a proxy is a legal form that requests that stockholders transfer their selling rights to some individual or individuals.

Answers

Answer 1

It is True that a proxy is a legal form that requests that stockholders transfer their selling rights to some individual or individuals.

What Is a Shareholder Proxy?

An agent with the power to act on another's behalf is a proxy. The proxy typically obtains written consent from a third party to act or vote on the signer's behalf, typically during a shareholders' meeting. A shareholder must authorize a shareholder proxy by signing a proxy statement that includes instructions on how the shareholder intends to vote. Companies that have issued securities under Section 12 of the Securities Exchange Act of 1934 are required by the Securities and Exchange Commission to deliver a proxy statement to every shareholder prior to a shareholder meeting. Before requesting a shareholder vote on board of director elections or other corporate actions, the statement included information that was submitted with the SEC.

A shareholder may sign the proxy statement and deliver it to the shareholder proxy if she won't be present at the meeting, allowing the proxy to vote the shareholder's shares on her behalf.

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from a marketing perspective, pricing should be ; i.e., it should correspond to what customers perceive as the fair price of the product. from a marketing perspective, pricing should be ; i.e., it should correspond to what customers perceive as the fair price of the product. cost based competitor based value based profit based

Answers

There are different types of pricing : Cost Based , Competitor Based , Value Based and Profit Based Pricing.

Cost Based Pricing: Cost based pricing involves setting pric ,es based on the cost of producing the product. This approach can be used to ensure that the company is making a profit on the product. For example, if it costs the company $10 to produce a product, the company could set the price at $15 to ensure that a profit is made.

Competitor Based Pricing: Competitor based pricing involves setting prices based on what competitors are charging for similar products. This approach can be used to stay competitive in the market and ensure that customers are not being charged too much. For example, if a competitor is charging $15 for a similar product, the company could set its price at $14 to remain competitive.

Value Based Pricing: Value based pricing involves setting prices based on the perceived value of the product. This approach can be used to ensure that customers are paying a fair price for the product. For example, if the company believes that its product is worth $20, it could set the price at $20, even if the cost of production is lower.

Profit Based Pricing: Profit based pricing involves setting prices based on how much profit the company wants to make. This approach can be used to ensure that the company.

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A transaction is ethically legitimate as long as someone wants to buy something and someone else is willing to sell it. When consumers are injured by a product and no one is at fault, the legal doctrine of strict product liability holds manufacturers accountable.

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An option is the ideal decision (a). To prove strict liability, a defective product that has already left the producer must be demonstrated.

What does the term "defective item" mean?

A product that doesn't function as it should is considered to be faulty. The goal of a patent infringement lawsuit is to make a manufacturer or distributor accountable for any losses brought on by an unsafe or faulty product.

Does broken equate to defective?

Broken or faulty goods are deemed defective. A law that is flawed doesn't help the people it's supposed to protect, just like a malfunctioning blender won't make your morning smoothie just way you want it to.

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for international financial reporting, the accounting standard ias 2 permits the use of either the fifo or weighted average cost flow assumption, but prohibits the use of lifo.

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The statement is true that for international financial reporting, the accounting standard ias 2 permits the use of either the fifo or weighted average cost flow assumption, but prohibits the use of lifo.

What is weighted average?

The COGS and inventory amounts are determined using a weighted average in the Weighted Average Cost (WAC) technique of inventory valuation in accounting. The weighted average cost method divides the price of the items up for grabs by the quantity of them. Say, for illustration, that an investor buys 50 shares of the same stock in year two at a price of $40 and 100 shares of a company in year one at a price of $10. The investor multiplies 100 shares by $10 for year one and 50 shares by $40 for year two to obtain a weighted average of the price paid, and then adds the findings to arrive at a total of $3,000.

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Use Table: Population Data for Roanoke County. If marginally attached workers are included the labor force in Roanoke County is: Table: Population for Roanoke County Demographic Group Number of Residents Employed 125,000 Unemployed and looking for work 3,000 Not working due to disability 1,000 Not working due to retirement 3.000 Unemployed and not looking for work due to 2.000 discouragement over job prospects Under the age of 16 40.000 Total Population 174,000 O 1.128.000 O 2. 130.000 O 3.131.000 O 4.134.000

Answers

The labor force is 130000. Optoin B.

Calculation:

Labor Force = Employed + Unemployed but actively looking for a job

Discouraged workers are called marginally attached workers.

So, in the country of Roanoke, when marginally attached workers are added to the labor force, then,

Labor Force including marginally attached worker = 125000 + 3000 + 2000 = 130000.

So, if marginally attached workers are included in the labor force, the labor force is 130000.

The labor force or workforce is a concept that refers to the pool of people who are either employed or unemployed. Usually used to describe a person who works in a single company or industry but can also apply to geographic regions such as cities states or countries. The labor force participation rate is an estimate of the active labor force in the economy.

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Understanding the difference between Chapter 7 from Chapter 11 bankruptcy filings could be relevant to your supply chain role because a. Chapter 7 may render contract deliverables impossible b. Chapter 11 may allow you to continue in a partnership with your existing contracts c. The financial position of your suppliers or customers may be relevant to your own company's financial position d. Any or all of the above

Answers

Chapter 7 may render contract deliverables impossible that bankruptcy filings could be relevant to your supply chain role.

What is contract deliverables?
Documentation, reports, and any other materials that the Contractor or any Subcontractor is required to or does provide to the State in accordance with this Contract and/or in connection with any Services are referred to as Contract Deliverables, including all items that are specifically listed as Deliverables in the Statement of Work. The quantifiable items or services that must be offered upon project completion are referred to as "deliverables" in project management terminology. Deliverables may be physical or abstract in nature. A significant deliverable is something that emerges from a certain procedure. You may finish these deliverables as the final products or deliverables of a project, or you may do so in smaller increments over the course of the project.

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FILL IN THE BLANK. if no debt is used in financing a project, there is no financial leverage effect and the return on equity (roe) will be___the overall return on the investment (roi). question 28 options: greater than less than equal to or greater than but cannot be less than equal to

Answers

Return on fairness (ROE) is a degree of economic overall performance calculated via way of means of dividing internet profits via way of means of shareholders' fairness.

The required details for return on equity in given paragraph

Return on Equity (ROE) = Net Income / Equity Shareholder's fund

Return on Investment (ROI) = Earning Before interest & tax(EBIT)  / Total Investment

Net Income = EBIT - Interest cost

Hence we will say that if there's no debt in a challenge then,

Net Income = EBIT and

Equity Shareholder's fund = Total investment

Therefore in case of no debt in a challenge, ROE = ROI

Hence accurate solution is option (A) Return on fairness (ROE) could be Equal to the general go back on investment (ROI).

ROE is taken into consideration a gauge of a corporation's profitability and the way green it's miles in producing profits. The better the ROE, the extra green a company's management is at producing profits and boom from its fairness financing.

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Determine the Beta for the portfolio listed below. Each stock is values at $100,000. Beta GE 1.15 AT&T 1.05 Apple 1.5 CVS 0.5 Costco 1.25

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The beta of the portfolio, given the betas of each individual stock, and the value of the stock, is 1. 09.

How to find the portfolio beta ?

According to the proportions of the investments in the portfolio, the beta of a portfolio is the weighted total of the betas of the individual assets.

The term "portfolio beta" refers to the overall relative volatility of a portfolio of individual securities as determined by the stock betas of the stocks that make up the portfolio.

The value of each of the stocks is the same in this instance which means that all the stock will have the same weight. The portfolio beta would therefore be the average of these betas:

= ( 1.15 + 1.05 + 1. 5 + 0. 5 + 1. 25 ) / 5

= 5. 45 / 5

= 1. 09

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: From an initial equilibrium in the basic model that includes only the AD and LRAS curves, aggregate demand shocks caused by changes in the growth of money supply: O are neutral in neither the short run nor the long run. O are neutral in the short run only. O are neutral in both the short run and the long run. O are neutral in the long run only.

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From an initial equilibrium in the basic model that includes only the AD and LRAS curves, aggregate demand shocks caused by changes in the growth of money supply are neutral in both the short run and the long run.

What is aggregate demand?

The overall demand for final products and services in an economy at a certain time is known in macroeconomics as aggregate demand, sometimes known as domestic final demand. Effective demand is a common name for it, however other times this term is used to make a distinction. This is a country's demand for its gross domestic output.

However, aggregate demand identifies the complete market for all goods and services that an economy generates and expresses it as an overall dollar value. The sum of consumption, investment, government spending, and net exports is aggregate demand.

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(cpa adapted) strut co. has a payable to its parent, plane co. in which of the following balance sheets should this payable be reported?

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Strut co. has a payable to its parent, plane co. in the standalone financial statements of each company that is component as well as parent firm balance sheets should this payable be reported as intra-group transactions.

What are standalone financial statements?

A consolidated statement reports a company's financial performance as a whole, whereas a standalone financial statement only shows the financial performance of a single unit. It provides details on its affiliated businesses, subsidiaries, and joint ventures.

Any amount payable by group company to its parent company is a transaction entered by parent and its component. So the amount shall be recognized as per the accounting policies adopted by the firms independently and shown separately in standalone financial statements or single balance sheet.

Therefore an amount owed by the parent company on one of its component company or subsidiary company or vice-versa, then the amount shall be reflected in the standalone financial statements as intra-corporate transfers but eliminate in the consolidated financial statements.

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Jenny promises National Bank that she will repay the loan that National Bank makes to Garrett if Garrett fails to pay it. In this instance, Jenny is the: a. principal debtor.
b. guarantor.
c. guarantee.
d. obligor.

Answers

Jenny promises National Bank that she will repay the loan that National Bank makes to Garrett if Garrett fails to pay it. In this instance, Jenny is the guarantor.

The guarantor is someone who provides guarantees for the fulfillment of guaranteed financial obligations. Guarantee institutions are institutions or companies that are in the financial sector. This institution has a function to guarantee or encourage the progress of a business through independence.

There are several forms of guaranteed institutions, including the following:

Guarantee company, is a legal entity that operates in the financial sector through business guarantees.A sharia guarantee company is a legal entity that operates according to sharia principles, operates and carries out business underwriting activities.Re-guarantee company is a legal entity that is in the financial sector to carry out business re-guarantee.Re-sharia guarantee company, is a legal entity that operates according to sharia principles, operates and carries out re-business underwriting activities.

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in the coming decade, the number of photographers entering the field is expected to , and the demand for professional photographers is likely to .

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In the coming decade, the number of photographers entering the field is expected to grow by 17% , and the demand for professional photographers is likely to grow 9% faster than average.

For a wide variety of artistic, technological, and documentary goals, photographers produce images that are permanently preserved. They are used in many different industries to produce photos of a very high professional caliber that are either neutral and factual or stylized and expressive.

A creative imagination is necessary to become a photographer.technical expertise in photography.the capacity to utilize a variety of cameras and lenses.to remain current with developing technology.being able to meet deadlines.a keen sense of color, form, and detail.a strong ability to communicate.

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Persuasive advertising is typically used in the latter part of the maturity stage and throughout the decline stage of the product lifecycle.False

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It is false that persuasive advertising is typically used in latter part of the maturity stage and throughout decline stage of product lifecycle.

What is advertising?

A good or service is meant to be highlighted via the techniques and procedures employed in advertising. Businesses work to bring consumers' attention to their products and services with the use of advertising. Commercial advertising typically aims to increase consumption of their goods or services through "branding," in which consumers associate a product name or image with certain attributes. Governmental agencies, political parties, interest groups, and religious institutions are a few examples of non-commercial entities that advertise their goods or services more than those of for-profit businesses. Public service announcements are one example of a free persuasion strategy that non-profit organizations may use. Through advertising, a firm can reassure its personnel or shareholders about its viability or success.

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Isabela is single and turned 72 years old on October 1, 2022. Isabela worked as a librarian at the local library and earned wages of $7,500. Isabela also received Social Security benefits of $16,000. She received a taxable pension of $13,000. She retired from her previous job on October 30, 2019. During her career she contributed pretax dollars to a qualified 401(k) retirement plan through her employer. Isabela cannot be claimed as a dependent by another taxpayer. Isabela is a U.S. citizen with a valid Social Security number. 10. When must Isabela begin taking her first required minimum distribution?

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Isabela must begin taking her first required minimum distribution (RMD) no later than April 1, 2023.

Hundreds of millions of individuals are familiar with the most common type, which is the regular Social Security card. It is given to both citizens and noncitizens of the United States who have received approval from the Department of Homeland Security (DHS) to reside and work permanently in the country.

October 1, 2022, marked Isabela's 72nd birthday. She will be forced to take a required minimum distribution (RMD) from her eligible 401(k) retirement plan for the first time in 2022. She is permitted to postpone that RMD until April 1, 2023, though.

As a result, the significance of Isabela beginning her first required minimum distribution is the aforementioned.

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For most people, banking services consists of depositing their salaries into _____ and then writing drafts (or using debit cards) on those accounts to buy things.

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For the majority of consumers, using banking services entails depositing their paychecks in CHECKING ACCOUNTS then utilizing those draughts to make purchases.

What is meant by banking?

The business of banking involves safeguarding other people's money. When make loans this money, interest is generated that benefits both the bank or its clients. A financial entity with permission to receive deposits and issue loans is known as a bank. However, they might also offer additional financial services.

What are the two main types of banking?

Commercial banks, which are consumer-facing like Bank of America, and central banks, which are government organisations that oversee monetary policy and regulate the sector, are included in the category of banking and finance.

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if firms are losing money in a purely competitive industry, then the long run adjustments in this situation will cause the market price to: group of answer choices decrease, and the representative firm's profits will decrease increase, and the representative firm's profits will decrease increase, and the representative firm's profits will increase decrease, and the representative firm's profits will increase

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Based on business strategy, and the available options, it is concluded that if firms are losing money in a purely competitive industry, then the long-run adjustments in this situation will cause the market price to increase, and the representative firm's profits will increase.

What are Competitive Markets

Competitive Market is a term that is used to describe the market situation in which no single consumer or producer has the power to influence the market.

Generally, the competitive market's response to supply and demand fluctuates with the supply curve, a representation of a product's quantity.

Also, in the long-run equilibrium of a purely competitive market, the profit is zero. So, if firms are making money in the short run, they would not leave the market in the long run, increasing the supply that exists in the market.

Alternatively, if firms are losing money in a purely competitive industry, then the long-run adjustments in this situation will cause the market price to increase, and the representative firm's profits will increase.

This is because when companies start losing money, they leave the market in the long term. Thus, the remaining firms will benefit from increased prices because their profits also increase. This is a result of an increase in demand when there are fewer firms in the market.

Hence, in this case, it is concluded that the correct answer is option C. "increase, and the representative firm's profits will increase."

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19) The assistant to the manager did not report to the assistant manager, only to the manager. This reporting relationship was clearly delineated in the:
A) Company culture.
B) Organizational structure.
C) Stakeholder analysis.
D) Company mission statement.

Answers

The assistant to the manager did not report to managers' assistant , only to managers. This reporting relationship was clearly regulated in the organizational structure.

What is organizational structure?

The system outlining how specific activities are handled to achieve a strategic mission is called an organizational structure. Rules, roles and duties are all part of these activities. The organizational structure also determines the flow of information between departments.

What are the five organizational structures?

Each of these five types of organizational structures has its pros and cons, so it's important to consider which one is right for your business: Functional reporting structure. Division or product reporting structure. Process-based structure. Matrix structure. Flat structure.

Why is organizational structure important?

Organizational structure is important as it helps companies to implement efficient decision-making processes. By assigning specialized roles to lower-level employees, organizations can make better decisions faster.

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A taxpayer is considered to be a material participant if he or she spends more than 500 hours in the activity.
a. True
b. False

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A taxpayer is considered to be a material participant if he or she spends more than 500 hours in the activity is True.

The taxpayer reflects to those persons who pays taxes. The taxpayer is also defined as the person or business to pay a tax. The tax is collected by the government to improve and development of the country.

Due to the taxpayers, the government performs their activities very well and regularly develop the country. The income tax money is the biggest sources of money for the any government.

That's why, the taxpayer is considered to be a material participant if he or she spends more than 500 hours in the activity.

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Fact Pattern 28-3B. Dillon and Evan are brothers. They agree to act as guarantors on a loan made by their sister, Fiona. Fiona defaults on the payments and Dillon refuses to pay. Evan pays the debt.

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In case fiona defaults on the payments and Dillon refuses to pay, Evan pays the debt. Under the SUBROGATION right, Evan is entitled to compensation from Fiona.

Who is entitled to subrogation?

In a legal context, replacing one party for another is known as subrogation. Subrogation essentially gives a third party the legal authority to recover a debt or damages on another party's behalf.

Normally, contracts between the insurance company and the insured party specify the subrogation right.

Contracts may include specific language granting the insurance company the authority to begin the process of pursuing payment of the insurance claim from the party responsible for the insured party's damages.

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1. The is the best-known strategic performance measurement system. a. action-profit linkage (APL) b. balanced Scorecard (BSC) c. performance prism d. Cambridge performance measurement process

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Balanced scorecard (BSC) is the best-known strategic performance measurement system.

A strategic management performance indicator known as the balanced scorecard (BSC) is used to identify and enhance different internal business operations and the results they have on the outside world. Balanced scorecards are widely used by businesses in the US, the UK, Japan, and Europe as a tool for measuring and providing feedback to organisations. Managers and executives must obtain and understand data in order to provide quantitative results. The decision-making of business personnel can be improved with the help of this knowledge. A balanced scorecard is a tool for strategy performance management. It is a well-structured report that managers can use to keep tabs on how the employees under their supervision are carrying out their duties and how these decisions are having an impact on the business.

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2: Piazzolla Research surveyed 1087 U.S. adults (18 years or older) to shed light on how
consumers are engaging with technology-driven healthcare and online health information.
Among the 1087 survey respondents, 895 reported that they had searched for health care
information online. In this survey, what is the population?
A. The 895 respondents who reported having searched for health care information online.
B. The 1087 United States adults who responded to the survey.
C. All adults (18 years or older) in the United States.
D. None of the above.

Answers

C , all adults (18 years or older) in the united states.

Lewes Company produced 8,000 units of inventory and sold 6,000. The company incurred the following production costs: Variable manufacturing cost: $12.00 per unit Fixed manufacturing overhead cost: $60,000 Assuming the company sells its product at a price of $25 per unit, and incurred $10,000 in selling and administrative cost, what is the amount of net income under absorption costing? A. $107,000 B. $68,000 C. $23,000 D. $8,000

Answers

Assuming the company sells its product at a price of $25 per unit, and incurred $10,000 in selling and administrative cost , $68,000 is the amount of net income under absorption costing. Hence the final answer is B. $68,000.

The net income for the company under absorption costing can be calculated using the following equation:

Net Income = (Sales Price x Quantity Sold) - (Variable Manufacturing Cost x Quantity Produced) - (Fixed Manufacturing Overhead Cost) - (Selling & Administrative Cost)

In this case, the equation is:

Net Income = (25 x 6,000) - (12 x 8,000) - (60,000) - (10,000)

Net Income = $68,000

Therefore, the net income under absorption costing is  $68,000.

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With a floating exchange rate, an increase in the U.S. demand for Japanese exports will cause the supply curve for yen to: become less elastic decrease. Increase remain unchanged.

Answers

Investors will be less likely to supply yen for speculative purposes as the yen appreciates, resulting in a decline in the supply of yen. The Yen will ultimately appreciate as a result.

What causes the supply curve to change?

change in the supply curve An complete supply curve may move to the right or left due to changes in manufacturing costs and associated variables. As a result, a bigger or lower amount is provided at a specific price. The premise of ceteris paribus Assuming no other things change, supply curves show how prices and quantity delivered are related.

What kinds of supply curves are there?

Individual supply curves and market supply curves are the two categories of supply curves, respectively. Market supply curves depict the market supply timetable, whereas individual supply curves show the individual supply schedule.

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demand pulll inflation is also called cost push inflation occurs when prices of resources rise pushingu up costs and the price level

Answers

In response, sellers boost their supply. However, when more supply is not available, vendors increase their prices. That results in demand-pull inflation, also known as "price inflation.

What exactly do you mean by demand-pull and cost-push inflation, respectively?

Inflation that arises from a rise in general demand is referred to as "demand pull inflation." Cost push inflation is the name given to inflation that develops as a result of a general decrease in supply brought on by external factors.

Demand-pull inflation occurs when demand increases to a point where supply cannot keep up, and price increases are frequently the result. To put it another way, both types of inflation—demand-pull inflation, which is influenced by consumer demand, and cost-push inflation, which is influenced by supply costs—lead to higher prices being passed on to consumers.

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to minimize extra costs associated with future litigation, many businesses will include in their contracts . question 8 options: forum selection clauses no deal if sued clauses attorney's fees at twice the rate if the other side sues clauses removal jurisdiction clauses no contest clauses

Answers

Many companies will add a clause about forum selection in their contracts to reduce extra expenses related to potential litigation.

What does the term "litigation" mean?

Making something the focus of a lawsuit will lead to a case, a problem, etc. being resolved in a legal court. The defense or resolution of legal issues between businesses and other organizations falls under the category of corporate litigation. It frequently refers to defending businesses that have been accused of misbehavior.

Why would a business choose to litigation?

The main reason you decide to proceed to court may be to create a precedent that you're not a pushover or that you won't be forced into conceding in a baseless issue. The most valuable asset of a corporation may be its intellectual property, which should be safeguarded.

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the most familiar form of trade credit is , a written contract prepared by the buyer who agrees to pay the seller a certain amount by a certain time.

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The most familiar form of trade credit is promissory note, a written contract prepared by the buyer who agrees to pay the seller a certain amount by a certain time.

A business-to-business (B2B) agreement known as trade credit allows customers to make purchases of goods without paying in cash up front and to make payments to suppliers at a later date.

Businesses that use trade credits typically give customers 30, 60, or 90 days to make payment, with the transaction being documented by an invoice.

Bills payable, open accounts, and promissory notes are all examples of trade credits. An open account is a loose arrangement where the supplier delivers the buyer the products and an invoice.

In a formal arrangement known as a promissory note, the buyer signs the document, acknowledges their understanding of the terms—including the due date—and gives it back to the seller.

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In a large company, the person who is responsible for comparing cash and the bank balance is the A) CEO B) controller C) CFO D) treasurer

Answers

A large company's controller is in charge of comparing the bank balance and the amount of cash on hand.

Is a controller superior than a CFO?

financial team organization

In the end, the CFO is in charge of the finances. They oversee the management and HR divisions together with the corporate director, accountants, and financial analysts. The financial manager is a more usual term for the director of finance.

The controller of a firm is what?

The project executive who is responsible for charge of a company's daily financial activities is known as a finance officer. Finance effective intervention the accounting department and are in charge of the business's accounts and records, which is sometimes referred to as the "company historian".

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A firm sold property, plant, and equipment for cash proceeds of $6,300. The equipment originally cost $12,240. The company recorded a loss on sale of $3,780. The company uses the indirect method to prepare its statement of cash flows.
Which of the following amounts would be included in cash from operations and cash from investing, respectively?
Select one:
a. None of theses are correct
b. $0 and $6,300
c. $3,780 and $0
d. $3,780 and $6,300
e. $6,300 and $3,780

Answers

$6,300 and $3,780 amounts would be included in cash from operations and cash from investing, respectively.So, Option E is the correct answer.

There are basically three different types of activities:

1. Operating activities: These include cash receipts and cash payments as well as other transactions that have an impact on working capital.

2. Investment activities: It keeps track of transactions involving the purchase and sale of fixed assets.

3. Financing activities: It keeps track of any actions that have an impact on shareholder equity and long-term liabilities.

Since the gain on the sale of the fixed asset is subtracted from the net income and the loss on the sale of the fixed asset is added, the operating activities are where the gain on the sale of the fixed asset is represented.

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True or False: In a marketing context, salespeople with high emotional intelligence are more effective in closing sales with consumers than are salespeople with low emotional intelligence.

Answers

emotional intelligence are more effective in closing sales with consumers than are salespeople with low emotional intelligence is true.

What exactly is emotional intelligence?

Emotional Intelligence (EI) is the ability to manage your own emotions as well as understand the emotions of others. EI is comprised of five components: self-awareness, self-regulation, motivation, empathy, and social skills.

What are the 4 types of emotional intelligence?

The four domains of Emotional Intelligence — self awareness, self management, social awareness, and relationship management — each can help a leader face any crisis with lower levels of stress, less emotional reactivity and fewer unintended consequences

Is emotional intelligence synonymous with empathy?

Empathy is a critical component of Emotional Intelligence (EI). Simply put, it means "putting yourself in the shoes of another." As a result, you become more sensitive to the feelings and emotions of others.

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which of the following is not part of the external users of the financial statement? lenders suppliers management investors g

Answers

Management is not the part of external users of the financial statement.

The management of the company is the primary user of the financial statements. Even though they are the ones who create the financial accounts, the board and management must consult them when assessing the development and expansion of the business. The management of the company examines the financial statements in light of the company's liquidity, profitability, cash flows, assets, and liabilities, cash balances, fund requirements, outstanding debt, project finance, and several other ongoing operational tasks. Simply said, financial statements are necessary for management to make corporate choices.

But, they are not included in the external users category

As external users are the people outside of an organization who makes decisions using financial or accounting data about that business but who does not actively manage its operations and management is one of the most important part of the inside of the company .

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Roche Pharmaceuticals entered into a licensing agreement with Zenith Lab for a new drug under development.Roche will receive $6,750,000 if the new drug receives FDA approval.Based on prior approval, Roche determines that it is 85% likely that the drug will gain approval.The transaction price of this arrangement should be
a. $6,750,000.
b. $5,737,500.
c. $1,012,500.
d. $0 until approval is received.

Answers

Roche Pharmaceuticals entered into a licensing agreement with Zenith Lab for a new drug under development.  the transaction price is $5,737,500. Option B

What is the transaction price?

Generally, The transaction price of this arrangement should be $5,737,500. This can be calculated by multiplying the probability of the drug receiving approval (85%) by the amount that Roche will receive if the drug is approved ($6,750,000).

0.85 * $6,750,000= $5,737,500

This is because the transaction price is the present value of the payment that Roche will receive if the drug is approved. The present value takes into account the time value of money, which means that a payment received in the future is worth less than the same payment received today due to the opportunity cost of not being able to use that money in the interim.

Therefore, the transaction price should be discounted to reflect the fact that the payment will be received in the future. The discount rate used to calculate the present value will depend on the specific circumstances of the deal, such as the risk-free rate of return and the perceived risk of the drug gaining approval.

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