Describe the exchange in the market equilibrium: whilst either demand or supply changes, but, the equilibrium fee and quantity may even change.
Equilibrium is the kingdom in which the marketplace delivers and calls for stability every different, and as a result, expenses come to be solid. typically, an over-supply of products or offerings causes fees to head down, which ends up in a higher call for—even as a beneath-supply or shortage reasons expenses to move up ensuing in much less call for.
Market equilibrium takes place while marketplace delivery equals marketplace demand. The equilibrium rate of a great or service, therefore, is its rate when the delivery of it equals the call for it.
A market is in equilibrium if at the market rate the amount demanded is the same as the quantity supplied. The charge at which the quantity demanded is the same as the quantity furnished is called the equilibrium price or market clearing rate and the corresponding amount is the equilibrium quantity.
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during your research, you also come across a web site on hybrid cars. the web site explains buying incentives and offers several customer testimonials
The goal of a Web site that describes buying incentives and shows several client testimonials. is to transform the thinking or actions of others and to engage the viewer to sell a product or service.
Customer TestimonialsCustomer Testimonials are a system that generates empathy and confidence in who sees the commercial. In trade it is known as "social proof" and is used to influence the future buyer to perform a certain action.
The testimony relates directly with the emotionality of the people who see the ads. These surfaces will serve as the basis for forming opinions that will explain their actions. When depositions are heard, you learn about the knowledge of others.
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placed an order for office supplies costing $2,000. supplier intends to deliver later in the month. purchased equipment that cost $30,000; paid $10,000 cash and signed a promissory note to pay $20,000 in one month. negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company’s checking account. hired a new finance manager on the last day of the month. received an investment of $10,000 cash from the company’s owners in exchange for issuing common shares. supplies [ordered in (a)] were received, along with a bill for $2,000.
a. placed an order for office supplies costing $2,000
No journal entry
b. purchased equipment that cost $30,000; paid $10,000 cash and signed a promissory note to pay $20,000 in one month.
Equipment Dr. $30000
Cash $10000
Note payable $20000
c. negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company’s checking account.
Cash Dr. $5000
Note payable $5000
d. hired a new finance manager on the last day of the month
No journal entry
e. received an investment of $10,000 cash from the company’s owners in exchange for issuing common shares.
Cash Dr. $10000
Contributed capital $10000
f. supplies [ordered in (a)] were received, along with a bill for $2,000.
Supplies Dr. $2000
Accounts payable $2000
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______ is the view that it is the pull of users in the market that is responsible for innovation
Era push or market pull is the view that it's far the pull of users inside the marketplace this is accountable for innovation.
Innovation is the sensible implementation of ideas that result in the introduction of the latest items or services or improvement in offering goods or services. ISO TC 279 within the widespread ISO 56000:2020 defines innovation as "a brand new or modified entity realizing or redistributing cost".the primary electric cars delivered within the automobile market were additionally an innovation, and new batteries with longer degrees that preserve popping out are also an example of innovation.
The motive of innovation is to create commercial enterprise prices. price may be described in many ways, which include incremental upgrades to existing products, the introduction of absolutely new services and products, or reducing cost.Innovation is often important for groups to conform and overcome the demanding situations of alternate. It fosters increase: Stagnation can be extremely destructive to your commercial enterprise. reaching organizational and monetary increase thru innovation is prime to staying afloat in modern fairly aggressive international.
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A project under strict terms and conditions to produce project deliverables on time or suffer late penalties is an example of a:_______
a. commercial risk.
b. technical risk.
c. legal risk.
d. execution risk.
A project below strict phrases and situations to provide mission deliverables on time or go through overdue consequences is an example of commercial risk.
Industrial chance or enterprise danger is a term used to embody diverse perils that can get inside the way of a commercial enterprise's fulfillment. If now not treated properly, those commercial risks can also cause a enterprise to be in the red or to head under. that is why proper threat management is crucial.
Business dangers can broadly be divided into the subsequent classes: financial or marketplace risks which may also consist of changes to enter and output prices versions in call for from projected ranges; access to and the fee of debt and equity financing and commercial risks.
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one of your clients wants to withdraw $30,000 from his traditional ira. the client is 35 years old and needs the cash for a medical emergency. you should advise your client
one of your clients wants to withdraw $30,000 from his traditional ira. the client is 35 years old and needs the cash for a medical emergency. you should advise your client that they may be able to do this penalty free but should verify with their tax advisor
A financial specialist with advanced training in tax accounting and tax law is a tax advisor. The assistance of a tax counselor is typically sought out in complex financial situations in order to reduce taxes due while maintaining legal compliance. Certified Public Accountants (CPAs), tax lawyers, enrolled agents, and some financial consultants are examples of tax advisors. The Internal Revenue Service regulates tax consultants and preparers, but does not issue licenses to them (IRS). Regulation 10.33(a) of Treasury Department Circular No. 230 describes the obligations and moral obligations of tax consultants.
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When auditing the archiving process of emails, the is auditor should pay the most attention to?
The auditor should pay the most attention to the existence of a data retention policy.
A crucial stage in the lifecycle of a record is the retention policy, which is also known as the "schedule." It explains how long a company must maintain a piece of information (a record), where it is kept, and how to get rid of the record once its time has passed. It appears quite simple, and in some ways, it is.
Depending on the type of record, the retention period starts at a particular moment. A financial record, for instance, begins to be retained on July 1 of the following year. Another illustration would be the fact that the records of a job search must be kept for a certain amount of time after the hiring decision has been made.
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decisions regarding logistics and managing the supply chain take place within the element of the marketing mix.
Decisions regarding logistics and managing the supply chain take place within the element of the marketing mix. The given statement is TRUE.
The four Ps are also known as the marketing mix.
The 4 ps are:
ProductPricePlacePromotionThey include a variety of factors that are taken into account when marketing a product, such as what consumers want, how the product or service meets or fails to meet those wants, how the product or service is perceived in the world, how it differentiates itself from the competition, and how the company that produces it interacts with its customers.
Product:
The product's definition is also critical to its distribution. Marketers must comprehend a product's life cycle, and business executives must have a strategy for dealing with products at each point of their life cycle.The sort of product also influences how much it will cost, where it should be installed, and how long it will last.Price:
The price of a product is the amount of money that customers are willing to pay for it. Marketers must link the price to the product's true and perceived worth, while also taking into account supplier costs, seasonal reductions, rival prices, and retail markup.In rare circumstances, business decision-makers may increase a product's price to give it the image of luxury or exclusivity. Alternatively, they may reduce the price so that more buyers will try it.Place:
Placement is the consideration of where the product should be available, both in physical stores and online, as well as how it will be exhibited.This entails simply placing a product in specific stores and ensuring that it is showcased to its best potential.The term placement also refers to advertising the goods in the appropriate media to attract consumers' attention.Promotion:
The purpose of promotion is to communicate to customers that they require this product and that it is reasonably priced. Advertising, public relations, and the whole media strategy for launching a product are all examples of promotion.Marketers frequently combine promotion and placement components to attract their target audiences.Hence, the given line is TRUE.
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If lisa and bryce each divides his or her time equally between producing jackets and producing sweaters, then total production is:_____.
If lisa and bryce each divides his or her time equally between producing jackets and producing sweaters, then total production is:3 sweaters and 13 jackets.
A country contains a comparative advantage within the production of a decent if the chance cost of manufacturing that good is lower therein country. Whether or not one country production has an absolute advantage over all said goods, it'll still gain from trading with another country.
The most obvious economic impact of specialization is often seen within the tendency for people to decide on production different vocations that are more in line with their interests, skills, opportunities, and education.
When everyone focuses on producing the products within which he or she includes a comparative advantage, all and sundry can gain from trade but total production within the economy is unchanged.
Trade between nations is predicated on absolute advantage, which occurs when a rustic includes a lower cost of manufacturing an honest. Mexico makes 20 tequila and 10 wines. In total, 100 wines and 40 tequila.
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Complete Question: If lisa and bryce each divides his or her time equally between producing jackets and producing sweaters, then total production is:_____.
the first step in budgeting is to evaluate your current financial position by looking at just your income and expenses.
This statement is false. The first step in budgeting process is to set financial goals.
What is budgeting?Budgets are essentially future financial plans. Plan can be established for cashflows, production lines, working capital requirements, etc. into many parts of business, which has to be founded on some estimation. The person preparing the budget must take both internal and external considerations into account.
What is the first process of budgeting?The first and important step in budgeting is generating a list of the goals for the arrangement and allocation of financial resources. The numerous goals for carrying out the budgeting activity must be planned. The efficient implementation of the budgeting goals for accomplishing the company's strategic business objectives is facilitated by correctly prepared budgeting goals.
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The complete question is: "The first step in budgeting is to evaluate your current financial position by looking at just your income and expenses. True or false?"
In analyzing the pharmaceutical industry for a prospective business launch, nicole turco, a ph. D. In pharmacology, concluded that the industry was attractive because the threat of substitutes is ___________.
In analyzing the pharmaceutical industry for a prospective business launch, nicole turco, a ph. D. In pharmacology, concluded that the industry was attractive because the threat of substitutes is low.
There are several analytical techniques employed in the pharmaceutical industry, but the techniques commonly used are chromatography techniques like HPLC, LC-MS, GC, and GC-MS. These techniques from the industry standard for analyzing polymorphism in new drugs. Pharma analytics is the usage and application of knowledge analytics within the pharmaceutical industry.
Integrating big data analytics solutions into the pharmaceutical manufacturing process allows companies to achieve valuable insights to accelerate and optimize production. Investors should evaluate a company's "pipeline" (i.e., what percentage of drugs a corporation has in development and also the various stages of clinical testing).
A strengths, weaknesses, opportunities, and threats analysis. A strengths, weaknesses, opportunities, and threats (SWOT) analysis revealed the subsequent observations. Strengths. Malta encompasses a mature pharmaceutical industry with an adequate manufacturing base and capacity to provide quality drugs.
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It is argued that it is in the interest of business to protect the environment because:_________
It is argued that it is in the interest of business to protect the environment because Creating defined policies and plans for procuring high-quality raw materials, utilizing cutting-edge technology, employing scientific disposal and waste management approaches, and developing employee skills for pollution control.
Reducing your company's environmental business effect will increase its long-term viability. If your company is less reliant on natural resources than its competitors and has strategies in place to deal with rising expenses due to climate change, it will have a better chance of long-term success. The environment has an important role in the survival of civilization and enterprises.
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question content area top part 1 over the past 10 years, five mutual funds all had the same mean rate of return. the standard deviations for each of the five mutual funds are shown below. capital investment: %; vanity: %; global advisor: %; international equities: %; nomad: % which mutual fund was least consistent in rate of return?
Based on the given standard deviations of the mutual funds, the mutual fund which has been least consistent in rate of return is D. Capital Investment.
How to know least consistent mutual fund?The least consistent Mutual Fund is the Mutual Fund that has the highest standard deviation. What this means is that the rates of return have been more varied around the mean rate of return that the mutual fund gives and so points to less consistency.
The least consistent Mutual fund is therefore Capital Investment as it has the highest standard deviation of 8.2%. This shows that its rates of return are in a range of 8.2% around its average.
Full question is:
Over the past 10 years, five mutual funds all had the same mean rate of return. The standard deviations for each of the five mutual funds are shown below. Capital Investment: 8.2%; Vanity: 6.3%; Global Advisor: 4.5%; International Equities: 7.8%; Nomad: 5.2% Which mutual fund was least consistent in rate of return?
Choose the correct answer below.
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the short-run aggregate supply curve indicates a(n) relationship between the price level and the quantity supplied of real gdp.
Direct, indirect, horizontal is the short-run aggregate supply curve indicates a(n) relationship between the price level and the quantity supplied of real gdp.
What does the short-run aggregate supply curve represent ?
The short-run aggregate supply curve (SRAS) lets us capture how all of the firms in an economy interact to attempt to keep. The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.
Regarding SRAS, there are two significant points to consider. One reason is that it shows a short-term correlation between price level and output volume. As a result of at least one price being rigid, aggregate supply slopes upward in the near run. Second, SRAS informs us that unemployment and inflation have a short-term tradeoff. Because increasing output results in higher inflation, higher inflation also has a short-term relationship with reduced unemployment.
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The appropriate attribute for measuring plant assets is:_________
a) current cost.
b) present value of future cash flows.
c) net realizable value.
d) historical cost.
Assets for plants should be valued at their historical cost. The majority of inventories, together with plant, property, and equipment, are presented at historical cost.
A combination of assets called a plant, such as a foundry, factory, or workshop, is utilized in an industrial process. These assets are a part of the fixed assets category, which also includes automobiles, intangible assets, and office supplies. Like all other assets, plant assets are recorded on your balance sheet, where they are often shown apart from current assets and are frequently referred to as fixed assets, property or long-term assets, and plant and equipment (PP&E) assets. Cost is determined by the amount of money exchanged during a cash transaction or by the price in cash equivalent when non-monetary assets are used as payment. The fair market value of the asset forfeited or the fair market value of the asset obtained, whichever is more easily ascertainable, determines the cash equivalent price.
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you believe you will spend $30,000 a year for 10 years once you retire in 20 years. if the interest rate is 5% per year, how much must you save each year until retirement to meet your retirement goal?
Annual saving would be $ 7,005.76
What do you understand by interest rate?An interest rate provides information on how costly borrowing is or how profitable saving is. As a result, the amount you pay for borrowing money, stated as a percentage of the total loan amount, is the interest rate if you are a borrower.
Rate increases are typically a positive thing for saving money. With an increase in interest rates, certificates of deposit (CDs), money market accounts, and savings accounts all receive more interest. Savings enthusiasts so receive a higher return on the money they invest in bank accounts or CDs.
Calculation of amount needed in 20 years to spend over next 10 years
value of money 20 years from now = Annual Cash flow
x Present value of annuity of 1
= $ 30,000x 7.721735
= $2,31,652.05;
Working:-
Present value of annuity of 1$ = (1- (1+i)^-n) /;
Where,
= (1-(1+0.05)^-10)/0.05;
i;5%
= 7.721734929;
10 years Annual saving is given as Annual saving =
Future value of annual cash flows/ Future value of annuity of 1$
= $2,31,652.05/33.06595
=$7,005.76
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The lease is appropriately classified as a sales-type lease. assuming the interest rate for this lease is?
The lease is appropriately categorized as an income-type lease. assuming the hobby rate for this rent is 9%.
A lease is assessed as a finance hire if it transfers the possession of belongings to the lessee. An instance of a finance rent can be the car lease wherein the lessee makes periodic payments to the lessor and after a specific time frame says after 5 years, the ownership of the vehicle is transferred to the lessee.an agreement to pay cash so one can use land, a building, a vehicle, or a bit of device for a selected time frame: The employer signed a lease for the assets in December. The authentic tenant stays liable during the whole term of the lease.
A lease is a contractual association calling for the person to pay the owner for the use of an asset. belongings, homes, and vehicles are commonplace belongings that can be leased. commercial or commercial enterprise equipment is also leased. basically, a hire settlement is a settlement between two events: the lessor and the lessee.
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Palm coconut oils are more like animal fats than other plant oils. because they __________ than other plant oils, they may contribute to cardiovascular diseas
Palm coconut oils are more like animal fats than other plant oils. because they ___Have fewer double bonds_______ than other plant oils, they may contribute to cardiovascular disease
Heart failure, stroke, hypertensive heart disease, rheumatic heart disease, cardiomyopathy, abnormal heart rhythms, congenital heart disease, valvular heart disease, carditis, aortic aneurysms, peripheral artery disease, thromboembolic disease, and venous thrombosis are other CVDs. Coronary artery diseases (CAD) include angina and myocardial infarction (commonly known as a heart
Cardiovascular disease is a term used to describe a variety of conditions that can affect the heart. The underlying mechanisms differ depending on the disease. It is estimated that dietary risk factors are associated with 53% of CVD deaths. Coronary artery disease, stroke, and peripheral artery disease all involve atherosclerosis. causes and treatment of cardiovascular disease.
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which concept/principle supports the fact that assets such as land, buildings, and equipment are not reported at their fair values?
Which concept/principle supports the fact that assets such as land, buildings, and equipment are not reported at their fair value? Cost principle.
What is meant by the cost principle?According to the cost principle, all assets, liabilities, and equity investments must be reported on financial statements at their original cost.For instance, a retailer records inventory purchases from vendors at a cash price. The price is the same as what was paid in the transaction.According to the cost principle, purchases must be reported at the actual price. In the same manner, when a customer purchases goods, the price paid is recorded. The cost principle, in essence, states that each transaction's cost is equal.Which concept/principle supports the fact that assets such as land, buildings, and equipment are not reported at their fair value? Cost principle.
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Assume that actual overhead costs were and overhead allocated to jobs was . the unadjusted balance in manufacturing overhead would be _______.
The unadjusted balance in manufacturing overhead would be: $18,000 debit balance, underapplied
What happens when actual overhead($71,000) is greater than applied overhead($53,000)?
The excess of actual overhead over the applied overhead gives rise to underapplied overhead, since less than the actual overhead cost incurred has been factored into the units produced, in essence, we would credit prepaid expense with the $18,000($71,000-$53,000) underapplied overhead until it is paid in cash to the employees.
In the same vein, we would debit cost of goods for the additional expense, without mincing words, the correct option in this case is that $18,000 underapplied overhead is a debit balance.
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Find attached full question with options
When are economists most likely to use the bond market approach to analyze changes in interest rates? when are economists most likely to use the loanable funds approach?
The medium-term bond market model concentrates on changes in the bond market. When considering global savings and long-term global interest rates, the loanable funds model is typically a long-term model.
In exchange for regular interest payments, a bondholder loans money to a business or the government for a predetermined length of time. When the bond matures, the bond's issuer pays the investor their money back.
Similar to an IOU, a bond is a debt obligation. By purchasing corporate bonds, investors are making a loan to the corporation issuing the bond. In exchange, the business agrees in writing to pay interest on the principal when the bond matures and, in most situations, to return the principal.
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answer: question 6 what are some common activities of an hrpp or irb office? (select all that apply)
To make sure that the IRB has all of the data important to approve the studies, many HRPP or IRB places of work paintings carefully with investigators and studies groups to cope with any initial worries and offer all important documentation and data previous to the preliminary review.
What is the difference between an HRPP and IRB office?An IRB workplace is a studies organization this is answerable for making sure the protection of human members in studies. The workplace guarantees that the take look follows moral requirements and regulations. The IRB workplace is answerable for making sure the studies are moral and follows all rules, federal regulations, or the rules of the organization.
It additionally guarantees that the human members are blanketed from any ability risks, together with bodily and mental harm. The IRB workplace serves as a mediator for conflicts approximately studies proposals or subjects' rights.
HRPP stands for Human Resources Professional Practices, that's fixed of suggestions that HR specialists observe to make certain they're following the law, rules, and procedures.
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Which goal-setting strategy will increase an employee's sense of responsibility in meeting goals?
Answer: Management by objectives (MBOs) is a goal setting strategy designed to improve both employee and company performance and boost engagement through a rewards-based system.
Explanation:
hope this helps u let me know if you need anything else. ; )
a qualitative materiality is an amount set by the auditor that is less than planning the materiality and is used to make decisions about the extent of audit proedures for a particular class of transaction
A performance materiality is a qualitative materiality is an amount set by the auditor that is less than planning the materiality and is used to make decisions about the extent of audit procedures for a particular class of transaction.
What is Performance materiality?Performance materiality can be described as the amount that is been set set to reduce to an appropriately low.
It should be noted that the performance materiality can be gotten by applying a percentage usually the 50% and 75% with regards to the overall materiality amount.
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Gm invested $500 million in lyft in 2016. what are some possible reasons gm entered an equity alliance with lyft? are there any reasons gm would prefer lyft over uber as an alliance partner?
It was in the year 2016 when GM invested $500 million in the app-based ride-hailing enterprise Lyft which has the second largest taxi fleet in the world after Uber. Many people tried to find out the reason behind GM choosing to invest in Lyft and not in Uber. The one thing about which everybody was sure that being the second largest player in the industry the terms of this investment would have been favorable for GM and Lyft would serve the purpose for which this investment was being made.
GM invested $500 million in Lyft in early 2016 and owns about 9% of the company. Dan Ammann, the carmaker's president, sits on Lyft's board. When they formed the partnership a key goal was to create an autonomous, on-demand vehicle network.
GM invested $500 million in Lyft in January 2016. With a 180-day lock-up period during which GM cannot sell and the expected April IPO of larger rival Uber Technologies Inc further stoking interest in the ride-hailing sector, the value could subsequently rise.
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The long-run average total cost curve is determined by the firm choosing a level of _____ costs to minimize _____ costs.
The long-run average total cost curve is determined by the firm choosing a level of Fixed costs to minimize long run average total costs.
What is long-run average total cost ?
Long-run average total cost (LRATC) is a business statistic that represents the long-run average cost per unit of output when all inputs are variable and the scale of production is variable. The long-run average cost curve depicts the long-run overall cost of producing a certain level of output.
Long-term unit costs are usually always lower than short-term unit costs because organizations have the option to adjust large components of their operations, such as factories, to attain optimal efficiency over the long run. The determination of the lower bounds of LRATC is an aim shared by both corporate management and investors.
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A market segment that has enough profit potential to justify developing and maintaining a special marketing mix is said to be _______.
A market segment that has enough profit potential to justify developing and maintaining its special marketing mix is said to be successful.
What is a Marketing Mix?In marketing, this refers to those elements of business that are designed to meet the needs of its customers; it's includes the price, product, promotion and place.
The conditions for a successful market segment are:
the buyer needs for the product must be heterogeneous.segments must be identifiable and divisibledifferent market segments must be comparable with respect to estimated sales potential, costs, and profitsa segment must have enough profit potential to justify developing and maintaining a special marketing mix for itfirm must be able to reach the chosen segment with a particular marketing mix.Read more about market segment
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Assets created by selling goods and services on credit are: multiple choice accounts payable. accounts receivable. liabilities. expenses. equity.
An asset created by selling goods and services on credit score is money owed receivable.
An asset is a resource with a financial value that a person, company, or the USA owns or controls with the expectancy that it will offer a future gain. property is mentioned on an employer's stability sheet. they're labeled as modern-day, fixed, economic, and intangible.
In monetary accounting, an asset is any useful resource owned or managed through a business or a financial entity. it's miles anything that may be used to produce fantastic financial cost. assets represent the fee of ownership that may be transformed into coins. assets can be grouped into two primary classes: tangible property and intangible assets. Tangible assets comprise various subclasses, along with contemporary property and glued assets. modern assets encompass coins, stock, and accounts receivable, even as constant belongings consist of land, buildings and equipment. Intangible assets are non-bodily assets and rights that have a price to the firm due to the fact they provide the company an advantage within the marketplace.
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trid requires that an informational booklet prepared by the cfpb be given to the borrower at the time of application or provided
TRID requires that an informational booklet prepared by the CFPB be given to the borrower at the time of application or provided within three days of the loan application.
TRID is a sequence of tips enforced through the customer financial protection Bureau (CFPB) that try to close some of the loopholes that unscrupulous lenders have used in the past to trick purchasers. TRID regulations dictate what loan statistics creditors need to offer to borrowers and when they need to offer it.
The Consumer Financial Protection Bureau is an organization of the USA authorities accountable for consumer safety in the financial zone. Complaints provide the Bureau with near actual-time records about the varieties of demanding situations customers are experiencing with monetary services and products. We use them to inform our efforts in client schooling, create clear rules of the road for groups, and take motion towards awful actors inside the marketplace.
The main purpose of the consumer financial protection Bureau is to defend customers from unfair, deceptive, or abusive practices and take action against agencies that break the regulation. We are human beings with the records, steps, and tools that they want to make smart monetary selections.
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10 points print item 4 assume that tea and lemons are complements and that coffee and tea are substitutes. a. how, if at all, will the imposition of an effective ceiling price on tea affect the price of lemons?
Based on the fact that an effective price ceiling was imposed on tea, the effect on the price of lemons is an increase in price.
What happens to complements after a price ceiling?When an effective price ceiling is introduced on a good like it was on tea, this would lead to an increase in demand for the tea.
The compliments such as lemon would then see an increase in demand as well because compliments are bought together. This increase in demand will lead to a rise in price.
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suppose your weekly earnings (the number on your paychecks) increase by 2 percent over the course of a year and prices in the economy rise by 3 percent. in this case, your earnings have increased and your earnings have decreased. please choose the correct answer from the following choices, and then select the submit answer button. answer choices
Suppose your weekly earnings (the number on your paychecks) decrease by 2 percent over the course of a year, and prices in the economy fall by 3 percent. In this case, your nominal earnings have Fallen and your real earnings have risen.
What is the economy?Economics can be defined as the market conditions that can be evaluated. It is regarding the trade and the buying and selling of goods and services. It is generally related to the amount of money flowing in the market.
Let's say that over the course of a year, your weekly wages decline by 2 percent, while prices throughout the economy reduce by 3 percent. Your real profits have increased in this instance, but your nominal earnings have decreased.
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