 12 months) in one year, which is equivalent to 10.91% of the original market value ($120 / $110).
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the base year is the year group of answer choices in which prices are unstable. in which prices are lowest. in which prices are highest. that serves as a reference point or benchmark.
The base year is the year that serves as a reference point or benchmark is the correct option.
Explanation:
What is the base year?
The base year is a specific year used as a reference point for measuring changes in prices or other economic variables. To provide more accurate economic indicators, countries typically establish a base year to standardize economic data.
In economics, the base year is used to establish a price index that evaluates the price changes of products or services over a specified period. The base year's cost is utilized as a benchmark or a reference point to determine the price movements in subsequent years. It is usually chosen when prices are steady, and economic activity is relatively stable.
In general, there are three major uses of the base year in economics; calculating real gross domestic product, calculating price indices, and measuring inflation. These three methods are widely utilized by economists to provide accurate data to the public regarding the economic condition of the country.
Hence, the correct option is a reference point or benchmark .
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which of the following is an example of a social complementary asset? select one: a. distributed decision-making rights b. incentives for management innovation c. a strong is development team d. teamwork and collaborative work environments e. technology and service firms in adjacent markets to assist implementation
Social complementary assets are non-physical assets that create value when combined with other assets.
Teamwork and collaborative work environments are social complementary assets because they allow individuals to work together effectively and efficiently, creating value for the organization as a whole.
Teamwork and collaborative work environments are an example of social complementary assets because they facilitate cooperation and coordination among individuals within an organization. When people work together effectively and efficiently, they can achieve more than they would working individually. Collaboration allows for the sharing of knowledge and expertise, which can lead to better decision-making and problem-solving. It also fosters a sense of trust and mutual respect, which can improve communication and reduce conflict.
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you want to have $75,000 in 16 years to help your child attend college. if you can earn an annual interest rate of 3.1 percent, how much will you have to deposit today?
To have $75,000 in 16 years to help your child attend college with an annual interest rate of 3.1 percent, you will have to deposit $36,557.34 today.
The formula for calculating the present value of future cash flows is given by the equation below:
P = FV / (1+r)n
Where: P = Present value
FV = Future value of the investment
r = Interest rate
N = Number of years
In this case, the present value of future cash flows is $75,000. The annual interest rate is 3.1 percent, and the number of years is 16.
The formula becomes:
P = $75,000 / (1 + 0.031)16 = $36,557.34.
Therefore, you will have to deposit $36,557.34 today to achieve your goal of having $75,000 in 16 years to help your child attend college.
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a company shows the following balances in the general ledger: purchases $10,000 freight in $1,000 purchases returns and allowances $500 the net delivered cost of purchases is:
The net delivered cost of purchases is $10,500.
The net delivered cost of purchases is the total cost of all purchases made by the company, including any additional costs such as freight in, minus any returns and allowances. In this case, the company's purchases balance is $10,000, and they have an additional $1,000 in freight in costs. However, they also have $500 in purchases returns and allowances, which need to be subtracted from the total cost.
Therefore, the net delivered cost of purchases can be calculated as follows:
⇒ Net delivered cost of purchases = Purchases + Freight in - Purchases returns and allowances
⇒ Net delivered cost of purchases = $10,000 + $1,000 - $500
⇒ Net delivered cost of purchases = $10,500
Therefore, the net delivered cost of purchases is $10,500. This represents the total cost of goods purchased and delivered, after accounting for any additional costs and returns or allowances.
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which of the following makes it easier for customers to find a product and eliminate competitors' products from consideration? a. coupons cross out b. pop (or pos) displays cross out c. contests cross out d. trade shows cross out e. premiums
The correct response is (B) - ( POP or POS) displays make it simpler for customers to find a product and rule out alternatives.
Point-of-purchase (POP) or point-of-sale (POS) displays are marketing tools positioned close to the register or in-store displays to draw customers' attention and nudge them into making a purchase. These displays can help buyers identify the things they're looking for by emphasizing a particular product and its advantages while excluding products from rival brands from consideration.
Although they may not always make it simpler for buyers to identify a product or rule out alternatives, coupons, competitions, trade fairs, and premiums can nonetheless be powerful promotional tactics.
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According to the pecking-order theory proposed by Stewart Myers of MIT, which of the following are correct? I. For financing needs, firms prefer to first tap internal sources such as retained profits and excess cash. II. There is an inverse relationship between a firm's profit level and its debt level. III. Firms prefer to issue new equity rather than source external debt. IV. A firm's capital structure is dictated by its need for external financing.
IV. A firm's capital structure is dictated by its need for external financing.
The pecking-order theory proposed by Stewart Myers of MIT states that a firm's capital structure is determined by its need for external financing.
According to the theory, firms prefer to first tap internal sources such as retained profits and excess cash to finance their needs. This is because internally sourced funds are cheaper and easier to access than external sources.
In addition, there is an inverse relationship between a firm's profit level and its debt level, which suggests that firms with lower profits prefer to use internal sources of financing.
Moreover, the theory states that firms prefer to issue new equity rather than source external debt. This is because issuing new equity is less costly than borrowing from external sources. Therefore, statements I, II, and III are all true, while statement IV is false.
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during times of economic recession, what can stimulate the economy? group of answer choices both monetary and fiscal policy can be used to influence economic activity the government erases debt for both individuals and businesses the central bank uses monetary policy to determine how much money and credit is available to consumers the government uses fiscal policy to impact government spending and taxes
During times of economic recession, both monetary and fiscal policy can be used to influence economic activity. The central bank uses monetary policy to determine how much money and credit is available to consumers, while the government uses fiscal policy to impact government spending and taxes.
What is Fiscal Policy?Fiscal policy is the use of government revenue collection and expenditure to influence the economy. The two major instruments of fiscal policy are government spending and taxation.
Changes in the level and composition of taxation and government spending can influence the following macroeconomic variables in an economy:
Aggregate demand and the level of economic activity;The pattern of resource allocation;The distribution of income;Fiscal policy is frequently used in conjunction with monetary policy, which attempts to influence the supply of money and credit in the economy.What is Monetary Policy?Monetary policy is the process by which the monetary authority of a country, like a central bank, controls the supply of money, often targeting an inflation rate or interest rate to guarantee price stability and general trust in the currency. Monetary policy is usually contrasted with fiscal policy, which focuses on government spending and taxation, and is implemented by the government rather than the central bank.
In monetary policy, the central bank uses several policy tools to influence the availability and cost of money and credit. These include open market operations, the discount rate, and reserve requirements, among others. Monetary policy is executed through a variety of channels, such as interest rates and credit flows. Monetary policy can be used to stabilize macroeconomic variables like inflation, output, employment, and foreign exchange rates, among others.
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why do you think it takes a long time before troubled it projects are abandoned or brought under control? give an example to illustrate your answer.
Troubled IT projects often take a long time to be abandoned or brought under control due to a variety of factors such as sunk costs, lack of clear communication, inadequate project management, and resistance to change.
It often takes a long time before troubled IT projects are abandoned or brought under control due to various reasons. One reason is that stakeholders may be reluctant to abandon the project, especially if significant resources have already been invested. Additionally, project managers may underestimate the complexity of the project, leading to delays and cost overruns.
For example, the healthcare.gov website launch in 2013 faced numerous problems due to technical issues and management failures. Despite the site's problems and criticism, the government was reluctant to abandon the project, as it had invested a significant amount of resources into it. It took several months and numerous fixes before the site was fully functional. This illustrates how even in high-profile and problematic projects, stakeholders may be reluctant to abandon the project, leading to delays and increased costs.
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a calendar year taxpayer makes and sells custom dog collars. in year 1, cash receipts from dog collar sales were $10,000 and the cost to make the collars was $2,000. in addition, the taxpayer made a $2,000 qualified contribution to a retirement plan. what amount of self-employment income is subject to self-employment tax for the year?
The amount of self-employment income subject to self-employment tax for the year is $6,000.
To calculate the self-employment income subject to self-employment tax, we first need to calculate the net self-employment income.
Net self-employment income = gross income - expenses - retirement plan contribution
Gross income from dog collar sales = $10,000
Expenses to make the collars = $2,000
Retirement plan contribution = $2,000
Net self-employment income = $10,000 - $2,000 - $2,000 = $6,000
The self-employment tax rate for 2023 (based on current law as of 2021) is 15.3%, which includes 12.4% for Social Security tax and 2.9% for Medicare tax.
So, the self-employment tax on $6,000 of net self-employment income would be:
$6,000 x 0.153 = $918
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at the end of the current accounting period, ringgold co. recorded depreciation of $15,000 on its equipment. the effect of this entry on the company's balance sheet is to decrease:
At the end of the current accounting period, Ringgold Co. recorded a depreciation of $15,000 on its equipment. This entry on the company's balance sheet will have the effect of decreasing Owners' Equity and Assets.
What is a balance sheet?
The balance sheet is a statement of a company's financial position that shows assets, liabilities, and equity at a given point in time. The balance sheet has two parts: the left side lists assets, and the right side lists liabilities and equity.
The decrease in assets means that there will be a decrease in total assets. The effect of this entry on the company's balance sheet is to decrease assets.
In the equation Assets = Liabilities + Owner's Equity, a decrease in assets must result in a decrease in the equity of the owner. So, the decrease in assets is balanced by a decrease in owner's equity.
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which of the following is considered the best generic strategy: a. cost leadership b. differentiation c. niche or focus strategy d. integrated cost leadership/differentiation e. none of the above; the best strategy depends on the situation
The best generic strategy depends on the situation is none of the above. The correct answer is E.
The best generic strategy depends on the situation of the business. Each of the generic strategies - cost leadership, differentiation, niche/focus strategy, and integrated cost leadership/differentiation - has its own advantages and disadvantages.
For example, cost leadership can be effective for businesses operating in a highly competitive market where customers are price-sensitive. However, this strategy may not work well for businesses that need to invest heavily in research and development to differentiate themselves from competitors.
On the other hand, differentiation can be effective for businesses that offer unique and high-quality products or services, but this strategy may require a higher investment in marketing and research and development.
Niche/focus strategy can be effective for businesses that serve a specific market segment and have a deep understanding of their customers' needs. However, this strategy may limit the growth potential of the business.
Integrated cost leadership/differentiation can be effective for businesses that can balance both cost and differentiation advantages. However, this strategy may be challenging to implement, and businesses may need to make trade-offs between cost and differentiation.
Therefore, the best generic strategy for a business depends on its unique situation, market conditions, customer needs, and resources.
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for consumers to make purchase decisions, they must engage in certain processes, such as developing attitudes, learning about the product, and becoming motivated to make a purchase. multiple choice question. financial social routine
A: Financial, B: social, and C: routine processes are all involved in the consumer decision-making process, including developing attitudes, learning about the product, and becoming motivated to make a purchase.
Consumer decision-making is a complex process that involves various factors, including financial, social, and routine processes.
Financial processes relate to the financial considerations that consumers must take into account when making purchase decisions, such as price and affordability. Social processes involve the influence of others on the decision-making process, such as friends, family, and social norms. Routine processes refer to the habitual or automatic nature of some consumer decisions, such as buying a particular brand of toothpaste without much conscious thought.All these processes given in options A, B, and C contribute to the overall consumer decision-making process.
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early pioneer in online education, university of phoenix, has faced increasing challenges from traditional university online programs who are able to offer their programs at the same cost. which generic strategy has gone wrong?
It is an example of a generic strategy which has gone wrong is low cost leadership. Therefore, the correct option is D.
The generic strategy is a general plan or approach used by an organization to achieve a competitive advantage over its competitors. It includes three basic approaches to create a competitive advantage such as cost leadership, differentiation, and focus.
A low cost leadership strategy is the process of maintaining a low cost structure while providing a satisfactory level of product or service to the customers. Low-cost producers make every effort to reduce the costs of their goods while maintaining the quality of their products.
The University of Phoenix is an early pioneer in online education but it has faced increasing challenges from traditional university online programs who are able to offer their programs at the same cost. This is an example of a low cost leadership strategy gone wrong. So, the correct answer is option D) Low cost leadership.
Note: The question is incomplete. The complete question probably is: Early pioneer in online education, University of Phoenix, has faced increasing challenges from traditional university online programs who are able to offer their programs at the same cost. This is an example of which generic strategy gone wrong: A) Differentiation. B) Overall cost leadership. C) Focus strategy. D) Low cost leadership.
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sue holloway was an accountant in 1944 and earned $12,000 that year. her son, josh holloway, is an accountant today and he earned $210,000 in 2017. suppose the price index was 17.6 in 1944 and 218.4 in the current year. refer to scenario 24-1. in real terms, sue holloway's income amounts to about what percentage of josh holloway's income? a. 65.2 percent b. 70.9 percent c. 11.0 percent d. 114.7 percent
Sue holloway's income amounts to about what percentage of josh holloway's income is b. 70.9 percent.
Real income = (Nominal income / price index) x 100
Now, we will apply the given values in this formula to calculate the real income of Sue and Josh. Sue Holloway's income in real terms:
Real income = (Nominal income / price index) x 100
Real income = ($12,000 / 17.6) x 100
Real income = $68,181.81
Josh Holloway's income in real terms:
Real income = (Nominal income / price index) x 100
Real income = ($210,000 / 218.4) x 100
Real income = $96,038.56
Now, we will calculate the percentage of Sue's income with respect to Josh's income.
Percent of Sue's income in comparison to Josh's income:
Percentage = (Sue's real income / Josh's real income) x 100
Percentage = ($68,181.81 / $96,038.56) x 100
Percentage = 70.9
Therefore, Sue Holloway's income in real terms amounts to about 70.9% of Josh Holloway's income.The correct option is b) 70.9 percent.
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on the island of martha's vineyard, jobs are plentiful during the summer months, but difficult to find in september once the tourist season ends and many restaurants and inns close. what kind of unemployment do people who work in the island's restaurants experience annually?
The type of unemployment that people who work in the island's restaurants experience annually is B. seasonal unemployment.
Seasonal unemployment refers to the type of unemployment that occurs due to seasonal changes in the economy or industry. During certain times of the year, some industries experience a surge in demand for their products or services, while during other times, demand is low. For example, the tourism industry experiences high demand during the summer months, but low demand during the winter months.
People who work in the island's restaurants experience seasonal unemployment because jobs are plentiful during the summer months when the tourist season is in full swing, but difficult to find in September once the tourist season ends and many restaurants and inns close. This is because the demand for food and accommodation decreases, leading to a decrease in employment opportunities in the industry.
The other types of unemployment mentioned in the question are not applicable in this scenario.
Structural unemployment occurs when there is a mismatch between the skills of workers and the requirements of available jobs. Geographical unemployment occurs when there are regional disparities in job opportunities. Operational unemployment occurs when a company goes out of business or restructures. Tactical unemployment is not a recognized type of unemployment.Therefore, the correct option is B. seasonal unemployment.
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which of the following factors favor the issuance of debt in the financing decision? i. market signaling ii. distress costs iii. tax benefits iv. financial flexibility
The factor that favors the issuance of debt in the financing decision is iv. financial flexibility.
Financial flexibility is the ability to react quickly to changing circumstances and can be achieved through debt financing. This type of financing provides companies with the ability to take advantage of sudden business opportunities, such as acquiring another company, without having to worry about sourcing large sums of capital.
Debt also provides companies with access to more money than equity financing, which helps to reduce the amount of dilution for existing shareholders. Additionally, debt can provide more flexibility with regards to repayment terms and interest rates, allowing companies to tailor their financing strategies to their current needs.
Overall, iv. financial flexibility provides a major advantage to companies when making financing decisions and thus is the correct answer.
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carmeria has an unwavering belief in her new start-up company. she possesses intense focus and takes unconventional risks to make her new company successful. these examples most closely relate to which personality trait of entrepreneurs?
Carmeria's personality traits align with the conception of entrepreneurial self efficacy.This personality particularity refers to a person's belief in their capability to successfully start organize, and manage a new business adventure.
Carmeria's unwavering belief in her startup company demonstrates her confidence in her capability to make it successful. Her violent focus on her startup company suggests her goodwill to conduct her energy and finances to achieve her objectives. Also her goodwill to take unconventional troubles demonstrates her confidence in her capability to manage.
To overcome the challenges that come with starting a new business. Overall Carmeria's personality exhibits a strong sense of entrepreneurial self efficacy.
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your company enrolled in the developer support plan and, through the course of one month, consumer $4,000 usd of aws services. how much will the support plan cost the company for the month.
The company enrolled in the Developer Support Plan will be charged $29 per month, plus an additional fee based on the total AWS services used.
In this case, since the company consumed $4,000 USD of AWS services in one month, the total cost for the support plan for the month will be $29 + (4,000 x 0.09). The total cost for the Developer Support Plan for the month will be $437 USD.
To calculate the cost of the Developer Support Plan, simply take the total amount of AWS services used in a given month and multiply it by 0.09. This figure, added to the $29 flat fee, will give you the total cost for the Developer Support Plan for that month.
For example, if the company used $5,000 USD of AWS services in a month, the total cost for the Developer Support Plan would be $29 + (5,000 x 0.09). This would give the total cost of the Developer Support Plan as $541 USD.
To summarize, the cost of the Developer Support Plan will be $29 USD flat fee plus an additional fee based on the total amount of AWS services used in a given month. The formula to calculate this is to take the total amount of AWS services used and multiply it by 0.09, then add the $29 flat fee.
For the company in this example, the total cost of the Developer Support Plan for the month was $437 USD.
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hich of the following business entities does not create a separate entity? a. limited liability company b. corporation c. partnership
Partnership is the business entity that does not create a separate entity. A business entity is an organization that conducts business activities such as selling, purchasing, or offering goods or services. There are various types of business entities. Option (a) is the correct answer.
Each business entity operates differently and has a different set of rules and regulations. Some of the business entities include sole proprietorship, partnership, corporation, and limited liability company (LLC). A separate entity is a legal term that refers to a distinct entity or unit that is not the same as its owners or shareholders.
It is an independent entity that has its own legal and tax identity that is different from the owners. It is a legal term that refers to a company or an organization that is legally distinct from the owners. A partnership is a type of business entity in which two or more people work together to run a business. They share the profits and losses of the business.
A partnership is one of the simplest and easiest ways to start a business. It is not a separate entity, as each partner is personally liable for the debts and obligations of the partnership. Therefore, the business entity that does not create a separate entity is a partnership. Option (a) is the correct answer.
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system of rewarding managers by linking bonuses to income computed under absorption costing may result in: multiple choice question. insufficient inventory excess inventory buildup sales negatively affected no effect on inventory
Absorption costing's drawback is that it might distort the perception of a company's profitability. It is also not useful for analysis intended to increase operational and financial efficiency.
With the aid of the absorption costing mechanism, how do managers control revenue?The ability for managers to manipulate income through overproduction is also provided by absorption costs. In comparison to not producing the extra goods, increasing output at year's end results in a higher net income.
If output exceeds sales, how will changes in inventory affect full absorption and variable costing?When production outpaces sales, the revenue computed using full absorption costing will be higher than the income calculated using variable costing. Production being in excess of sales points to a rise in inventories.
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an advantage of abc costing is: multiple choice can be used to identify activities that can benefit from process improvement less effective overhead cost control increased costing can be used for external financial reporting
The advantage of ABC costing is that it can be used to identify activities that can benefit from process improvement. Thus option A: " can be used to identify activities that can benefit from process improvement" is the correct answer.
By identifying the activities that consume the most resources and assigning costs accordingly, ABC costing can provide insights into areas where process improvements can be made to reduce costs and increase efficiency. This can help organizations to focus their efforts and resources on activities that provide the most value and improve overall performance.
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which of the following may not be included in the contributed capital section? a.stock warrants b.market value of stock c.par value of common stock d.par value of preferred stock
The market value of stock may not be included in the contributed capital section of a company's balance sheet. Therefore, alternative b. market value of stock is correct.
Contributed capital represents the portion of a company's equity that is contributed by investors in exchange for ownership in the company. This section typically includes the par value of common and preferred stock, as well as any additional paid-in capital above the par value.
However, the market value of stock is not relevant for accounting purposes because it represents the current market price at which shares can be bought or sold, rather than the original price paid by investors to purchase the shares.
In conclusion, alternative b. market value of stock is correct.
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russnak corporation is investigating automating a process by purchasing a new machine for $514,000 that would have a 10 year useful life and no salvage value. by automating the process, the company would save $110,000 per year in cash operating costs. the company's current equipment would be sold for scrap now, yielding $21,000. the annual depreciation on the new machine would be $51,400. (ignore income taxes.) required: determine the simple rate of return on the investment. (round your answer to 1 decimal place.)
The simple rate of return on investment is 11.9% if Russnak corporation is investigating automating a process by purchasing a new machine for $514,000 that would have a 10-year useful life.
Cost of new machine = $514,000
Time period = 10 years
Saving amount = $110,000
yielding amount =$ 21,000
Depreciation amount = $51,400
Annual net cash inflow = Annual savings - Depreciation expense on machine
Annual net cash inflow = $110,000 - $51,400
Annual net cash inflow = $58,600
Initial investment = Cost of the machine - Proceeds from the sale of old equipment
Initial investment = $514,000 - $21,000
Initial investment = $493,000
Simple rate of return = Annual net cash inflow / Initial investment
Simple rate of return = $58,600 / $493,000
Simple rate of return = 0.119 or 11.9%
Therefore, we can conclude that the simple rate of return on investment is 11.9%.
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Goods that consumers regard as luxuries generally have
A. an income elasticity equal to 1.
B. an income elasticity less than 1.
C. an income elasticity greater than 1.
D. a negative income elasticity
C. Goods that consumers regard as luxuries generally have an income elasticity greater than 1. Demand is considered elastic if the price elasticity of the demand is larger than 1.
The demand for the product is therefore susceptible to price increases. Demand and price elasticity below one is referred to be inelastic. After a price rise, the product's demand does not considerably alter. Demand for typical items has a positive income elasticity of demand, meaning that as income rises, so does the quantity desired. A thing is considered a necessity if the desire for it has a lower income elasticity of demand than 1. If the elasticity is one, then the demand response is exactly proportionate to the price change since the change in quantity requested is exactly equal to the change in price.
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