A limit order outlines a price at which you are prepared to purchase or sell. It will be put into action if there is a need or a supply for that price. A market order must be filled right away at the best active limit order.
Market orders and limit orders: what are they?Market orders are agreements that should be carried out as soon as practicable at the going rate. Limit orders define the highest and minimum prices at which you are willing to place a purchase or sell order. The difference between a stop order and a limit order is that a stop order is activated when an asset hits a specified price and is filled at the next available price. A limit order establishes a top price that you're willing to pay or a price floor that you're ready to pay. on a sale. In contrast to stop orders, limit orders are disclosed to the market.
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a house cost $395,000 to build new. it is 5 years old and has sustained a total of 10% depreciation. it sits on a lot worth $65,000. what is its indicated value by the cost approach?
A house cost $395,000 to build new. it is 5 years old and has sustained a total of 10% depreciation. it sits on a lot worth $65,000. The indicated value of the property amounts to $421,500.
What is the cost approach?The cost approach is a method used to determine the value of a property by estimating the cost to reproduce or replace the property, less any accumulated depreciation.
To calculate the indicated value of the house using the cost approach, we would use the following formula:
Indicated value = Reproduction or replacement cost - Accumulated depreciation + Land value
In this case, the house cost $395,000 to build new, is 5 years old, and has sustained a total of 10% depreciation. The land value is $65,000
The accumulated depreciation can be calculated as:
$395,000 x 10% = $39,500
So the indicated value of the house would be:
$395,000 - $39,500 + $65,000 = $421,500
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tony's job entails making sure his company's products get to retailers so that target customers can buy them. which element of the marketing mix is tony involved with?
Tony's job entails making sure his company's products get to retailers so that target customers can buy them. Distribution element of the marketing mix is tony involved with.
Distribution as part of the marketing mix is crucial for business expansion. Using a variety of types and techniques to expand reach and boost revenue is a great distribution channel approach.
Here are several distribution strategies for the marketing mix.
1. Direct- Direct distribution refers to the sale and delivery of goods by manufacturers to customers without the involvement of intermediaries or other organizations.
2. Indirect- Using various channels to get your product in front of customers is known as an indirect distribution strategy. Distribution typically takes place through channels that are direct to consumers or third-party retailers.
3. Intensive- A manufacturer can decide to reach as many stores as possible in order to gain market share. Intensive distribution may be used to describe this. The most typical products that are distributed in this way are candy bars, home goods, and beverages.
4. Exclusive- When a firm chooses just a few sales locations to offer their products, this is known as exclusive distribution.
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Transaction costs You would like to purchase one Class A share of Berkshire Hathaway through your Scottrade brokerage account. Scottrade charges a $7 commission for online trades. You log into your account, check the real-time quotes for Berkshire Hathaway (you see a bid price of $262 comma 875 and an ask price of $263 comma 790) and submit your order. A. What is the current bid/ask spread for Berkshire Hathaway Class A shares? b. If Scottrade routes your buy order to the NYSE, where Berkshire Hathaway is listed, what's the potential minimum your total transaction costs will be? c. If, instead, Scottrade routes your buy order to NASDAQ, where Berkshire Hathaway is not listed, what's the potential maximum your total transaction costs will be? d. Regardless of how your trade is executed, based on the bid/ask spread, what is the market value of your trade?
A genuine cost of trading stocks is always represented by the bid-ask spread and higher prices than are paid to sellers.
What does the difference between the asking and bid bond prices signify?
The cost of the transaction is the spread. The market maker buys at the bid price and sells at the ask price as opposed to price takers, who purchase at the ask price and sell at the bid price. For an asset, the ask indicates supply while the bid reflects demand. The bid-ask spread is the metric of choice for measuring market liquidity.
What is the reason for the bid-ask spread?
The majority of inexpensive securities are brand-new or modest in size. As a result, there are only a certain amount of these assets that may be exchanged, which reduces their liquidity. In the end, the bid-ask spread narrows.
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For PCL Construction, implementing new information technologies ________.
For PCL Construction, the implementation of new information technology is an essential part of their process to remain competitive in the industry. PCL has developed a comprehensive IT strategy that is tailored to their business needs and goals.
This strategy includes the use of new technologies such as cloud computing, mobile computing and enterprise resource planning (ERP) systems to help manage and store their data. In addition, PCL has implemented a company-wide project management system that provides an overview of all their projects while helping to monitor project progress and performance. Finally, PCL has implemented a comprehensive information security plan to protect the data stored on their systems. All of these technologies help PCL remain competitive by providing them with the tools necessary to effectively manage their operations and projects.
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henry and rita disagree about how to manage their finances after their marriage, and their children are concerned about receiving their inheritances. which of the following strategies would you recommend to address these issues? a) have henry and rita execute a premarital property agreement b) have henry and rita title all of their assets as jtwros after they get married c) have the families enter into a family settlement agreement d) have each spouse draft a will disinheriting the other
Have henry and rita execute a premarital property agreement and have henry and rita title all of their assets as jtwros after they get married.
What is meant by assets ?
An asset is anything that you own, usually something valuable. Your possessions, such as your home and clothing, can be considered assets.
Your equity is the value of the shares you purchased from a corporation.
Intangible assets include intellectual property rights, royalties, and other patents, as well as tangible goods such as machinery, real estate, raw materials, and inventories.
Common asset types include current, non-current, physical, intangible, operating, and non-operating assets.
If you can sell your possessions for cash, you have assets.
In accounting, an asset is any resource that a company owns or manages.
Anything that can be sold for money is eligible. We can calculate the equity value by looking at the assets and liabilities on a balance sheet.
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the measurement attribute based on future cash flows and the objective of approximating fair value in valuing an asset or liability is multiple choice question. historical cost present value current cost net realizable value
The measurement attribute based on future cash flows and the objective of approximating fair value in valuing an asset or liability is called present value. So option b. is correct.
Present value states that an amount of money today is worth more than the exact amount in the future. In other words, the present value indicates that money received in the future is not worth as much as a similar amount obtained today. Unspent money today could relinquish significance in the future by an indicated annual rate due to inflation or the rate of return if the money was financed. Calculating present value implicates inferring that a rate of return could be attained on the funds over the time.
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_____ a marketing is the trade of things of value between a buyer and seller so that each is better off afterward.
One of the fundamental components of marketing that was taken from economics is a. this refers to a transaction when goods of value are exchanged between buyer and supplier.
What word in any description of marketing is the most crucial?In marketing, the word relationship is crucial. The relationships you develop with both current and potential consumers are ultimately and specifically what set you apart from your rivals. Marketing's goal is to assist in fostering corporate ties with the appropriate demographic.
Which of the following best sums up marketing strategy?The marketing plan is a long term,, forward looking perspective and an overall game design of any company or organization with the core aim of establishing a long term competitive advantage via comprehending the wants and requirements of customers.
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You are an investment counselor, and your new 65-year-old client has come in for some advice. He is considering retiring in a year and wants to know more about how to make a return suitable for retirement income and still maintain his principle initial investment. Like most people, he knows very little about investing money and the many different investment securities available to him. Discuss what you would tell him
A diversified portfolio that includes both low-risk, low-return investments like bonds high-risk, increasing investment like stocks is what I advise, investing in securities that generate income, dividends or rental property.
Portfolio? What do you mean?A portfolio is a group of financial assets, such as securities, bonds, commodities, cash, as well as cash equivalents, such as closed-end funds and exchange-traded funds (ETFs). Most people think that a portfolio's core consists of stocks, bonds, and cash.
A portfolio with an example is what?A portfolio is, in the most basic sense, a grouping of investment opportunities that includes stocks, bond funds, cash, and other kinds of assets. Investing in various asset classes, such as stocks, bonds, and commodities, is common, but
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mike started a calendar-year business on september 1st of this year by paying 12 months of rent on his shop at $700 per month. what is the maximum amount of rent that mike can deduct this year under each type of accounting method?
The maximum amount of rent that Mike can deduct this year depends on the accounting method he is using. That is $ 2800 under the cash method and $ 8400 under the accrual method.
If Mike is using the cash method of accounting, he can deduct the rent payments that he actually paid during the tax year. Since he started the business on September 1st, he would have paid rent for the months of September, October, November, and December, a total of 4 months. Therefore, the maximum amount of rent that he can deduct this year is $700 x 4 = $2800.
If Mike is using the accrual method of accounting, he can deduct rent payments for the period that he is entitled to the use of the property, regardless of when he paid the rent. Since he started the business on September 1st and paid 12 months of rent in advance, he is entitled to use the property for the entire year. Therefore, the maximum amount of rent that he can deduct this year is $700 x 12 = $8400.
It's important to note that if Mike elected to use the cash method of accounting, he must stick with it for at least the first year of business and for future years unless he receives the IRS approval to change it.
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What is the annual inventory cost of the current system in
which product is produced, labeled, and packed in Malaysia
before being shipped to the DC?
2. How would the inventory cost change if labeling and packaging
were moved to the DC? Evaluate the change in
inventory costs as the correlation coefficient of demand
between any pair of customers varies from 0 to 0. 5 to 1. 0.
3. How should PE set up its production, labeling, and packaging
processes? Does your answer change if the additional
cost of labeling and packaging at the DC is reduced
to $1 (from the current value of $2)?
1) The time frame is typically one year. The total cost of inventory is the sum of the purchase, ordering, and holding charges. PC stands for purchase cost, OC for ordering cost, and HC for holding cost.TC stands for total cost.
What does inventory quantity mean?
A "economic order" (EOQ) is a quantity of inventory that, over time, lowers the overall cost of acquiring and maintaining inventory. The time frame is typically one year.
The total cost of inventory is the sum of the purchase, ordering, and holding charges. In a formula, the total cost (TC) is equal to the purchase cost (PC), the ordering cost (OC), and the handling cost (HC), where PC is the purchase cost.
2. If the inventory is postponed to DC, the aggregate demand at manufacturing for common items will be generate.
Average Aggregate demand for items is as follows: Dc = ∑Di
S.D of the aggregate demand is given as:
Var (DC) = ∑σi2 + 2∑ρiσi
S.D.c = Sqrt (Var (DC))
ρi = Coefficient of correlation
3. The Total Inventory cost of centralization of inventory or aggregation of demand is much more less than disaggregated demand.
Thus, it is advisable to move the labeling and packaging to DC.
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The major difficulty in most insider-trading cases has been Multiple choice a. That lenient judges have simply released the guilty individuals. b. That insider trading, even though illegal, actually serves a beneficial economic and financial purpose. c. That inside trades have not been legally well- defined. d. That it is hard to figure out which owner(s) benefited from the trade.
The major difficulty in most insider-trading cases is that it is hard to figure out which owner(s) benefited from the trade so option D is correct.
Insider trading is a form of illegal trading of stocks that occurs when a person with privileged information about a company buys or sells shares of that company’s stock. This privileged information can give the bigwig an advantage over other investors and can affect in gains or losses for them. Though insider trading is illegal, it's veritably delicate to trace the source of the illegal trading or to figure out which proprietor( s) served from the trade.
In numerous cases, tracing the source of the illegal trade is delicate due to the complexity of fiscal requests and the difficulty of tracing deals. also, because of the secretiveness involved in bigwig trading, it's delicate to establish guilt and prove beyond a reasonable mistrustfulness that a particular proprietor served from the trade. As a result, numerous bigwig- trading cases are delicate to make, performing in lenient rulings or the shamefaced individualities being released.
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what is the total market supply, qs, for laundry detergent in the united states if the only two suppliers inverse supply
The entire market supply for laundry detergent in the US would be Qs = 7 + 2P
If the two suppliers' inverse supply functions were P = -5 + Qs and P = -2 + Qs, respectively. This is due to the fact that the sum of the quantities supplied by each supplier at a given price point would represent the overall quantity supplied at that price point.
If there are just two providers and their inverse supply functions are P - 5 + Qs and P - 2 + Qs Z, then the total market supply for laundry detergent in the United States is provided by the formula: Qs = 7 + 2P.
Due to the fact that the total supply is the horizontal sum of all quantities supplied at a specific price point, this is the case. In this instance, the inverse supply functions for the two providers are P - 5 + Qs and P - 2 + Qsz.
Qs = 7 + 2P is the overall market supply as a result.
The horizontal total of all quantities supplied at a certain price point is known as the total market supply.
Therefore, the total market supply curve would look like this:
P = 0 → Qs = 7
P = 1 → Qs = 8
P = 2 → Qs = 9
and it will go on like this.
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An example of a controllable risk would be
(A) effects of a hurricane.
(B) effects of smoking.
(C) an act of war.
(D) effects of air pollution.
B). An example of a controllable risk would be effects of smoking.
A risk is a situation that involves exposure to danger. A controllable risk is the one that can be done something about while an uncontrollable risk is the one that cannot be done or corrected by us.
Some of the examples of controllable risk include smoking, high blood pressure, high cholestrol, obesity, over weight, stress, diabetes and many more.
While some of the examples of uncontrollable risk include age, gender, natural disasters, heart diseases based on age, gender, race and heredity.
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the maker of wrigley chewing gum funded a $10 million ad campaign aimed at getting african americans to use doctors for regular health care maintenance instead of only when they are sick. this is an example of
The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular healthcare maintenance instead of only when they are sick. Wrigley is taking a(n) proactive approach to social responsibility.
What is proactive approach to social responsibility?Proactive corporate social responsibility (CSR) refers to business strategies and practices that companies voluntarily employ that go above and beyond what is required by law in order to manage their social duties and, as a result, make significant and beneficial contributions to society. Economic, social, and environmental are the three foundations. These three major areas are the emphasis of a company's sustainable development strategy, and action plans are made in accordance with them. Instead of simply reacting to an already-occurring problem, a proactive approach involves taking action in advance of a potential future one. Being proactive means bringing about change inside the organization. According to the ethical principle of social responsibility, every person has an obligation to uphold their social responsibilities, and their deeds must benefit society as a whole.To learn more about proactive approach refer to:
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john is an economist with a large american fortune 500 company. while looking over the data, he observes that both the producer price index (ppi) and consumer price index (cpi) have been growing very fast for the last 3 quarters. john is afraid that:
John, as an economist, is likely afraid that the fast growth of both the Producer Price Index (PPI) and Consumer Price Index (CPI) for the last 3 quarters may indicate an overall increase in inflation.
This can harm the company's profits and competitiveness as it may have to raise its prices to keep up with the inflation which can lead to a decrease in demand for the company's products. Additionally, the fast growth of PPI and CPI can also indicate an increase in production costs, which can further decrease the company's profit margins. Furthermore, high inflation can also lead to a decrease in consumer purchasing power, which can negatively impact the company's sales.
It can also affect the exchange rate which can also impact the company's international trade.
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is the largest component of gdp in the united states.
The major portion of the GDP is consumption. The greatest and most consistent part of consumption in the US is services. Durable & non-durable goods & service costs are added together to determine.
What is food consumed by humans?Human consumption refers to the act of ingesting food, liquids, or other substances into the body, usually through the mouth; it excludes inhaling.
Which of the four consumption kinds are they?Convenience, shopping, specialized, and unsought consumer items are among the primary categories: Convenience: These products are widely used and accessible.
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Changes in the____or____system in the u.s. has an effect on business.
Business is impacted by modifications to the American political or economic structure.
What elements affect how business is done in the U. S.?Administrative, marketing, and finance are the primary corporate activities. The economy, competitiveness, technology, ethical and social issues, legal and regulatory pressures, and other variables all have an impact on how business is conducted.
What impact does the US have on the global economy?American customers are crucial because the country's economy makes up or more 30% of the global economy. The main market in the planet is America. Even Chinese businesses intend to expand their economies through sales to American customers.
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Unicorn Toys faces stiff competition from Playtime Inc. , a rival firm with which Unicorn Toys has achieved differentiation parity. Both firms have invested in state-of-the art production facilities and have similar learning curves of 85 percent. Assuming neither firm can reduce the cost of its input factors, how can Unicorn Toys achieve a competitive advantage as a cost leader? Multiple Choice Reduce the manufacturing staff by half to save on labor costs. Increase spending on product features. Have a cumulative output that is greater than Playtime Inc. S Eliminate several features that customers value to cut costs
As a cost leader, Unicorn Toys gains a competitive edge. by option A. Cut the manufacturing staff in half to save money on labour.
A cost leader is a firm that is able to produce goods or services at a lower cost than its competitors. In this case, Unicorn Toys has achieved differentiation parity with Playtime Inc. and both firms have similar learning curves of 85%. So, the only way for Unicorn Toys to achieve a competitive advantage as a cost leader is to reduce its costs. One way to do this is to reduce the manufacturing staff by half to save on labor costs. This would allow Unicorn Toys to produce goods at a lower cost than Playtime Inc. This would be a cost-cutting strategy, which would give a competitive advantage to Unicorn Toys.
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creating a win-win situation for all relevant parties so that everyone benefits from the decision is known as:
A negotiation should begin by establishing a firm position. However, if you become too firmly entrenched, confrontation may break out and the conversation may end abruptly. By engaging in "principled negotiating," a win-win negotiation strategy, you can prevent this.
A win-win negotiation involves carefully examining your own position as well as that of your counterpart in order to reach a solution that provides you both the most of what you desire. A win-win situation is one in which you both feel satisfied with the benefits of the agreement.
In a win-win situation, the other party will want what you are willing to trade for and you will be willing to offer him what he wants.
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An obligation of repayment owed by one party to a second party in most cases: repayment includes interest
An obligation of repayment owed by one party to a second party in most cases: repayment includes interest is caled a loan.
What do you mean by loan?A loan is a kind of debt that what a people or other entity incurs. The lender advances the borrower one certain amount of money, generally on the behalf of a business, financial institution, or government. The borrower adopts a specific list of conditions in return, that may include any economic costs, interest, a repayment plan, and other requirements.
What type of loan is easiest to get?Payday loans, auto equity loans, pawnshop loans, and no credit check personal loans are the loans which are the simplest to be approved for. These loans are affordable to individuals with a wide range of payment history because they offer immediate financing and have few conditions.
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dividends paid to corporate stockholders have already been taxed once as corporate income. TRUE OR FALSE
TRUE. Dividends given to shareholders of businesses have previously been subject to one corporate income tax.
What function do shareholders serve?As part of their ownership of a business, stockholders are entitled to a number of privileges, including voting rights over who sits on the board of directors, dividend payments, and even a claim to a piece of any remaining assets in the event of a corporate liquidation.
Can everyone own shares of stock?A shareholder or shareholder of a company is somebody who has shares of that company. A shareholder may be an individual, a group, or another business. Shareholders are an industry's real owners.. The shareholders gain from an increase in the value of their shares if the company does well.
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You’ve worked for several years in a department where most employees had recently graduated from college. Tomorrow, however, you start a new position, and most of your coworkers will be nearing retirement age. Based on research findings about people of the Baby Boomer generation, what attitudes can you expect your new colleagues to hold? Check all that apply.( ) They tend to feel loyalty to the organization.( ) They tend to place work at the center of their lives.( ) They tend to believe that hard work and sacrifice should be rewarded.( ) They tend to cultivate their individual identities and seek personalized experiences.
They tend to feel loyalty to the organization that attitudes can you expect your new colleagues to hold.
According to research on members of the Baby Boomer group, you can anticipate your new coworkers to have the following attitudes:
They frequently experience a sense of loyalty to the company (X).They frequently prioritise their careers over all else (X).They have a propensity to think that effort and sacrifice should be rewarded (X).They frequently cultivate their unique identities and look for experiences that are tailored to them.The following notions about career resilience are crucial to remember: () Job stability is a given because the economy has consistently developed over the long term. Some entire employment categories might not return as the economy recovers from a downturn.
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in terms of the production possibility frontier, inefficient use of available resources is shown by: group of answer choices a point inside the production possibility frontier. an increase in the labor force growth rate. an inward shift of the production possibility frontier due to the lack of opportunity. a movement from one point to another along the production possibility frontier.
A position inside the production possibility frontier, in terms of the production possibility frontier, illustrates poor use of the available resources.
What is production possibility frontier?The graph known as the Production Possibilities Frontier (PPF) shows all the output combinations of two different products that are feasible given the resources and technology currently in use.The production possibilities curve quantifies the trade-off between manufacturing one good versus another. Take the case of a country that produces 120,000 apples and 20,000 oranges, for instance. This is point B on the chart. Less apple production is necessary if it wishes to increase orange production. A community can generate a certain number of different combinations of products and services depending on the resources at its disposal, which is known as the production possibilities frontier, or PPF. Alternatives inside the PPF are ineffective, while alternatives outside it are impossible (at least in a sustained sense).To learn more about production possibility frontier, refer to:
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what is the future value of a 7%, 6-year ordinary annuity that pays $300 each year? if this were an annuity due, what would its future value be?
Its future value be Payment equals $300 annually
Interest rate (r) is equal to 7%, or 0.07 per annum.
Time (t) equals 5 years.
If it is an ordinary annuity, what is the Future Value (FV)?
Future Value (FV) if an annuity is due is equal to?
If an ordinary annuity, future value (FV) is as follows:
The end of the year or other period is when cash flow happens.
FV = C * [(1+r) t - 1)] / r
FV = 300 * [(1+0.07) 5 – 1)] / 0.07
FV = 300 * [(1.07) 5 – 1)] / 0.07
FV = 300 * [1.4025517307 – 1] / 0.07
FV = 300 * [0.4025517307] / 0.07
FV = 300 * 5.75073901
$1725.22 is the FV Ordinary Annuity.
If an annuity is due, Future Value (FV):
The following table shows the link between Present Value Ordinary Annuity, Future Value Ordinary Annuity, and Present Value Annuity Due:
Ordinary Annuity (PV or FV) * (1+r) = Annuity Due (FV or PV).
FV Ordinary Annuity * (1+r) = FV Annuity Due
$1725.22 * (1+0.07) is the FV Annuity Due.
Due FV Annuity: 1725.22 (1.07)
Due FV Annuity: $1845.98
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what is the core characteristic that defines a zero-based budget?
A budgeting method known as a zero-based budget entails allocating every dollar of monthly income. After taking into consideration all of your costs, income, and purchasing.
Which income do you refer to?The lot of cash, properties, and many other changes of value obtained over a predetermined length of time in return for services or goods are often referred to as "income." Income is defined in relation to the context to which the word is employed; there isn't single, universal definition.
What do business income and profit mean?Profit is the sum that remains after all costs have been deducted from the revenue, to put it simply. Simply said, income is the real amount of money that a business makes.
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Carefully specified objectives should have all of the following characteristics EXCEPT _______.
a. to provide motivation to employees b. to guide marketing strategies and tactics for the organization c. to have unspecified end dates d. to be consistent with the firm's mission statement
Carefully specified objectives should have all of the following characteristics EXCEPT to have unspecified end dates
Correct option is: c
What is specified objectives?Determine how the workplace influences performance, for instance, may be your general purpose. The exact goals you may have in this situation are "Determine whether sunshine helps performance" and "Measure how performance varies as work environment changes."
Instead of focusing on the performance of the trainer or the expected results of the instructional method on the job site, specific learning objectives characterize performance in terms of knowledge, attitudes, competence, ambition, and conduct.
Thus, correct option: c
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once a year at the annual employee meeting, the president of northwest bank, incorporated, reminds his employees of his belief that there are certain values everyone can agree on, such as honesty, fairness, and respect for life. which ethical system does the president believe in?
It is moral universalism type of ethical system in which president believes in.
The recognition of a single underlying truth is another essential component of universalism. Limitations or interpretations of that one truth based on national, cultural, or religious considerations are viewed as being less expansive than the actual truth. truth is one; sages have referred to it by many names. People from diverse backgrounds may be accepted by a group that identifies as universalist and emphasises the universal qualities present in the majority of religions. The pursuit of true global or universalist frameworks, such as human rights or international law, are both examples of contemporary universalism. The goal of the West to unify all people across geographic and other barriers under Western norms. number of firms believes in this ethical system as best suited system for efficient working.
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agency problems are least likely to arise in which organizational form? multiple choice sole proprietorship limited partnership corporation subchapter s corporation
Option A, Sole proprietors run unincorporated businesses. If you treat a domestic LLC as a corporation, you are not a sole proprietor.
There is no formal separation between the owner and the business entity in a sole proprietorship, which is also known as a sole trader ship, individual entrepreneurship, or proprietorship. In some cases, a sole proprietor may have employees in addition to themselves.
Considering that unregistered sole proprietorships are not afforded any legal protection by the state, this is arguably one of their biggest drawbacks. This means that the owner is personally responsible for all debts incurred by the company.
The profits of a sole proprietorship are subject to both income taxes and self-employment taxes, which the proprietor must declare and pay on their personal tax returns.
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The right way of asking the question is:
Agency problems would be least likely to arise
a) in sole proprietorships.
b) in partnerships with less than 3 partners.
c) in partnerships with 3 or more partners.
d) in for-profit corporations.
e) in not-for-profit corporations.
multiple choice: problems new business is just being formed by 10 investors, each of whom will own 10% of the business. the firm is expected to earn $500,000 before taxes each year. the corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. the firm does not need to retain any earnings, so all of its after-tax income will be paid out as dividends to its investors. the investors will have to pay personal taxes on whatever they receive. how much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation?
The government taxes income to run the country and provide common facilities like defense, among other things. The tax rate varies depending on the type of business entity you set up.
Income taxes are levied on individuals, while corporate taxes are levied on businesses.
What does it mean to levy taxes?In nearly every nation on the planet, governments impose compelled taxes on individuals or organizations. Although it can also be used for other purposes, the primary goal of taxation is to raise money for government expenditures.
Which three kinds of taxes are there?A progressive tax is one that taxes more of a person's income from people with higher incomes than from people with lower incomes. A proportional tax is one that imposes the same tax on all income groups. regressive tax: A tax that takes a larger share of income from groups with lower incomes than from groups with higher incomes.
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pann, a nongovernmental not-for-profit organization, received a cash gift with the stipulation that the principal be held for at least 20 years. how should the cash gift be recorded?
When a nongovernmental not-for-profit organization spends money for the purpose for which an external donor intended, then the expense is reported as Decrease in temporarily restricted net assets.
Pledges receivable, valued at their present values should unconditional pledges received by a nongovernmental not-for-profit entity that will be collected over more than one year be reported. A nongovernmental not-for-profit organization reports operating expenses only in the changes in unrestricted net assets section of the statement of activities. Balance sheet, income statement, statement of cash flows and statement of functional expenses are the required financial statements for nongovernmental not-for-profit organizations. Gains and losses can only be reported net of expenses in the statement of activities should a nongovernmental not-for-profit organization classify gains and losses on investments purchased with permanently restricted assets. Nonprofit organizations use public relations to help educate the public, increase donations and find volunteers.
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