What Is An Example Of Opportunity Cost In Your Life?

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Answer 1
The idea of opportunity cost is presented in many situation in every day life. One example of this could be choosing to go to the movies with your friends instead of studying for a test that you have the next day. The opportunity cost is by choosing to go with your friends, you may lose valuable study time that could contribute to you getting a higher grade on the test.
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alphabet company, which uses the periodic inventory method, purchases different letters for resale. alphabet had no beginning inventory. it purchased a thru g in january at $9.00 per letter. in february, it purchased h thru l at $11.00 per letter. it purchased m thru r in march at $12.00 per letter. it sold a, d, e, h, j and n in october. there were no additional purchases or sales during the remainder of the year. if alphabet company uses the weighted average method, what is the cost of its ending inventory? (round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)

Answers

Using weighted average method, the cost of its ending inventory is $67.

Ending inventory = 5.56* 12 = 67

Weighted average method:

The weighted average considers the relative frequency or relevance of particular variables in a data set.

Sometimes a weighted average is more precise than a basic average.

In a weighted average, the allocated weight is multiplied by each data point value, which is then added together and divided by the total number of data points.

Because of this, a weighted average can increase the accuracy of the data.

Investors in stocks use a weighted average to keep track of the cost basis of the shares they have acquired over time.

A weighted average, as opposed to a basic average, takes into account the relative weight or contribution of the items being averaged. As a result, it assigns more weight to the average items that happen relatively more frequently.

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marilyn is an african american woman who is working for a large accounting firm. she is in line to become the next president of the firm. in order to prepare for the potential promotion, what is marilyn most likely going to search for in terms of career support?

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In a case whereby marilyn who  is an african american woman who is working for a large accounting firm . in order to prepare for the potential promotion, what marilyn is most likely going to search for in terms of career support is An African American woman mentor.

Why does she needs  American woman mentor?

A mentor is someone who can help, counsel, and direct you. They usually take the time to get to know you and the difficulties you're having before using that knowledge and their own firsthand experience to assist you.

This relationship is distinct from one with a manager or boss and gains from a more intimate and private framework.

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ex 8. on january 1, 2016, jason company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. what was the issuance price of the bonds if the market rate of interest was 8%? a. $5,000,000. b. $5,670,000. c. $5,387,500. d. $5,712,500. hint: bond issue price

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The issuance price of the bonds of $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually if the market rate of interest was 8% was b. $5,670,000.

What is the issuance price of bonds?

The issuance price of a bond is determined by its present value.

To determine the present value, we input the following parameters onto an online finance calculator.

N (# of periods) = 10 years

I/Y (Interest per year) = 8%

PMT (Periodic Payment) = $500,000

FV (Future Value) = $5 million

Results:

Present Value (PV) = $5,671,008.14

Sum of all periodic payments = $5,000,000 ($500,000 x 10)

Total Interest = $4,328,991.86

Thus, Jason Company's 10-year bonds' issuance price was Option B.

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Maxine and her friend Alice share a love of listening to music from England. They spend
plenty of sleepovers listening to their favorite bands and are always sharing new songs or
artists with each other.
One day, Alice excitedly tells Maxine her dad bought her tickets to a huge music festival in
England where some of their favorite bands will play. Plus, she has a ticket for Maxine, and
Alice's dad said he'll cover half of Maxine's airfare. The other half is only $412. Maxine feels
like this is a once-in-a-lifetime opportunity. Should Maxine use her emergency fund to take this super rare opportunity? Explain your reasoning.

Answers

Based on the given information Maxine should not use her emergency fund to take this super rare opportunity as it is intended to use in an unforeseen situation.

What is an emergency fund?

An emergency fund is said to be savings that an individual intended do in order to meet challenges that are not predictable and unforeseen for them.

An emergency fund shouldn't be used for a planned vacation or other predictable expenses; rather, it should only be used in the event of an unexpected event. You don't have to deprive yourself of small comforts in life.

In the given case, the music concert is not an unforeseen event is a planned vacation so the emergency fund should not be utilized.

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ron is searching for another job where his skills will be best used. lucy is looking for a job where she can make more money to help put her children through college. what is ron's employment status and what is lucy's?

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Ron is searching for another job where his skills will be best used. lucy is looking for a job . Both Ron and Lucy are frictionally unemployed.

About Frictional unemployment:

Frictional unemployment is a form of unemployment that reflects the gap between voluntarily leaving one job and finding another. Therefore, it is sometimes called search unemployment, but it also includes the employment gap when moving from one job to another. Smooth unemployment is not necessarily a bad thing.

Frictional unemployment is spontaneous, so it can even be a sign of a healthy economy. This means employees are looking for new jobs and new careers.

Causes of frictional unemployment:

Employees take time off to care for loved ones. An employee left an unsatisfactory position in search of a new job. Employees have the financial means to take time off from full-time work. People quit their jobs to pursue higher education.

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if one corporation owns all of the shares of another corporation, it is referred to as the target corporation. true false

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If one corporation owns all of the shares of another corporation, it is referred to as the target corporation - false.

What is meant by corporation?A corporation is a legal body whose owner(s) elect a board of directors to manage the organization's affairs. Shareholders are not held accountable for the company's operations or financial state; rather, the corporation is. An organization with the legal status of a corporation is one that was founded by shareholders, stockholders, or other private individuals with the intent to make a profit. Corporations have legal rights that include the ability to make agreements, bring legal actions and be sued, own property, pay federal and state taxes, and take out loans from financial institutions. A person or group of people engaged in commercial business operations with the goal of making a profit is referred to as a firm. The term "company" is an amorphous one without official definition, rules, or authorization. Despite the fact that not all businesses are corporations, a corporation is always a company.

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a contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement. true false

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The statement is false, that a contract under which a seller forbids a buyer to purchase products from the seller's competitors is a tying arrangement.

A tying arrangement happens when a vendor makes the purchase or lease of one good or service contingent on the customer's acceptance of the purchase or lease of another good or service through a legal provision or technological restriction. When the buyer purchases the two items in an unfixed or unspecified proportion, as in a "requirements tie-in" transaction, economists use the word "tying" most frequently.

Typically, a bundled sale is one in which the items are only offered in predetermined ratios (e.g., one pair of shoes and one pair of shoe laces or a newspaper, which can be viewed as a bundle of sections, some of which may not be read at all by the customers). Another name for bundling is "package tie-in." The phrases "tying" and "bundling" are occasionally used synonymously in American case law.

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which key strategic leadership action plays a key role in influencing how the firm conducts its business and regulates and controls employees' behavior?

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How to Maintain a Successful Organizational Culture Strategic leadership action has a significant impact on how the company runs its operations and governs and controls employee behavior.

Which of the following describes strategic leadership's objective?

The major goals of strategic leadership are to improve strategic productivity, foster creativity, and create an environment that motivates staff to work hard, act independently, and advance their own ideas.

What are the three phases of developing a leader?

leadership's three phases- We are moving past the first stage of leadership. Let's examine the initial level of leadership, which focuses on action. building the conditions for excellence, from 2 to 3. In the third level, multifunctional leadership is discussed, the drive to increase.

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what processes include devising and maintaining a workable scheme to ensure that the project addresses the organization's needs?

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Planning processes include devising and retaining a possible scheme to make certain that the mission addresses the organization's needs.

It allows us to perceive our desires simply. It makes us determine surely and concretely what we want to do to have the effect on society that we want. It allows us to ensure that we all understand our intention and what we want to do to reach it through related to all people within the planning manner.

An amazing marketing strategy no longer handiest allows entrepreneurs awareness of the unique steps important for them to make enterprise ideas prevail, but it additionally helps them to obtain quick-time periods and lengthy-term objectives.

Putting desires that challenge every person inside the agency to strive for higher performance is one of the key factors of the planning procedure. The planning process group has procedures from every knowledge area.

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which of the following is not one of the three main restructuring strategies? a. downsizing b. realigning c. leveraged buyouts d. downscoping

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Downsizing is not one of the three main restructuring tactics.

What is Downsizing?Downsizing is not always involuntary. It is also used at other stages of the business cycle to create leaner, more efficient businesses. Eliminating any part of an organizational structure that is not directly adding any value to the final product is a production and management philosophy known as lean enterprise.According to the production principles of lean enterprise, any component of a business enterprise that fails to directly benefit a final product is superfluous. What is valuable (and conversely, what is not valuable) is determined by the customer based on the amount they are willing to pay for a good or service.Downsizing can also be carried out to align the firm's skill and talent with the broader market. For example, a company may pursue downsizing to weed out employees with obsolete skills that may not be useful in its future direction.

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steve and craig have been shipwrecked on a deserted island in the south pacific. their economic activity consists of either gathering pineapples or fishing. we know steve can catch four fish in one hour or harvest two baskets of pineapples. in the same time craig can reel in two fish or harvest two baskets of pineapples. if they each spend four hours a day fishing and four hours a day harvesting pineapples, how many of each will steve produce? how many will craig produce? what will their total production be?

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Craig will generate 8 fish daily and 8 carriers of pineapples, bringing the combined production to 24 fish and 16 baskets per day. He will provide 16 fish daily and 8 receptacles of pineapples.

What are some economic examples?

The social science of economy focuses on the analysis of resource scarcity. It examines variables that have an influence on how products and services are produced, distributed, and received in an economy. It investigates how people, organizations, and governments distribute limited resources.

Briefing:

Steve grows eight baskets of pineapples and four fish (four fish per hour) in four hours (4 hours x 2 baskets per hour). Craig makes eight fish (four hours at two fish each) and eight baskets of pineapples each day (4 hours x 2 baskets per hour). A total of 24 fish as well as 16 bags of pineapples are produced each day.

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a loan that requires the borrower to pledge specific assets as collateral is called a(n) loan.

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An asset (such a car or piece of property) is pledged as security for a loan in a secured loan, making the asset a secured debt owed to the lender.

How do loans with security operate?

Loans that are secured by an asset are called secured loans. This means that the lender will ask you which of your assets you want to use as collateral when you apply for a secured loan. Following that, the asset will be subject to a lien held by the lender until the loan is returned in full.

What exactly is an asset?

An asset is something that has monetary value or the potential to be profitable. For instance, a machine, a financial instrument, or a patent

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how to calculate federal funds target rate with target inflation rate current inflation rate real equilibriujm federal funds rate and output gap

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When inflation exceeds the Fed's inflation objective, the rule calls for a higher federal funds rate, and if inflation is below target, a lower one.

How are federal funding rates targeted determined?The Taylor Rule is a formula that central bankers can use to calculate what their overnight interbank lending rate goal should be based on variables including actual inflation, an inflation objective, actual output, potential production of the economy, and an estimate of the equilibrium real fed.Maintaining stable pricing is one of the Fed's primary objectives, along with low unemployment. Since 1996, Fed policymakers have often held the position that their goal was to achieve an inflation rate of about 2%.When inflation exceeds the Fed's inflation objective, the rule calls for a higher federal funds rate, and if inflation is below target, a lower one.            

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Federal Funds Target Rate = Real Equilibrium Federal Funds Rate + Target Inflation Rate - Current Inflation Rate - Output Gap

Output Gap = The difference between actual Gross Domestic Product (GDP) and potential GDP

The federal funds rate is the rate at which banks lend their reserves to other banks overnight. The Federal Reserve sets the target federal funds rate, which is currently 150 points or 1.50 percent.

The federal funds rate is calculated using the real equilibrium funds rate, which is the federal funds rate that balances the economy in the long run.

The real equilibrium federal funds rate is determined by several factors, including the target inflation rate, the current inflation rate, and the output gap.

The formula for calculating the federal funds target rate is as follows:

Federal Funds Target Rate = Real Equilibrium Federal Funds Rate + Target Inflation Rate - Current Inflation Rate - Output Gap

where:

Real Equilibrium Federal Funds Rate = Federal Funds Rate that balances the economy in the long run

Target Inflation Rate = The inflation rate targeted by the Federal Reserve

Current Inflation Rate = The current rate of inflation

Output Gap = The difference between actual Gross Domestic Product (GDP) and potential GDP

The federal funds rate target can be adjusted by the Federal Reserve depending on the state of the economy and inflation levels.

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the proper level of government intervention is unclear when dealing with a monopoly. group of answer choices true false

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When dealing with a monopoly, it's uncertain how much government should be involved. It is accurate to state what it is.

What exactly does Monopoly mean?

A monopoly is a market structure where one manufacturer or seller holds the majority of the market share in a particular industry or area. As they impede competition and restrict consumer alternatives, monopolies are opposed in free-market economies.

Please provide a monopoly example:

A corporation is said to have a monopoly if it offers a product solely and there are no close substitutes. A monopoly that is unregulated can control prices and dominate the market. Take Microsoft and Windows, DeBeers and diamonds, or your local natural gas company, as examples.

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one country on the top-ranking and one country on the bottom ranking of the gdp(nominal) and reasons

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Answer:

There are common factors which work in economy making either an economy to be a top ranking GDP or bottom ranking GDP. Following are the factors.

1. Investment- If the investment by the individuals takes place in regular mode takes place in an economy then the rise in GDP can be seen and if the vice versa happens the GDP falls.

2. Standard of Living- If the unemployment rate is low in the economy and based on employment level the demand does not fall in the economy then a GDP of an economy rises.

3. Government Expenses- If the government is making expenses to maintain the demand and the production level in the economy then the GDP of the economy can rise and if it all does not happen then GDP can fall.

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Explanation:

thirty percent of the cfa candidates have a degree in economics. what is the popbability that none of them have a degree in econmics?

Answers

The probability that none of them have a degree in economics is 0.657.

We need to calculate

P (X > = 1)

= 1 - P(X =0)

= 1 - (1-0.30)^3

= 0.657

Hence, Option C is Correct

The complete question is:

Thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that at least one of them has a degree in economics?

1. 0.300

2. 0.343

3. 0.657

4. 0.900

Candidate for Level I CFA

You are regarded as a candidate for the CFA Level I if you are presently preparing for the Level I test. You may do this in a number of different ways on your resume. One strategy is to identify as a Level I candidate for the CFA.

The Excel’s function BINOM.DIST can be used.

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in what way does ias 16 (property, plant, and equipment) differ from u.s. gaap concerning fixed asset measurement subsequent to initial recognition?

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There are significant discrepancies between the GAAP regulations codified in ASC Topic 360 and the IFRS rules written in IAS 16 in the field of fixed assets and the resulting depreciation. The cost method is the sole technique to originally report a fixed asset under GAAP.

What are GAAP and IAS 16?

IAS 16 permits both upward and downward revaluation of fixed assets, however US GAAP permits only upward revaluation. IAS 16 allows for asset revaluation based on fair value to be performed. Each asset type must be revalued on an annual basis. Property, plant, and equipment are initially measured at cost, then measured again using a cost or reval­u­a­tion model, and de­pre­cia­ted such that its de­pre­cia­ble amount is distributed sys­tem­at­ically during its useful life. IAS 16 was reprinted in December 2003 and is effective for fiscal years beginning on or after January 1, 2005.

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according to the resource-theory of the firm discussed in mcnett's article the ethics of workplace diversity, the main reason for an organization to have a more diverse workforce would be

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To draw in the most exceptional and varied talent that can give one a competitive edge in various areas.

How do you define resource-based theory?

According to resource-based theory, a corporation is best positioned for long-term success if it has access to valuable, uncommon, difficult-to-replicate resources. These strategic resources can act as a springboard for developing solid competencies that, over time, may result in improved performance.

What does the word "resources" mean?

It means a source of supply or support—an option. A natural source of riches or income; generally used in the plural. Frequently used in the plural.: a natural phenomenon or feature that improves the standard of living for people.

The original question is:

According to the resource theory of the firm discussed in McNett's article the ethics of workplace diversity, the main reason for an organization to have a more diverse workforce would be _______.

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silver futures contracts are based on 5,000 troy ounces and are priced in dollars per troy ounce. a closing report displays these prices for a december contract: open 19.435, high 19.450, low 19.025, and settle19.119. what is the closing value for one december futures contract on silver?

Answers

The closing value for one December futures contract on silver is $96,500.

Calculation:

We see that the closing value for one futures contract on silver=Settle*contract size = 19.119*5000

= 95595.00

The closing price is the raw price or present value of the last trading price of a security before the market is officially closed for normal trading. The closing price is calculated by dividing the product total by the total number of shares traded in the 30-minute period.

Closing price generally refers to the last price at which a stock was traded during a normal trading session. The closing price is a useful marker that investors can use to measure changes in stock prices over time. Even in the age of 24-hour trading, all stocks and other securities have a closing price which is the closing price traded during normal market hours on a given day.

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failing to appropriately will result in too many employees doing the same work and prevent the new firm from realizing the cost synergies it anticipated. a. downsize b. buy out c. downscope d. spin off

Answers

The correct option is A. If downsize is not done properly, there will be too many employees working the same job, which would hinder the future company from reaching the projected cost synergies.

What are the two different forms of work?

You can hire someone on a fixed-term or fee basis for a predetermined period of time or to carry out a specified duty, such as to work on a given project or fill in for an employee on leave.

Which professions are the most common?

The three categories below may be used to identify the kinds of labor that have been done. The three sorts are positive employment, dismal work, and zero work. The ratio of force and displacement defines the kind of work that is done. Good number of occupations when an applied force moves an object inside that direction.

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finding significant differences is exciting to marketing researchers because it means that the researcher will have something that is potentially very useful to report to the client. true false

Answers

Marketing researchers enjoy discovering major variances since it indicates they will have information that might be extremely beneficial to relay to the customer. The statement is accurate.

Marketing research is the methodical gathering, recording, and analysis of qualitative and quantitative data about marketing-related problems for goods and services. Discovering and analyzing the effects of modifying marketing mix components on consumer behavior is the goal.

This entails defining the data needed to solve these concerns, devising the information gathering strategy, and overseeing and putting the data collection process into practice. These outcomes and conclusions, together with their ramifications, are communicated to those with the authority to take action on them after data analysis.

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when determining the location decision for industrial products like adhesives, what should a company keep in mind?

Answers

When choosing where to produce industrial goods like adhesives, the corporation must bear in mind that these items fulfill universal demands.

What does the term "company" mean?

A firm is a legal body created by a group or people to conduct and manage a business venture, whether it be industrial or industrial. Based on the corporate legislation of its country, a corporation may be set up in a variety of ways on tax and financial responsibility reasons.

What three sorts of businesses are there?

The Three Fundamental Business Entities

The limited company (LLC), the corporation, and the sole proprietorship are the three most typical business entity kinds. Each offers unique benefits and drawbacks based on what both you and your company require.

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what document serves as a title to the goods in question under the document collection payment method?

Answers

Under the document collection payment method, a bill of lading acts as the products' legal title.

What is bill of lading?A carrier must provide a shipper with a bill of lading, which lists the kind, quantity, and final destination of the goods being transported.A bill of lading is a contract between a shipper and a carrier, a receipt for shipping goods, and a document of title.The carrier, shipper, and receiver must all have authorized representatives sign this document, which must also be included with the shipping items.A bill of lading can aid in preventing asset theft if it is managed and examined appropriately.It's critical to select the correct bill of lading because there are various varieties.For instance, a logistics company wants to ship gasoline from a factory in Texas (shipper) to a gas station in Arizona using a large vehicle (recipient). After pouring the gas onto the truck, a plant representative and the driver sign the bill of lading.The truck driver requests that the gas station employee sign the agreement once the carrier delivers the fuel to the Arizona gas station.

Hence, Under the document collection payment method, a bill of lading acts as the products' legal title.

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When purchasing her new car, molly traded in her previous car, which was a buick in good condition. the dealer offered her 80% of the listed trade-in value for her car, giving her a total of $1,340.80. what was molly’s previous car?

Answers

The value of Molly's car, given the trade - in value and percentage of the previous car, can be found to be $ 1, 676

What is a trade - in value ?

The car that customers trade in when they purchase a new car from the dealership is known as a trade-in. The trade-in value that a dealer will typically offer for the car is almost always less than the market value that you could obtain by selling it privately.

A well-kept example of a well-liked model may be a trade-in, which the dealer can repair and resell on the used car lot for a profit. Second, the dealer is facilitating the customer's decision to purchase the new vehicle. Any other justification for accepting a trade-in entails extra work, extra expense, and unpredictability for the dealer.

The trade - in value for Molly's car can be found by the formula :

= Listed trade in value of Molly's car / Percentage of the car

= 1, 340.80 / 80 %

= $ 1, 676

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the corporate charter of whispering winds corporation allows the issuance of a maximum of 100,000 shares of common stock. during its first two years of operations, whispering winds sold 61,300 shares to shareholders and reacquired 4,800 of these shares. after these transactions, how many shares are authorized, issued, and outstanding? whispering winds corporation is authorized to sell shares. whispering winds has shares issued. whispering winds has shares outstanding.

Answers

Luney Corporation has been granted permission to sell 100,000 shares. Luney has issued 70000 shares. Luney has 63000 shareholdings in circulation.

What exactly do users mean by "shares"?

Shares are equity ownership units in a corporation. Shares arise as a capital product for some companies, providing for an equitable split of any residue left profits, if any are proclaimed, in the dividend form. Stockholders of a shares that doesn't pay dividends are not entitled to a profit distribution.

What are the various kinds of shares inside a limited partnership?

Ordinary stock.Non-voting stock.Preferences are distributed.Shares that are redeemable.

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hearth company uses the units-of-production method to estimate depreciation. the company purchased a new machine for $38,000 that will produce an estimated 230,000 units over its useful life. the estimated residual value of the machine is $2,000. what is the depreciation rate per unit?

Answers

The depreciation rate per unit for Heatherbrae Co. is $0.133. The unit-of-production depreciation method estimates the depreciation expense per unit by dividing the depreciable amount by the estimated useful life of the asset.

For each period, the depreciation expense per unit is multiplied by the units of production to determine the period's total depreciation expense.

Data and Calculations:

Cost of machine = $48,000

Residual value = $4,000

Depreciable amount = $44,000 ($48,000 - $4,000)

Estimated useful life in units = 330,000

Depreciation expense per unit = $0.133 ($44,000/330,000)

Thus, the depreciation rate per unit for Heatherbrae Co. is $0.133.

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what are the consequences of bad logistics management for a company? select all that apply. a more paperwork b problems with customer relations c higher costs d longer hours

Answers

The consequences of poor logistics management for company include:  customer relationship issues, higher costs and longer hours.

What leads to bad logistics?

Poor time management. Increased costs and hidden costs due to lack of knowledge. Disruption of operational processes. I don't have the right software for live tracking.

What impact will logistics have on company?

Successful logistics in business entails more effectiveness, lower costs, higher production rates, better inventory control, more efficient storage space utilization, higher levels of customer and supplier satisfaction, and better customer experiences.

What are the consequences of poor management for suppliers?

In short, poor supplier performance costs a company money, time, and reputation, increases the risk of customer churn, and can even threaten a company's viability. The impact on suppliers is also negative. Efforts to ensure performance regressions can be fixed.

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country a has a comparative advantage over country b in the production of shoes, if a. country a can produce shoes at a lower monetary cost than country b can. b. country a can produce shoes using fewer resources than country b can. c. the demand for shoes is higher in country a than in country b. d. country a can produce shoes at a lower cost in terms of other goods than country b can.

Answers

Country a has a comparative advantage over country b in the production of shoes, Country A can produce shoes at a lower cost in terms of other goods than other B.

What do you have been comparative advantage?

In an economic model, agents who can produce a particular good at a lower relative opportunity cost or autarky price—that is, at a lower relative marginal cost before trade—have a competitive advantage over rivals. Someone has a comparative advantage if they can produce something for less money than anyone else. Superiority in a particular field is different from comparative advantage.

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how would you respond to a naysayer that says store business and concessions business will go down if we give out free hats and free food as part of group sales packages?

Answers

would let them know that it's a misconception Offering free food or drinks adds value to the customer without discounting products or services.

What is meant by products?

A product is anything that can be supplied to a market in order to satiate a customer's need or desire. In marketing, a product is an item, system, or service that is made accessible for consumer usage in response to consumer demand.Products are sometimes referred to as merchandise in the retail sector, and they are purchased as raw materials in the manufacturing sector before being sold as finished goods.A form of product that is also considered is a service.In project management, products are the formally defined project deliverables that include or assist in achieving the project's goals.Product liability may apply to hazardous goods, particularly physical ones that harm users or bystanders.

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using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $55,000. if the balance of the allowance for doubtful accounts is an $11,000 debit before adjustment, what is the balance after adjustment?

Answers

$66,000 is the adjusted balance. One method credit card companies employ to estimate a cardholder's finance account is adjusted balance.

One of numerous ways used by credit card companies to determine a cardholder's finance charge is the adjusted balance. The latter is the cost incurred when a cardholder doesn't pay their entire balance by the due date of each month, choosing instead to carry a load from month to month.

The current billing cycle's payments and credits are deducted from the prior balance at the end of the previous billing cycle when determining your financing charge using the adjusted balance method. The adjusted amount does not include any new charges that are accrued during the billing period.

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