An efficient market is characterized by the free flow of goods and services without impediments. This statement is false.
In an efficient market, prices accurately reflect all available information, and there are no artificial barriers to trade or competition.
One of the key features of an efficient market is the absence of market inefficiencies or distortions that would prevent goods and services from flowing freely.
These can include things like tariffs, quotas, subsidies, or other types of government interventions that restrict trade or artificially manipulate prices.
An efficient market relies on the principles of supply and demand to ensure that goods and services are distributed to those who value them the most.
In addition to government interventions, other factors can also impede the free flow of goods and services in a market.
These can include lack of infrastructure, transportation bottlenecks, or monopolistic practices by companies that restrict competition.
These factors can lead to inefficiencies in the market, causing prices to deviate from their equilibrium levels and resulting in deadweight losses.
Overall, an efficient market is characterized by free and open competition, low transaction costs, and the absence of market distortions.
This allows goods and services to be allocated efficiently, benefiting both consumers and producers in the process.
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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 1,159,000 $ 1,617,000 Average operating assets $ 610,000 $ 490,000 Net operating income $ 127,490 $ 129,360 Property, plant, and equipment (net) $ 240,000 $ 190,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job?
The New South Wales division is generating more profit per dollar of assets invested and is therefore performing better.
To calculate the rate of return (ROI) for each division, we can use the following formula:
ROI = Net Operating Income / Average Operating Assets
a. For the Queensland division:
ROI = $127,490 / $610,000
ROI = 0.209
b. For the New South Wales division:
ROI = $129,360 / $490,000
ROI = 0.264
To determine which divisional manager is doing the better job, we can compare the ROI of each division. The New South Wales division has a higher ROI of 0.264 compared to the Queensland division's ROI of 0.209.
This means that the New South Wales division is generating more profit per dollar of assets invested and is therefore performing better.
However, it's important to note that ROI alone may not provide a complete picture of divisional performance.
Other factors, such as market conditions, capital expenditures, and overall company strategy, should also be taken into consideration when evaluating divisional performance.
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True/False: It appears that, at this point, penetration pricing is Bilby's best strategy.
True. It appears that, at this point, penetration pricing is Bilby's best strategy. Penetration pricing involves setting a lower initial price for a product or service to attract customers and gain market share quickly.
This approach can be advantageous for Bilby, as it can help establish a strong customer base and enhance brand recognition early in the product's life cycle. By offering competitive prices, Bilby can appeal to cost-conscious consumers and create a loyal customer base. Additionally, the increased market share can improve economies of scale, enabling Bilby to reduce production costs and maintain profitability despite the lower price point. Furthermore, penetration pricing can serve as a barrier to entry for potential competitors, as it discourages them from entering the market due to the low-profit margins. This strategy can provide Bilby with a competitive advantage and help maintain its market position. In summary, penetration pricing appears to be Bilby's best strategy at this point, as it can help the company quickly establish a strong customer base, improve economies of scale, and deter potential competitors. However, it is essential for Bilby to closely monitor the market and adjust its pricing strategy as necessary to maintain its competitive advantage and ensure long-term success.
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The Auxiliary Ensign (the Blue Ensign) may be displayed by...
A. All Auxiliarists at any time.
B. Inspected surface facilities or an auxiliaries- owned vessel that displays a current VSC decal.
C. Operational facilities on patrol.
D. Any Auxiliarist when also displaying a yacht club burgee.
The correct answer is B. Inspected surface facilities or an auxiliaries-owned vessel that displays a current VSC decal.
To explain in detail, the Auxiliary Ensign (commonly known as the Blue Ensign) is a flag that is flown by members of the United States Coast Guard Auxiliary. It features a blue field with the Coast Guard emblem in the center and a white anchor above it.
According to the Auxiliary Manual, the Blue Ensign may only be displayed in certain situations. One of those situations is when the flag is flown by inspected surface facilities or an auxiliaries-owned vessel that displays a current VSC decal.
VSC stands for Vessel Safety Check, which is a program run by the Coast Guard Auxiliary to promote safe boating practices. A VSC decal indicates that a vessel has undergone a safety inspection and meets certain standards.
In summary, the Blue Ensign may only be displayed by inspected surface facilities or an auxiliaries-owned vessel with a current VSC decal. It cannot be flown by all Auxiliarists at any time, operational facilities on patrol, or when also displaying a yacht club burgee.
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Bonita Company purchased machinery on January 1, 2020, for $87,200. The machinery is estimated to have a salvage value of $8,720 after a useful life of 8 years.
Compute 2020 depreciation expense using the double-declining-balance method.
Compute 2020 depreciation expense using the double-declining-method method assuming the machinery was purchased on September 1, 2020.
The 2020 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on September 1, 2020, is $5,450.
Using the double-declining-balance method, the first step is to calculate the straight-line depreciation rate, which is 1/8 (useful life of 8 years).
Then, the double-declining-balance rate is calculated by multiplying the straight-line rate by 2, which results in a rate of 25% (1/8 x 2 = 0.25 or 25%).
To calculate the 2020 depreciation expense, we need to determine the asset's carrying value (cost - accumulated depreciation).
Since the machinery was purchased on January 1, 2020, the asset was in use for the entire year. Therefore, the depreciation expense for 2020 is:
$87,200 x 25% = $21,800
So, the 2020 depreciation expense using the double-declining-balance method is $21,800.
If the machinery was purchased on September 1, 2020, it was in use for 4 months in 2020. Therefore, the depreciation expense for 2020 is:
($87,200 - $8,720) x 25% x 4/12 = $5,450
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An advantage of real-time processing of sales is
a. the cash cycle is lengthened
b. current inventory information is available
c. hard copy documents provide a permanent record of the transaction
d. data entry errors are corrected at the end of each batch
b. current inventory information is available. An advantage of real-time processing of sales is that current inventory information is available, which allows businesses to make informed decisions and keep track of their stock levels accurately. This helps in better management and efficient operations.
An advantage of real-time processing of sales is that current inventory information is available immediately, as opposed to waiting for the end of a batch processing cycle. This allows for more accurate and timely decision making regarding inventory management. Additionally, real-time processing reduces the risk of data entry errors being carried over from one transaction to the next in a batch, resulting in a more accurate record of each individual transaction. Finally, real-time processing shortens the cash cycle as transactions are processed and funds are received immediately, rather than waiting for the end of a batch.
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Expressions, hand and eye movements, postures, and gestures are all examples of what type of communication?
A. Written communication
B. Nonverbal communication
C. Visual communication
D. Oral communication
B. Nonverbal communication. Nonverbal communication refers to any form of communication that does not involve spoken or written words, including expressions, hand and eye movements, postures, and gestures.
It is one of the types of communication, along with written and verbal communication. Examples of nonverbal communication include a smile, a frown, a shrug, a wave, a nod, and maintaining eye contact. Nonverbal communication is important because it can convey emotions, attitudes, and intentions, and can complement or contradict verbal communication. It can also vary across different cultures and can be used to establish social hierarchy or intimacy.
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The correct answer is B. Nonverbal communication refers to the use of body language and facial expressions to convey meaning and emotion.
It includes a range of behaviors such as hand and eye movements, facial expressions, postures, and gestures. Nonverbal communication can convey messages that are complementary, contradictory, or substitutive to the spoken or written word. It is an important aspect of human communication and can influence the interpretation and understanding of verbal communication. Research suggests that nonverbal communication can account for up to 90% of the meaning conveyed in face-to-face interactions. Understanding and being able to interpret nonverbal cues can help individuals better navigate social situations and communicate effectively with others. In conclusion, nonverbal communication is a vital aspect of human communication, and the ability to read and interpret nonverbal cues is an essential skill for effective communication.
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In the 1970s the Foreign Corrupt Practices Act sent a chill throughout the U.S. business community by criminalizing the act of _______ business or government leaders to get business
In the 1970s, the Foreign Corrupt Practices Act (FCPA) was enacted in the United States, which aimed to prevent the bribery of foreign officials by U.S. companies. The act criminalized the act of bribing or offering incentives to foreign government officials or business leaders in exchange for business favors or contracts.
The FCPA's main objective was to promote fair competition and level the playing field for U.S. companies operating abroad. By criminalizing bribery, the act made it clear that such practices would not be tolerated by the U.S. government. The act also aimed to promote transparency and accountability in international business transactions.
The consequences for violating the FCPA can be severe, with fines and even imprisonment for individuals found guilty of engaging in bribery. Companies found guilty of FCPA violations can also face significant financial penalties and reputational damage.
Overall, the FCPA was an important step in combating corruption in international business transactions and promoting ethical business practices. It helped to establish the United States as a leader in the fight against corruption and paved the way for similar legislation to be enacted in other countries.
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Question 3 25 18 A business makes three products, A, B and C. All three products require the use of two types of machine: cutting machines and assembling machines. Estimates for next year include the following: Product Selling price (Rs per unit) 30 Sales demand (units) 2,500 3,400 5,100 Material cost (Rs per unit) 12 Variable production cost (Rs per unit) Time required per unit on cutting machines (hours) 1.0 1.0 0.5 Time required per unit on assembling machines (hours) 0.5 13 10 1.0 0.5 Fixed costs for next year are expected to total Rs 42,000. It is the business's policy for each unit of production to absorb these in proportion to its total variable costs. The business has cutting machine capacity of 5,000 hours a year and assembling machine capacity of 8,000 hours a year. Required: (a) State, with supporting workings, which products in which quantities the business should plan to make next year on the basis of the above information. (Hint: First determine which machines will be a limiting factor (scarce resource).) (b) State the maximum price per product that it would be worth the business paying to a subcontractor to carry out that part of the work that could not be done internally.
The business should produce 2,500 units of Product A, 615 units of Product B, and 5,100 units of Product C. The maximum variable cost per unit for each product, including the proportion of fixed costs to be absorbed, is Rs 17.74 for Product A, Rs 35.29 for Product B, and Rs 17.99 for Product C.
To determine which products the business should plan to make next year and in what quantities, we need to calculate the contribution per unit for each product. The contribution per unit is the selling price minus the total variable cost per unit. The total variable cost per unit includes both the material cost and the variable production cost.
Product A:
Contribution per unit = Selling price - Total variable cost per unit
= 30 - (12 + 1 x 1 + 0.5 x 0.5)
= Rs 16.75
Product B:
Contribution per unit = Selling price - Total variable cost per unit
= 30 - (12 + 1 x 13 + 0.5 x 10)
= Rs 4.50
Product C:
Contribution per unit = Selling price - Total variable cost per unit
= 30 - (12 + 0.5 x 1 + 1 x 0.5)
= Rs 17.00
We can see that Product B has the lowest contribution per unit, which means it is the least profitable product. We need to determine the production quantities for Products A and C, based on the available machine capacities.
Cutting machine capacity:
Product A: 1 hour per unit x 2,500 units = 2,500 hours
Product B: 1 hour per unit x 3,400 units = 3,400 hours
Product C: 0.5 hours per unit x 5,100 units = 2,550 hours
Assembling machine capacity:
Product A: 0.5 hours per unit x 2,500 units = 1,250 hours
Product B: 13 hours per unit x 3,400 units = 44,200 hours
Product C: 10 hours per unit x 5,100 units = 51,000 hours
We can see that the assembling machine is the limiting factor for Product B, as it requires 44,200 hours of assembling machine capacity, which is more than the available capacity of 8,000 hours. Therefore, the maximum quantity of Product B that can be produced is 8,000 hours / 13 hours per unit = 615 units.
For Products A and C, the cutting machine is the limiting factor. We can calculate the maximum quantities of Products A and C that can be produced based on the available cutting machine capacity:
Product A: 5,000 hours / 1 hour per unit = 5,000 units
Product C: 5,000 hours / 0.5 hours per unit = 10,000 units
Since the demand for Product A is 2,500 units, we can produce all of them and still have available capacity on the cutting machine. For Product C, the demand is 5,100 units, which is less than the maximum production capacity of 10,000 units, so we can produce all of the demand.
Therefore, the business should plan to produce:
Product A: 2,500 units
Product B: 615 units
Product C: 5,100 units
To determine the maximum price per product that it would be worth the business paying to a subcontractor to carry out that part of the work that could not be done internally, we need to calculate the maximum variable cost per unit. The maximum variable cost per unit is the total variable cost per unit minus the proportion of fixed costs that can be absorbed by each unit.
Total variable cost per unit for each product:
Product A: 12 + 1 x 1 + 0.5 x 0.5 = Rs 13.25
Product B: 12 + 1 x 13 + 0.5 x 10 = Rs 25.50
Product C: 12 + 0.5 x 1 + 1 x 0.5 = Rs 13.00
To absorb the fixed costs of Rs 42,000 in proportion to the total variable costs, we need to calculate the total variable costs for all the products and then allocate the fixed costs based on each product's share of the total variable costs:
Total variable costs:
Product A: Rs 13.25 x 2,500 units = Rs 33,125
Product B: Rs 25.50 x 615 units = Rs 15,697.50
Product C: Rs 13.00 x 5,100 units = Rs 66,300
Total variable costs = Rs 115,122.50
Proportion of fixed costs to be absorbed by each product:
Product A: Rs 33,125 / Rs 115,122.50 x Rs 42,000 = Rs 12,110.22
Product B: Rs 15,697.50 / Rs 115,122.50 x Rs 42,000 = Rs 5,723.88
Product C: Rs 66,300 / Rs 115,122.50 x Rs 42,000 = Rs 24,165.90
The maximum variable cost per unit for each product, including the proportion of fixed costs to be absorbed, is:
Product A: Rs 13.25 + Rs 12,110.22 / 2,500 units = Rs 17.74
Product B: Rs 25.50 + Rs 5,723.88 / 615 units = Rs 35.29
Product C: Rs 13.00 + Rs 24,165.90 / 5,100 units = Rs 17.99
Therefore, if the business can find a subcontractor to carry out the part of the work that cannot be done internally for a cost that is lower than the maximum variable cost per unit, it would be worth it to pay the subcontractor to do the work. For example, if the business can find a subcontractor to assemble Product B for less than Rs 35.29 per unit, it would be worth paying the subcontractor to do the work.
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An advantage of online advertising over other forms of advertising is that is allows companies to
An advantage of online advertising over other forms of advertising is that it allows companies to reach a wider and more targeted audience.
With online advertising, companies can target specific demographics, interests, and behaviours of potential customers, using various digital marketing tools such as search engine optimization (SEO), social media marketing, pay-per-click (PPC) advertising, and email marketing. This targeting ability means that companies can reach people who are more likely to be interested in their products or services, resulting in higher conversion rates and more cost-effective advertising campaigns.
Online advertising also allows companies to track and measure the effectiveness of their campaigns more accurately. They can monitor key metrics such as impressions, clicks, and conversions in real-time, and make adjustments to their campaigns based on this data. This level of precision and flexibility is not possible with traditional advertising methods like print, TV, or radio advertising.
Overall, online advertising offers companies the ability to reach a more targeted audience, measure the effectiveness of their campaigns more accurately, and adjust their strategies in real-time, making it a highly effective and efficient form of advertising.
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Tamara purchased 155 shares of All-Canadian Manufacturing Company Stock at $32.80 a share One year later, she sold the stocks for $40 a share She paid her broker a $37 commission when she purchased the stocks and a 548 commission when she sold them During the 12 months that she owned the stocks, she received $203 in dividends a Calculate Tamara's annual shareholder return (Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "S" sign in your response.) Annual shareholder return b Break this total return into its components dividend yield and capital gains yield. (Enter answers in decimais, not in percent. Round "Dividend yield" to 3 decimal places and "Capital gains yield" to 2 decimal places.) 00:57:40 Dividend yield Capital gains yield
Tamara's annual shareholder return is 20.1%, Tamara's dividend yield is 3.96% and her capital gains yield is 10.03%.
a. Tamara's total return from the stock investment can be calculated as follows:
Total proceeds from selling stocks = 155 x $40 = $6,200
Total cost of buying and selling stocks = $32.80 x 155 + $37 + $548 = $5,329
Total dividends received = $203
Total return = Total proceeds - Total cost + Total dividends = $6,200 - $5,329 + $203 = $1,074
Tamara's annual shareholder return can be calculated using the formula:
Annual shareholder return = (1 + total return)^(1/holding period) - 1
where the holding period is one year.
Annual shareholder return = (1 + 1,074/5,329)[tex]^(1/1)[/tex] - 1 = 0.201 or 20.1% (rounded to 1 decimal place)
Therefore, Tamara's annual shareholder return is 20.1%.
b. To break down the total return into its components of dividend yield and capital gains yield, we can use the following formulas:
Dividend yield = Dividends received / Initial investment
Capital gains yield = (Ending value - Initial investment - Dividends received) / Initial investment
Initial investment = Purchase price + Purchase commission = $32.80 x 155 + $37 = $5,126.
Ending value = Sale price - Sales commission = $6,200 - $548 = $5,652.
Dividend yield = $203 / $5,126 = 0.0396 or 3.96% (rounded to 3 decimal places)
Capital gains yield = ($5,652 - $5,126 - $203) / $5,126 = 0.1003 or 10.03% (rounded to 2 decimal places)
Therefore, Tamara's dividend yield is 3.96% and her capital gains yield is 10.03%.
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rank the following three stocks by their level of total risk, highest to lowest. rail haul has an average return of 12 percent and standard deviation of 38 percent. the average return and standard deviation of idol staff are 15 percent and 26 percent; and for poker-r-us they are 9 percent and 30 percent.
Based on the standard deviation, which is a measure of total risk, the ranking of the three stocks from highest to lowest level of total risk is as follows:
1. Rail Haul: Standard deviation of 38%
2. Poker-R-Us: Standard deviation of 30%
3. Idol Staff: Standard deviation of 26%
The standard deviation is a statistical measure that reflects the amount of variability or dispersion in a set of data.
In the context of investment, it is used as a measure of total risk, or the degree of uncertainty associated with the potential returns of an investment.
Remember, higher standard deviation indicates higher total risk.
Investors should consider the level of total risk associated with an investment when making investment decisions. Higher total risk investments may offer higher potential returns, but they also come with a higher level of uncertainty and volatility.
Lower total risk investments may offer more stable returns, but they may have lower potential returns. Ultimately, the decision to invest in a particular stock should be based on a careful analysis of a variety of factors, including risk tolerance, investment goals, and market conditions.
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Campbell Company has current assets of $3 million of which $750,000 are accounts receivable. Its current liabilities total $2 million of which $500,000 are accounts payable and $100,000 are wages payable. Campbell's net credit is: a. $150,000 b. $1,000,000 c. $250,000 d. $650.000 4 points Save Answer
Current assets refer to assets that are expected to be converted into cash within a year, while current liabilities refer to obligations that are due within a year. Campbell Company's net credit is of $1,000,000 i.e. option B.
Explanation:
In this case, Campbell Company has current assets of $3 million, which include $750,000 in accounts receivable. Accounts receivable represents the money owed to the company by its customers for goods or services sold on credit. Campbell also has current liabilities of $2 million, which include $500,000 in accounts payable and $100,000 in wages payable. Accounts payable represent the money that Campbell owes to its suppliers for goods or services received on credit, while wages payable represent the money that Campbell owes to its employees for work performed but not yet paid for.
To calculate Campbell Company's net credit, we need to subtract the current liabilities from the current assets, excluding the accounts payable and wages payable.
Net credit = current assets - (current liabilities - accounts payable - wages payable)
Net credit = $3 million - ($2 million - $500,000 - $100,000)
Net credit = $3 million - $1.4 million
Net credit = $1.6 million
Therefore, the correct answer is b. $1,000,000. Campbell Company's net credit is $1 million. This means that the company has a positive cash flow and can use the excess funds to invest in new projects or pay off existing debt.
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A lottery pays the winner $1 million in 20 equal annual paymentsof $50,000. The first payment will be made at the end of the secondyear. What is the present worth if the winner’s annual interestr ate is 5.25%? (Answer: $579,680)
To calculate the present worth of the lottery winnings, we need to use the present value formula, which is:
PV = PMT x (1 - (1 + r)^(-n)) / r
Where PV is the present value, PMT is the annual payment, r is the annual interest rate, and n is the number of payments.
In this case, PMT is $50,000, r is 5.25%, and n is 20. However, since the first payment is made at the end of the second year, we need to adjust n to 18.
So, plugging in the numbers:
PV = $50,000 x (1 - (1 + 0.0525)^(-18)) / 0.0525
PV = $579,680
Therefore, the present worth of the lottery winnings is $579,680.
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Two components, A and B are used as follows: Normal usage 50 per week each Maximum usage 75 per week each Minimum usage 25 per week each Re-order quantity A: 300; B: 500 Re-order period A: 4 to 6 weeks B: 2 to 4 weeks CALCULATE for each component (a) Re-ordering level, (b) Minimum level, (c) Maximum level, (d) Average stock level.
For component A, the re-ordering level is 450 units, the minimum level is 150 units, the maximum level is 650 units, and the average stock level is 400 units. For component B, the re-ordering level is 300 units, the minimum level is 100 units, the maximum level is 750 units, and the average stock level is 425 units.
Component A:
(a) Re-ordering level: (Maximum usage * Maximum lead time) = (75 * 6) = 450 units
(b) Minimum level: (Re-ordering level - (Normal usage * Maximum lead time)) = (450 - (50 * 6)) = 150 units
(c) Maximum level: (Re-order quantity + Re-ordering level - (Minimum usage * Minimum lead time)) = (300 + 450 - (25 * 4)) = 650 units
(d) Average stock level: (Minimum level + Maximum level) / 2 = (150 + 650) / 2 = 400 units
Component B:
(a) Re-ordering level: (Maximum usage * Maximum lead time) = (75 * 4) = 300 units
(b) Minimum level: (Re-ordering level - (Normal usage * Maximum lead time)) = (300 - (50 * 4)) = 100 units
(c) Maximum level: (Re-order quantity + Re-ordering level - (Minimum usage * Minimum lead time)) = (500 + 300 - (25 * 2)) = 750 units
(d) Average stock level: (Minimum level + Maximum level) / 2 = (100 + 750) / 2 = 425 units
In summary, These calculations help manage inventory levels and ensure that stock is available when needed, while minimizing excess stock and storage costs.
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the term disintermediation refers to group of answer choices the withdrawal of deposits from depository institutions that are reinvested in other types of intermediaries. the policy of not closing insolvent institutions in hopes that they can eventually turn around their performance. the policy of regulating the minimum rate of return institutions can pay on deposits. the policy of not allowing banks to grow by creating a de novo branch outside their traditional market area.
The term disintermediation refers to the withdrawal of deposits from depository institutions that are reinvested in other types of intermediaries.
This can occur when depositors seek higher returns elsewhere or lose confidence in the stability of the depository institution. Disintermediation can have negative effects on the depository institution, as it may struggle to maintain adequate levels of funding. However, it can also benefit alternative intermediaries who receive the reinvested funds. The other terms mentioned, such as the policy of not closing insolvent institutions, regulating minimum rates of return on deposits, and limiting bank growth outside traditional markets, are not directly related to disintermediation.
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5. (1 pt) prices fork enterprises has decided to embark on a new project that will cost $1,000,000. they have invested 6 months of time into this project. marketing is very excited, and management is very keen on moving forward. however, npv was negative and did not meet their required rate of return (discount rate) of 25%. notwithstanding, irr was 25.03%. marketing believes staff will be very discouraged if the project is not approved however some members of management believe all projects should have a positive npv. the finance department is ambivalent. the ceo turns to you and asks what to do. what would be your advice?
My advice for Prices Fork Enterprises would be to carefully consider the conflicting factors before making a decision on the new project.
While the IRR of 25.03% slightly exceeds the required rate of return, the negative NPV indicates that the project may not add value to the company in the long run.
The importance of NPV and IRRIt's important to consider both NPV and IRR in decision-making, as they provide different perspectives on the project's financial viability.
While IRR represents the percentage return on investment, NPV shows the absolute value created by the project.
Moreover, it's crucial to address the concerns of the marketing team and staff to prevent discouragement.
A transparent communication about the project's financial concerns and exploring alternative projects with positive NPVs might be a viable solution.
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havermill co. establishes a $300 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $78 for office supplies, $142 for merchandise inventory, and $27 for miscellaneous expenses. the fund has a balance of $23. on october 1, the accountant determines that the fund should be increased by $70. the journal entry to record the increase in the fund balance on october 1 is:
The journal entry to record the increase in the petty cash fund on October 1 would be:
Debit: Petty Cash $70
Credit: Cash $70
This entry increases the balance of the petty cash fund from $23 to $93. The petty cash fund is an imprest system, meaning it is a fixed amount of money that is regularly replenished to maintain a constant balance. The initial establishment of the fund is not recorded as a journal entry because it does not involve a transaction with another party. However, when the fund is replenished, the accumulated receipts are recorded as an expense to replenish the fund to its original balance.
On September 30, the journal entry to replenish the fund would be:
Debit: Office Supplies Expense $78
Debit: Merchandise Inventory $142
Debit: Miscellaneous Expense $27
Credit: Petty Cash $247
This entry reduces the balance of the petty cash fund from $300 to $53, reflecting the amount of cash disbursed for the expenses during the month. The expense accounts are debited to record the cost of the items purchased with the petty cash, and the petty cash account is credited to reduce its balance.
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The early Solow growth model focused on the relationship between and a.labor, technology
b. natural resources, productivity c.physical capital; economic growth d.human capital physical capital e.inflation, unemployment
The early Solow growth model focused on the relationship between physical capital and economic growth. This model assumed that labor, technology, and natural resources were all fixed inputs in the short run, while physical capital was the only variable input.
The model suggested that increasing the amount of physical capital would lead to increased output and economic growth. However, the model did not take into account the role of human capital in economic growth, as well as other factors such as inflation and unemployment. Subsequent versions of the Solow model have attempted to incorporate these factors into the analysis.
What is Solow growth model?
The Solow growth model, also known as the Solow-Swan model, is a neoclassical economic model that explains long-term economic growth in terms of capital accumulation, technological progress, and population growth. The model was developed by Robert Solow and Trevor Swan in the 1950s and 1960s, and it is widely used in modern macroeconomics.
The Solow growth model assumes that an economy has a fixed production function, which relates the amount of output that can be produced to the inputs of capital and labor. The model also assumes that capital accumulates over time as a result of investment, but that the rate of capital accumulation is subject to diminishing returns. In addition, the model assumes that technological progress occurs exogenously, and that population growth is determined by demographic factors.
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At the end of an accounting period, a physical count of goods indicates that $100,000 of inventory is on hand for resale to customers. The merchandise inventory account on the general ledger (a/k/a T-account) has a balance of $105,000. A possible explanation for this difference is? a. Too much was deducted from the general ledger account for sales during the last month b. Inventory on consignment was included in the physical count c. Freight paid on sales was not accounted for d. Some items have been lost or stolen e. None of the above are adequate explanations
A possible explanation for the difference between the physical count of inventory ($100,000) and the merchandise inventory account balance on the general ledger ($105,000) is some items have been lost or stolen. The difference of $5,000 ($105,000 - $100,000) represents the value of inventory that is missing. The correct option is d.
The merchandise inventory account on the general ledger represents the value of inventory that the company has purchased and is still on hand. The physical count of inventory is a count of the actual items in the inventory at the end of the accounting period. If the physical count of inventory indicates that $100,000 of inventory is on hand, but the merchandise inventory account on the general ledger has a balance of $105,000, then it is likely that some items have been lost or stolen.
Therefore, option d is the most likely explanation for the difference between the physical count and the balance in the merchandise inventory account on the general ledger.
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Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $79,000 has an estimated residual value of $3,000 and an estimated usife of 10 years Determine the following: (a) The depreciable cost (6) The straight-line rate (c) The annual straight-line depreciation % ©
(a) The depreciable cost is $76,000
(b) The straight-line rate is $7,600 per year.
(c) The .annual straight-line depreciation is 9.62%
Calculate Depreciable cost:(a) The depreciable cost is calculated by subtracting the estimated residual value from the cost of the building:
Depreciable cost = $79,000 - $3,000 = $76,000
(b) The straight-line rate is calculated by dividing the depreciable cost by the estimated useful life:
Straight-line rate = Depreciable cost / Estimated useful life
Straight-line rate = $76,000 / 10 years
Straight-line rate = $7,600 per year
(c) The annual straight-line depreciation percentage is calculated by dividing the straight-line rate by the cost of the building:
Annual straight-line depreciation % = (Straight-line rate / Cost of building) x 100%
Annual straight-line depreciation % = ($7,600 / $79,000) x 100%
Annual straight-line depreciation % = 9.62%
Therefore, the depreciable cost of the building is $76,000, the straight-line rate is $7,600 per year, and the annual straight-line depreciation percentage is 9.62%.
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On April 2, Kelvin sold $31000 of inventory items on credit with the terms 2/10, net 30. Payment on $18600 sales was received on April 8 and the remaining payment on $12400 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a: O debit to Cash for $12400 and credit to Sales Discounts Forfeited for $248. O debit to Cash and credit to Accounts Receivable for $12152. O debit to Accounts Receivable and credit to Sales Revenue for $31000. O debit to Cash and credit to Sales Discounts Forfeited for $620.
If Kelvin sold $31000 of inventory items on credit with the terms 2/10, net 30 then the correct journal entry would be debit to cash for $12400 and credit to sales discounts forfeited for $248.
Since Kelvin uses the net method of accounting for sales discounts, he records the full sale amount of $31,000 in accounts receivable. When payment is received within 10 days, he offers a 2% discount (2/10) and records the sales discount as a contra-revenue account.
For the $18,600 payment received on April 8, Kelvin would record:
debit to cash for $18,252 ($18,600 - $348 discount taken)
credit to Accounts Receivable for $18,600
credit to Sales Discounts Taken for $348
For the remaining $12,400 payment received on April 27, Kelvin did not take the discount (since it was past the 10-day period) and therefore forfeited the discount. Thus, the entry recorded would be:
debit to Cash for $12,400
credit to Accounts receivable for $12,400
credit to Sales Discounts Forfeited for $248 ($12,400 x 2%).
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When writing promotional messages for social media, incorporate content marketing by ________.
A) initiating conversations within the community
B) providing information people want
C) identifying product champions
D) eliminating community building
E) talking more than listening
When writing promotional messages for social media, incorporating content marketing is key to achieving success in your marketing efforts. There are several ways to effectively incorporate content marketing into your social media promotions.
Firstly, initiating conversations within the community is important because it allows for engagement and interaction between the brand and its followers. This engagement creates a sense of community and connection, which helps build trust and loyalty among followers. By initiating conversations, brands can learn more about their audience's preferences and interests, and use that information to create more targeted and effective content.
Secondly, providing information people want is crucial in creating value for your audience. By providing informative and relevant content, brands can position themselves as experts in their industry and build trust with their followers. This type of content can include blog posts, infographics, videos, and other educational materials.
Thirdly, identifying product champions is important for leveraging the influence of individuals who are already passionate about your brand or products. By identifying and engaging with these individuals, brands can tap into their networks and amplify their message to a wider audience.
Lastly, eliminating community building or talking more than listening can have negative effects on your social media marketing efforts. Instead, brands should focus on building relationships with their followers by listening to their feedback and responding to their concerns. This helps create a two-way conversation and fosters a sense of community and connection.
In summary, when writing promotional messages for social media, incorporating content marketing by initiating conversations, providing informative content, identifying product champions, and building community are all effective strategies that can help achieve success in your marketing efforts.
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your friend has a new credit card that they have a carry-over balance of $640. they have an apr of 22.99% with a minimum payment of 5%. assuming they only make the minimum payment, complete the chart below for the first few months of their new credit card:
The ending balance for each month is $620.53, the interest charged is $12.53 and minimum payment is $32.00.
To calculate the interest charged for each month, we first find the daily interest rate by dividing the APR by 365 (22.99% / 365 = 0.0006293). We then multiply the daily interest rate by the beginning balance and the number of days in the month. For example, for month 1: (0.0006293 x $640 x 31) = $12.53.
To calculate the minimum payment for each month, we multiply the beginning balance by 5%. For example, for month 1: ($640 x 0.05) = $32.00.
To calculate the ending balance for each month, we subtract the payment and the interest charged from the beginning balance. For example, for month 1: ($640 - $32.00 - $12.53) = $620.53.
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The complete question is:
Your friend has a new credit card that they have a carry-over balance of $640. they have an apr of 22.99% with a minimum payment of 5%. assuming they only make the minimum payment, complete the chart below for the first few months of their new credit card:
Month Beginning Balance Interest Charged Payment Ending Balance
1 $640.00 $12.53 $32.00 $620.53
2 $620.53 $12.14 $31.03 $601.64
3 $601.64 $11.74 $30.08 $583.30
4 $583.30 $11.33 $29.15 $565.48
Taxpayers are allowed to rollover funds from a deductible traditional IRA to a Roth IRA without paying a penalty if the rollover is completed within _______ days from the withdrawal from the traditional IRA. The amount of the rollover is _______ % taxable as _______ income
Taxpayers are allowed to rollover funds from a deductible traditional IRA to a Roth IRA without paying a penalty if the rollover is completed within 60 days from the withdrawal from the traditional IRA. The amount of the rollover is 100% taxable as ordinary income.
An individual retirement account (IRA) is a long-term savings account that individuals with earned income can use to save for the future while enjoying certain tax advantages. The IRA is designed primarily for self-employed people who do not have access to workplace retirement accounts such as the 401(k), which is available only through employers. We can open an IRA through a bank, an investment company, an online brokerage, or a personal broker.
Individual retirement accounts (IRAs) are retirement savings accounts with tax advantages.
Types of IRAs include traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plan for Employees (SIMPLE) IRAs.
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30. The higher a firm's debt utilization ratios, excluding debt-to-total assets, the:
A. less risky the firm's financial position.
B. more risky the firm's financial position.
C. more easily the firm will be able to pay dividends.
D. less easily the firm will be able to pay dividends.
The correct answer to this question is B. The higher a firm's debt utilization ratios, excluding debt-to-total assets, the more risky the firm's financial position.
This is because the higher the firm's debt, the more it has to pay in interest expenses, which can negatively impact its profitability and cash flow. In addition, if the firm is unable to meet its debt obligations, it may have to declare bankruptcy or default on its loans, which can further harm its financial position. On the other hand, a lower debt utilization ratio indicates that the firm has more equity financing and is less reliant on debt, which can make it more financially stable and less risky. It is important to note that debt-to-total assets ratio is also an important indicator of a firm's financial health, as it measures the proportion of a firm's assets that are financed by debt. However, this ratio alone cannot determine a firm's financial risk, and must be considered alongside other financial metrics such as profitability, liquidity, and solvency.
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Colin, Demi, and Erin agree to be partners in Fajita Pizza, splitting the profits equally. Colin contributes 65 percent of the capital. When Fajita Pizza is dissolved, its liabilities are greater than its assets. In the absence of a contrary agreement, the losses are paid by
a. all of the partners in proportion to their shares of the profits.
b. Colin because he contributed most of the capital.
c. all of the partners in proportion to their capital contributions.
d. Demi and Erin because they contributed the least of the capital.
The answer is c. All of the partners are responsible for the losses in proportion to their capital contributions, unless there is a contrary agreement in place.
In this case, Colin contributed 65 percent of the capital, and therefore is responsible for 65 percent of the losses. Demi and Erin, who contributed the remaining 35 percent of the capital, are responsible for the remaining 35 percent of the losses. This is because in a partnership, each partner is liable for the debts and obligations of the business. In the absence of a contrary agreement, partners are expected to share the profits and losses of the business equally based on their capital contributions. Therefore, it is important to have a partnership agreement in place that outlines each partner's responsibilities and liabilities in case of losses or other issues that may arise in the course of running the business.
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If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing. True or false?
If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing. True or false?
The answer is true. According to the Statute of Frauds, certain types of contracts must be in writing to be enforceable.
One of these types is a contract that cannot be performed within one year from the date it was created.
This requirement is in place to reduce the risk of fraud and misunderstandings in long-term agreements.
Here's a step-by-step explanation:
1. Identify the type of contract: In this case, the contract cannot be completed within one year due to its terms.
2. Determine if it falls under the Statute of Frauds: Since the contract cannot be completed within one year, it falls under the Statute of Frauds' requirement for a written agreement.
3. Confirm the requirement for a written contract: As it falls under the Statute of Frauds, the contract must be in writing to be enforceable.
So, if the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing, and the statement is true.
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The least liquid asset items and major sources of credit and liquidity risk on a bank's balance sheet area. loans and leasesb. agency securitiesc. long-term investmentsd. short-term investments
The least liquid asset items on a bank's balance sheet are typically long-term investments, such as stocks or real estate.
These items can be difficult to sell quickly if the bank needs to raise cash quickly.
The major sources of credit and liquidity risk on a bank's balance sheet are typically loans and leases.
If borrowers default on these loans, the bank may suffer significant losses. In addition, if a large number of borrowers seek to withdraw their deposits at the same time, the bank may struggle to meet its obligations, leading to liquidity problems.
Short-term investments, such as treasury bills, are generally considered more liquid than long-term investments and may pose less risk.
Agency securities, which are issued by government-sponsored entities, are also typically seen as relatively safe investments.
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which of the following is a characteristic of a downtown location, in the context of small businesses? group of answer choices it has the distinction of having low crime rates. it suffers due to inadequate public transportation. the shopping hours are limited. the availability of ample parking space attracts customers.\\
A downtown location for small businesses typically has limited shopping hours due to being in a busy and bustling area.
Understanding downtown locationOne characteristic that can attract customers is the availability of ample parking space.
On the flip side, downtown locations may suffer due to inadequate public transportation options, which can make it difficult for customers to access the area.
Additionally, while downtown areas may have a high level of foot traffic, there is also a risk of crime, although this can vary depending on the specific location.
Overall, a downtown location for small businesses can have its advantages and disadvantages, and it is important to carefully consider these factors when choosing a location for your business.
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74. Orientation programs can instruct new employees in what is considered desirable behaviour, outcomes, and attitudes. True False
The statement orientation programs can instruct the new employees in what is considered desirable behavior, outcomes, and attitudes is true.
Orientation programs are designed to introduce new employees to a company's culture, policies, and procedures. These programs often provide information on company expectations regarding behavior, performance, and attitudes, which can help new employees understand what is considered desirable within the organization. By familiarizing employees with the company's values and expectations, orientation programs can promote a positive work environment, increase job satisfaction, and contribute to higher employee retention rates. Overall, a well-designed orientation program is an essential component of effective employee onboarding and can significantly influence the success of both new employees and the company as a whole.
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