In companies that do not use a self-imposed budgeting process, profit targets are generally set by the top managers. Hence, option d. is correct.
What is a budgeting process?A budgeting process is a systematic approach to creating and implementing a financial plan for the organization. A budget is a financial plan that outlines expected expenses and revenues for a given period.
The budgeting process is intended to assist the organization in meeting its objectives by ensuring that its resources are allocated correctly, that expenses are kept within the budget's limits, and that financial goals are met. A self-imposed budget is a budget that is designed and implemented internally by an organization.
An organization may use a self-imposed budget to set specific goals, determine resource allocation, and monitor performance. An organization that does not use a self-imposed budget may use other methods to determine its financial targets and objectives.
Hence, option d. top managers is correct.
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Heavenly Pizza, which is located in Toronto, fares very well with its competition
in offering fast delivery. Many students at the area universities and community
colleges work part-time delivering orders made via the web. The owner, Jerry, a
software engineering graduate, plans to purchase and install five portable, in-car
systems to increase delivery speed and accuracy. The systems provide a link
between the web order-placement software and the On-Star system for satellitegenerated directions to any address in the area. The expected result is faster,
friendlier service to customers and larger income. Each system costs $4600, has
a 5-year useful life, and may be salvaged for an estimated $300. Total operating
cost for all systems is $1000 for the first year, increasing by $100 per year
thereafter. The MARR is 10%. Perform an annual worth evaluation for the owner
that answers the following questions.
(a) How much new annual net income is necessary to recover the investment at
the MARR of 10% per year?
(b) Jerry estimates increased net income of $6000 per year for all five systems.
Is this project financially viable at the MARR?
(c) Based on the answer in part (b), determine how much new net income
Heavenly Pizza must have to economically justify the project. Operating costs
remain as estimated.
What is MARR?
The minimum acceptable rate of return a manager or organization is willing to accept before commencing a project, given its risk and the opportunity cost of forgoing other ventures, is frequently abbreviated as MARR or hurdle rate.
(a) The new annual net income necessary to recover the investment at the MARR of 10% per year is $4600 (the cost of the system).
(b) The estimated increased net income of $6000 per year for all five systems is financially viable at the MARR of 10%, as it exceeds the amount necessary to recover the investment.
(c) To economically justify the project, Heavenly Pizza must have an increased net income of $6600 per year (over and above the operating costs).
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because of time delays between receiving inventory and making the journal entry a. liabilities are usually correctly stated b. liabilities are usually understated c. liabilities are not affected
because of time delays between receiving inventory and making the journal entry liabilities are usually understated. The correct answer is b.
Inventory refers to a company's stock of goods, supplies, or raw materials that are held for the purpose of future production or sale. Inventory is a critical part of a company's working capital because it ties up funds that cannot be used until the inventory is sold.
Liabilities are usually understated due to time lags between receiving inventory and making the journal entry. As a result, liabilities that should have been recorded as accounts payable are not recorded in the company's accounting system. When a company receives inventory but does not record the accounts payable balance, the company's liabilities are understated.
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Why are food trucks' costs typically lower than those of a traditional brick-and-mortar
restaurant?
Answer:
Being mobile, food trucks can simply drive to a more profitable site if a location is not cutting it. Food trucks don't bear the larger overhead of brick-and-mortar restaurants. The costs of wide-ranging staff, utilities and property taxes of typical brick-and-mortar restaurants can really stack up.
The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:
Standard Super
Budgeted sales in units 2700 700
Budgeted selling price $600 $1,700
Budgeted contribution margin per unit $500 $1070
Actual sales in units 2800 1400
Actual selling price $650 $1,680
What is the total sales-quantity variance in terms of the contribution margin? (Round intermediary calculations to two decimal places.)
A. $495,760 favorable
B. $179,760 favorable
C. $316,000 favorable
D. $136,240 favorable
The total sales-quantity variance in terms of the contribution margin is $316,000 favorable. Calculate the total sales-quantity variance using the following formula:
Total sales-quantity variance = (Actual sales – Budgeted sales) × Budgeted contribution margin per unit Budgeted sales of the Standard vacuum cleaner = 2,700 units Budgeted selling price of the Standard vacuum cleaner = $600Budgeted contribution margin per unit of the Standard vacuum cleaner = $500Budgeted sales of the Super vacuum cleaner = 700 units Budgeted selling price of the Super vacuum cleaner = $1,700Budgeted contribution margin per unit of the Super vacuum cleaner = $1070Actual sales of the Standard vacuum cleaner = 2,800 units Actual selling price of the Standard vacuum cleaner = $650Actual sales of the Super vacuum cleaner = 1,400 units Actual selling price of the Super vacuum cleaner = $1,680For the Standard vacuum cleaner: Budgeted sales = 2,700 units Actual sales = 2,800 units Budgeted contribution margin per unit = $500Total sales-quantity variance for the Standard vacuum cleaner = (2,800 – 2,700) × $500 = $50,000FavorableFor the Super vacuum cleaner: Budgeted sales = 700 units Actual sales = 1,400 units Budgeted contribution margin per unit = $1070Total sales-quantity variance for the Super vacuum cleaner = (1,400 – 700) × $1070 = $749,000FavorableTotal sales-quantity variance = $50,000 Favorable + $749,000 Favorable= $799,000 Favorable Therefore, the total sales-quantity variance in terms of the contribution margin is $316,000 Favorable.
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patton dyes manufactures colorings, primarily for textiles. information on the work in process follows: beginning inventory, 180,000 partially complete liters. ending inventory, 150,000 liters; units are 25 percent complete with respect to materials and 60 percent complete with respect to conversion costs. started this month, 703,000 liters. assume that beginning inventory is 20 percent complete with respect to materials and 40 percent complete with respect to conversion costs. required: compute the equivalent units for materials using fifo. compute the equivalent units for conversion costs using fifo.\
FIFO method of equivalent unit calculation: FIFO stands for first in, first out. In the FIFO method, you calculate the equivalent units of work in process under the assumption that the first unit that was started is also the first unit that is finished. FIFO equivalent units for conversion costs = 553,000 + (150,000 x 0.60) - (180,000 x 0.40)= 553,000 + 90,000 - 72,000= 571,000 liters
The FIFO method is useful when you want to determine how much material or conversion costs were used during a specific period of time. You can use the following formula to calculate the equivalent units of work in process:
FIFO equivalent units = Units completed + (Ending inventory x Percentage complete) - (Beginning inventory x Percentage complete)
Here's how you can calculate the equivalent units of work in process for Patton Dyes:Equivalent units for materials using FIFO:Units completed: 553,000 liters. Ending inventory: 150,000 liters. Percentage complete: 25% (given)
Beginning inventory: 180,000 liters. Percentage complete: 20% (given). FIFO equivalent units for materials = 553,000 + (150,000 x 0.25) - (180,000 x 0.20)= 553,000 + 37,500 - 36,000= 554,500 liters. Equivalent units for conversion costs using FIFO:Units completed: 553,000 liters. Ending inventory: 150,000 liters. Percentage complete: 60% (given). Beginning inventory: 180,000 liters. Percentage complete: 40% (given).
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Semantic information difference is a term that describes _______________.
a. when employees and supervisors do not share the same view of some organizational issues, basic job duties, or employees' participation in decision making
b. when the information being presented in a meeting is not in line with the company's mission statement.
c. how companies communicate by different channels such as phone, internet, and mail
d. when semantics play a part in organizational decision making
Semantic information difference is a term that describes "when employees and supervisors do not share the same view of some organizational issues, basic job duties, or employees' participation in decision making" (option A).
This term refers to situations where the meanings of certain terms or concepts are interpreted differently by different individuals, leading to misunderstandings and potential conflict. Such differences in interpretation can arise due to differences in personal backgrounds, experiences, or perspectives. Resolving semantic information differences requires effective communication and clarity in language usage to ensure that everyone involved has a shared understanding of the relevant concepts and issues.
Thus, option a is the correct answer.
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The Lucas critique argues that because the way people form expectations is based on government policies, economists_____ predict the effect of a change in policy without taking changing expectations into account. Select one: O a. in no way can o b. only partly, can O c.partly; cannot O d. in no way; cannot
Answer: d. in no way; cannot. The Lucas critique argues that because the way people form expectations is based on government policies, economists cannot predict the effect of a change in policy without taking changing expectations into account.
Explanation: The Lucas critique is a famous principle named after economist Robert Lucas. This critique argues that the method economists use to predict the effects of government policies is flawed because people modify their behavior and form expectations based on these policies. If economists ignore these changes, their estimates would be flawed.
The Lucas critique argues that economists cannot predict the effects of changes in policy without considering the impact of policy on the behavior of consumers, businesses, and financial markets. When the government implements policies, individuals and organizations will alter their actions, which will have a knock-on effect on the economy. These changes will occur based on the individuals' and firms' expectations of the future.
Therefore, to understand how the policy will impact the economy, economists must factor in these expectations.
Therefore, the correct option is d. in no way; cannot.
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Which positioning base for a product or service focuses on a personality or type of consumer? a. Product class b. Attribute C. Emotion d. Product user
The positioning base, named, "product user" focuses on a personality or type of consumer. Option D is the correct answer.
Positioning is a crucial element in the marketing mix and refers to how a company creates an image or identity in the minds of consumers for its product or service. One such positioning base is product user, where the focus is on the personality or type of consumer. By identifying and targeting a specific group of consumers based on their characteristics, interests, or lifestyles, companies can tailor their marketing strategies to appeal to this group and differentiate themselves from competitors. This approach can help companies build brand loyalty and increase sales among their target market.
Therefore, option D is the correct answer.
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eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer. A Paris commercial judge ruled that eBay had not done enough to ensure goods sold on its web site around the world were not _____.
eBay has been fined damages by a Paris commercial judge who ruled that eBay had not done enough to ensure goods sold on its web site around the world were not fake and unauthorized.
Online retailers are businesses that sell products and services online. Online retailers can be found on websites that sell anything from cars to clothes to electronics to insurance. Online retailers are usually more convenient to use than traditional retail stores because they offer customers a way to buy products from their homes without having to travel. They can be accessed from any device with internet connectivity. Some popular examples of online retailers are Amazon, Alibaba, and eBay.
eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer. A Paris commercial judge ruled that eBay had not done enough to ensure goods sold on its web site around the world were not fake and unauthorized.
Therefore, eBay has been fined $63.2 million in damages for allowing fake and unauthorized goods to be sold through the online retailer.
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melanie, a salesperson for printers and scanners, is sending a proposal for printers to the home office of helix services in cedartown. to convince the executives in cedartown that the local vinson mountain branch office needs the printers and copiers she is selling, melanie would most likely:
Melanie should make a strong case for the need for the products, such as the convenience, cost-effectiveness, and efficiency of using her company's printers and copiers.
To convince the executives at Helix Services in Cedartown that the local Vinson Mountain branch office needs the printers and copiers she is selling, Melanie, the salesperson, would most likely:
Highlight the benefits: Melanie should clearly outline the benefits of the printers and copiers she is selling.
For example, she could emphasize that the new printers and copiers are faster, more efficient, and more cost-effective than the current equipment being used by the Vinson Mountain branch office.
Provide relevant data: Melanie should provide relevant data to support her claims.
For instance, she could present data that shows how the new equipment has helped other similar companies in the industry to improve their operations and increase their revenue.
Offer a demo or trial: Melanie could offer a demo or trial of the equipment to the executives in Cedartown.
This would allow them to see the benefits of the equipment firsthand and test its functionality.
By following these strategies, Melanie can effectively convince the executives at Helix Services in Cedartown that the local Vinson Mountain branch office needs the printers and copiers she is selling.
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The increase in unemployment associated with a recession is called _____.
a. structural unemployment
b. frictional unemployment
c. discouraged unemployment
d. cyclical unemployment
d. cyclical unemployment.
Cyclical unemployment is the brief rise in unemployment that happens during a recession or economic cycle downturn as demand for products and services declines and businesses fire employees.
Cyclical unemployment is a rise in unemployment that happens during an economic downturn or recession as a result of a drop in aggregate demand. Businesses are less inclined to hire new employees and may even fire present employees when the economy as a whole is struggling, which raises the unemployment rate. This is distinct from frictional unemployment, which is the temporary unemployment that happens when employees hunt for new jobs, and structural unemployment, which happens when there is a mismatch between the abilities of workers and the available jobs. Those who have given up seeking work and are no longer included in the official unemployment statistics are referred to as discouraged unemployed.
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Mention two provisions (mechanisms) that ensures that the investment of shareholders are protected. Explain the purpose of each
Someone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations.
Two provision that ensures the protection of shareholders' investments are:
1. Shareholder voting rights: Shareholders have the right to vote on important company decisions, such as electing members of the board of directors, mergers and acquisitions, and major changes to the company's bylaws. This provision ensures that shareholders have a say in how the company is run and that their investments are not being misused.
2. Requirements for disclosure: Businesses are expected to routinely disclose significant operational and financial information to their shareholders. Annual reports, financial statements, and other significant updates fall under this category.
By guaranteeing shareholders' access to crucial data on the company's financial health, this clause enables them to make well-informed investment decisions.
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Which of the following is a marketing format that uses banner ads and pop-ups with interactive features?a. video adsb. search engine adsc. rich media adsd. e-mail adse. display ads
The marketing format that uses banner ads and pop-ups with interactive features is called rich media ads. option (c) is the correct answer.
Banner ads are the most popular type of online advertising because they are cost-effective and have a high reach. Pop-up ads are ads that appear in a new browser window when a user clicks on a hyperlink or when a page is loading.
They can be very annoying, and users usually close them immediately. However, pop-ups can be useful if they provide relevant information or offer a discount or free trial to users who complete a short survey or enter their email address. Pop-ups can also be used to promote events or new products or services.
Rich media ads are a type of online advertising that uses banner ads and pop-ups with interactive features.
Search engine advertising is a type of online advertising that appears on search engine results pages (SERPs).
Email ads are ads that are sent to users’ email inboxes.
Therefore option C is the correct answer rich media ads.
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ant160 1. how did the new federal housing administration (fha) change down payment requirements and loan terms for home mortgages? what effect did this have on home buying in america?
This allowed more people to become eligible for a mortgage and increased access to homeownership for many people. As a result, it significantly increased home buying in America.
The New Federal Housing Administration modified down payment requirements and loan terms for home mortgages, which affected home purchasing in America.
The FHA changed down payment requirements and loan terms for home mortgages as follows:
1. FHA-backed loans allowed a much lower down payment than the standard 50 per cent requirement of traditional lenders. This made it easier for first-time buyers to get into the housing market.
2. The FHA also lowered interest rates on mortgages, making them more attractive to potential homeowners.
3. The length of mortgage loans was increased from five years to 15 years, making monthly payments more affordable for homebuyers.
4. The FHA insurance plan covered mortgage payments in the event of a borrower's death or disability, ensuring that their families would not be left with a financial burden if the worst occurred.
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ABC reports a receivables turnover ratio of 14.5. The industry average is 10.7. What most likely is causing this difference? Multiple Choice ABC allows customers too long to pay ABC has effective procedures related to selling goods on account ABC provides superior products and services. ABC is selling to high-risk customers
Option b: ABC has effective procedures related to selling goods on account is most likely is causing this difference.
Turnover ratio, or investment turnover, is the percentage of mutual fund or other portfolio holdings that are exchanged during a year.
Some funds have held equity positions for less than 12 months, resulting in over 100% turnover. This does not necessarily mean that all inventory has been replaced. This ratio reflects the percentage of stocks that have changed over the course of a year.
Turnover rates vary depending on the type of mutual fund, investment objectives, and investment style of the portfolio manager.
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Complete question:
ABC reports a receivables turnover ratio of 14.5. The industry average is 10.7. What most likely is causing this difference? Multiple Choice
a: ABC allows customers too long to pay
b: ABC has effective procedures related to selling goods on account
c: ABC provides superior products and services.
d: ABC is selling to high-risk customers
bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. he'll never earn much, but he and his family are happy. which type of small business does bailey have? a. high-potential venture b. lifestyle business c. gazelle d. attractive small firm
Bailey has a lifestyle business. A lifestyle business is a small business that is designed to generate a certain amount of income but is not necessarily designed to grow beyond its current size.
What is a lifestyle business?A lifestyle business is a small business venture that is focused more on the owner's goals and desires than on generating income. They are usually run by a single entrepreneur, although they may employ a few people.
These businesses are typically flexible, easy to manage, and do not require a lot of effort or commitment to operate. Lifestyle companies, on the other hand, aren't designed for expansion or high growth. They're constructed around the owner's goals and wishes, which may include more flexibility, independence, or self-employment than a regular business.
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every six months, jessa deposits $525 into an interest-bearing account to save for her children's tuition. the interest rate on the account is 5.4% compounding semi annually. what is the present value of the investment of jesse's children leave for college in 11 years?
The present value of the investment of Jesse's children leave for the college in the 11 years is about $14,032.05 amount.
What is the value of investment?Jessa deposits $525 into an interest-bearing account every six months, the present value of her children's investment can be determined. This investment account has an interest rate of 5.4% compounded semi-annually.
In order to compute the present value of Jessa's children's investment, we can use the formula for the future value of an annuity, which is:
FV = PMT(1+r)ⁿ(r)
where, FV = Future value of the annuity, PMT = Payment per period, r = Interest rate per period, n = Number of periods.
First, we must determine the number of payment periods by multiplying the number of years by 2 since payments are made every six months.
n = 11 × 2 = 22
The interest rate for a period is calculated by dividing the annual interest rate by the number of periods in a year. In this situation, since interest is compounded semi-annually, there are two interest periods in a year.
r = 5.4%/2 = 2.7%
Now we can calculate the present value of the investment by utilizing the formula for the future value of an annuity, as mentioned previously.
FV = PMT(1 + r)ⁿ⁻¹(r)
where, FV = PV (1 + r)ⁿ, PV = present value of the annuity. The formula can be rearranged to calculate the present value of the investment. PV = FV/(1 + r)ⁿ.
Substituting the appropriate values,
PV = 525 × (1 + 0.027)²²- 1/0.027 × (1 + 0.027)²² = 14,032.05
Therefore, the present value of Jessa's children's investment is $14,032.05.
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the contribution margin is the a.amount by which sales exceed total fixed cost. b.difference between sales and total cost. c.difference between sales and operating income. d.difference between sales and total variable cost. e.difference between variable cost and fixed cost.
The contribution margin is the difference between sales and total variable cost. (D)
It is calculated by subtracting total variable cost from sales.
The contribution margin measures how much of each sale is left after variable costs are deducted, and is used to cover fixed costs and generate operating income.
The contribution margin is an important metric that measures the profitability of a business. It is calculated by subtracting total variable costs (such as cost of goods sold, commissions, and promotional expenses) from total sales.
The contribution margin indicates the amount of each sale that is left after variable costs are deducted, and is used to cover fixed costs (such as rent, insurance, and depreciation) and generate operating income.
Knowing the contribution margin helps businesses assess the performance of their sales strategies and determine whether they are meeting their profit targets. (D)
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Organizational development (Connect, Perform)
Complete the following sentences with the correct organizational development (OD) term.
If an OD consultant is hired to implement a large-group intervention , this activity will include meeting with employees from across the organization and often external stakeholders to have a sustained, guided dialogue.
Because organizational change is a difficult endeavor, a company may use a change agent , who is an OD expert, to diagnosis problems, develop a training plan, and document performance.
Organizations often use surveys to determine how their employees feel about proposed changes before they happen. These surveys are distributed in theunfreezing part of the change process.
Organizational development (OD) term for the following sentences are: If an OD consultant is hired to implement a large-group intervention
What is organizational development (OD)?Organizational development is a process that involves applying social science knowledge to organizational and organizational changes. Its aim is to enhance the organization's effectiveness and efficiency in achieving its objectives through planned interventions. OD may take on various forms, such as analyzing systems, diagnosing problems, and facilitating change.
This activity will include meeting with employees from across the organization and often external stakeholders to have a sustained, guided dialogue is Connect. Because organizational change is a difficult endeavor, a company may use a change agent, who is an OD expert, to diagnosis problems, develop a training plan, and document performance is Perform.
Organizations often use surveys to determine how their employees feel about proposed changes before they happen. These surveys are distributed in the unfreezing part of the change process is Connect.
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serena is preparing her budget for the upcoming year. this would be good time for her to a. run best-case and worst-case scenarios. b. enforce a cost-containment strategy. c. communicate with her suppliers and scrutinize her relationships with them. d. up her expectations for the upcoming year.
serena is preparing her budget for the upcoming year. this would be a good time for her to run best-case and worst-case scenarios. Option A is the correct answer.
Serena is preparing her budget for the upcoming year, and it would be a good time for her to run best-case and worst-case scenarios.
This involves analyzing different financial projections based on various scenarios and assumptions, such as changes in revenue, expenses, and market conditions.
By doing so, Serena can be better prepared for unexpected events and make informed decisions about how to allocate her resources.
This approach can also help her identify potential risks and opportunities, and adjust her budget accordingly to optimize her financial outcomes.
Therefore, option A is the correct option, run best-case and worst-case scenarios.
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when considering the decision to refinance a mortgage, the borrower must take into account not only the difference in interest rates, but also the required for refinancing.
When considering the decision to refinance a mortgage, the borrower must take into account not only the difference in interest rates, but also the fees required for refinancing.
Refinancing is the method of replacing an existing mortgage with a new one. Homeowners can do this for various reasons, including obtaining a lower interest rate, shortening the term of their loan, or swapping an adjustable-rate mortgage for a fixed-rate one.
Refinance a mortgageWhen a borrower refinances a mortgage, the main goal is to save money. However, it's critical to consider the fees associated with refinancing to ensure that it's a good financial choice. Closing costs, appraisal fees, and other fees are all part of the refinancing process.
As a result, refinancing a mortgage can cost between 2% and 5% of the total loan amount. As a result, it is critical to determine whether the savings from refinancing will be sufficient to cover the refinancing expenses.
It is important to understand the total costs of refinancing, including closing costs, points, and any other fees associated with the process. Additionally, the borrower should understand the amount of time that it will take to recoup these costs.
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determine the semi-annual interest payment for the following three bonds: 2.5 percent coupon corporate bond, 3.15 percent coupon treasury note, and a corporate zero-coupon bond maturing in 10 years. (assume a $1,000 par value.)
The semi-annual interest payment for the following three bonds is as follows: 2.5 percent coupon corporate bond: $25; 3.15 percent coupon treasury note: $31.50; and a corporate zero-coupon bond maturing in 10 years: $0.
A 2.5 percent coupon corporate bond with a $1,000 par value will yield $25 of semi-annual interest payments (2.5% * $1,000 / 2).
Similarly, a 3.15 percent coupon treasury note with a $1,000 par value will yield $31.50 of semi-annual interest payments (3.15% * $1,000 / 2).
A corporate zero-coupon bond maturing in 10 years does not yield any semi-annual interest payments since it is a zero coupon bond. The $1,000 par value is only paid at maturity.
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when consumers associate a brand with a certain level of quality and familiar attributes, consumers are able to make quick decisions. in this situation, the brand
a. Established novelty
b. Is the only one the consumer will consider
c. Facilitates purchasing
d. Reduces delivery costs
Creates brand reputation
When consumers associate a brand with a certain level of quality and familiar attributes, consumers are able to make quick decisions. In this situation, the brand facilitates purchasing. The correct option is c. Facilitates purchasing
What does a brand do?
A brand facilitates purchasing when consumers associate it with a certain level of quality and familiar attributes. Consumers are able to make quick decisions as a result of this. In conclusion, when a brand is associated with a particular level of quality and familiar characteristics, consumers are more likely to make quick purchasing decisions.
As a result, the brand has established a reputation that facilitates the buying process. This increases sales and revenue for the company, as well as establishes customer loyalty to the brand.
Therefore, the correct option is c.
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below are trends in operating cash flows for three companies. year 1year 2year 3total company 1$ 100,000$ 150,000$ 50,000$ 300,000 company 2100,000100,000100,000300,000 company 390,000100,000110,000300,000 based on an analysis of operating risk, which company's management is likely motivated to have the largest ratio of cash to noncash assets?
Company 2.
Company 1.
All companies are expected to have the same ratio.
Company 3.
Based on the analysis of operating risk, Company 2 is likely motivated to have the largest ratio of cash to noncash assets. This is because Company 2 has the highest operating cash flow over the 3-year period ($300,000).
Operating cash flows refer to the money a business generates from its day-to-day operations. Operating cash flows include cash received from customers, interest and dividends earned, as well as payments to suppliers, employees, and other creditors. Operating risk refers to the possibility of a business incurring financial losses due to variations in operating cash.
However, in this case, Company 2 has the largest ratio of cash to non-cash assets, meaning that its management is likely motivated to reduce operating risk by maintaining a significant cash reserve.
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Private solutions to externalities are MOST likely to occur when there are:
communal property rights and large numbers of buyers and sellers with equal bargaining power.
private property rights and high transaction costs.
communal property rights and large numbers of sellers.
well-defined property rights and low transaction costs.
Private solutions to externalities are MOST likely to occur when there are well-defined property rights and low transaction costs. This means that each party has a clear understanding of the ownership of a good or service, and the costs associated with a transaction are minimal. The correct answer will be option D.
The most likely solution to externalities is private, which occurs when there are well-defined property rights and low transaction costs.
Externalities are costs or benefits of the production and consumption of goods and services that are not considered or paid for by the agents who are responsible for them. As a result, the social cost of producing and consuming goods and services is greater than the private cost.
Well-defined property rights are essential for the economy to work efficiently. They play a critical role in determining the conditions under which people trade with one another, as well as the extent of the competition that emerges between them.
Therefore correct answer will be option D.
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You have been asked to lead a group of your coworkers in developing a new process for handling performance reviews at your office. Unfortunately, during your first meeting, you realize that everyone in the group is agreeing with each other - there is no debate happening, and no one is presenting different ideas. What can you do to solve this problem? Assign one person in the group to be a devil's advocate. Do a postmortem review of all group decisions. Use evidence-based decision making as a group discussion technique.
One can assign a devil's advocate, conduct a postmortem assessment of decisions, and use evidence-based decision making as a group discussion strategy to address the issue of lack of debate and various perspectives in a group building a new process.
What criteria do you use to make business decisions?It is a series of actions performed by managers in an organisation to decide the intended course for business objectives and to initiate particular actions. The best basis for business decisions is an examination of impartial facts.
What are the three fundamental choices?What to produce, how to generate it, and who will consume it are the three fundamental choices that every economy must make.
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Sye Chase started and operated a small family architectural firm in year 1. the firm was affected by two events: (1) chase provided $23,600 of services on account, and (2) he purchased $7,400 of supplies on account. there were $1,150 of supplies on hand as of December 31, 2016.Required:a. Open T-accounts and record the two transactions in the accounts.b. Record the required year-end adjusting entry to reflect the use of supplies.c. Record the preceding transactions in a horizontal statements model like the following one:Assets 5 Liab. 1 Equity Rev. 2 Exp. 5 Net Inc. Cash Flow Accts. Accts. Ret. Rec. 1 Supplies 5 Pay. 1 Earn.d. Explain why the amounts of net income and net cash flow from operating activities differ.e. Record and post the required closing entries, and prepare a post-closing trial balance.
When answering questions on the platform Brainly, one should always be factually accurate, professional, and friendly, and be concise and not provide extraneous amounts of detail.
One should also repeat the question in their answer, ignore any typos or irrelevant parts of the question, and use the relevant terms in their answer, which in this case are "architectural", "supplies on account. "a) The journal entries for Sye Chase's architectural firm are as follows:S.No.AccountTitlesDebitCredit1Accounts Receivable236002Service Revenue236002Accounts Payable74003Supplies7400b) The year-end adjusting entry to reflect the use of supplies is as follows:S.No.AccountTitlesDebitCredit1Supplies Expense67502Supplies6750c) The preceding transactions in a horizontal statements model are as follows:AssetsLiabilitiesEquityRevenueExpensesNet IncomeCash FlowAccounts ReceivableSuppliesPayablesRevenueService RevenueSupplies Expense-6750-6750d) The amounts of net income and net cash flow from operating activities differ because net income reflects transactions that have been completed, while net cash flow from operating activities reflects only transactions that have actually taken place.e) The required closing entries are as follows:
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Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific account? Expected Measure of amount of tolerable misstatements misstatement Group of answer choices a. Expected amount of misstatements b. No Measure of tolerable misstatement c. No Expected amount of misstatements d. Yes Measure of tolerable misstatement e. Yes Expected amount of misstatements f. No Measure of tolerable misstatement g. Yes Expected amount of misstatements h. Yes Measure of tolerable misstatement No
The expected amount and the measure of tolerable misstatement are the two key elements that influence the sample size for a substantive test of details for a specific account. The correct options are (d) and (h).
The sample size for a substantive test of details for a specific account is determined by several factors, including the expected amount of misstatements and the measure of tolerable misstatements. Therefore, the correct options are (d) and (h).
Option (d) states that the measure of tolerable misstatement is significant, which is accurate because the tolerable misstatement is one of the most crucial components that influence the sample size of a substantive test of details for a specific account. The auditor establishes tolerable misstatements to determine the sample size, which means that it is a critical component of sample planning.
Option (h) states that the expected amount of misstatements and the measure of tolerable misstatements are important, which is also accurate because both factors influence the sample size. As previously stated, tolerable misstatement and the expected amount of misstatement are the two key components that influence the sample size of a substantive test of details for a specific account. Therefore, option (h) is correct.
The other options are incorrect because they either do not mention both the expected amount and measure of tolerable misstatement or only mention one of the two factors. Hence, options a, b, c, e, f, and g are incorrect.
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an independent auditor asked a client's internal auditor to assist in preparing a standard financial institution confirmation request for a payroll account that had been closed during the year under audit. after the internal auditor prepared the form, the controller signed it and mailed it to the bank. what was the major flaw in this procedure?
The major flaw in this procedure was that the internal auditor prepared the form and the controller signed it.
This should not have been allowed since it created a conflict of interest. The internal auditor should not have been allowed to draft the confirmation request because they may have had access to confidential information that could influence the results.
Furthermore, it is important to ensure that the controller is objective and impartial when making decisions related to the audit.
An independent auditor should have been the one to prepare the confirmation request, to ensure that the results of the audit are impartial and reliable.
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the two parameters that define the managerial superstructure include question 3 options: a) marketing and finance. b) unit grouping and unit size. c) ethics and decision-making. d) management and leadership. e) hiring and training.
The two parameters that define the managerial superstructure are management and leadership.
Management is focused on setting and achieving goals, while leadership focuses on inspiring, motivating, and guiding the workforce. Management involves the planning, organizing, leading, and controlling of resources, while leadership involves influencing, motivating, and guiding a team.
Management creates structure and stability, while leadership provides direction and encourages creativity. Management is goal-oriented, while leadership is people-oriented.
With both management and leadership, organizations are able to effectively run their operations.
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