Explain why it is not sensible to close a business firm if it earns zero economic profits with an example.

Answers

Answer 1

because the consequences far outweigh the modest economic gains.

What is typical gain?

The normal profit metric determines whether a company is utilizing all of its resources by taking into account both explicit and hidden costs. The payments a business makes to external parties, such as those for rent, salaries, and raw supplies, are referred to as explicit costs. Opportunities for income that a business or other entity chooses not to take result in implicit costs, also known as opportunity costs. Implicit or opportunity costs can occur when a decision is made not to sell property in order to use it for the firm itself, or when a pay raise is forgone in order to continue operating a business.

When a corporation's entire costs and total revenues are identical, the term "zero economic" is used by economists to denote that the company has no economic profit. A business can typically claim a zero economic profit when it is competitive and generates revenues that cover its expenses.

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Related Questions

Doing business sustainably and fostering a high degree of transparency are examples of:________

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One way to develop an ethical culture is to promote sustainable business practices and a high level of openness.

What does an ethical work environment or culture look like?

The ethical workplace culture is shaped by industry and governmental standards, and employees are expected to uphold the company's code of conduct. An "ethical workplace `is one that encourages tolerance, compassion, loyalty and honesty in the handling of customers and workers," according to SHRM. It also prioritizes employee rights, fair procedures, equity in pay and promotion.

The company rules that establish organizational norms, ethics, social climate, and values at work make up workplace culture (and/or varieties of ethical culture in business.

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According to "scientific view of risk", most of the public’s view of risk is ___________ than risk experts.

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According to the "scientific view of risk", most of the public’s view of risk exists different, not more irrational than risk experts.

What is scientific view of risk?

Risk, according to a risk specialist, is the likelihood that a person may have a negative outcome from a particular activity or exposure throughout the course of a participation. The goal of the risk assessment process is to identify hazards, remove them when needed, or reduce the level of risk they pose by implementing management measures. You've made the workplace safer and healthier by doing this.

Businesses may effectively identify, evaluate, and control risks that could have an impact on air, land, water, and groundwater, as well as harm from noise, by managing risk in a structured approach. avert harm to the environment and human health. respect your obligations and duties in regard to the environment. In order to perform a risk analysis, you must first identify the potential dangers you face, then calculate their potential effects, and then calculate the possibility that these threats will come to pass.

Hence, According to the "scientific view of risk", most of the public’s view of risk exists different, not more irrational than risk experts.

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Why shouldn't you select financial services only on the basis of monetary factors?

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You select financial services only on the basis of monetary factors because some aspects, including convenience and personalized service, could be difficult to quantify in terms of money.

Financial services: what are they?

Financial services can broadly be defined as any activity that has a financial component. The word "financial services" broadly refers to the mobilization and distribution of savings. Therefore, it covers all procedures necessary to convert savings into investments.

Financial services include banking and allied institutions, personal financial planning, investments, real estate, insurance, and the design and supply of financial instruments and advisory services to individuals and corporations.

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A final step in the strengths-weaknesses-opportunities-threats (swot) analysis is to identify quantitative measures for the?

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Decision-makers define and describe specific strengths in the first quadrant, which is then followed by weaknesses, opportunities, and threats.

What SWOT analysis?

A SWOT analysis is a technique for determining and analyzing internal strengths and weaknesses as well as external opportunities and threats that have an impact on current and future operations and aid in the formulation of strategic goals. SWOT evaluations aren't just for businesses.

In order to reach agreement on potential actions an organization might take to achieve its goals and objectives, quantitative SWOT analysis contrasts the internal, controllable aspects of the organization (i.e., Strengths and Weaknesses) with external, uncontrollable situational factors (i.e., Opportunities and Threats).

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the school leader plans to meet with mr. roberts to review the data and letter. they plan to work together to develop an instructional improvement plan.

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Answer:

What is the question?

Explanation:

Create a marketing plan for Carla's chocolates using the elements of an plan. (15 points )

Answers

The marketing plan (element) for Carla's chocolates are:

Marketing Goals and Objectives. Set out your Target Audience.Examine Marketing Tactics.Plan Your Marketing Tactics. Make  Your Timeline and Budget.

How do i create the plan?Start with an executive summary

Carla's chocolates is a new brand of chocolate that has different varieties and rich in nutrient that nourish the body.

State your company's mission, vision

To make a brand of cholate that will be in a global one and will be rich in nutrient that people will want more after having a bite, We want to be a household name in the industry.

Identify the market and competition.

Wholesale, retail and online

Define your target customer.

Young children, teenagers and adult

Make  Your Timeline and Budget.

$400- $1000 , 3 months.

Therefore, The marketing plan (element) for Carla's chocolates are:

Marketing Goals and Objectives. Set out your Target Audience.Examine Marketing Tactics.Plan Your Marketing Tactics. Make  Your Timeline and Budget.

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He finra suitability rule requires all of the following except? a reasonable basis suitability b customer-specific suitability c quantitative suitability d qualitative suitability

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The FINRA Suitability rule requires all of the following except Qualitative Suitability.

The rule requires large specialist sellers to utilize sensible tirelessness to look to get and examine the client's explicit elements recorded in the standard. A broker-dealer can't make suppositions about client explicit elements for which the client declines to give data.

As per FINRA, an enlisted chief is expected to go to guarantee that the principles of moral leadership are kept up with.

As per rule 2210 of FINRA, it is expected that each correspondence must be done decently and sincerely.

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While the _______ is listed as the first component of the marketing plan, firms should complete this part of the marketing plan last.

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While the Executive Summary is listed as the first component of the marketing plan, firms should complete this part of the marketing plan last.

What is  Executive Summary?

This is the term that is used to refer to the short document type that has being developed for the sake of doing business. It is used to summarize the proposal that is made so that the people that have it can easily understand its content without having to read it all.

Hence we can say that While the Executive Summary is listed as the first component of the marketing plan, firms should complete this part of the marketing plan last.

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Which body determines the rules that are used in the united states for reporting accounting information and producing financial statements?

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The Financial Accounting Standards Board (FASB)  determines the rules that are used in the United States for reporting accounting information and producing financial statements.

What are financial statements?

A financial statement can be defined as a document with records of the monetary transaction or the non-monetary transactions of a business.

In order to encourage financials that help companies as well as other investment advisors with relevant data, the FASB establishes and sets financial reporting requirements through an open and welcoming mechanism.

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A __ is a very broad in scope and is supported by a large and usually growing body of evidence

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A theory is a very broad in scope and is supported by a large and usually growing body of evidence.

Large volumes of data are explained by theories in science. A theory is distinct from a hypothesis since it has a much wider scope and is backed up by a lot more data. An assumption is. a comprehensive theory of explanation that is backed by a lot of data.

A testable hypothesis is a proposition made to account for certain facts. A theory has a wider scope and is a conceptual framework that aims to explain how occurrences are related and makes it possible to predict further links. A body of information produced by procedures based on observation is referred to as science.

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everything a consumer must surrender to obtain the benefits of possessing or using a product is known as

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Consumer cost is everything a consumer must surrender to obtain the benefits of possessing or using the product.

Consumer cost is a variable or a concept that entirely encompasses the price of the commodity along with the purchase costs, use costs, and post-use costs.  Purchase costs comprise the cost of finding the product, garnering information about it, and the expenses incurred in obtaining the information. Use costs are the costs incurred on goods that require resources. Post-use costs denote the costs for collecting, storing, and disposing of the product once the item has been discarded.

Price is only one component of the total cost a consumer has to endure. The consumer has to cover the additional costs of transportation, usage, and disposal of the product. All these costs together constitute the consumer cost.

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What is the effect of this event on the quantity of beef supplied and on the supply of beef?

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The effect of this occasion on the quantity of beef supplied and on the supply of beef is The quantity of beef supplied decreases and the supply of beef is unchanged.

What occurs when quantity supplied decreases?

A decrease in direction will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things untouched, will cause the equilibrium price to fall; quantity required will increase. A decrease in supply will cause the balance price to rise; quantity demanded will decrease.

What drives the quantity supplied to decrease?

The law of supply says that a higher price leads to a higher quantity provided and that a lower price leads to a lower quantity supplied.

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Complete Question is,

A. The quantity of beef supplied decreases and the supply of beef also decreases

B. The quantity of beef supplied increases and the supply of beef also increases

C. The supply of beef decreases and the quantity of beef supplied is unchanged.

D. The supply of beef is unchanged and the quantity of beef supplied increases.

E. The quantity of beef supplied decreases and the supply of beef is unchanged.

Graffiti advertising, incorporated, reported the following financial statements for the last two years

Answers

Out-of-home advertising campaigns that are hand-painted on substantial facades or billboards are considered to as graffiti marketing or commercial graffiti.

City walls are transformed into canvases for modern art in this type of mural advertising, which is inspired by or connected to a company's campaign. Graffiti seeks to convey a significant message or to be recognized without being noticed.

Like other forms of art, graffiti's ultimate goal is to express one's self or convey a story. Graffiti gives artists a chance to express oneself, even if it isn't in a way that is generally accepted. Advertising murals are elaborate, striking paintings that are physically painted on city walls and other structures.

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What is the effect of a price ceiling on the quantity demanded of the product? what is the effect of a price ceiling on the quantity supplied? why exactly does a price ceiling cause a shortage?

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A price ceiling (below the equilibrium price) increases demand and decreases supply. This is why price caps create shortages.

The price ceiling prevents the price from rising above a certain level. When the price cap is set below the equilibrium price, the quantity demanded exceeds the quantity supplied, resulting in excess demand or shortage.

We are introducing price caps for people who need products such as home, prescription drugs, and auto insurance. However, when the market price does not reach the equilibrium level, the quantity demanded exceeds the quantity supplied, resulting in a shortage of supply.

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In trying to forecast demand for a new product, an ideal situation would be one where an existing product or generic product could be used as a:_________

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A qualitative technique in forecasting historical analogy in trying to forecast demand for a new product, an ideal situation would be where an existing product or generic product could be used as a model.

More about historical analogy:

The historical analogy method, which may be accurate and affordable, primarily estimates the demand for a new product. In order to create the greatest fit forecast, it starts with forecasts and historical data of any comparable or pertinent existing products.

A forecasting technique known as forecast by analogy makes the assumption that two distinct types of phenomena would behave similarly.

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A person's overall evaluation of a product can be quantified by multiplying the sum of the performance ratings of the product by the importance weight of each characteristic. true or false

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The statement is True.

A person's overall product evaluation can be quantified by multiplying the sum of the performance ratings of the product by the importance weight of each characteristic. Based on the approach of user experience measurement, the evaluation procedure for products' performance (performance metrics) and users' understanding (self-reported metrics) are utilized to examine the level of efficacy, learnability, and ease of use to assess the products fully. Then all the factors are incorporated to be an exhaustive evaluation level for the products, and the products are categorized based on them.

The meaning of product evaluation is to assess the quality of products in order to recapitulate the experience as advice for follow-up design. Procedures and methodologies of user experience measures are applied to the scope of product evaluation. The outcomes of product evaluation are acquired by dealing with and analyzing various sorts of data. And some usability issues are received and prioritized as recommendations on product design.

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While ensuring that your tires are properly inflated during a pre-drive check, you should also check?

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During a pre-drive inspection, you should check not just that your tires are properly inflated. Make sure all tire stem covers are firmly fastened Your tires' pointing direction

During your pre-drive inspections, which tires should you check?

headlights. Always check the following during a pre-drive inspection to make sure your tires are properly inflated: B and A are equally accurate (The headlights, brake lights, turn signals, taillights; the direction which your tires are pointed.) 

What do pre-driving techniques entail?

Pre-Driving Procedures: Inside Out, Outside In

Your tires' condition should be checked.

Analyze your car's surroundings.

Verify that no fluid is leaking.

Verify the vehicle for any damage.

To enhance your ability to see the road throughout the winter, make sure that snow is not obscuring any windows, mirrors, or lights.

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Income inequality in the united states __________. has gone down since 1970 went down until 1970 and increased thereafter has not changed has steadily increased since 1935

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Income inequality in the united states went down until 1970 and increased thereafter.

What is Income inequality?

Inequality of wealth in major cities Economic inequality comes in many forms, but two stand out above the rest: wealth inequality as measured by the distribution of wealth and income inequality as measured by the distribution of income. The degree to which income is distributed unequally among a group of people is known as income inequality.

There are various causes for the increase in economic inequality in the United States. These include the erosion of the minimum wage's purchasing power, globalization, technological progress, and declining unions, in no particular sequence.

Many economists have claimed that economic instability is a result of inequality. The fact that the wealthy consume a lesser percentage of their money than the poor is one way this occurs. They conserve funds that those with lower salaries would otherwise squander.

Hence, Income inequality in the united states went down until 1970 and increased thereafter.

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Which element of the marketing mix refers to the specific combination of goods, services, or ideas that a firm offers to consumers?

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The  element of the marketing mix refers to the specific combination of goods, services, or ideas that a firm offers to consumers is known to be called product.

Which component of the marketing mix refers to the goods and services combination?

The Product is known to be a term that connote the goods and services that is said to be provided or offered by a firm to its customers.

Note that  it is one that can be said to be  physical as well as  virtual or cyber form.

Therefore, The  element of the marketing mix refers to the specific combination of goods, services, or ideas that a firm offers to consumers is known to be called product.

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The practice of transferring portions of production and service activities to lower-cost, often overseas locations is known as?

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The practice of transferring portions of production and service activities to lower-cost, often overseas locations is known as OUTSOURCING.

Outsourcing: Outsourcing is the process of contracting a third party from outside a business to carry out tasks or produce commodities that were previously done internally by the business's own staff and employees. Companies typically engage in outsourcing as a means of reducing costs.

Benefits of Outsourcing:

1) Lower prices (due to economies of scale or lower labor rates)

2) More effectiveness.

3) Fluctuating capacity

4) Heightened attention to strategy and key skills.

5) Access to knowledge or assets.

6) Improved adaptability to evolving commercial and corporate environments.

7) Shortened time to market.

The practice of transferring portions of production and service activities to lower-cost, often overseas locations is known as OUTSOURCING.

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If alabama imports 10 bushels of peaches and exports 40 bushels of tomatoes, after trade, alabama will consume _____ bushels of peaches and 35 bushels of tomatoes.

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After trade, Alabama will eat 10 bushels of peaches and 35 bushels of tomatoes if it imports 10 bushels of peaches and exports 40 bushels of tomatoes.

According to the graph above, Alabama will have to give up 15 bushels of peaches in order to produce 75 bushels of tomatoes since it will need to use all of its resources. In Alabama, the opportunity cost of growing tomatoes will therefore be 15/75 = 0.2 bushels of peaches.

The graph above also shows that in order to produce 90 bushels of tomatoes, Georgia must use all of its resources, which means that 30 bushels of peaches must be given up. As a result, Georgia's opportunity cost of growing tomatoes will be 30/90 = 0.33 bushels of peaches.

He will focus in tomatoes and produce 75 bushels of tomatoes because Alabama has a lower potential cost for producing tomatoes. He will export tomatoes as a result.

In this instance, Alabama imported 10 bushels of peaches and exported 40 bushels of tomatoes.

As a result, after the trade, he consumed 10 bushels of peaches and 35 bushels of tomatoes, or 75 minus 40.

According to Alabama's Production Possibilities Frontier (PPF), if it can produce 10 bushels of peaches, it can generate a maximum of 25 bushels of tomatoes. As a result, under autarky, it will eat 25 bushels of tomatoes and 10 bushels of peaches (Point A).

As a result of trade, Alabama will receive 10 bushels (35 - 25) of tomatoes.

In contrast to autarky, this Trade permits Alabama to produce 10 bushels of tomatoes.

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A trade-off in a decision situation sometimes occurs between information? sensitivity and relevance. sensitivity and accura

Answers

The correct option (F) Accuracy and timeliness.

A trade-off in a decision situation sometimes occurs between Accuracy and timeliness.

What is a Trade-off?

Choosing to sacrifice one quality, quantity, or feature of a set or design in exchange for benefits in other areas is known as making a trade-off. A tradeoff is simply when one thing grows while another must decline. A full container must remove some items in order to accept any more, and vessels can carry a few large items or many small ones.

Tradeoffs arise from limitations that have many different causes, including simple physics. For example, only a certain volume of objects can fit into a given space. Tradeoffs refer to diverse arrangements of a single thing, such as the tuning of a guitar's strings to produce a range of notes, as well as the distribution of time and focus among various jobs.

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The correct question “A trade-off in a decision situation sometimes occurs between information:”

A. accuracy and relevance.

B. relevance and uniqueness.

C. accuracy and timeliness.

D. sensitivity and accuracy.

E. sensitivity and relevance.

The following accounts have normal credit balances? a. liabilities b. revenues c. assets d. all of the listed accounts have a normal debit balance.

Answers

So the correct option is D, Because increases in any account are often bigger than (Financial Statement) losses accounts with normal balances are on the side where increases go.

What is Financial Statement?
Financial statements are written documents that convey the business activities and the financial performance of a corporation. The balance sheet, income statement, statement of cash flow, and statement of changes in equity are the four primary financial statements for for-profit entities. Nonprofit organizations employ a comparable but different set of financial statements.

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1. How should professional sports teams in San Francisco promote to target
markets considering the demographics of the city?

Answers

San Francisco's major sports teams should use demographics to segment their target markets. Next, determine the psychographics of those who will benefit from your product or service the most.

What demography is the intended market?

Demographic targeting is a type of market segmentation that takes into account things like family size, religion, gender, age, ethnicity, education, and even income. These data can be successfully segmented into several segments, enabling firms to target customers more precisely than in the past.

How do you market to specific demographics?

Demographics like age, location, gender, marital or family status, occupation, income level, level of education, etc. can be used to segment your target market. Determine the psychographics of the individuals who will most likely profit from your product or service next.

Gender, age, income, race, education, religion, marital status, and geography are a few of these. Narrowing down the segments is one of the most crucial aspects of establishing target markets because consumers with similar demographics often value similar goods and services.

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Trid requires that all charges normally paid by a borrower and a seller in connection with a real estate closing be?

Answers

A seller in connection with a real estate closing is itemized in the Closing Disclosure.

What is TRID?

The Consumer Financial Protection Bureau (CFPB) has implemented a set of regulations called TRID in an effort to close some of the gaps that dishonest lenders have previously used to deceive customers. The mortgage information that lenders must offer to borrowers and when they must do so are governed by TRID regulations. TRID regulations also set limits on the fees that lenders may impose and how those costs may alter as a mortgage matures.

The program's goal is to assist borrowers in selecting a mortgage lender who will act in their best interests by helping them comprehend their available mortgage options. When they give you a mortgage or give you an estimate, all mortgage lenders must as of 2015 abide by TRID regulations.

Because they cover material that customers should read and comprehend before making an offer on a home and agreeing to monthly loan payments, TRID guidelines are also frequently referred to as "Know Before You Owe" laws.

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In ______ plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her. group of answer choices

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In Cafeteria plan plans, the employer allocates a certain amount of money to each employee and lets the employee spend that money for benefits that suit him or her.

Work of Cafeteria Plan

Although it has nothing to do with food, a cafeteria plan receives its name from a cafeteria. Before payroll taxes are calculated, employees can select the benefits of their choosing from a pool of possibilities supplied by their employers, just like people make meal choices in cafeterias. As workforce diversity increases and workers look for more individualized benefits that are catered to their requirements, these plans become increasingly beneficial.

The insurance choices available under cafeteria plans include contributions to health savings accounts (HSAs), group term life insurance, and disability insurance.

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To affect economic variables such as real gdp or the price level, the monetary policy target the federal reserve has generally focused on is the?

Answers

To affect economic variables such as real GDP or the price level, the monetary policy target the federal reserve has generally focused on the Federal funds rate

What are federal reserves?

The Federal Reserve System, also known as the Federal Reserve or just the Fed, is the United States of America's central banking system. Following a number of financial panics, notably the Panic of 1907, the Federal Reserve was founded with the passing of the Federal Reserve Act on December 23, 1913, in response to the necessity for centralized supervision of the monetary system to avert financial disasters. The tasks and responsibilities of the Federal Reserve System have grown over time due to incidents like the Great Depression in the 1930s and the Great Recession in the 2000s. There are multiple tiers to the Federal Reserve System. The Federal Reserve Board, comprised of governors selected by the president, oversees it (FRB). Twelve regional Federal Reserve Banks, dispersed across the country's cities, control and supervise independently held commercial banks. Commercial banks with national charters are required to own stock in the local Federal Reserve Bank and have some board member elections.

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The cultural characteristic that refers to the degree to which employees are encouraged to be aggressive, innovative, and risk seeking is known as _____________.

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The cultural characteristic that refers to the degree to which employees are encouraged to be innovative, aggressive, and risk seeking is known as risk tolerance.

Risk tolerance is referred to as a measure of the degree of loss which an investor is willing to endure within their portfolio. Here, investment goals, age, and income contribute to an investor's risk tolerance.

An investor who has a higher risk tolerance and is willing to risk more money for the possibility of better returns. Thus, in an organization employees are then encouraged to be innovative, risk seeking, and aggressive.

Hence, all investments involve some degree of risk.

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Abburi Company's manufacturing overhead is 40% of its total conversion costs. It direct laboris $63,600 and if direct materials are $23,800,the manufacturing overhead is:_________

Answers

It direct labor is $63,600 and if direct materials are $23,800,the manufacturing overhead is:$25,440

What are conversion costs of production?

Conversion costs are costs of labor incurred and other related expenses incurred in a bid to transform raw materials to finished goods, the only conversion costs in this case is direct labor, which is $63,600, in other words, the Abburi Company's manufacturing overhead is 40% of direct labor costs

manufacturing overhead=40%*direct labor costs

direct labor costs=$63,600

manufacturing overhead=40%*$63,600

manufacturing overhead=$25,440

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An expanded income statement is generally divided by the different categories of revenue. the most common categories are:_________

Answers

Answer:

sales revenue

Explanation:

under sales revenue section of the income statement we record the revenue generated from sale of goods and services

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