The monthly payment for a $24,000, four-year, 12 percent loan with the interest calculated using the add-on method is $742.78.
The add-on method of calculating interest means that interest is calculated on the total loan balance, which includes the principal and any interest that has accrued up to that point. The monthly payment does not change over the life of the loan, so the same payment of $742.78 is due each month for the entire four years.
The total amount paid over the life of the loan is $29,913.60. This includes the principal of $24,000 and $5,913.60 in interest.
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The move by Philip Morris International (PMI), the industry-leading tobacco company, to invest billions in creating a smoke-free future is an example of
The move by Philip Morris International (PMI), the industry-leading tobacco company, to invest billions in creating a smoke-free future is an example of strategy innovation.
A business's goals for innovation, value delivery, and competitive advantage are met through using resources in accordance with an strategy innovation. An examination of a company's technology and competitive environment should be part of every strategy. its prospects and challenges from outside. The goal of innovation is to produce new value, such as fresh approaches to adjust to shifting sectors or address pressing social, health, or economic issues. A strategy is a plan that explains in great detail how you will realise your goal. An organisation must be able to use the technology in creative ways. Businesses that can't expand in this constantly shifting world risk failure. Therefore, one of the most crucial elements of a firm is its strategy.
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Find an article in the APUS Trefry Library that pertains to the role of technical writing in companies; read it and make note of its author, title, and publication information so you can use it in your initial forum post. Report out to the group what you've learned about technical writing from this article.
Article from APUS Library: Title: Psychological Chess: Erdoğan and the Syrian Refugee Crisis. Author: Janice L. Farkas. (The APUS Library provides access to the e-textbooks required for your program's courses).
What did you get from this publication information?Having reviewed the theoretical bases for psychological evaluation within foreign policy, President Erdoğan can be studied within the framework established through that lens. Establishing a baseline of the personality and psychological drivers of the leader can provide a general understanding of his underlying motivational factors. “Personality traits affect an individual’s motivation, goals, and values thereby providing criteria to evaluate external stimuli
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For which contract type is cost overrun from the agreed upon set budgeted cost paid by buyer ONLY?
Reimbursable costs (or Cost Plus) Cost reimbursable (CR) contracts include a compensation or incentive for meeting or surpassing project goals together with payment based on the sellers' actual expenses. The customer is therefore exposed to the greatest cost risk.
Which of the following contract types has the highest risk of cost overruns?Due of the uncertainty surrounding the final expenses, cost-reimbursable contracts have the highest risk of cost overrun and non-performance.
In what kind of contract is the contractor put at risk for cost overruns?The MGP contract combines elements of cost-plus and fixed-fee contracts. In this case, a price cap with a cost-plus structure is applied. Unlike fixed price and cost-plus contracts, which typically transfer the risk of cost overruns to the owner and contractor, this arrangement divides the risk equally.
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In recent years transparency has been the most important Multiple choice question. core competence. impactful outcome. security concern. business ethic.
In recent years transparency has been the most important business ethic. Implementing proper corporate rules with reference to apparently contentious matters is referred as business ethics.
Business ethics is the study of proper company conduct when it comes to potentially contentious issues including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, fiduciary duties, and much more. The law frequently directs business ethics, however there are occasions when business ethics offer a fundamental standard that enterprises may abide by to win the public's acceptance. Understanding the fundamental moral principles that guide desirable ethical behaviour is crucial, as is how a lack of these moral values contributes to the failure of many otherwise bright, talented individuals and the organisations they represent. Business ethics are crucial for success in contemporary business for a number of reasons. The most significant benefit of specified ethics programmes is the creation of a code of conduct that guides behaviour across all levels of employees, from CEOs through middle management to the newest and youngest.
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Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed.
July 1 Issued 15,899 shares of common stock for $15,899 cash.
1 Purchased used truck for $11,899, paying $2,105 cash and the balance on account.
3 Purchased cleaning supplies for $937 on account.
5 Paid $2,160 cash on a 1-year insurance policy effective July 1.
12 Billed customers $4,880 for cleaning services.
18 Paid $1,028 cash on amount owed on truck and $540 on amount owed on cleaning supplies.
20 Paid $2,191 cash for employee salaries.
21 Collected $1,634 cash from customers billed on July 12.
25 Billed customers $2,532 for cleaning services.
31 Paid $373 for maintenance of the truck during month.
31 Declared and paid $618 cash dividend.
Journalize the July transactions.
Post to the ledger accounts.
Prepare a trial balance at July 31.
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(1) Services performed but unbilled and uncollected at July 31 were $1,750.
(2) Depreciation on equipment for the month was $202.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $320 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $415.
Post adjusting entries to the T-accounts.
Cash
7/1
15,899
7/1
2,105
7/21
1,634
7/5
2,160
7/18
1,568
7/20
2,191
7/31
373
7/31
618
7/31 Bal.
8,518
Accounts Receivable
7/12
4,880
7/21
1,634
7/25
2,532
Supplies
7/3
937
Prepaid Insurance
7/5
2,160
Equipment
7/1
11,899
7/31 Bal.
11,899
Accumulated Depreciation-Equipment
Accounts Payable
7/18
1,568
7/1
9,794
7/3
937
7/31 Bal.
9,163
Salaries and Wages Payable
Common Stock
7/1
15,899
7/31 Bal.
15,899
Dividends
7/31
618
7/31 Bal.
618
Service Revenue
7/12
4,880
7/25
2,532
Maintenance and Repairs Expense
7/31
373
7/31 Bal.
373
Supplies Expense
Depreciation Expense
Insurance Expense
Salaries and Wages Expense
7/20
2,191
Problem 4-8A Mike Greenberg opened Clean Window WaPrepare an adjusted trial balance.
Problem 4-8A Mike Greenberg opened Clean Window WaPrepare the income statement for July.
Prepare a retained earnings statement for July. (List items that increase retained earnings first.)
Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.)
Journalize closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Explanation:
sir what is this, is this a question?
According to the FASB's conceptual framework, comprehensive income includes which of the following?
Op Inc Investments
a. No Yes
b. No No
c. Yes Yes
d Yes No
Yes, comprehensive income is change in equity of business during a period.
What is comprehensive income?In the United States, the term "comprehensive income" refers to all equity changes over a period of time, except those resulting from owner investments and distributions to owners. Because that application does not take into consideration the implications of changing ownership interests, an economic measure of comprehensive income is necessary for financial analysis from the viewpoint of shareholders. It includes all equity changes throughout time, but excludes dividends from owners and owner investments. Comprehensive income is the sum of net income plus other items that are required to be removed from the income statement because they have not been realized, such as unrealized gains or losses from owning securities that are easily tradable and gains or losses from currency exchange.
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What are 3 characteristics of an effective budget?
Budgets should account for your discretionary spending on individual financial goals in addition to outlining how much wealth you have coming into it and going out each month.
Budget - what is it?Estimating the total revenue and expenditures for the upcoming fiscal year is a necessary step in the budget-making process. This figure may then be divided into a number of divisions, such as quarters and months, for continuing evaluation.
What do budget categories entail?Each budget is created in accordance with the organization's present financial situation. Here are a few illustrations of fundamental budgets: This budget also goes by the moniker red flag budget. The company has created a basic budget.
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Why is mixed market the best?
In a mixed economy, private producers can participate, fostering healthy competition and the possibility of financial gain. Additionally, it supports public ownership of the manufacturing sector, which can help with social welfare demands.
What benefits do mixed markets offer?A mixed economy allows some economic freedom in the usage of while protecting private property and capital, but it also permits government intervention in the economy to further social objectives.
A mixed economy maintains a balance between private and public ownership, integrating both capitalism and socialism. Due to the fact that it enables the interests of both the government and private businesses to flourish, many nations view mixed economies as advantageous.
A worker can get the employment they desire, a business can find the opportunity they want, and both can contribute to the government to ensure the overall well-being of all parties involved. 8. It continues to outline the function of the government in society.
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Determine the eating capacity of an auditorium with 15 row of eat if there are 20 eat in the firt row, 23 eat in the econd row, 26 eat in the third row, 29 eat in the forth row, and o on
After solving the equation: the eating capacity of the auditorium is 645.
What is Arithmetic Sequence?An arithmetic sequence is a sequence of numbers in which each subsequent number is obtained by adding a fixed number, called the common difference, to the preceding number. This fixed number is also referred to as the common ratio. Arithmetic sequences can be written as an explicit formula, a recursive formula, or graphically.
The total eating capacity of the auditorium can be calculated by using the arithmetic sequence formula. The sequence pattern is +3.
Arithmetic Sequence Formula:
Sum of n terms = n/2 (a1 + an)
Where,
n = total number of terms
a1 = first term
an = last term
In this case,
n = 15
a1 = 20
an = 29 + (15 - 1) * 3 = 74
Therefore,
Sum of 15 terms = 15/2 (20 + 74) = 645
Hence, the eating capacity of the auditorium is 645.
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Papyrus Inc. provided the following information for its manufacturing division: Revenues $650,000 Operating expenses $400,000 Service department charges $ 95,000 Invested assets $600,000 Assume that Papyrus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.
$35000 is the residual income for the manufacturing division.
Residual Income= Net Income-(Invested Assests*minimum R Return)
= (650000-400000-95000)-(600000*20)
= $155000-$120000
Residual Income= $35000
What does the term "residual income" mean?
The money you have left over after paying your regular expenses like your mortgage, credit card bills, utilities, groceries, and auto payments is referred to as residual income. This additional cash can be used for investments, debt repayment, savings, or even a vacation fund.
How is residual income calculated?
Net income less a deduction for the cost of equity capital yields residual income. Equity capital multiplied by the statutory rate of return on equity yields the deduction, known as the equity charge (the cost of equity capital in percent).
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Which of the following activities involves collecting the necessary funds to support the business?
1. Investing
2.Operating
3.Financing
4. Delivering
Financing activities entail raising the money required to sustain the business.
Economic activity goes through periods of boom and then fall during business cycles. Both the general welfare of society and the welfare of private enterprises are impacted by these developments. Changes in a broad economic measure, such as Real Gross Domestic Product, are generally examined to determine how business cycles have changed through time. Many macroeconomic indicators have widespread upswings and downswings, which are classic examples of business cycle fluctuations. Each expansion/recession episode's duration and intensity change over time. Usually, their periodicity lasts for two to ten years. As in, their mathematical methodology, which employs a Bayesian statistical paradigm, may really include such flexible knowledge about the frequency of business cycles.
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The interest rate Reserve Banks charge commercial banks for short-term loans is the a. Prime rate b. Discount rate c. Subprime rate d. Federal funds rate
The interest rate Reserve Banks charge commercial banks for short-term loans is the Prime rate.
A bank's prime rate, also known as the prime lending rate, is the interest rate at which it typically lends money to borrowers with good credit. As a percentage above or below the prime rate, several variable interest rates may be stated. The interest rate that American financial institutions now charge their most valuable clients is known as the prime rate. Due to the little risk their loans provide to their financial institutions, these consumers, who have good credit, are qualified for this best rate. Every loan with a fluctuating interest rate is negotiated using this rate as a reference point. Financial institutions compete with one another to determine the prime rate. Instead of the Federal Reserve, private banks set the prime rate.
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What are the tax consequences for the transferor and transferee when property is transferred to a newly created corporation in an exchange qualifying as nontaxable under sec. 351?
Tax Consequence means any transaction or event in which the Managing Member shall engage or participate or which the Managing Member shall allow to occur as a consequence of a Tax Determination.
Whatis meant by tax consequences?The amount of tax, net tax, input tax credit, rebate, or other sum payable by, or refundable to, the person under Part IX, or any other amount that is relevant for the purposes of determining that amount; Typical 1 Sample 2.LAW.
Section 351(a) states that no gain or loss must be recognised when property is transferred to a corporation by one or more people solely in exchange for stock in the corporation, as long as those people are immediately after the exchange in control of the corporation (as defined in Section 368(c)).
The amount of income, taxable income, or taxable income earned in Canada of any tax or other amount that person must pay or that person is entitled to a refund is referred to as the individual's tax consequences.
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What are the characteristics of an effective group work participant?
The characteristics of an effective group work participant include: 1. Open-mindedness: Being open-minded in a group setting allows for more creative problem-solving and positive collaboration. It also allows for constructive criticism and meaningful dialogue.
2. Respectful: Respectful group members are able to listen to the opinions of others, provide meaningful feedback and constructive criticism, and work together to achieve their common goal.
3. Organized: Effective group work participants are organized and prepared. They bring the necessary materials to the group meeting and stay on task.
4. Good Communicator: Good group work requires effective communication. Group members should be able to articulate their ideas and opinions clearly and respectfully.
5. Flexible: Being flexible in a group setting is essential. Group members should be willing to compromise and adjust their goals and plans when needed.
6. Self-Motivated: Effective group work participants are self-motivated. They stay focused and committed to their tasks, even when it gets difficult.
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Spending on testing a product before shipment to customers is which type of quality cost? a. External failure cost b. Prevention cost C. Appraisal cost d. None of the above
The correct response is C. Appraisal cost. Costs associated with finding defective goods before they are delivered to customers. Additionally, they are known as "Inspection Costs."
Expenses linked with actions taken specifically to stop subpar product quality are referred to as prevention costs. Expenses related to actions especially created to gauge, examine, assess, or audit items in order to ensure compliance with quality standards are referred to as appraisal costs. It is a procedure for evaluating a product's performance, design, and acceptability for use in water and sewer infrastructure at a specified performance level. Costs for evaluating and keeping track of the calibre of goods and services purchased fall under the category of appraisal costs. This entails quality audits, examining and rating suppliers, and inspecting the supplied goods. So these are the clear expenses related to supply chain quality.
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What is 5x in share market?
In the stock market, 5x is a type of leverage ratio that is used to measure the amount of debt a company has versus its equity. It is calculated by dividing a company's total debt by its total equity.
A 5x leverage ratio indicates that a company has $5 of debt for every $1 of equity. This ratio is used to assess the financial stability of a company and to determine whether it is able to meet its financial obligations.
A stock is a type of instrument that denotes the holder's ownership stake in the issuing company and is typically traded on stock markets. In order to raise money to run their businesses, corporations issue stock. The two primary stock categories are common and preferred.
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For which item below might a bank issue a credit memorandum to a depositor's account?
-Monthly service charges
-Outstanding checks
-Interest earned
-An NSF check
A document issued by a bank to credit (increase) a depositor's account is known as an interest earned credit memorandum.
What exactly is a credit memorandum?A seller who offers goods or services gives a customer a credit memorandum, which is sometimes shortened to credit memo. The memo is sent out as a way to get the customer to pay less. The most typical kind of credit memorandum is an invoice that has already been paid for the deduction.
A different kind of credit memorandum effectively accomplishes the same thing. When a person's checking account is increased for a specific transaction, a credit memo is sent by the bank.
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When there are events that promote economic growth in the news, what usually happens to stock prices
There are several ways to gauge economic growth, but one of the most common ones is to watch the gross domestic product (GDP). Individual firms produce more and typically expand when the GDP rises.
People typically sell equities in response to bad news. The values of many, if not most, equities fall as a result of selling pressure brought on by unfavourable news, a weak earnings report, a breach in corporate governance, generalised economic growth and political instability, and catastrophic events. Investors and consumers are wealthier and more upbeat about produce for the future as a result of growing stock prices. Improved spending as a result of this increased confidence may result in significant acquisitions like homes and cars.
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Assume that Job X used 70 direct labor-hours. How much manufacturing overhead would be applied to Job X
There is not enough information to determine the exact number, but the formula for manufacturing overhead is the total estimated overhead costs divided by the total estimated activity level.
The amount of manufacturing overhead applied to a job is typically determined using a predetermined overhead rate, which is calculated by dividing the total estimated overhead costs for a period by the total estimated activity level for the same period. Factors such as the specific overhead costs associated with the job, the type of overhead allocation method used, and the specific overhead rate used would all play a role in determining the amount of overhead applied to Job X. Without additional information, it is impossible to provide an accurate answer.
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SEC Regulation Best Interest (BI) focuses on A) recommendations to customers. B) ensuring broker-dealer profitability. C) customer transaction costs. D) ensuring that customers receive the highest possible interest on their cash balances.
A) recommendations to customers, Best Interest (BI) Regulation of the SEC places a strong emphasis on customer recommendations.
As part of the Securities Exchange Act of 1934, the SEC's Regulation Best Interest (BI) establishes a "best interest" standard of conduct for broker-dealers and associated individuals when they suggest to a retail customer any securities transaction or investment strategy involving securities, including suggestions of the kinds of accounts. The SEC also enacted new regulations and forms as part of the rulemaking package that mandate that broker-dealers and investment advisors give retail investors with a concise relationship description, Form CRS. Additionally, the SEC released interpretations pertaining to the "solely incidental" prong of the broker-dealer exception from the Advisors Act and the standard of conduct for investment advisers under the Investment Advisers Act of 1940.
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When Maddie checked in at the Happy Airline ticket counter for her five-hour economy-class flight to California, the customer service agent explained that hot meals and complimentary cocktails would only be served to business-class and first-class passengers. For that reason, the Happy Airline agent suggested that Maddie pay a small fee to move from economy-class to business-class for the flight. This is an example of Group of answer choices A. a trade-in allowance B. affiliate marketing C. comparison shopping D. Up-selling
The Correct option is D. For that reason, the Happy Airline agent suggested that Maddie pay a small fee to move from economy class to business class for the flight. This is an example of up-selling.
A cocktail is an alcoholic blended drink. most usually, cocktails are both a combination of spirits or one or greater spirits combined with other components which include tonic water, fruit juice, flavored syrup, or cream. Cocktails vary broadly throughout regions of the arena, and plenty of websites put up both authentic recipes and their own interpretations of older and more famous cocktails.
The origins of the phrase cocktail have been debated (see phase Etymology). the primarily written mention of a cocktail as a beverage seemed within the Farmers cabinet, 1803 within the u.s.. the primary definition of a cocktail as an alcoholic beverage appeared 3 years later inside the stability and Columbian Repository (Hudson, the big apple) on May thirteen, 1806. Historically, cocktail ingredients included spirits, sugar, water, and bitters, but, this definition developed at some point in the 1800s, to include the addition of a liqueur.
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In a restricted margin account, a sale of $5,000 of stock will create A) a $5,000 decrease in the debit balance. B) SMA of $5,000. C) buying power of $10,000. D) SMA of $2,500.
A $5,000 stock sale on a restricted margin account will result in a $2,500 SMA.
Half of the revenues from the sale of securities in a restricted margin account are used to offset the debt, while the other half is journaled into SMA. Therefore, a $5,000 sale will result in an SMA of $2,500, or 50% of the transaction. $5,000 is the SMA 2 or the buying power.
The amount an investor has available to purchase securities is known as buying power, which is often referred to as surplus equity. It is equal to the total cash balance in the brokerage account plus all available margins.
The US Regulation T requirements for brokerage accounts are determined using a special memorandum account, a type of margin credit account. The SMA ledger is used to lock in unrealized gains that increase the client's purchasing power in addition to Initial Margin and Maintenance Margin specifications.
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Given that the stock in a short account was acquired, meaning it was borrowed, and that the short tender rule is in effect.
Given that the stock in a short account was acquired, or borrowed, and that the short tender rule is in effect, the shareholders can only tender stock up to the value of their net long position in the stock. As a result, the following accounts may be used to tender stock under federal law: Account with restricted margin. Long margin account, second. The cash account. Therefore, option C is the appropriate response in this scenario. Only cash accounts may be opened for custody accounts. Savings accounts for minors that are opened and managed by an adult are called custodial accounts. Due to the absence of income restrictions, withdrawal fees, and contribution caps, custodial accounts typically enjoy a great deal of freedom.
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Choosing to go to college over getting a job right out of high school is an example of a(n) _____.
A-fixed cost
B-opportunity cost
C-variable cost
D-none of the above
Choosing to go to college over getting a job right out of high school is an example of a(n) opportunity cost. Thus the correct option is B.
What does the opportunity cost?An opportunity cost refers to the surrender of any benefit over another thing. When an individual is stuck between a variety of options and chooses an alternative over available options reflects opportunity cost.
In the given case, as well as an individual chooses to go to college over getting a job in which he chooses an option between two represents elements of opportunity cost.
Therefore, option B is appropriate.
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A government can fix prices, such as a minimum or maximum price for a good or service which can create an artificial disequilibrium. When the government fixes a price below the market rate, what would be the most probable effect?
A. The market would suffer surpluses.
B. More buyers would enter the market.
C. The market would suffer shortages.
D. More sellers would enter the market. This is a price ceiling or a maximum price, which probably will be below equilibrium and mean that quantity demanded exceeds quantity supplied.
Option c is Correct. The most likely result of the government setting a price below market value would be shortages in the market.
What occurs when prices are set by the government?The clearing and allocating functions of prices are destroyed by governmental price fixing. The regulation inhibits the equalization of the available supply to the demand by permanently fixing prices above or below their equilibrium values. Short-term surpluses or shortages are therefore unavoidable.
Governments have the power to set minimum and maximum prices for goods and services, which can lead to a false imbalance. A price floor, also known as price support, is the lowest price that manufacturers or governments can establish for goods or services. The opposite of a price ceiling is a price floor.
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A principal residence is bought for $190,000. A new porch is added, costing $9,000. Five years later the home sells for $261,000, and the closing costs are $21,000. What is the homeowner's capital gain
The homeowner's capital gains $41,000. A principal residence is bought for $190,000. A new porch is added, costing $9,000. Five years later the home sells for $261,000, and the closing costs are $21,000.
Capital gain is the earnings one earns at the sale of an asset like stocks, bonds or actual estate. It outcomes in capital advantage while the selling charge of an asset exceeds its purchase price. it's far the distinction among the selling price (better) and cost charge (lower) of the asset.
it is a tax levied on an man or woman's and. however, movable non-public assets along with fixtures, garb, and so forth. are excluded from this tax. kinds of capital profits tax which might be levied on lengthy-term and quick-term gains begin from 10% and 15%, respectively.
The time period capital benefit refers to the growth within the cost of a capital asset while it's far offered. placed clearly, a capital benefit happens when you sell an asset for more than what you at the beginning paid for it.
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niversal Containers created a new product line with a special sales team to sell the products. The sales process for the new line is more complex than the current sales process. The System Administrator added new picklist values to the Stage field for use by the new sales team. How should the System Administrator configure Salesforce to ensure only the appropriate stages are visible based on the product Line?
Create a validation rule to display the appropriate Stages based on the User’s role.
Create a sales process and Opportunity record type for each product line.
Create a validation rule to display the appropriate Stages based on product line.
Create new Forecast categories and assign the new Stage picklist values to those categories.
A sales opportunity is a qualified prospect that has a high likelihood of becoming a paying customer.
What is sales opportunity process?The prospect should be interested in what you have to offer, and there should be a clear pain issue that your product or service can alleviate. Lead, prospect, and opportunity are frequently used interchangeably in marketing. But it's crucial for everybody working in sales to comprehend their unique meanings and applications.
We will explore best practises and techniques for turning a lead into a prospect, as well as the stages and features of an opportunity, in this post. We will also clarify what distinguishes a lead from a prospect and an opportunity.
Use qualifying questions to order your leads according to their quality. Track all nurture-related activities to maximise your efforts. Final pitch - Tailor your pitch to your prospective buyer and be ready to address any objections.
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Bonds are essentially...
A. illegal except for those issued by public utility companies.
B. either common or preferred types of bonds.
C. designed to help prevent trusts.
D. loans to a corporation.
Answer:
Its D pretty sure
Explanation:
Which of the following will be of interest to investors in decision-making?
a. Assessing the company's ability to generate net cash inflows.
b. Assessing management's ability to protect and enhance the capital providers' investments.
c. Both assessing the company's ability to generate net cash inflows and assessing management's ability to protect and enhance the capital provider's investments.
d. Assessing the company's ability to collect debts.
Investors in decision-making will be interested in both assessing the company's ability to generate net cash inflows and assessing management's ability to protect and enhance the capital provider's investments.
What exactly is net present value?The term net present value (NPV) refers to the current value of a future stream of payments from a business, project, or investment. To calculate NPV, estimate the timing and amount of future cash flows and choose a discount rate equal to the lowest acceptable rate of return.
Net Cash Flow is the difference between money coming into a company ("inflows") and money leaving the company ("outflows") over a given time period. In the end, all businesses must eventually become cash flow positive in order to continue operations in the foreseeable future.
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Asmeret works as a hotel manager for a popular family resort and casino in Atlantic City, New Jersey. During the summer, hotel managers aim for an occupancy rate of at least 85% to ensure that overhead costs are covered. The resort is known for its quality services; guests generally return an average of three times during the summer and use their rewards and loyalty cards during their stays. On this particular day, Asmeret is quite stressed because the occupancy rate is only 65%. If the hotel fails to sell at least an additional 20% of the available rooms, she might be in some trouble. Required: Which aspect of a service is best illustrated in the scenario?
A) Services are perishable.
B) Service standards show wide variation.
C) Services are inseparable from service providers.
D) Companies cannot easily standardize the services they provide.
E) Buyers play an important role in the creation and distribution of services.
Answer: A) Services are perishable
Explanation:
The aspect of a service is best illustrated in the scenario is that services are perishable.
Perishability is a term that is used in marketing and it implies that the capacity of service cannot be stored and sold in the future. Once services have been used, they cannot be saved, returned or stored.
Once services has been rendered to a customer, it has been then consumed and it can't be delivered to another person. Other characteristics of services are inseparability, variability and intangibility.
How might the government remedy some of the disadvantages of a market economy?
Government intervention is the primary means by which request failure can be corrected. This requires the government to pass legislation similar to antitrust programs and to incorporate colorful price mechanisms similar to levies and subventions.
Request failures can be corrected through government intervention, like new laws or levies, tariffs, subventions, and trade restrictions. Economists still identify six major functions of governments in request husbandry. Governments give the legal and social frame, maintain competition, give public goods and services, redistribute income, correct for externalities, and stabilize frugality.
One part of government is to correct problems of request failure associated with public goods, external costs and benefits, and amiss competition. Government intervention to correct request failure always has the implicit to move requests closer to effective results reducing shipment losses.
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