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?

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Answer 1

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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Related Questions

Which of the following is correct when using the effective-interest method of amortizing the discounton bonds payable?A. Interest expense is computed by adding the portion of amortized discount to the cash interest paid.B. The amount of interest expense recognized each period increases over time.

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The one that is correct when using the effective-interest method of amortizing the discount on bonds payable is option B. The amount of interest expense recognized each period increases over time.

What is an effective-interest method of amortizing?

The effective interest method is an accounting practice employed to discount a bond. This method is utilized for the sold bonds at a discount or premium. The amount of the bond discount or premium is amortized to interest expense over the bond's life.

The effective interest rate can be calculated by employing a simple formula which is r = (1 + i/n)^n - 1. In this formula, 'r' stands for the effective interest rate, 'i' depicts the stated interest rate, and 'n' stands for the number of compounding periods per year.

Therefore, the correct answer is as given above

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Establishing prices for razor blades that must be used with a razor blade system is known as​ ________ pricing.
A. product bundle
B. ​by-product
C. ​market-penetration
D. product line
E. ​captive-product

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Establishing prices for razor blades that must be used with a razor blade system is known as​ captive-product pricing.

What does "captive product price" entail?

Businesses use the captive product pricing model to sell a main product and multiple accessories. The additional accessories—whether a physical item required to make the core product work or an add-on—are the captive product.

Being the only company selling the additional necessary accessory can add value because you'll get more sales from people buying your main product.

A printer and the ink it requires is an illustration of captive productive pricing. Really, there isn't any justification for purchasing a printer.

The ink necessary to use and give meaning to the core product is the accessory, often known as the captive product. In this illustration, a customer purchases the printer and then right away purchases ink (the accessory), knowing that it will not work without it.

Pricing captive products can increase sales and profit margins. Customers will be more devoted to a brand if they believe that accessories are necessary for the primary functionalities of the product.

How to Boost Sales by Using Captive Product Pricing?

Consider employing the captive product pricing model if your company sells goods or services that serve a purpose or add value to other items.

Offering your primary product at a competitive price will draw in new clients. The captive product will then help you boost your profit margins and convert those one-time buyers into loyal customers.

When used effectively, captive product pricing can boost sales and create a base of devoted customers who are eager and ready to buy accessories to improve their experiences with your items.

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Computer memory chips are the same everywhere in the world. This means they are Multiple Choice insensitive highly sensitive nonsense sensitive to the foreign environment.

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Computer memory chips are the same everywhere in the world. This means they are highly sensitive. Option B

What are Computer memory chips?

A memory chip is an integrated circuit with millions of transistors and capacitors that can be used to process code or store data. Memory chips can store data either permanently or temporarily using read-only memory (ROM) or random access memory (RAM) (ROM).

Microchips called RAM chips are utilized as RAM storage in computers and other electronic devices. This is the real chip that is soldered onto tiny circuit boards to produce RAM cards or sticks, and depending on the model and manufacturer, it has varying performance and capacity ratings.

As the fundamental building block for RAM cards and other applications, it is the most fundamental and essential component of memory.

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FILL IN THE BLANK when the is organization and its resources are focused on efforts that support the key objectives defined in the managers' strategic plan for the business, the organization is in _______

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Let understand that Strategic planning is the approach used to for process of documenting and establishing the direction of the organisation goals and objectives.

What are the primary functions of business management? According to my research on Information Technology, I can say that based on the information provided within the question this means that the organization is in Alignment. This is basically when all sectors or categories within an organization are aligned and working in unison as a whole in order to solve a certain problem.When the IS organization and its resources are focused on efforts that support the key objectives defined in the managers' strategic plan for the business, the organization is in alignment.Gives direction and momentum: The plans gives an organization direction on how to operate.Encouragement of new ideas: The plans helps to encourage new ideas because the business new to expand.

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are defined as relationships that salespeople build with customers outside the organization and working environment.

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External relationships are defined as relationships that salespeople build with customers outside the organization and working environment.

What are External relationships?

Generally, A link that is primarily commercial in nature between a smaller company and another organization is what is referred to as an external relationship. Alliances and networks are two frequent forms of interactions with parties external to the organization.

It may be beneficial to your career and your knowledge base to cultivate contacts with people who work in other companies outside of your own.

The reputation of a good facilities manager is intimately tied to their interactions with individuals within their business, but it may also be strengthened by the relationships they have with people outside of their organization.

Connections that are built outside of a business and the working environment are known as external ties. Salespeople are responsible for cultivating these relationships.

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which of the following pricing strategies does not usually enhance the profits of firms with market power? a. marginal cost pricing b. price discrimination
c. block pricing d. commodity bundling

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Marginal cost pricing of the following pricing strategies does not usually enhance the profits of firms with market power. The correct option is A.

How do you calculate marginal cost pricing?

Marginal cost is the term used to describe the additional expenses incurred when producing more units of a good or service. It is calculated by dividing the total variation in the cost of producing more goods by the variation in the number of goods produced.

Marginal cost pricing is the practice of setting a commodity's price at the variable cost of producing it; as a result, it does not increase the profits of the company with the majority market share.

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which of the following is an example of a negative externality? group of answer choices bae's company has a decrease in profits when the demand for its product falls. rita gains weight while she is on vacation because she eats more than normal. when fazio parks his big truck at the grocery store, people in the cars on each side of his parking space have a hard time opening their car doors. raul loses weight because he wants to feel better, but the weight loss means that he needs new clothes.

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The correct option here is, when Fazio parks his big truck at the grocery store, people in the cars on each side of his parking space have a hard time opening their car doors.

WHAT ARE NEGATIVE EXTERNALITIES?

When a products or service's production and/or consumption have an adverse effect on a third party separate from the transaction, this is referred to as a negative externality. Two parties, referred to as the first and second parties in the transaction, are involved in a typical transaction: the producer and the consumer. Third parties are any other parties who are not involved in the transaction.

When it is challenging to hold people accountable, as is the case with environmental contamination, negative externalities frequently impact public resources. Without having to worry about legal action or penalties, producers or consumers may produce a negative externality.

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Taxpayers whose only unearned income consists of qualified dividends and capital gain distributions reported to them on Form 1099-DIV generally compute the amount of tax on their income using what?

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Taxpayers whose only unearned income consists of qualified dividends and capital gain distributions reported to them on Form 1099-DIV generally compute the amount of tax on their income using the tax rates that apply to long-term capital gains and qualified dividends.

What are Taxpayers?

Generally, These tax rates are generally lower than the tax rates that apply to ordinary income, such as wages and salaries.

To calculate the tax on qualified dividends and capital gain distributions, taxpayers should first determine their taxable income, which is their total income from all sources, minus any deductions and exemptions to which they are entitled.

They should then determine their tax liability by applying the appropriate tax rates to their taxable income. The tax rates that apply to qualified dividends and long-term capital gains are based on the taxpayer's income tax bracket, which is determined by the amount of taxable income they have.

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using published financial statements for a publicly traded company and the excel template provided, you build a balance sheet and income statement

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Sign in to Excel Online and open a blank spreadsheet. Identify financial statement assumptions and create transaction pages.

Produce an income statement summarizing monthly transactions. Enter the transactions into the profit and loss categories using the SUM formula.  A financial statement is a record of a company's financial position and activities for a specific period of time.

Financial information can be found on the company's investor information website, where the Securities and Exchange Commission and other company reports are frequently filed. From 1993 to 1994, the SEC made its financial records available electronically and free of charge on its website. See corporate documentation.

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Consider a system of banking in which the Federal Reserve uses required reserves to control the money supply (as was the case in the United States before 2008). Assume that banks do not hold excess reserves and that households do not hold currency, so the only money exists in the form of demand deposits. To further simplify, assume the banking system has total reserves of $300. Determine the money multiplier as well as the money supply for each reserve requirement listed in the following table.Reserve Requirement (Percent) Simple Money Multiplier Money Supply (Dollars)5 10 A higher reserve requirement is associated with a_______money supply.Suppose the Federal Reserve wants to increase the money supply by $200. Maintain the assumption that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to_________worth of U.S. government bonds. Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 25%. This increase in the reserve ratio causes the money multiplier______to______Under these conditions, the Fed would need to______worth of U.S. government bonds in order to $ to increase the money supply by $200. Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply? Check all that apply. O The Fed cannot control the amount of money that households choose to hold as currency. O The Fed cannot prevent banks from lending out required reserves. O The Fed cannot control whether and to what extent banks hold excess reserves.

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As per the banking system, the higher reserve requirement is associated with a smaller money supply.

B) Here if the reserve requirement is 10%, then the Fed will use open-market operations to $200 worth of U.S. government bonds.

c) Here if the multiplier from consumer to manufacturer Under these conditions, the Fed would need to 10% worth of U.S. government

The term bank in economics refers an institution that deals in money and its substitutes and provides other money-related services.

While we looking into the given statement,

we have identified that reserve requirement is higher then the supply of the money will be reduced because of the reservation.

For example, in the Fed cannot control the amount of money that households choose to hold as currency.

For example, Suppose the Federal Reserve wants to increase the money supply by $200. Here they maintain the assumption that banks do not hold excess reserves and that households do not hold currency.

Which implies that the money value is not increasing because of the increase in supply.

Therefore, here the Fed cannot control whether and to what extent banks hold excess reserves.

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which of the following occurs when a person threatens not to perform a contract obligation unless the other party either signs another contract with the person making the threat or pays him or her a higher price than was specified in the original agreement? question 46 options: undue influence an arm's-length bargain due influence physical duress economic duress

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Option b, economic duress occurs when a person threatens not to perform a contract obligation unless the other party either signs another contract with the person making the threat or pays him or her a higher price than was specified in the original agreement.

Economic duress refers to a situation when a party threatens to not follow the contract unless the other party involved in the contract accepts certain demands of the former. Economic duress can be claimed if the pressure created by the other party is unjustified and illegal. It can be claimed rightfully if the party has been forced to enter into a contract that it would have not entered otherwise.

Economic duress can be claimed by the party if they have not been left with a rightful choice or practical alternative but to accept the conditions. If one party threatens to not oblige with the contract signed and forces the other party to enter into a new contract with high price than the original contract, the innocent party can rightfully claim economic duress.

Complete options to the question are

a. Physical duress

b. Economic duress

c. Undue influence

d. Due influence

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assume that g and t1 are the relevent curves and thatthe econommy is currently at b which is its full employment gdp

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This economy has cyclically adjusted budget surplus and an actual budget surplus.

When revenue surpasses spending, there is a budget surplus. Since people have "savings" rather than a "budget surplus," the phrase is frequently used to describe the financial situation of a government. A government's ability to handle its finances properly is demonstrated by a surplus.

When revenue outpaces spending, a budget surplus results.

When a government has a surplus, it has extra funds that can be invested or applied to debt repayment.

The opposite of a surplus is a deficit. When spending outpaces income, the government must borrow money to pay for expenditures.

The United States last had a budget surplus in 2001.

The U.S. budget deficit in 2021 exceeded $2.8 trillion.

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Darnell, Jacques, and Musashi are hunters who live next to a recreational wildlife game area that is open to hunting; in other words, anyone is free to use the recreational wildlife game area for hunting. Assume that these men are the only three hunters who hunt in this recreational wildlife game area and that the recreational wildlife game area is large enough for all three hunters to hunt intensively at the same time. Each year, the hunters choose independently how often to hunt; specifically, they choose whether to hunt intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational wildlife game area if enough people do it) or to hunt nonintensively (which does not hurt the sustainability of the recreational wildlife game area). None of them has the ability to control how much the others hunt, and each hunter cares only about his own profitability and not about the state of the recreational wildlife game area. Assume that as long as no more than one hunter hunts intensively, there are enough animals to restock the recreational wildlife game area. However, if two or more hunt intensively, the recreational wildlife game area will become useless in the future. Of course, hunting intensively earns a hunter more money and greater profit because he can sell more animals. The recreational wildlife game area is an example of____because the animals in the recreational wildlife game area are____and____. Depending on whether Jacques and Musashi both choose to hunt either nonintensively or intensively, fill in Darnell's profit-maximizing response in the following table, given Jacques and Musashi's actions. Jacques and Musashi's Actions Hunt Nonintensively Hunt Intensively Darnell's Profit-Maximizing Response Which of the following solutions could ensure that the recreational wildlife game area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. O Convert the recreational wildlife game area to private property, and allow the owner to sell hunting rights. O Develop a program that entices more hunters to move to the area. O Outlaw intensive hunting.

Answers

These options, outlawing intensive hunting, converting the recreational wildlife game area to private property, and allowing the owner to sell hunting rights, among others, could ensure that the wildlife game area is viable over the long term, assuming that the legislation is enforced. Hence,  Options A and C are correct.

In contemporary times, hunting is generally done with firearms, however it is also possible to use a bow and arrow. Numerous animals were stronger and faster than the people hunting them, making it difficult to successfully take them down.

While decapitating an animal with a bladed weapon is successful and comparatively painless if can get close enough, the majority of current hunting tools are not designed to sever the spinal cord in a repeatable manner.

Animals that cannot fight themselves against bullets, traps, and other brutal killing tools are injured, tortured, and killed by hunters. Hunting ruins animal populations and habitats, leaving reliant and frightened young animals to starve to death.

Therefore, Options A and C are correct.

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after graduating from college, jim had three choices, listed in order of preference: (1) move to florida from philadelphia, (2) work in a car dealership in philadelphia, or (3) play soccer for a minor league in philadelphia. his opportunity cost of moving to florida includes the benefits he could have received from playing soccer. the income he could have earned at the car dealership. both a and b. cannot be determined from the given information.

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As Jim listed in order of preference. His opportunity cost of moving to Florida includes the income he could have earned at the car dealership. The Option B is correct.

What is an Opportunity cost?

In economic, opportunity cost refers to value of what you lose when choosing between two or more options. Every choice has its trade-offs and opportunity cost is the potential benefits to miss out on by choosing one direction over another.

Here, we are given a ranking of Jim's preferences. As such, when he decides to move to FL, he does sacrifices the alternatives that require him to stay in Philly.

However, this opportunity cost stems from the value of his next best alternative, which as it is described in his ranking, is working in car dealership or more precisely the economic benefit he would have derived from that.

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The life of one who dies in a workplace accident has _____ value that can be measured, in part, by the lost wages that would have been earned had that person lived. a. absolute b. instrumental c. intrinsic d. extrinsic

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The life of one who dies in a workplace accident has instrumental value that can be measured, in part, by the lost wages that would have been earned had that person lived.

What Does Instrumental Value Mean?

Social psychologist Milton Rokeach offered a definition of values that included instrumental values in his 1973 book The Nature of Human Values. According to his definition, instrumental values are those that fit into specific behavioral patterns. They are used to achieve a goal, not as a means to that end. Characteristics and personal characteristics make up the majority of the instrumental values.

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Venture Philanthropy Partners focuses on assisting low-income children and youth in Washington, D.C. It is an example of a(n) microlenderimpact-investment fund angel investor community fund

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The mission of Venture Philanthropy Partners is to support underprivileged children and young people in Washington, D.C.

What is exemplified above?

It is an illustration of a community fund.

What does the term "community fund" mean?

Typically, a community foundation aids regionally focused nonprofit organisations. A community foundation is a type of public charity that mainly focuses on helping a specific region, primarily by coordinating and collecting donations for regional charities and addressing local issues. A developer who willingly donates a goodwill item is said to have provided a community benefit. In cases when development will have a long-term effect on local resources and the local environment, it is for the benefit of the communities affected by that development.

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Determine the term/concept being described.
With no special record-keeping requirements or forms to file, an IRA can be an excellent vehicle for sheltering income from taxes.
a. Keogh plan
b. SEP plan
c. Individual retirement arrangement
d. Traditional IRA
e. Nondeductible IRA
f. Self-directed
g. Withdrawal
h. Rollover
i. A possible investment decision

Answers

Nondeductible IRAs are made up of any regular IRA contributions you make but do not claim as a tax deduction.

What are nondeductible IRAs?

Individual retirement account (IRA) contributors who make nondeductible contributions use nondeductible IRAs (IRA). Each tax year that nondeductible contributions are made must be reported on a different form. An IRA's contributions are often tax-deductible from regular income. People who join in employment retirement plans, however, and whose households have modified adjusted gross incomes (MAGI) above a certain threshold, may occasionally not be eligible to make these deductible contributions, even though they are still eligible to make contributions to an IRA.

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bottom-up planning should be used when the product/service mix is unstable and resource requirements vary greatly across the offerings. t/f

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This statement is False. Bottom-up planning is used when there is a fixed product/service mix and resources can be allocated in a predictable manner. It is based on building up from the details and working backwards to the overall goals.

This type of planning works best when the situation is fairly stable and predictable. In contrast, top-down planning is more suitable when the product/service mix is unstable and resource requirements vary greatly. This type of planning works by starting with the overall goal and working down to the details. It is used when the situation is uncertain and unpredictable.

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Jim is opening an interest-accruing checking account which compounds interest monthly. The amount in the account, in dollars, after t years, is shown by the following expression.
3400(1.06\^12t
Which statement below best describes the base, 1.06?
O the amount of the initial deposit
O the rate at which the account is increasing
O the number of times the account has compounded since it was opened
O the amount of the yearly earnings

Answers

The amount in the account, in dollars, after t years, is shown by the number of times the account has compounded since it was opened.

What is interest-accruing?

Accrued interests are typically calculated and recorded as adjusting journal entries in accrual-based accounting at the conclusion of a given accounting period. A bond's or loan's accrued interest is the interest that has built up since the main investment, or, if there has already been one, since the preceding coupon payment. For a type of obligation such as a bond, interest is computed and paid at defined periods (for instance annually or semi-annually) (for instance annually or semi-annually). Bonds and loans may be transferred between investors at any moment throughout the period between coupon payments, not simply when the bonds or loans are paid their coupons. If the bond is sold during the interval between coupons, the issue of who would possess the subsequent coupon is solved by accrued interest.

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TRUE OR FALSE : a limited liability company is an unincorporated business entity that combines the most favorable attributes of general partnerships, limited partnerships, and corporations.

Answers

Even if the other partners were careless, the limited liability partnership is not liable for their losses or wrongdoings. Therefore, the claim is accurate.

Which companies are you referencing?

A corporation is a company whose owners choose a board of directors to manage its operations. The company's operations and financial state are under the control of the corporation, not the shareholders.

What names do the corporations have?

A corporation, sometimes referred to as a C corp, is a separate legal entity from its owners. Corporations have the capacity to generate revenue, pay taxes, and manage legal penalties. The best liability protection for owners is provided by corporations.

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the acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation or association.Sponsorship

Answers

the obtaining of affiliation or direct association rights with a thing or an occasion with the intention of reaping rewards from that association

Creating a range of ways to engage a target market with a brand is generally referred to as leveraging or bringing a brand to life.

Activation is the process of using various tools to engage a target audience in order to leverage or "live" a brand.

Which of the following methods will a company employ to reach its clients with its products?

Using the marketing mix in a marketing plan Merchandise, cost, location, and advertising The set of tactical marketing instruments that a business utilizes to elicit the desired response from its audience is known as the marketing mix.

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Niyati, a department manager, has noticed that her employees are experiencing too many stressors. To prevent burnout, which of the following organizational strategies should Niyati implement?Eliminate the employee assistance programs.Recommend a holistic wellness approach.Increase the number and variety of job demands.Provide close, authoritative supervision.

Answers

Niyati, a department manager, has noticed that her employees are experiencing too many stressors. To prevent burnout, Niyati should option b, recommending a holistic wellness approach.

Holistic wellness initiates a sense of support and value to employees on a professional and personal level. A holistic wellness approach by an employer will generate a resilient and focused workforce. This will increase productivity, success, and creativity in the workplace.

It helps in retaining the employees for a longer time as the working conditions and workplace environment is supportive of the employee's wellbeing while aiding their professional growth. Some of the ways employers have adapted to holistic wellness are childcare benefits, flexible schedules, mental health support, and medical facilities for employees.

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rocket internet, founded in 2007, funds start-ups. one of its successful investments was in lamoda, a retailing fashion site in russia that is modeled after zappos. this is an example of a pioneering new entry strategy.

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False. Rocket Internet, a startup funding company, was launched in 2007. One of its profitable investments was in Lamoda, a replica of Zappos that sells apparel online in Russia. This is an illustration of a cutting-edge new entry tactic.

Demonstrate pioneering new entry strategy.

A company entering a market with a ground-breaking new product or highly innovative service that transforms how business is done is said to be making a pioneering new entry. The pioneering company may not face much direct competition if the good or service is sufficiently distinctive. The first personal computer, the first Internet browser, and Pandora are a few examples of innovative products and services. A new entry that is pioneering carries risk. First, there is a significant chance that buyers won't like the product or service. Second, the question of sustainability will arise as other rivals rush in to duplicate the product or service if the business is successful.

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if inflation causes prices to rise but also income to rise, will optimal consumptions of quantities change?

Answers

based on expected income growth, the gap between a consumer who consumes smoothly and one who lives hand to mouth.

What does the consumption signify to a person?

Definition. A bacterial illness known as consumption, or more frequently "tuberculosis," often attacks the lungs of such a patient and results in a chronic wet cough, breathing problems, a fever, exhaustion, and sweating. It also significantly reduces weight loss, a fact that its historical term, consumption, comes from.

What is an illustration of consumption?

Although consumption can be characterized in a variety of ways, the final purchasing of items and services to individuals serves as the best definition. The cost of the new shoes, a cheeseburger at a fast food joint, or services like having your house clean, are examples of consumer goods.

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A company's store was destroyed by a fire on February 10 of the current year. The only information for the current period that could be salvaged included the following: Beginning inventory. January 1: $34,000 Purchases to date. $118,000 Sales to date; $ 140,000 Historically, the company's gross profit ratio has been 30%. Estimate the value of the destroyed inventory using the gross profit method.

Answers

Deducting the cost of goods that have been sold from the cost of goods that are still in stock, one can compute the amount of inventory that has been destroyed.

What is the value of inventory destroyed by fire?

All the items, materials, and products that a business has on hand and intends to sell to clients for a profit are collectively referred to as inventory. If the vendor uses a vehicle to deliver newspapers to customers, the newspaper will be the only thing that counts as inventory. We'll treat the car like a valuable possession.

After that, deduct the price of the products that are still up for sale from the price of the already sold items. How much inventory was destroyed by the fire will be shown in the total.

Multiplying the period's sales by (1 - anticipated gross profit%) will yield the estimated cost of goods sold. The estimated cost of goods sold is determined in step two. Determine the price of the goods that are for sale in step one.

Therefore, the correct answer is $54,000.

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Changes in the interest rate
Shift aggregate demand if they are cause by fiscal or monetary policy, but not if they are caused by changes in price level.

Answers

Changes in the interest rate shift aggregate demand if they are cause by fiscal or monetary policy, but not if they are caused by changes in price level.

The sum that the lender demands from the borrower in addition to the principal amount is known as the interest rate. Regarding the recipient, a person who deposits money in a bank or other financial institution also makes extra money due to the time worth of money, which is known as interest earned by the depositor. An interest rate is the amount of interest that must be paid each period as a percentage of a loan, deposit, or borrowing. The amount lent or borrowed, as well as the interest rate, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall. The rate calculated over a year is the annual interest rate.

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A project requires an investment of $40,000 in equipment. Annual cash flows of $8,000 are expected to occur for the next eight years. No salvage value is expected. The company uses the straight-line method of depreciation with no mid- year convention. Ignore income taxes. The accounting rate of return on the original investment for the project is O 7.50%. 16.00%. O 6.25%. O 20.00%.

Answers

The project's accounting rate of return on the initial investment is 7.50 percent.

What is accounting rate of return?The accounting rate of return (ARR) formula makes it simpler to determine the annual percentage rate of return for a project.ARR is equivalent to the average yearly profit divided by the initial investment.ARR indicates the estimated rate of return from each project and is frequently used when evaluating many projects.One of the problems with ARR is that it does not distinguish between investments that generate different types of cash flows during the course of the project, which is just one of its flaws.The yearly rate of return is not the same as the necessary rate of return (RRR), which is the minimum return an investor would accept for an investment or project and compensates them for a particular amount of risk (ARR).

Hence, The project's accounting rate of return on the initial investment is 7.50 percent.

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Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can
A. enforce the payment in court.
B. demand performance of the deal from any of the original parties.
C. extinguish the contract rights of the assignor.
D. none of the choices.

Answers

If Beau does not pay the debt, the assignee can enforce the payment in court.

What is debt?

Debt is defined as an item, most often money, that has been borrowed. Many businesses and people use debt to finance major purchases that they otherwise could not afford. With the understanding that the money will need to be repaid at a later time, usually with interest, a debt arrangement permits the borrowing party to borrow funds.

Mortgages, auto loans, personal loans, and credit card debt are some of the most prevalent types of debt. According to the terms of the loan, the borrower must pay back the remaining amount by a specific date, usually several years down the road.

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For each of the following situations, indicate what type of audit report is most appropriate:
a. The auditor lacks independence in fact, but not necessarily in appearance.
b. There is a scope limitation and it is material but the overall financial statements are still presented fairly.
c. The uncorrected misstatements are immaterial.
d. There is a departure from GAAP and it is pervasively material.
( Accounting Auditing)

Answers

For each of the following situations, the audit report is most appropriate is given below:

a. Disclaimer

b. Qualified

c. Unqualified/Unmodified

d. Adverse

What is an audit report?

An auditor's report is a formal opinion, or disclaimer thereof, published by an internal auditor or an independent external auditor as a consequence of an internal or external audit, as an assurance service to allow the user to base choices on the audit's findings.

The majority of the financial statements prepared for a calendar year or twelve months are covered by the auditor's view. The stakeholders, management, investors, and board of directors then use this report.

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Assume the expected inflation rate has just been revised upward by the market. Would the required rate of return by the investors who invest in the stock be affected?

Answers

Yes, the investors who invest in the stock be affected when  the expected inflation rate has just been revised upward by the market. Would the required rate of return.

The inflation is the increase in the rate at which prices for goods and services rise.

Due to inflation, the increase of the expected inflation rate will also increase the required rate of return and affect both the inflation premium and the real risk free interest rate.

Due to the expected rising of inflation rate increases long-term interest rates for creditors while increased inflation premium for debtors.

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