When an economy has the ability to produce more, it grows. Production is determined by the amount of capital, labor, environmental assets, and technology available.
The correct answer is True.
Do some more capital goods lead to higher economic growth?Capital goods production increases an economy's capital base. As a result, the country can produce more than before, and its PPF shifts out, resulting in economic growth.
Why are capital goods necessary for economic growth?If a company is not able to produce goods because of a lack of equipment, it will be unable to compete on the market. Capital goods play an important role in increasing long-term production of goods, or in other words, they increase production capacity of goods and services.
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sam wants to know if he can afford the debt he is carrying and, if so, how much leeway he has for assuming more debt. the first thing for him to look at is
The answer is Financial Ratios, If Sam wants to know if he can afford the debt he is carrying and, if so, how much leeway he has for assuming more debt. the first thing for him to look at is financial ratios.
What is the real meaning of debt?Anything owing by one person to another is considered a debt. Debt may be secured by real estate, cash, services, or other value. Debt is more specifically described as capital raised through the issuance of bonds in the field of finance. A loan is a type of debt, but more precisely, it's an arrangement in which one party gives money to another.
What are the four different categories of debt?Debt can be divided into two categories: secured debt and unsecured debt. You can find revolving and installment debt among such categories. These sorts of debt are distinct from one another other from the fact that you owe money.
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a new trade agreement between the united states, canada, and mexico replaced nafta in 2018 known as usmca. among its provisions are
The USMCA, or United States, Mexico, and Canada Agreement, is a trade pact between the three nations. The North American Free Trade Agreement was superseded by the USMCA (NAFTA).
What accomplishes the USMCA?The USMCA encourages the use of electronic means for conducting government procurement, boosting openness and efficiency for small and medium-sized firms, and making it easier for American and Mexican SMEs to participate in such procurements.
Trade barriers between the three North American nations had been virtually erased by NAFTA, and the USMCA not only upholds free trade but also updates the laws to reflect developments in the global economy since NAFTA's implementation in 1994.
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2. does your textbook present only positive economics and avoid any normative economics? if not, give some examples of normative issues covered in your textbook.
Normative claims are predicated on "beliefs or ethics"—what someone thinks ought to be. Contrarily, affirmative claims can be put to the test, even if they aren't always true.
Define the term normative economics and its features?By questioning what should occur or what ought to be, normative economics seeks to ascertain whether or not people find particular economic programmes, events, and conditions desirable or not.
As a result, normative statements often give an analysis based on opinion regarding what is deemed desirable. An example of a normative statement would be that the government would aim for growth in the economy of x% and inflation of y%.Normative economics may well be helpful in developing and creating fresh ideas from many angles, but it cannot serve as the sole foundation for making judgements on significant economic issues since it lacks an objective viewpoint that emphasises facts and causes and consequences.Thus, Normative claims are predicated on "beliefs or ethics"—what someone thinks ought to be. Contrarily, positive economics can be put to the test, even if they aren't always true.
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technological improvements will: a leave the production possibility curve unchanged. b shift the production possibility curve inward. c shift the production possibility curve outward. d necessarily lead to increased unemployment. e cause a movement from a point inside the curve to a point closer to the curve.
Technological improvements will b. shift the production possibility curve outward.
The development of new and improved techniques of creating commodities is referred to as technological change or advancement. Sometimes technical advancements result in an increase in available natural resource supply.
However, more broadly, technical advancements increase the productivity of labor, capital, and other resources. Total factor productivity refers to the productivity of all factors' combined inputs.
As a result, technological advancement implies an increase in total factor productivity. As technology advances, it is possible to generate more output with the same resources or the same quantity of product with fewer resources.
However, the question of how technological growth occurs arises. Technological development is achieved through inventions and innovations.
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Edith is the owner and manager of a small coffee shop that employs three workers who use the shop's one coffee machine to make and serve coffee to paying customers. Business has begun to pick up lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she'll be able to sell twice as much coffee. Do you think she's likely to be right? Why or why not?
Adding more and more workers does not constantly increase production because of the diminishing marginal product of labor i.e. Option 2 is correct.
It is not certain whether Edith's assumption that hiring three more baristas will result in her shop being able to sell twice as much coffee. While having more workers may help to improve efficiency and reduce lines, there are several factors that can impact the overall sales and success of the coffee shop.
For example, simply adding baristas may not solve the underlying issue if the coffee machine is the bottleneck in the process. In that case, buying a new machine or upgrading the existing one could be a more effective solution. Additionally, the ability of the shop to sell more coffee could be limited by other factors such as demand, customer preferences, and competition.
Furthermore, hiring more baristas will also result in increased expenses such as wages, training, and benefits, which must be considered in order to determine the overall impact on the shop's profitability.
In conclusion, while adding baristas may help to improve the efficiency of the coffee shop, the impact on sales and overall success is not certain and would require a more comprehensive analysis of the business operations and factors affecting sales.
The adjustment of result that happens when you add another unit of work to the labor force is known as the marginal product of labor (MPL) in economics
It is a quality of the creation capability and is dependent on the current degrees of work and actual capital.
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Complete Question -
Edith is the owner and manager of a small coffee shop that employs three workers who use the shop's one coffee machine to make and serve coffee to paying customers. Business has begun to pick up lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she'll be able to sell twice as much coffee. Adding more and more workers does not constantly increase production because of _______
SELECT THE CORRECT ANSWER
1. different productivity levels between various laborers.
2. diminishing marginal costs.
3. diminishing marginal product of labor.
4. substitutes in production.
almost all economists agree that rent control a. has no effect on the rental income of landlords. b. allows the market for housing to work more efficiently. c. adversely affects the availability and quality of housing. d. is a very inexpensive way to help the most needy members of society.
Almost all economists agree that rent control c) adversely affects the availability and quality of housing.
What is rent controlRental controls are government regulations that limit the price that landlords can charge tenants to live in certain apartments. There are usually regulations about how much the rent can increase each year, leading to a maximum amount. Today, rent control is still in place, but laws vary by city or municipality.
Rental-controlled apartment managers usually also receive significant tax benefits from the government. At the same time, landlords often receive less income from each unit.
Rent-controlled creates a substantial negative externality in the nearby housing market, devaluing this neighborhood amenity and making it a less desirable place to live.
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If the economy is currently producing 10 units of good A and 90 units of good B, the opportunity cost of increasing the production of good A from 10 to 20 units is how many units of good B?
answer choices
a. .05
b. 1
c. 5
d. 10
e. 20
d. 10. Increasing manufacturing of good From a ten to twenty unit will cost 10 per unit of good B.
How can you determine whether opportunity cost is rising?Different opportunity costs are represented by different-shaped curves.The straight line curve indicates a constant opportunity cost, the bowed outward (concave) curve a growing potential cost, and the bowed in (convex) curve a decreasing opportunity cost.
What would rising opportunity costs imply?According to the law of growing opportunity costs, the cost of producing a second good will rise as you create more of the first.
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environmental scanning and competitor intelligence provide important inputs for forecasting activities. group of answer choices true false
True. Environmental scanning and competitor intelligence provide important inputs to forecasting activities. Environmental scanning involves monitoring external factors that can affect a company's operations, such as changes in technology, consumer preferences, or regulations. Competitor intelligence involves gathering information about a company's competitors, including their strengths and weaknesses, product offerings, and market strategies. This information can help a company better understand current and future markets, enabling it to make informed predictions and adapt its strategy accordingly.
Environmental Scanning is a process of monitoring, evaluating, and disseminating information from the external environment and internal to important people within the company. The aim is to identify the strategic factors — the external and internal elements that will determine the future of the corporation.
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acb manufacturing purchased $6,000 of merchandise inventory from a vendor on account with credit terms of 2/10 or n/30. because some of the merchandise was damaged, acb manufacturing returned $1,000 of the merchandise two days later. acb manufacturing uses the perpetual inventory system and made payment for the merchandise, less the return, within the discount period. what is the final cost of the merchandise inventory for acb manufacturing from this purchase?
The total cost of this purchase's product inventory for cab production came to $4,900.
What would a journal entry for a credit for returning goods bought on credit under a perpetual inventory system look like?The buyer's journal entry to document the return of goods acquired on account contains a d) credit to inventory when using a perpetual inventory system. According to the perpetual inventory system, when inventory is purchased, accounts payable is credited and inventory is debited.
Which of the following accounts do you normally see on a balance sheet for a retail business but not on one for a service business?The price of goods that are available to be sold to clients for a profit or markup is referred to as merchandise inventory. Due to their main line of business being the purchase and sale of tangible products or inventories, merchandising businesses have this account on their balance sheet.
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to foster innovation in the business environment, it is important that strong legal protection of property rights is in place. inadequately enforced property rights can lead to an increase in the multiple choice question. rate of economic growth. levels of foreign direct investment. risk of expropriation of profits. incentives for entrepreneurial activities.
Inadequately enforced property rights can cause an increase in the D: incentives for entrepreneurial activities.
Having strong legal protection of property rights is essential for fostering innovation in the business environment. Adequate enforcement of property rights ensures that individuals and businesses can securely own and control their ideas, inventions, and other intellectual property. This creates incentives for entrepreneurial activities and innovation because individuals and businesses can protect and profit from their ideas.
Without proper protection of property rights, the risk of expropriation of profits increases, which can discourage innovation and entrepreneurship. A stable and secure environment for protecting property rights can attract foreign investment and contribute to economic growth. It is therefore important for governments to ensure that property rights are adequately enforced and protected.
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a trade discount is: a term used by a seller to describe a cash discount granted to customers for prompt payment.
The given statement "a trade discount is a term used by a seller to define a cash discount granted to customers for prompt payment." is true because a trade discount is a term used by a seller to dictate a cash discount granted to customers for prompt payment.
A trade discount is a type of discount is offered as an incentive for customers to pay their bills within a specified time frame, usually within 30, 60, or 90 days. By offering trade discounts, sellers can encourage customers to pay earlier, improving their cash flow and reducing the amount of money tied up in accounts receivable.
Trade discounts can also help sellers to compete more effectively in the marketplace, by offering more favorable pricing than their competitors.
"
Complete question
a trade discount is: a term used by a seller to describe a cash discount granted to customers for prompt payment.
true
false
"
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"
the sales price of a property is $150,000 and it appraised for $151,000; the borrower has obtained an 80% ltv loan and will pay two discount points. what is the total cash the borrower needs to bring to the closing?
The term cash flow alludes to the net measure of endlessly cash counterparts being moved all through an organization. Hence, the total cash the borrower needs to bring to the closing will be $26,364
The loan amount is calculated as 80% LTV of the appraised value, which is 80% of $151,000 = $120,800.
The total loan amount including the two discount points is $120,800 + (2 * $120,800 * 0.01) = $123,636.
So, the borrower needs to bring the difference between the sales price and the loan amount to closing, which is $150,000 - $123,636 = $26,364.
Cash flow is how much money that comes in and leaves an organization. Organizations accept in cash from deals as incomes and burn through cash on costs. They may likewise get pay from revenue, speculations, sovereignties, and permitting arrangements and sell items using a loan, hoping to really get the money owed at a late date. Surveying the sums, timing, and vulnerability of incomes, alongside where they start and where they go, is one of the main targets of monetary detailing. It is fundamental for evaluating an organization's liquidity, adaptability, and generally monetary execution.
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joaquin is worried about his company locating a manufacturing facility in indonesia because of the unstable government which could devastate their business. which type of risk is affecting joaquin's decision? multiple choice question. social economic political legal
First option is correct. Joaquin is concerned that his company may find a manufacturing facility in Indonesia because of an unstable government that could destroy his business influence decisions.
It can be more expensive to do business in countries where local laws and regulations set strict standards for product safety.
Examples of legitimate activity in the informal economy are undeclared labor or barter income. Illegal activities include drug trafficking, trading in stolen goods, smuggling, illegal gambling, and fraud. With little government intervention in a market economy, individual ownership can dictate all business decisions regarding the operation of a business. This type of economy leads to increased efficiency, productivity and innovation.
He has four types of economy. Traditional, command economy, free market, and mixed (combination of market economy and command economy).
A market economy, also called a free market economy or free enterprise economy, is a system in which economic decisions, such as those related to the price of goods and services, are determined by supply and demand. A command economy, on the other hand, uses central planning by a central authority to make all economic decisions.
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private ownership a. permits owners to do anything they want with their property. b. permits anyone to use the property with or without permission, compensation or consideration for the owner. c. permits owners to buy, sell and derive income from their property. d. provides owners with little incentive to conserve for the future.
The correct answer is option c. Private ownership permits owners to buy, sell and derive income from their property.
A privately owned company is a type of company that is not publicly traded. It means that the privately owned company either does not have a share structure through which it can raise capital or that shares of that company are being held and traded without using any exchange.
Privately owned companies usually include-
family-owned businesses, sole proprietorships, and the vast majority of small and medium-sized companies.These types of companies are often too small to conduct an initial public offering (IPO) and they are tend to fulfil their financing needs by using personal savings, inherited money, and/or loans from banks.
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question content area part 1 utility refers to how much consumers utilize a product or service. a. true b. false
The given statement which is "The utility refers to how much consumers utilize a product or service" is True because of the product or service reach the consumers expectation and can consumer enjoy the product by utilization.
The consumers utilize is the feedback in which the company reviews the consumer expectation and having issue or not with the selling products. The company check the four points to analyze the customer expectation reach or not.
The four expectations are quick and easy resolution consumer complaints, access to preferred service channels, opportunities to answer questions themselves via help centers, personalized experience, and data protection and privacy.
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which of the following statements is (are) true concerning private insurance? i.social insurance programs are always written by private insurers. ii.individuals and businesses purchase private insurance.
II- "Individuals and businesses purchase private insurance" is true.
Private insurance refers to insurance coverage that is purchased by individuals or businesses directly from insurance companies, as opposed to being provided by the government through a social insurance program. Private insurance is typically purchased to protect against financial losses from specific events such as illnesses, accidents, or property damage. Individuals and businesses can choose from a wide range of private insurance options, including health insurance, life insurance, and property and casualty insurance, to meet their specific needs.
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a business's social responsibility to investors includes following proper accounting procedures. group of answer choices true false
The four basic categories of CSR are economic responsibility, philanthropic duty, environmental responsibility, and ethical responsibility.
Which duty falls under the MC question on social responsibility?All of a company's intentional actions, its duties to the environment and society, and its moral commitments are all considered to be part of its social responsibility.
What do social responsibility examples look like?Businesses that practice social responsibility include those that support volunteerism, philanthropy, and environmental preservation.For instance, a business might alter its manufacturing procedure to cut down on carbon emissions.
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a 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. the price elasticity of demand for spinach is
The price elasticity of demand for spinach is -2.
What is elasticity of demand?Elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or service to a change in its price. It provides insight into how changes in price affect the quantity of a good or service that consumers are willing and able to purchase.
How is elasticity of demand calculated?Elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. The resulting value can be positive, negative, or zero, indicating that demand is elastic, inelastic, or unit elastic, respectively. Elasticity of demand can also be calculated for other factors that affect demand, such as income or the price of related goods.
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trudy has just recorded a deed that gives her daughter, sally, a life estate in the family farm plus a general power of appointment over the farm. which is a correct statement regarding the property interests given to sally? a) a disadvantage of the life estate is that it is a future interest. b) a disadvantage of the life estate is that it is a contingent interest. c) a disadvantage of the general power of appointment is that sally will not be able to appoint the remainder interest in the property to herself. d) an advantage of the general power of appointment is that sally will be able to become the sole owner of the farm.
Sally will be able to become the farm's sole owner thanks to the property interests granted to her, which is a benefit of the general power of appointment.
An interest in any form of property or asset, whether real, personal, mixed, physical, or intangible, is referred to as a property interest.
A property interest can either be a fee simple interest in the real estate or a standing timber and tree interest.
Having an interest in something simply means that you have some sort of ownership in it or a right to do something with it or on it.
As an illustration, consider having a lease, an easement, a life estate, being a joint owner, being the only owner, etc.
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what three company resources are managers responsible for to increase performance and, as a result, the company's stoc
Managers are in charge of maximizing performance and, as a result, the value of the company's stock through the use of finance, capital, and human resources.
According to the conventional definition, a manager is only one who is responsible for supervising people's activities. Simply put, managers supervise others' efforts to accomplish goals. In the modern workforce, managers may be in control of particular systems or tasks that don't require human interaction. The manager's main responsibility is to organize the work of every employee in the company and provide the best outcomes possible to guarantee the company's expansion. In order to achieve the best results from the staff, managers have a variety of duties and responsibilities. Final Verdict. The ability to plan a business, make decisions, solve problems, communicate effectively, delegate, and manage time are all examples of management talents.
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what is the present value of an annuity due that pays $70.00 per year for 17 years (17 payments) and an additional $1,000.00 with the final payment? use an annual effective interest rate of 8.25%. be careful! when does your calculator (or spreadsheet formula) assume fv's occur?
The present value of an annuity due, we can use the following formula: PV = PMT x ((1 - (1 + r)^(-n)) / r) x (1 + r) we get Therefore, the present value of the annuity due is $1,033.19.
where PV is the present value, PMT is the periodic payment, r is the interest rate per period, and n is the number of periods.
In this case, the periodic payment is $70.00, there are 17 payments, and the interest rate is 8.25% per year. The additional $1,000.00 with the final payment does not affect the present value of the annuity due.
Using the formula, we can calculate the present value as follows:
PV = $70.00 x ((1 - (1 + 0.0825)^(-17)) / 0.0825) x (1 + 0.0825)
PV = $1,033.19
It's important to note that the formula assumes that the payments are made at the beginning of each period, which is why we use the annuity due formula. If the payments were made at the end of each period, we would use a different formula.
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The present value of the annuity due is $1,033.19.
The present value of an annuity due, we can use the following formula: PV = PMT x ((1 - (1 + r)^(-n)) / r) x (1 + r) we get Therefore, the present value of the annuity due is $1,033.19.
where PV is the present value, PMT is the periodic payment, r is the interest rate per period, and n is the number of periods.
In this case, the periodic payment is $70.00, there are 17 payments, and the interest rate is 8.25% per year. The additional $1,000.00 with the final payment does not affect the present value of the annuity due.
Using the formula, we can calculate the present value as follows:
PV = $70.00 x ((1 - (1 + 0.0825)^(-17)) / 0.0825) x (1 + 0.0825)
PV = $1,033.19
It's important to note that the formula assumes that the payments are made at the beginning of each period, which is why we use the annuity due formula. If the payments were made at the end of each period, we would use a different formula.
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explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment decision making. the arithmetic average assumes compounding or interest-on-interest , while the geometric average assumes -select- .
As per investment decision the geometric mean is more preferable compare to arithmetic mean as account variation shown by compound interest period to period.
The arithmetic mean is always different from geometric mean as arithmetic mean calculation based on simple average where as geometric mean based on compounding effect.Arithmetic mean returns represents the average sum of all the given numbers.Geometric mean represents the nth root of the product of the several given numbers.For example : Arithmetic mean is ( 8 + 2 ) / 2 = 5Geometric mean is √ 8 × 2 = 4Investors consider that in comparison to arithmetic mean geometric mean is more profitable as it has compounding effect.Therefore, as per investment point of view geometric mean is more preferable than arithmetic mean.
The above question is not complete , the complete question is:
Explain why the geometric and arithmetic mean returns are not equal and which one is more useful for investment decision making?
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What are the 4 components included in GDP?
When the GDP is estimated using the expenditures technique, its components include government spending, exports, and imports.
What is GDP?The market worth of all the final goods and services produced and sold (not resold) in a certain time period by countries is measured in dollars using the term "gross domestic product" (GDP).
This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
To compare living standards between countries, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful, whereas nominal GDP is more useful for comparing national economies on the global market.
GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries.
Consumption, investment, government spending, exports, and imports make up the components of the GDP when it is calculated using the expenditures method.
Therefore, when the GDP is estimated using the expenditures technique, its components include government spending, exports, and imports.
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how can a country gain from specialization and trade?
Countries can gain from trade and specialization wherever there are disparities in the opportunity costs of production. Specialization has advantages for consumers, the economy, and growth prospects for industries that are competitive.
What benefits do commerce and specialization provide for nations?This exchange generates trade benefits as nations specialize. As a result of specialization, more goods and services can be produced, productivity improves, production can move beyond a country's production potential curve, and resources can be utilised more effectively.
How might trade and specialization benefit us?By enabling more efficient use of production inputs like labor and capital, trade expansion increases total productivity. Businesses in the United States that expand as a result of improved access to international markets foster more job possibilities.
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if the death benefit of a life insurance policy is $500,000 but it earns 10% interest for one year before being paid out, the taxpayer will owe taxes on what amount?
The beneficiary will be responsible for paying taxes on the $50,000 increase, for instance, if the death benefit is $500,000 and it earns 10% interest for a year before being paid out.
What are Life Insurance Benefits Taxable?Interest income is usually always subject to taxation at some time.
The same applies to life insurance.
This implies that the beneficiary must pay taxes on the interest rather than the total benefit when receiving life insurance funds during a period of interest accumulation as opposed to immediately upon the policyholder's death.
For instance, if the death benefit is $500,000 and earns 10% interest for a year prior to being paid out, the beneficiary will be responsible for paying taxes on the $50,000 increase.
Making "payable to my estate" the beneficiary of a contract, such as an individual retirement account (IRA), an annuity, or a life insurance policy, is a mistake that investors tend to make regularly.
Therefore, the beneficiary will be responsible for paying taxes on the $50,000 increase, for instance, if the death benefit is $500,000 and it earns 10% interest for a year before to being paid out.
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Marius has been brought in as a consultant for a large organization. He is tasked with identifying the goals, policies, and action sequences the company should take to offset competitive challenges. Marius will be implementing.
a. operational management.
b. transactional management.
c. management by objectives.
d. process mapping.
e. strategic management.
He is entrusted with figuring out what objectives, guidelines, and course of action the business should follow to counteract challenges from the competition. Marius will be putting these ideas into practice. The right response is (E) strategic management.
What strategic management procedure can modify corporate objectives and goals?The process of choosing the optimal course of action for achieving organizational goals and, by extension, realizing the purpose of the organization is known as strategy formulation. The creation of corporate, business, and functional strategy follows environment assessment by managers.
The action phase of strategic management is referred to as what?Strategic implementation is the process of putting plans and strategies into action to focus on achieving anticipated organizational goals. It is also known as the strategic management process' action phase.
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what are two characteristics of mixed economies? multiple select question. they have no private ownership of business, only businesses owned by the state. they exist when the distribution of resources involves elements from more than one economic system. they contain elements of more than one system. they are slowly disappearing, since they are unsuccessful. need help? review these concept resources.
The two characteristics of mixed economies are:
B. they exist when the distribution of resources involves elements from more than one economic systemC. they contain elements of more than one systemWhat are the characteristics of mixed economyThey contain elements of more than one system: A mixed economy is a type of economic system that combines elements of both a market economy and a planned economy. In a mixed economy, there is a combination of private enterprise, market forces, and government intervention.
They exist when the distribution of resources involves elements from more than one economic system: Mixed economies are characterized by the presence of both private and public ownership of the means of production, as well as a mix of market forces and government intervention in the allocation of resources. In this type of system, the state plays a role in directing the economy through regulation, taxation, and other policies, while market forces determine the prices and production of goods and services.
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on november 1, year 1, a company purchased a new machine that it does not have to pay for until november 1, year 3. the total payment on november 1, year 3, will include both principal and interest. assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money concept?
The entry in the journal for November 1 would be:on november 1, year 1, a company purchased a new machine. The correct answer is C. Credit to Note Payable $106,000.
• A $6,000 debit to interest expense
• $100,000 in Debit to Cash
$106,000 Credit to Note Payable
In general, the journal entry that needs to be made to record accounts receivable for long-term construction projects can be defined as debiting accounts receivable and crediting billings on construction contracts.
A "billings in excess of costs" or liability account is used for this journal entry. First, we calculate the interest due. The interest due equals 6% times $100,000. Interest due is equal to 0.06 times $100,000. The amount of interest due is $6,000
We can create a journal from that, which is seen below:
Cash to Debit = $100,000 Note Payable Credit = $100,000 plus $6,000 $106,000 Credit to Note Payable
Complete question:
On november 1, year 1, a company purchased a new machine that it does not have to pay for until november 1, year 3. the total payment on november 1, year 3, will include both principal and interest. assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money concept?
A. Debit to Interest Expense $6,000
B. Debit to Cash $100,000
C. Credit to Note Payable $106,000
D. Credit to Note Payable $100,000
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erry lang is unclear as to the difference between the balance sheets of a merchandising company and a manufacturing company. explain the difference to jerry.
The differ-ence in balance sheets pertains to the presentation of inventories in the current asset sect-ion. In a merchandising company, only merchandise inventory is sho-wn. In a manufacturing company, 3 inventory accounts are shown: finish-ed goods, work in process, and raw materials.
What Is a Balance Sheet?The term balance sheet refers to a financial state-ment that reports a company's assets, liabilities, and share-holder equity at a specific point in time. Balance sheets pro-vide the basis for computing rates of return for invest-ors and evaluating a company's capital structure.
Balance sheets can be us-ed with other important financial state-ments to conduct funda-mental analysis or calculate financial ratios.
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Approximately how long will it take for $250 to grow to $1,000 at an annual rate of 8%? 4 years. 25 years. 18 years. 9 years.
18 years would pass within the period at an annual rate .
How to calculate how long it would take?Using the compound interest formula, we can determine how long it will take for an investment to increase from $250 to $1,000 at an annual rate of 8%:
A = P * (1 + r)^t
where A represents the overall sum, P represents the initial sum, r represents the annual interest rate in decimal form, and t is the number of years.
When we enter the numbers, we obtain:
1000 = 250 * (1 + 0.08)^t
By multiplying both sides by 250, we obtain:
4 = (1 + 0.08)^t
Using both sides' natural logarithms:
ln 4 = t * ln (1 + 0.08)
By dividing the two sides by (1 + 0.08)ln
t = ln 4 / ln (1 + 0.08)
Using a calculator to approximate this calculation, we get that t = 18 years.
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