Price risk, monitoring costs, and liquidity costs are the three economic disincentives that most likely would slow down the flow of funds between individual investors and corporate consumers in an economy without intermediaries.
How would economic transactions take place between individuals who save money and businesses that utilise it in a world without banking institutions?If there were no financial institutions, businesses that needed to borrow money would have to approach household savers directly. Because potential lenders would incur upfront information fees, this approach would be quite expensive.
How can financial institutions assist individual savers in diversifying the risks in their portfolios?Financial institutions use diversity to invest in both high-risk and low-risk assets. When an investor, person, or institution has both riskier and less risky investments in a portfolio, this is known as diversification. Typically, this is done to lessen how risky hazardous assets are.
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an investment in common stock that was previously accounted for with a method other than the equity method may become qualified for use of the equity method by
Meeting the criteria established by the Financial Accounting Standards Board (FASB).
What is Meeting?A meeting is a gathering of two or more people to discuss an issue or topics of mutual interest. Meetings can be held in various forms including in-person, by phone, or virtually. Generally, meetings are held to share ideas, collaborate on solutions, and make decisions.
FASB requires that the investor has a significant influence over the investee and that the investor's ownership stake is at least 20% of the investee's voting shares or has a fair value of at least $20 million. If these criteria are met, the investor is then able to use the equity method for accounting for the investment.
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this order cannot be accepted because a short sale is not allowed in an account that does not have a margin feature.
In a short sale, the investor borrows shares, sells them on the market, and then hopes the share price will drop so they can purchase the stock back at a cheaper price and give it back to the lender at a lower price.
What is short sale?
Short sales occur when the seller places a sell order through a broker-dealer but does not actually own the stock being sold. Instead, they are borrowing it from the broker-dealer. The seller is then obligated to purchase the stock back at a later date. Since short sales are margin transactions, they are subject to stricter equity reserve requirements than purchases. Brokers borrow the shares from custodian banks and fund management firms, who lend them as a source of income, for short-sale operations.
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which of the following management techniques involves giving employees more authority and responsibility over how they perform their work activities?
The correct option D. Empowerment: Giving employees additional control and responsibility on how they carry out their work tasks is a component of empowerment management strategies.
Explain the role of Empowerment in management?Giving employees the tools to make critical decisions and assisting in ensuring that those judgements are correct is a fundamental component of employee empowerment.
When implemented correctly, this should lead to increased productivity and improved work and personal life for employees.Team members and managers may live their best lives and take ownership of their job when they feel empowered. By empowering employees, leaders who create an empowerment culture position their followers for success on three key ways. Sync their values and vision with the organization's objectives.Giving employees more control and responsibility over just how they complete their work tasks is a management strategy known as empowerment.
Thus, information technology has been utilised to empower employees more frequently since it broadens their understanding of their jobs and increases the range of their job duties.
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The complete question is:
Which of the following management techniques involves giving employees more authority and responsibility over how they perform their work activities?
A. Total quality management
B. Outsourcing
C. Innovation
D. Empowerment
the total dollar cost of missing work and going to the bowling alley, including the opportunity cost of your time
Opportunity cost is calculated with the aid of making use of the following formula: Opportunity Cost = Return on Most Profitable Investment Choice - Return on Investment Chosen to Pursue.
What is opportunity cost in capital budgeting?Opportunity fee in capital budgeting is the return on an investment chance that a commercial enterprise forgoes when it chooses to use capital for an internal project alternatively than a greater profitable one elsewhere. The opportunity cost of capital is the distinction in earnings between the two investments.
The chance cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the probability cost is planting a exclusive crop, or an alternate use of the sources (land and farm equipment).
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https://brainly.com/question/1549591#SPJ4true/false. if a price floor is not binding, then question 24 options: the equilibrium price is above the price floor. the equilibrium price is below the price floor. there will be a surplus in the market. there will be a shortage in the market.
False, if a price floor is not legally enforceable, the equilibrium price will stay the same and there won't be a market excess or shortage.
The only price at which consumer and producer plans coincide is the equilibrium price, which is reached.
When the quantity sought by consumers and the quantity supplied by producers, respectively, are equal. The equilibrium quantity is the name given to this common quantity.
At the equilibrium price, there is neither a scarcity nor an excess of the good because buyers and sellers are both willing to purchase the same amount.
At the market price, buyers can purchase the quantity they desire, and sellers can sell the quantity they desire.
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TRUE/FALSE. those who tend to focus on relationships in their personal styles will likely be relationship-oriented in their leadership.
Relationship-focused leading is probably to really be exhibited by individuals whose personal styles feel compelled toward being relationship-focused. This assertion is accurate.
Task leadership can be viewed as organizational identification, for example.
Production concept is indeed a term that has been used to describe representation administration.
For those who value relationships, social interaction has purpose.
In situations where a university has a fresh faculty generation, task administration is extremely useful.
Women have discovered how a mix of relationship- based task-oriented leadership helps individuals achieve their objectives.
It really is critical therefore for nurse leader to stay task-focused that whenever a workforce is unsure of how to perform a procedure, like changing a patient's bandages.
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On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:
Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $18,000.
Purchased supplies on account, $980.
Earned sales commissions, receiving cash, $15,120.
Paid rent on office and equipment for the month, $3,330.
Paid creditor on account, $360.
Paid dividends, $890.
Paid automobile expenses (including rental charge) for month, $920, and miscellaneous expenses, $620.
Paid office salaries, $1,940.
Determined that the cost of supplies used was $540.
Required:
1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. If an amount box does not require an entry, leave it blank.
The journal entries for transactions are as follows:
(a) The ledger shows a total income = $13,300 (fees earned)
(b) The ledger shows a total expenses = $3,000 + $2,800 + $1,500 + 1,050 + $400
Total Expenses = $8,750
(c) Net income = $13,300 - $8,750
Net income = $4,550
Determine whether the owner's equity has increased or decreased:
$2,750 increase in owner equity ($20,250 - $17,500)
Journalizing a transaction refers to the process of entering the transaction in the journal. Since occurrences are first documented in the general journal, it is known as the "book of original entries."
A journal is a book in which all of a company's transactions are recorded for the first time. Journalising is the process of recording transactions in a journal. Every transaction has two effects: one is debited and one is credited.
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which of the following were findings from research on the delivery of bad news in the financial industry?
After extensive explanations, customers' faith in the bank greatly increased. Customers dislike institutions that use unclear language and Clear, concise language encourages trust.
What is financial industry?The term "financial industry" refers to the banking, mortgage banking, finance, financial advisory, securities and/or securities brokerage business, as well as any and all incidental or associated activities and enterprises. Simply said, the financial sector acts as a bridge between savers and borrowers, taking money from savers (via deposits, for instance) and lending it to those who need money to borrow, be they individuals, businesses, or governments.Companies in the global financial services industry provide a wide range of financial services. These include mortgages, credit cards, payment services, mortgages, real estate, taxes, accountancy, and investment funds, among others. The phrase "financial services" refers to a wide range of products and services provided by the financial sector, including anything from payments and digital banking technologies to insurance and money management.To learn more about financial industry, refer to:
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state whether the following plants are stable, marginally stable, or unstable and justify your reasoning.
When something unexpected occurs, a stable structure, family, person, bridge, or chemical solution will "stand still."
How to determine whether the system is stable unstable or marginally stable?
The system is stable if every pole falls within the left half of the s-plane. The system is unstable if there are two or more poles in the same place on the hypothetical axis. The system is only minimally stable if there are one or more non-repeated poles on the hypothetical axis.
A function f(x) exists directed to as stable in terms of the solution of a differential equation if any alternative solution of the equation that begins sufficiently near to it at x = 0 continues to be close to it for subsequent values of x.
The adverb "instable" denotes the absence of stability. The word stable comes from the Latin root stare, which means "to stand." When something unexpected occurs, a stable structure, family, person, bridge, or chemical solution will "stand still."
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a firm can mix and match components, linking software the firm has written with modules purchased from different enterprise software vendors. t/f
True. A firm can mix and match components, linking the software the firm has written with modules purchased from different enterprise software vendors.
Software is a set of the computer programs and related to documents and data. This is in the contrast to the hardware that makes up system and actually does the work.
At the lowest level of programming, executable code consists of machine instructions supported by a single processor, usually a central processing unit (CPU) or graphics processing unit (GPU).
Machine language consists of the groups of binary values that represent the processor instructions that change the state of the computer from its previous state.
For example, an instruction can change a value stored in a specific memory location of computer, but this is not directly observable by the user.
A statement can also invoke one of many input or output operations, such as displaying text on a computer screen. Causes a state of change that should be visible to the user.
The processor executes instructions in the order provided, unless it is told to "jump" to another instruction or interrupted by the operating system.
By 2023, most PCs, smartphones, and servers will have processors with multiple execution units, or multiple processors performing computations together, making computing much more concurrent than before. will be executed.
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true/false. corporations have come to dominate the business world through their ability to raise large amounts of capital by sale of ownership shares to anonymous outside investors.
The answer is true.
Why are corporations so successful?
To continue in business, companies must retain a competitive advantage.
Price leadership, brand awareness, and entry barriers may all help businesses stay competitive.
A business has a strong probability of success if its management is above average, consisting of individuals with expertise and lengthy tenure.
Through quality, innovation, customer service, or even warranties, businesses may become industry leaders.
Any quality a business possesses that enables it to stay competitive in the market is referred to as a competitive advantage. To continue in business, companies must retain a competitive advantage.
If there are extremely high entry barriers into their industry, good organisations can continue to preserve their high standing.
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The ability to sell into another market segment is known as CROSS SELLING. Common PREFERENCES help but are not the only factors. Which of the following core components would also pique the interest of other segments beyond your targeted segment? a.Channel and Price b. Advertising and Price c. Channel and Advertising
Core components would also pique the interest of other segments beyond your targeted segment is Advertising and Price.
What is CROSS SELLING?
Offering a consumer products that go well with the ones they're buying is known as cross-selling. Cross-selling is the technique of recommending other products to a consumer whereas upselling involves selling them a more expensive product. Any marketing technique intended to sell similar goods or complimentary services to current clients is referred to as cross-selling. A cross-selling example would be this. It's a terrific approach to strengthen customer relationships and increase customer loyalty, both of which can increase client lifetime value and retention. Bundle related products so the customer doesn't need to look for necessary components or accessories. Offer a discounted price on a bundled product offer to encourage immediate purchase with a temporary price savings.
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hich cost is the lowest, when compared to other instruments of the same type? guitar piano drum set incorrect: your answer is incorrect. which cost is the highest when compared to other instruments of the same type. piano drum set guitar incorrect: your answer is incorrect.
When compared to other instruments of the same genre, drums are the most affordable. The guitar is the most expensive instrument in comparison to others of its kind.
A z-score can be displayed on a normal distribution curve. If the mean and standard deviation of a normal distribution is provided, we can assess the lowest cost and most significant cost by utilizing the statistical tool known as the z-score.
You may determine how distant a data point is from the mean using the Z-score, commonly known as standard points. Technically speaking, it is a measurement of how many standard deviations there are between the raw score and the population means.
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fill in the blank. ___ is the process of assigning indirect costs to products. question content area bottom part 1 a. cost tracing b. cost allocation c. job cost recording d. cost pooling
Cost allocation is process of assigning the indirect costs to the products.
What is cost allocation?The identification, collection, and assignment of costs to cost objects like departments, products, programmes, or corporate branches are all part of the cost allocation process. It entails finding the cost objects inside the company, finding the costs the cost objects incurred, and then associating the costs with the cost objects in accordance with predetermined criteria. A firm may identify specific cost components that are causing the organisation to make or lose money when expenses are allocated properly. The organisation may be investing in cost objects that do not generate the anticipated level of returns if expenses are allocated to the incorrect cost objects. Direct costs may be related to a particular good or service rather than having to be assigned to a particular cost item.
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which of the following are true of a dividend declared by an investee under the equity method of accounting for an investment?
When a dividend is declared by an investee under the equity method it will:
On the books of an investor, it will be recorded as an asset In the balance of the investment, the account will be decreased.A dividend declared means dividends that have been authorized by the board of investors, but the dividend has not yet been paid out to the investors. As far as it has not been paid yet, it will become a liability of the corporation.
The equity method is a method in accounting terms where the investment is initially recognized at cost. After the investor's share of the investee's net assets, it will be adjusted for the post-acquisition.
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use the following business rules to create a crow's foot erd. write all appropriate connectivities and cardinalities in the erd.
Business rules act as a framework for daily judgement within businesses by identifying connections between objects, like those between client identities and the transactions that go with them.
By transforming a firm's business procedures into actual business logic, computer programmers and industry experts can apply these rules in process tools or other apps to enable automation process. Without them, update operations may become more time- and work, and publications might be more susceptible to human mistakes and inconsistencies. By simplifying work to the appropriate stakeholders and lowering turnover, a firm can save time and money by establishing business rules across the organisation. All appropriate connectivities and cardinalities in the erd are given below:
DIVISION and DEPARTMENT connection - 1: M relationship
Employee and Department Relationship: M Relationship
Employee-Project Relationship: A M:N Relationship
Between the identities, the cardinalities are displayed.
The link between the project and the employee is M:N producing a Crow's Foot ERD by spitting out this M:N relationship between the employee and the project.
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suppose the market price rises from $60 per umbrella to $80 per umbrella. the quantity of umbrellas supplied will increase by (click to select) umbrellas.
The market price rises from $60 per umbrella to $80 per umbrella. the quantity of umbrellas supplied will increase by 1,000 umbrellas.
How is the supply of the market determined?
The market supply is calculated by summing the individual supply from each company operating in the market. Similarly, we add up the individual producer's own supply functions to determine its function. If there are ten producers and they each generate 100 units of output, then there are 1000 units total available on the market.
The market price for an umbrella increases to $80 from $60. With 1,000 umbrellas, the number of umbrellas provided will rise.
Therefore, The going rate at which a good or service can be purchased or sold is known as the market price.
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over the last 40 years, the industrial production index and private-sector employment: please choose the correct answer from the following choices, and then select the submit answer button. answer choices have not changed significantly. move in opposite directions. tend to move together. do not appear to be correlated.
Answer:
tend to move together.
Explanation:
Option (c), Over the past 40 years, there has been a tendency for the industrial output index and private sector employment to move together.
How does industrial development affect the production of new jobs?As a result of industrial development, large sums of money are made. To make money, it is crucial to establish and expand large-scale industries that create capital goods. These industries contribute to the creation of jobs, which in turn contributes to the generation of income.
What are the four primary factors influencing the expansion of industry?These comprise all components needed to create a good or service. The production factors are entrepreneurship, capital, labor, land, and labor. The state of technological improvement, which can also account for any efficiencies not directly related to the four basic components, can have an impact on the overall factors of production.
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Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 400,000 shares of stock at $30 per share.
What is the amount of economic investment that has resulted from BBQ's actions?
How much purely financial investment took place?
$24 million is the amount of economic investment that has resulted from BBQ's actions and $24,000,000 financial investment took place.
given data:
total no.of national restaurant = 20
cost per restaurant = $1 million
cost of additional equipment and furnishings = $200,000
cost per share = $30
quantity of shares = 400,000
the amount of money invested as a result of BBQ's actions
20 additional restaurants are being built by BBQ for $1 million each.
= $1 million × 20
= $20 million
equipment and furnishings = $200,000 for each restaurant
Total = $200,000 × 20 restaurants
= $4 million
Total economic investment from BBQ’s actions = $20 million + $4 million
= $24 million
BBQ issues and sells 400,000 shares of stock at $30 per share
But the total
= 30% × $4 million
= $1200000 for each restaurant
Total for the 20 restaurants will be
$1200000 × 20
= $24,000,000
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A car manufacturer incurs the following costs. Classify each cost as either a prodfict or period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost. classify it as a selling expense or a general and administrative expense. Cost Classification Product Cost Direct Labor Costs Wages to paint machine operators Factory electricity Advertising Depreciation on factory machine Batteries for electric cars Office supplies used Wages to assembly workers Salesperson commissions Factory building insurance used up Salesperson travel costs
identifying each expense as a prodfict or a period expense. Costs of Direct Labor: Direct labour costs for the product. Electricity used in manufacturing: Product Cost - Factory Overhead. Period Cost - Selling Expense = Advertising.
Machine depreciation: Period Cost - General and Administrative Cost
Electric vehicle batteries: Product Cost - Direct Materials.
Period Cost - General and Administrative Expense: Office Supplies
Product cost minus direct labour equals wages for assembly employees.
Commissions paid to salespeople: Period Cost - Selling Expense.
Insurance for the factory building used up: Period Cost - General and Administrative Cost.
Travel expenses for salespeople: Time Cost - Selling Expense.
Cost is the sum of money a business must spend on the creation, maintenance, or purchase of goods or services. It comprises both direct costs like labour, overhead, and raw materials as well as indirect costs like marketing, office overhead, and depreciation.
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TRUE/FALSE. International firms must effectively manage several additional phenomena and complexities that are not explicitly applicable to purely domestic companies. Based on your understanding of the differences between purely domestic businesses and international companies, evaluate whether the following statement is true or false:
The sovereignty of the different countries in which a multinational firm operates (with their ability to create their own idiosyncratic laws and manage their own unique economies) requires managers to be extremely knowledgeable about these differences and adept at creating a business organization that can be profitable when operating in them.
According to the situation, the following assertion is false.
What is an illustration of an internal force that can impact the atmosphere of a company?The term "environment," as it is used in the book, refers to all the factors that have an impact on the firm's survival and growth. An illustration of an internal force is a lobbyist who supports new legislation that would impact a company's production standards.
What exactly falls within the term of global business?International business is the exchange of commodities, services, technology, capital, and/or information on a global or transnational scale and across national boundaries. It entails cross-border sales of products and services between two or more nations.
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TRUE OR FALSE In determining how to group employees into organizational units, the intensity with which they need to collaborate with one another is less important than the need for social harmony.
The given statement ''In determining how to group employees into organizational units, the intensity with which they need to collaborate with one another is less important than the need for social harmony.'' is false.
What is social harmony?The process of valuing, expressing, and promoting love, trust, admiration, peace, harmony, respect, generosity, and equity towards other members of any given society, regardless of their weight, marital status, ethnicity, colour, gender, race, age, and occupation, among other characteristics, is known as social harmony.Gandhiji believed that there is an unbreakable harmony in all of creation, which is affirmed in all religions. It was this belief that inspired him to treat all faiths equally. He emphasised the importance of world peace, brotherhood, and respect for all forms of life.In addition to promoting respect for everyone's fundamental rights and freedoms, regardless of race, gender, language, or religion, it also fosters understanding, tolerance, and camaraderie among people of all different religions, beliefs, cultures, and linguistic backgrounds.Learn more about Social harmony refer to :
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a centralized, organic approach with direct supervision for managing uncertainty is ideal for which of the following environments? a. stable and complex b. complex and dynamic c. dynamic and simple d. simple and stable e. stable and dynamic
The ideal environment for a centralized, organic approach with direct supervision for managing uncertainty is a B)complex and dynamic environment.
In a complex and dynamic environment, there are numerous factors that can affect a company's operations and decision-making processes. A centralized, organic approach allows for a more unified and streamlined approach to decision-making, ensuring that all aspects of the business are considered and integrated.
Direct supervision provides the necessary oversight to ensure that decisions are made in a consistent and effective manner, especially in an environment where uncertainty is high.
This approach also allows for a more flexible and adaptive response to changes in the environment, as it allows for quick and efficient decision-making processes. It also facilitates better communication and collaboration between different departments and stakeholders, leading to more effective decision-making.
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which of the following are assets? multiple select question. notes payable land accounts payable cash common stock retained earnings equipment
Supplies are assets up until they are used. Once they are exhausted, their costs are recorded as expenses. The cost of unused materials is tracked using Supplies.
Do common stocks count as assets?The firm that issued the common stock views it as an asset rather than a liability. Common stock is a claim on a company's assets and earnings and serves as a proxy for ownership in the business.
Are payable notes an asset?Notes Receivable are an asset whereas Notes Payable are a liability. Notes Receivable are recognised as an asset since they reflect the value of promissory notes that a company holds. A obligation called NP tracks the value of promissory notes that a company has issued.
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one disadvantage of is the initial cost of formation. multiple choice limited partnerships corporations sole proprietorships general partnerships
The higher initial cost of formation is a disadvantage of limited partnerships.
What is the initial cost of formation?The expenses incurred to establish a business entity are referred to as the initial cost of formation. This includes charges for getting the necessary licenses and permits, as well as costs for accounting and legal services. Creating a business plan, registering the company name, and setting up a physical site are additional expenses that might be included in the startup costs.
What is one disadvantage of forming a partnership?The unrestricted culpability each member has for the debts of the business is one disadvantage of a partnership. The phrase "jointly and severally" signifies that each partner is liable for both their proportionate share of the debts as well as the entire amount of the debts.
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Suppose the marginal propensity to consume is equal to 0.9 and investment spending increases by $50 billion.
Assuming no taxes and no trade, by how much will real GDP change?
Suppose the marginal propensity to consume equals 0.9 and investment spending increases by $50 billion. Assuming no taxes and no trade, real GDP will increase by $500 billion.
What is GDP?The standard measurement of the value added produced via the production of goods and services in a nation over a specific time period is the gross domestic product (GDP). Consequently, it also accounts for the revenue generated by that manufacturing, or the total amount spent on finished goods and services (less imports).Gross domestic product (GDP) is a monetary indicator of the total market value of all the final commodities and services that nations generate and sell over a given time period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.GDP = private consumption + gross private investment + government investment + government spending + (exports – imports).Learn more about GDP refer to :
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You are helping Anita fill out her tax return. She has questions about how her divorce effects her tax situation. To provide answers for her, you decide to ask a more experienced volunteer for help. Which of the following should you say to the more experienced volunteer?
I'm assisting a taxpayer whose husband filed for divorce last year. She has some concerns over how she filed last year. - In front of other taxpayers or volunteers, you should never use a taxpayer's name. You may, however, speak with other taxpayers and volunteers about specific tax issues.
Some locations now allow volunteers to assist taxpayers over the phone or online, giving both volunteers and taxpayers more flexibility and convenience. Sites for in-person programs are typically found in locations like churches, community centers, libraries, and schools.
The IRS will invite interested parties to a virtual orientation session where they can learn more about the initiative once they have shown an interest.
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8. Pure Expectations Theory
I completed this problem on the pure expectations theory.
Is this correct?
The pure expectations' theory of the yield curve includes following:-
A flat yield curve suggests that the market thinks interest rates in the future will be the same as they are today.Long-term interest rates are based on expectations of what short-term interest rates will be in the future.An upward-sloping yield curve implies that the market thinks short-term interest rates are going to be higher in the future than they currently are.Hence, option 2nd, 3rd and 4th are correct.
What is pure expectations' theory?According to pure expectations' theory, the various maturities are substitutes, and the form of the yield curve is determined by the market's anticipation of future interest rates.
This theory states that yields fluctuate over time, but it fails to specify the specifics of yield curve forms. Therefore, it can be concluded that option 2nd, 3rd and 4th are correct.
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since population growth ____ from country to country, marketing managers pay increased attention to fast-growing developing countries.
Marketing managers pay more attention to developing nations that are experiencing rapid population expansion due to the stark regional differences in population growth.
What are the 4 stages of marketing planning process?Four components make up the marketing process: strategic marketing analysis, marketing mix planning, marketing execution, and marketing control.
Due to the dramatic geographical differences in population growth, marketing managers pay more attention to developing countries that are going through rapid population growth.
Sales forecasts and reviews of prior promotional efforts to gauge their efficacy are part of the market planning process' initial phase. A corporation can determine which parts of the strategy should receive more attention or need to be altered through the process of product analysis.
Marketers need to be aware of consumer demands and the competitive environment. Second step in the marketing process: marketers create a customer-driven marketing plan with the intention of attracting, retaining, and expanding target customers.
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different forms of businesses have different characteristics. which of the following characteristics would apply to a partnership? check all that apply.
A partnership generally has the qualities listed below:
Shared ownership: In a partnership, two or more people jointly own the company and split any earnings or losses incurred.
Joint management: In partnerships, the owners frequently share management and decision-making duties.
Unlimited liability: In a partnership, each participant is generally responsible for the debts and liabilities of the company.
Flexibility: Partnerships can be set up in a variety of ways, which gives owners and managers a great deal of latitude.
Taxation that is passed down to the individual partners, who declare their portion on their personal tax returns, rather than treating partnerships as separate legal organisations and taxing them as such.
The right response is: Little financial responsibility; capability of corporate ownership structures; owners' limited responsibility
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