FDI vertical integration is backwardA) when FDI involves an industry abroad that produces inputs for MNCs.B) when FDI involves an industry abroad that sells the MNC's outputs.C) none of the optionsD) when FDI involves an industry abroad that produces inputs for MNCs, as well as when FDI involves an industry abroad that sells the MNC's outputs

Answers

Answer 1

The correct answer is A) when FDI involves an industry abroad that produces inputs for MNCs. when FDI involves an international industry that generates inputs for MNCs, vertical integration is backward.

When a firm makes an investment outside of its own country to contribute to its main operations. A company could spend money on manufacturing plants abroad. Backward vertical FDI is when a company exports goods or components to its home country while functioning as a supplier.

A multinational company makes a vertical foreign direct investment when it buys a business that serves as a distributor or a supplier. When a corporation starts a similar operation or business strategy in another nation, this is known as horizontal FDI.

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Related Questions

Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management requires a 12% rate of return on its investments. Use the (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Alternative 1: Keep the old machine and have it overhauled. If the old machine is overhauled, it will be kept for another five years and then sold for its salvage value.
Cost of old machine $108,000
Cost of overhaul 150,000
Annual expected revenues generated 106,000
Annual cash operating costs after overhaul 51,000
Salvage value of old machine in 5 years 22,000
Alternative 2: Sell the old machine and buy a new one. The new machine is more efficient and will yield substantial operating cost savings with more product being produced and sold.
Cost of new machine $292,000
Salvage value of old machine now 40,000
Annual expected revenues generated 87,000
Annual cash operating costs 28,000
Salvage value of new machine in 5 years 14,000
Required:
Determine the net present Value of Alternative 1
Initial cash investment (net).....
i= 12%
year Subsequent Cash inflow (outflow) Table Factor= Present Value
1 .8929 2 1.6901 3 2.4018 4 3.0373 5 3.6048 Present Value of cash inflows .
Present Value of cash outflows ..
Net present value ...
2. Determine the net present value of alternative 2. ^^ Same Format as above
3.Which alternative should management select?

Answers

Total present value of cash flows of 5 years= 221907.80
Less: Initial cash investment (net)=144000
Net present value:$77907.80

What is net present value?

The difference between the current value of future cash inflows and outflows is known as net present value (NPV). NPV is used to evaluate the profitability of a projected investment or project in capital budgeting and investment planning.

Using the appropriate discount rate, calculations are made to determine the NPV, or present value of a stream of future payments. Negative NPV projects should not be pursued, yet positive NPV initiatives frequently are.

When comparing the rates of return of various projects or comparing a projected rate of return with the hurdle rate necessary to accept an investment, one might utilize net present value (NPV), which takes time worth of money into consideration.

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True or False: The goal of viral marketing is to spread rumors and innuendo about a rival's product that will hurt its image.
False

Answers

Answer: false

Explanation:

because you said so

the group that set the federal reserve system policy on buying and selling govrenment securities bills notes and bonds

Answers

The group that set the federal reserve system policy on buying and selling govrenment securities (bills, notes and bonds) is the Federal Open Market Committee (FOMC).

The president of the Federal Reserve Bank of New York, the seven members of the Board of Governors of the Federal Reserve System, and four of the other eleven Reserve Bank presidents, who serve one-year terms on a rotating basis, make up the Federal Open Market Committee (FOMC), which has twelve members. One bank president is selected from each of the following four groups of banks to fill the rotating seats: Boston, Philadelphia, Richmond; Cleveland; Atlanta; St. Louis; Dallas; Minneapolis; Kansas City; and San Francisco. Non-voting Reserve Bank presidents are present at Committee meetings, take part in discussions, and offer input on the committee's evaluation of the state of the economy and potential course of action.

Eight regularly scheduled meetings of the Federal Open Market Committee take place each year. The Committee examines the financial and economic situations, chooses the right monetary policy course, and evaluates the risks to its long-term objectives of price stability and sustained economic growth at these sessions.

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a regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation y-hat

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A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation y-hat = -0.5x + 800.This equation suggests that for every dollar increase in price, sales will decrease by $0.5 thousand.

Regression analysis is a group of statistical procedures used in statistical modelling to determine the relationships between a dependent variable (often referred to as the "outcome" or "response" variable, or a "label" in machine learning jargon), and one or more independent variables (often referred to as "predictors," "covariates," "explanatory variables," or "features"). In linear regression, the most typical type of regression analysis, the line (or a more complicated linear combination) that most closely matches the data in terms of a given mathematical criterion is found. When using the ordinary least squares method, for instance, the specific line (or hyperplane) that minimises the sum of squared differences between the genuine data and that line is computed (or hyperplane).

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Using the production function Real GDP = T (L, K), and the LRAS curve, describe the process by which a decline in interest rates impacts the use of capital and economic growth.

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Using the LRAS curve and the income approach Gnp = T (L, K), explain how a drop in interest rates affects the utilisation of capital on economic growth. fixed; shifting to the right.

How would you define "economic"?

Economy is the study of limitation and how it affects how resources are used, how commodities and services are produced, how production and welfare increase over time, and a widea wide variety of other complex issues that are crucial to society.

What is an example in the economy?

Example: Farmers lower the price of crop when corn production rises in order to sell more of their harvest. The number of corn required to feed the population will increase if the production is too high.

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in section 6.5, we mentioned that disabling interrupts frequently can affect the system's clock. explain why this can occur and how such effects can be minimized.

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At each clock interrupt, the system clock is updated and it's likely that the system clock may quickly lose the proper time if interrupts were deactivated, especially for an extended length of time.

Scheduling operations also make use of the system clock. For instance, the number of clock ticks is used to represent the time quantum for a procedure.

The scheduler checks whether the time quantum for the active process has run out at each clock interrupt. The scheduler would not be able to assign time quantum values with accuracy if clock interrupts were deactivated. By simply temporarily removing clock interrupts, this effect can be reduced.

When the interrupts are turned off, scheduling of other processes is effectively halted. When interrupts are disabled, the CPU cannot switch between processes, and programmes can use shared variables without another process being able to access them.

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is the extent to which the performance management system elicits job performance that is consistent with an organization's strategy, goals, and culture.

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The degree to which the organization's strategy, goals, and culture are reflected in the job performance that the performance management system produces.

What does consistency in performance management mean?

Performance management in practise refers to management's ongoing efforts to help staff members grow, set precise objectives, and provide regular feedback throughout the year.

What does performance consistency entail?

A consistent person always acts in the same manner, has the same attitudes toward other people or things, or succeeds to the same degree in whatever they are doing.

Question:- _____ is the extent to which the performance management system elicits job performance that is consistent with an organization's strategy, goals, and culture.

A. Specificity

B. Reliability

C. Validity

D. Strategic congruence

E. Acceptability

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tyler, a manager, calls for a meeting with his subordinate, kaitlyn, to discuss a new project. when she gives her opinion, tyler summarizes it in order to ensure that he has understood kaitlyn's point the way she meant it. tyler is involved in to lead to effective communication.

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When Kaitlyn gives her opinion, Tyler summarizes it in order to ensure that he has understood Kaitlyn's point the way she meant it. Tyler is involved in reflection to lead to effective communication.

The communication is include in the conservation and as well as in skill set. It is the mode to express what we convey through our word. It is the first impression and it reflects the person mindset in any deal making decision.

The communication skill is the first must have skill in every employee due to this skill, the employee performs goods role in the job position.

Tyler is a manager and calls for a meeting with his subordinate, Kaitlyn, to discuss a new project. Tyler is able to present the new project with the help of communication skill.

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if the fed raises reserves requirements, then interest rates will and the money supply will .

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if the fed raises reserves requirements, then interest rates will decline and also it  the decrease the size of the money supply.

Central banks use different methods to increase or decrease the amount of money in the banking system. These actions are called as monetary policy. While the Federal Reserve Board—commonly known as the Fed—can print money at its discretion in an effort to increase the amount of money in the economy, this is not the standard used, at least not yet in America.

The Federal Reserve Board, which is the agency that oversees the Federal Reserve System, oversees all domestic monetary policy. They are often referred to as the Central Bank of America. This means they are generally responsible for controlling inflation and managing short-term and long-term interest rates. They make these decisions to stimulate the economy, and controlling the money supply is an important tool they use.

Conversely, by increasing the banks' reserve requirements, the Fed can reduce the size of the money supply.

The Fed can also change short-term interest rates by lowering (or raising) the discount rate that banks pay on short-term loans from the Fed.

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fill in the blank question. changes in the interest rate mainly affect the component of total spending, and also affect spending on durable consumer goods that are purchased on credit.

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As interest rates move up, the cost of borrowing becomes more expensive. This means that demand for lower-yield bonds will drop, causing their price to drop. As interest rates fall, it becomes easier to borrow money, and many companies will issue new bonds to finance expansion.

Finance is the study and discipline of money, foreign money and capital assets. it's far associated with, but no longer synonymous with economics, the take a look at of production, distribution, and intake of cash, belongings, goods and offerings (the field of monetary economics bridges the two). Finance sports take region in financial structures at numerous scopes, as a result the field may be more or less divided into private, corporate, and public finance. in a economic machine, belongings are offered, sold, or traded as economic units, consisting of currencies, loans, bonds, shares, shares, alternatives, futures, and so forth. assets also can be banked, invested, and insured to maximize fee and limit loss. In practice, dangers are always found in any financial action and entities.

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Openlane and Yearin Technologies have together invested and created a new organization, Globex Corporation, to focus on developing diagnostic devices. Through this new firm, both companies are attempting to combine their core competencies to innovate and reduce their risks associated with transaction-specific investments. However, the new organization operates independent of Openlane and Yearin Technologies. Which of the following alternatives to integration does this scenario best illustrate? a licensing contract a franchisee a joint venture a corporate acquisition

Answers

ANSWER: Joint venture illustrate this scenario perfectly.

WHAT IS A JOINT VENTURE?

In order to accomplish a shared goal, two or more commercial organizations can form a joint venture (JV). Combining the advantages of each unit is the goal of the JV. Also, when the vulnerabilities are combined, they are lessened. A JV's participants may occasionally create a completely new company. They refer to it as a limited liability company, corporation, or a partnership in that situation. In the absence of such a JV agreement, the associated business entities maintain their current identities.

Resources, assets, and equity are shared by partners in a joint venture. The majority of the time, a joint venture is started with a specific goal in mind, such as product research or production. It can, however, also be developed for a persistent goal. The companies are not obligated to continue the joint venture after the agreed-upon duration because it is only a temporary agreement. According to a mutual agreement, the precise length of the collaboration is set.

FOUR MAIN REASONS WHY COMPANIES FORM JVs:

To reduce costsTo enter foreign marketsTo leverage resourcesTo combine expertise

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spoilage of canned foods not accompanied by gas production is group of answer choices thermophilic anaerobic spoilage. flat sour spoilage. mesophilic bacteria spoilage. acid-tolerant fungi. putrefactive anaerobic spoilage.

Answers

It is considered as flat sour spoilage.

What is spoilage flat sour spoilage?

FLAT SOUR SPOILAGE is a term used to describe the microbial degradation of foods that have been professionally canned. It is frequently connected to microorganisms that produce spores and can destroy a product without significantly boosting gas output.

Acidic and low-acid canned foods can deteriorate flat-sour. Acid canned foods' flat-sour degradation is also caused by Bacillus Thermoacidurans. Typically, flat-sour spoilage bacteria are found in soil, sugar, starch, and plant equipment.

The spores are present everywhere in nature but are not found in any food or habitat, including the polar and the desert. Bacillus stearothermophilus, which is typical of flat-sour spoilage of low acid foods, and Bacillus Coagulans, which is typical of flat-sour spoilage of acid foods, are the two different forms of flat-sour aerobes.

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inventory errors net income in year 2 is understated by $1,100. year 2 ending inventory per the financial statements

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Net profits will be overstated if ending inventory is underestimated. In the event that closing inventory is overstated, the cost of goods sold,

Is your pay determined by your net income?

Gross pay is the amount of an employee's salary that is left over after payroll deductions for things like taxes, benefits, and other costs. Net pay, often known as take-home pay, is what is left over after all withholdings have been deducted.

What are net income and income?

Gross income is the entire amount of money made by selling products and services over a certain time period. The amount of money left over after all expenditures have been paid is known as net income. Knowing the difference between the two is essential to understanding the financial health of your company.

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True or False: In the context of execution styles in advertising, using an animated character that represents a product in an advertisement is an example of an endorsement.

Answers

The answer is false. The method, style, tone, language, and format utilised to carry out a marketing message are known as the execution style.

The message can be delivered in a variety of ways, including the following: life's a slice This design features one or more "typical" individuals use the product in a typical environment. Dramatization is an execution method that develops a thrilling scenario or situation in the style of a short story. In order to demonstrate how the marketing brand may assist in solving an issue, dramatisations frequently employ the problem/solution technique. Execution, often known as capital punishment, is the process of putting a person to death in accordance with a court-ordered death sentence.

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3.
Question 3

Fill in the blank: The product vision defines what the product is, who uses it, and how it supports the customer’s _____.

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The product vision defines what the product is, who uses it, and how it supports the customer’s business strategy.

What is a business strategy?

A business strategy is essentially a master blueprint for a firm. To accomplish its strategic objectives, a company's management prepares and implements this strategy. A business plan is essentially a long-term sketch of the intended strategic course for a corporation.

The strategic and tactical choices a business must make to accomplish its long-term goals will be outlined in this long-term sketch. Then, this corporate plan will serve as the main organizing principle for management.

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Given the following information, determine the unrecovered depreciable basis: depreciable basis: $300,000; declining balance depreciation: 200%; cost recovery period: 7 years. A. $42,857 B. $85,714 C. $214,286 D. $257,143

Answers

The unrecoverable depreciable basis is given as follows:

C. $214,286

How to calculate the unrecoverable depreciable bias?

The first step is calculating the annual depreciation, as follows:

Annual depreciation = Depreciable basis * Declining balance rate / Cost recovery period

The parameters for this problem are given as follows:

Depreciable basis: 200%, hence a decimal of 2.Cost of recovery period: 7 years;

Considering the parameters given in the problem, we have that the annual depreciation is obtained as follows:

Annual depreciation = 300 x 2/7

Annual depreciation = $85,714.29

Then the unrecovered depreciable basis is calculated as follows:

300,000 - 85,714.29 = $214,286.

Meaning that option C is correct.

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TRUE/FALSE. acceptance of goods occurs when:multiple choicethe buyer behaves as if the seller no longer owns the goods and the buyer fails to reject after a reasonable opportunity to inspect.the goods have been in possession of the buyer for 30 days.

Answers

An acceptance of goods occurs when buyer fails to reject after a reasonable opportunity to inspect. The Option B is correct.

What is an acceptance of goods?

In sales law, an acceptance of goods occurs when the buyer, after a reasonable opportunity to inspect, signifies to the seller that the goods are conforming or that he will take or retain them in spite of their non-conformity.

This condition also occurs when buyer fails to make an effective rejection but not until the buyer has had a reasonable opportunity to inspect the goods. As well, it occurs when the buyer does any act inconsistent with the seller's ownership but if such act is wrongful as against the seller it is an acceptance only if ratified by him.

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Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,460 1,830 2,240 2,560 Tax 3,380 2,670 2,380 2,770Consulting 1,820 1,820 1,820 1,820Average hourly billing rates are auditing $82, tax $95, and consulting $102 Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue

Answers

Total revenue of auditing is $745,380, total revenue from tax is $106,400, total revenue from consulting is $742,560.

Give a brief account on revenue.

The amount of money generated by regular business activities is known as revenue, and it is calculated by dividing the quantity of units sold by the average selling price. Costs must be subtracted from the top line (or gross income) figure in order to determine net income. Revenue is sometimes regarded as sales on the income statement. The money made by a business's operations is its revenue. There are numerous methods for calculating revenue, depending on the accounting method selected. Credit card transactions are considered sales for goods or services that were delivered to the consumer. Some requirements require that revenue be reported even if payment hasn't yet been received.

Because it appears first on a company's income statement, revenue is sometimes referred to as the top line. Revenues minus expenses equals net income, commonly called the bottom line. When revenues outweigh costs, a profit is made.

The "solution" is attached in images below.

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which of these is a capital budgeting technique that generates a decision rule and associated metric for choosing projects based on the total discounted value of their cash flows?

Answers

The Net Present Value (NPV) is a capital budgeting technique that generates a decision rule and associated metric for choosing projects based on the total discounted value of their cash flows

What is the Net Present Value ?

The difference between the present value of cash inflows and outflows over time, or net present value (NPV), is what we refer to as this. The profitability of an anticipated investment or project is examined using NPV in capital budgeting and investment planning.

The computation of NPV is the outcome of selecting the appropriate discount rate to determine the current value of a stream of future payments. Projects worth starting are those having a positive NPV, whereas those with a negative NPV are not.

The discount rate could represent your cost of capital or the rewards offered by substitute assets with similar risk.

If a project's or investment's net present value (NPV) is positive, that indicates that the rate of return will exceed the discount

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Amy and Bob have decided to borrow a portion of the purchase price of stocks from their broker. They will then have a ________ account.
A) cash
B) round lot
C) margin D) debtor
E) combination

Answers

Amy and Bob will then have a margin account, Since they are borrowing a portion from their broker.

What is margin account?A "margin account" is a type of brokerage account in which the broker-dealer lends the investor money to purchase securities using the account as collateral. Margin increases investors' purchasing power while also exposing them to the possibility of larger losses.A margin account allows a trader to borrow funds from a broker rather than putting up the entire value of a trade. A margin account typically allows a trader to trade other financial products in addition to stocks, such as futures and options (if approved and available with that broker).All transactions in a cash account must be made with available cash or long positions. Margin accounts allow investors to borrow money against the value of their securities.

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equipment that cost 428000 and on which 194000 of accumulated depreciationhas been recorded was disposed for 172000 cash

Answers

Based on the information about the disposal of a long-lived assets (equipment), the entry to record this event would include a loss of $62,000. (Option A)

The gain or loss on the disposal of a long-lived assets is given by Gain/(Loss) on Disposal = Consideration Received - Book Value of Asset.

The book value or carrying value of an asset refers to the original purchase price of the asset less all accumulated depreciation and any accumulated impairment charges. Hence, Book Value = Purchase Price – Accumulated Depreciation.

Based on the given information:

Book value of the equipment = 428000 – 194000 = 234000

Gain/loss on the disposal of the equipment = 172000 – 234000 = - 62000

As the value is negative, it indicates a loss. Hence, the loss on equipment disposal is $62,000.

Note: The question is incomplete. The complete question probably is: Equipment that cost $428,000 and on which $194,000 of accumulated depreciation has been recorded was disposed of for $172,000 cash. The entry to record this event would include A) loss of $62,000 B) credit to Accumulated Depreciation for $194,000 C) credit to the Equipment account for $234,000 D) gain of $62,000.

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is an organized group of workers that bargains with employers to improve its members' pay, job security, and working conditions.

Answers

A collective agreement is the result of the voluntary process of collective bargaining, which establishes the conditions of employment and governs interactions between employers, employees, and their organizations.

What exactly does this mean for employers?

An individual, business, or group that pays individuals to labor for them: The main employer in this region is the Air Force.

What qualifies someone as an employer?

The term "employer" refers to a person or a corporate entity operating in the public, private, charity, or business sectors that employs and compensates workers. Employers set the conditions of work for employees and supply the agreed-upon terms, such as the compensation, in their capacity as the authority inside an organization.

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If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts
Group of answer choices
a. must be balanced.
b. must be positive.
c. must be negative.
d. could be either negative or positive, depending on the capital account.
e. could be either negative or positive, depending on the net international investment position.

Answers

Correct option is B, If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts  must be positive.

A current account surplus is defined as.

A country is a net lender to the rest of the world if its current account balance is positive, or "current account surplus."

One might compare a current account surplus to a current account deficit.

Positive current account balances, or more exports than imports of goods and services, are referred to as current account surpluses.

Current account surplus countries see upward pressure on their currency.

Current account surpluses may also be a sign of weak domestic demand or the outcome of a recession-related decline in imports.

For instance, low domestic demand and the country's exports' competitiveness are to blame for Japan's current account surplus, which has resulted in stagflation and slow wage growth.

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TRUE/FALSE. an excise tax placed on gasoline would: group of answer choices decrease the demand for gasoline and not change the supply of gasoline. increase the demand for gasoline and increase the supply of gasoline. decrease the demand for gasoline and decrease the supply of gasoline. not change the demand for gasoline and decrease the supply of gasoline.

Answers

False. gasoline would see a fall in both supply as well as demand if an excise tax were imposed on it.

The increased price of gasoline brought on by the excise tax would result in a decrease in demand since consumers are less inclined to buy gasoline when it is more expensive. The supply of gasoline would decrease if demand dropped because manufacturers would be less likely to produce it.

Excise duty is imposed on goods produced domestically, as opposed to customs duty, which is imposed on goods entering the country from overseas.

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You are considering staying in college another semester so that you can complete a major in economics. In deciding whether or not to stay, you should:
a) compare the total cost of your education to the total benefits of your education.
b) compare the total cost of your education to the benefits of staying one more semester.
c) compare the cost of staying one more semester to the benefits of staying one more semester.
d) compare the total benefits of your education to the cost of staying one more semester.

Answers

Option (C) . Compare the cost of staying one more semester to the benefits of staying one more semester.

How many months of semester are there?

A college semester lasts 15 weeks, or about four months. A typical semester is three months long and a quarter is about two and a half months long. Accelerated courses are typically completed within two months.

How semesters work?

The semester system usually consists of two semesters of 15 weeks each.

Once in autumn (winter vacation continues) and once in spring (summer vacation continues). An average full-time student per semester he takes 4-5 courses, or about 15 credits. The academic year usually begins at the end of August and ends at the beginning of May.

Why it is called a semester?

The first recorded use of the word semester dates back to the 19th century. It comes from the Latin sēmestris, meaning "half-yearly," sex, meaning "six," and mensis, meaning "one month." In high school, many classes span both semesters. This means that students will take that class throughout the academic year.

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(T/F) An essential aspect of the marketing concept is ensuring that the firm has adequate production capabilities to satisfy future demand.

Answers

True An essential aspect of the marketing concept is ensuring that the firm has adequate production capabilities to satisfy future demand.

What are the three components of the marketing idea?

   satisfaction of the customer.    whole-of-business approach    profit.

Which idea of marketing is focused on products?

Marketing management's concept of product orientation places an emphasis on promoting high-quality products to boost sales. The company believes that market demand is influenced by product quality.

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oil magic and super gas sell and buy crude oil, respectively. super gas uses the crude oil to produce gasoline and wants to insure against input cost increases. suppose that on december 1, 2014 the price of crude oil is $62.30 per barrel. oil magic and super gas enter into a contract on december 1, 2014. the contract specifies that oil magic will deliver one million barrels of crude oil to super gas on february 27, 2015 for $65 per barrel.

Answers

The contract that Oil Magic and Gonzo Gas have entered into is called a future contract. On February 27, Oil Magic suffers loss of $500,000 from its contract with Gonzo Gas. Oil Magic refuses Gas-R-Us' deal because:

The weather became very cold, increasing the demand for gasolineThe Organization of Petroleum Exporting Countries (OPEC) announced that it will cut crude oil production in January

Future contract is an agreement to buy and sell a product on a specific price level in the specific future date. Future contract is a standardized contract that specifies the quality, quantity, physical delivery time and delivery location.

When the Oil Magic and Gonzo Gas enter the future contract, Oil Magic obligates to provide the required amount of crude oil in the appointed time, despite the price market of crude oil at that time. If the crude oil price is below the contract price, Oil Magic will gain profits from the differences. However, if the market price is higher than the contract price, Oil Magic will suffer some losses.

In the case, we know that the future contract stated the contract price at NaN $65 per barrel. However, on February 27 the market price for crude oil is $65.50. Hence, Oil Magic experiences:

Profit/Loss = Earned revenue from future contract - Expected revenue based on market price

Profit/Loss = ($65 x 1,000,000) - ($65.50 x 1,000,000)

Profit/Loss = $65,000,000 -  $65,500,000

Profit/Loss = $(500,000)

Oil Magic suffers loss of $500,000 from its future contract with Gonzo Gas because the market price is higher than the contract price.

A week after the future contract between Oil Magic and Gonzo Gaz, Oil Magic refused Gas-R-Us' offer to made the similar contract with them. This only could happen if Oil Magic expect higher revenues from the market price in the future than the expected revenues from the future contract with Gas-R-Us. This condition will only take place if:

There is an increase in the demand for gasolineThere is a limitation for gasoline supply

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Complete Question:

Oil Magic and Gonzo Gas sell and buy crude oil respectively. Gonzo Gaz uses the crude oil to produce gasoline and wants to insure against input cost increases.

Suppose that on December 1, the price of crude oil is $62.30 pe barrel. Oil Magic and Gonzo Gaz enter into a contract on December 1. The contract specifies that Oil Magic will deliver one million barrels of crude oil to Gonzo Gaz on February 27, NaN for $65 per barrel.

The contract that Oil Magic and Gonzo Gas have entered into is called a ____

Suppose that on February 27, NaN the market price of crude oil is $65.50. How does this impact Oil Magic's profits?

Oil Magic suffers a loss of $65,000,000 from its contract with Gonzo GazOil Magic suffers a loss of $1,000,000 from its contract with Gonzo GazOil Magic suffers a loss of $500,000 from its contract with Gonzo Gaz

A week after Oil Magic signs the contract with Gonzo Gaz, another company called Gas-R-Us approaches Oil Magic and asks it to write an identical contract--promising delivery on one million barrels of oil to Gas-R-Us on February 27, NaN for $65 per barrel. Oil Magic refuses. Assuming that Oil Magic's only motive when doing business is to maximize profits, which of the following might have happened during the week t make Oil Magic refuse to enter into the same deal? Check all that apply.

A measure of the economy's health unexpectedly declined, igniting fears that the economy is tipping into a recessionThe weather became very cold, increasing the demand for gasolineThe weather became very warm, decreasing the demand for gasolineThe Organization of Petroleum Exporting Countries (OPEC) announced that it will cut crude oil production in January

Suppose the total monetary value of all final goods and services produced in a particular country during 2010 is $600 billion, and the total monetary value of final goods and services sold is $450 billion. We can conclude that ___. real GDP in 2010 is $450 billion nominal GDP in 2010 is $600 billion inventories in 2010 fell by $50 billion nominal GDP in 2010 is $500 billion

Answers

We can infer that: A. The GDP was $450 billion in 2008. NDP was $450 billion in 2008. $500 billion was the GDP in 2008. D.

What is the total economic value of all finished products, services, and buildings created within a nation's borders over a 12-month period?

A measure of total production is a country's Gross Domestic Product (GDP). In more precise terms, it is the total monetary value of all finished goods and services produced in a nation or region over a certain time frame.

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TRUE/FALSE. Strategic decisions such as market entry or exit and capital budgeting are called structured decisions and often executed by higher-level management.

Answers

Strategic decisions such as market entry or exit and capital budgeting are called structured decisions and are often executed by higher-level management is a false statement.

Why is capital budgeting used by businesses when making strategic decisions?

Companies use capital budgeting to assess the viability of potential projects. Capital budgeting aids businesses in making long-term decisions about things such as whether to invest in new software, buy new equipment, expand their facilities, or do other things that will enhance their operations.

A number of capital analysis techniques can be used to ascertain whether a capital investment is economically feasible. There are several companions, including the Payback Period, Discounted Payment Period, Net Present Value, Profitability Index, Internal Rate of Return, and Modified Internal Rate of Return.

Therefore, Structured decisions, which are frequently carried out by higher-level management, include strategic decisions like market entry or exit and capital budgeting.

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Since the Immigration and Reform Control Act requires employers to
attest to their employees' immigration status, an employer is allowed
to ask job candidates in which country he/she was born.
True/False

Answers

The statement is "Since the Immigration and Reform Control Act requires employers to attest to their employees' immigration status, an employer is allowed to ask job candidates in which country he/she was born" is true.

What is Immigration and Reform Control Act?

On November 6, 1986, the 99th United States Congress enacted the Immigration Reform and Control Act, which was signed into law by US President Ronald Reagan. ICRA is the short form for  Immigration and Reform Control Act.

Immigration and Reform Control Act bans companies from knowingly employing, recruiting, or referring for a fee any illegal foreigner. Employers are required by law to certify their workers' immigration status. It also makes hiring or recruiting illegal immigrants unlawful.

Therefore, it can be concluded that the above statement is true.

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