4) maria is deciding how big of a house to build. she gets decreasing marginal benefits from house size (so, the marginal benefit of the first square foot is greater than the marginal benefit of the second square foot and so on). the builder charges $100 per square foot. maria decides to build a 1,700 square foot house. what if, instead, the builder offered a discount, where the first 1,000 square feet were half price ($50 per square foot)? how big of a house would maria choose to build: a) less than 1,700 square feet b) still 1,700 square feet c) more than 1,700 square feet

Answers

Answer 1

Discount: The More than 1,700 square feet.

What is discount?

Discount is the reduction in the price of a product or service. It is usually given as a percentage of the original price. Discounts are commonly offered to encourage customers to buy more or to reward them for their loyalty. Discounts can also be used to attract new customers or to clear out old stock. Discounts can be an effective way to increase sales and profits, as customers are more likely to buy a product or service if they can get it at a discounted price. Discounts are often offered during sales or promotional periods, such as holidays or special events. They can also be offered on a regular basis, such as weekly or monthly discounts.

Maria would likely build a larger house because the discount would decrease the cost of the first 1,000 square feet, making it more financially viable to build a larger house. This also means that Maria would be able to benefit from more square feet of her house, as the marginal benefit of each additional square foot would be lower than the discounted price.

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Related Questions

on december 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: accounts receivable, debit balance of $97,200; allowance for doubtful accounts, credit balance of $961. what amount should be debited to bad debts expense, assuming 5% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

Answers

The bad debt expense is of the company for the current year is $ 1,941.

What is bad debt?

A bad debt, also known as uncollectible accounts expense, is a sum of money owed to a creditor that is likely not going to be paid and for which the creditor is not willing to take action to collect for a range of reasons, frequently because the debtor does not possess the money to pay, for example because a company is going out of business or is insolvent. There are a variety of technical definitions of what a bad debt is, depending on accounting procedures, legal management, and the institution providing. Accounting sources state that a provision for bad debts or the full amount of a bad debt should be recorded in the profit and loss account as soon as it is known that it will occur.

Dr Bad Debt Expense                  $ 1,941  

Cr Allowance for Uncollectible Accounts  $ 1,941

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During the month of march, Sid, paid on salary, worked 35 hours the 1st week, 40 hours the 2nd week, 40 hours the 3rd week and 45 hours the 4th week

Answers

During the month of march, Sid, paid on salary, worked 35 hours the 1st week, 40 hours the 2nd week, 40 hours the 3rd week and 45 hours the 4th week and this is called  fixed salary.

What is the fixed salary about?

If Sid is paid on salary, it means that he is paid a fixed amount each month regardless of how many hours he works. Therefore, the number of hours he works each week would not affect his pay.

If Sid is paid an hourly wage, then the number of hours he works each week would affect his pay.

For example, if Sid's hourly wage is $20 and he worked 35 hours the first week, 40 hours the second week, 40 hours the third week, and 45 hours the fourth week, his total pay for the month of March would be $20 x 35 hours  

= $<<2035  =700>>700 for the first week,

$20 x 40 hours = $<<2040=800>>800 for the second week,

$20 x 40 hours = $<<2040=800>>800 for the third week,

$20 x 45 hours = $<<2045=900>>900 for the fourth week,

For a total of $700 + $800 + $800 + $900 =

$<<700+800+800+900=3200>>3200 for the month of March.

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During the month of march, Sid, paid on salary, worked 35 hours the 1st week, 40 hours the 2nd week, 40 hours the 3rd week and 45 hours the 4th week. What is this called

brody invests money in an account paying a simple interest of 8.6% per year. if he invests $50 and no money will be added or removed from the investment, how much will he have in one year, in dollars and cents?

Answers

Brody will have final amount of $54.30 in one year. Future value at the conclusion of the period is the entire amount borrowed or the final amount, whichever is greater.

How to calculate final amount ?

The final sum, often known as the entire amount borrowed, is what is referred to as the future value. The future value simple interest formula illustrates the future value that simple interest will produce once the time period has passed.

The sum of the initial principal amount and the interest accrued on that principal amount at the end of the period is the future value simple interest formula.

To find out how much money Brody will have in one year, you can use the following formula:

final amount = principal * (1 + rate * time)

In this case, the principal is $50, the rate is 8.6% per year, and the time is 1 year. Plugging these values into the formula, we get:

final amount = $50 * (1 + 0.086 * 1)

= $50 * 1.086

= $54.30

So, in one year, Brody will have $54.30 in his account.

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in evaluating the effectiveness of a business-to-business advertising program, the manager should center on

Answers

The manager should focus on the following when determining whether or not a business-to-business advertising program is successful: changes in the product awareness of the target audience.

The fact that the budget is not determined by previous sales figures or marketing expenditures, nor is it determined by what other businesses are doing, is the primary benefit of the objective task method. Instead, it keeps spending focused on the main goals of the business.

Which part of the customer interface is which?

The customer-collected information and the degree to which this information is utilized to enhance the customer's value are referred to as the following aspects of customer interface: insight and information.

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a bond has a macaulay duration of 4.0, a yield to maturity of 4.5%, a coupon rate of 5.0%, and semiannual interest payments. what is the bond's modified duration?

Answers

The correct answer is 3.91 years. Modified Duration = 4.0 / (1 + (.045/2)) = 3.91 years.

What are bond markets?

The bond market is a financial market where players can buy and sell debt securities as well as issue new debt, often known as the primary market.

For both public and private spending, this is typically in the form of bonds, but it may also take the shape of notes, bills, etc.

According to SIFMA, the bond market is expected to be worth $119 trillion globally and $46 trillion in the US.

Bank loans and bonds together make up the credit market. In total, the global credit market is almost three times larger than the global equity market.

Bonds often have stricter regulations. Bonds are often sold in relatively small denominations of $1,000 to $10,000 and are not typically secured by security.

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what percentage of shoplifters are considered professionals who derive the majority of their income from shoplifting

Answers

10% of shoplifters are thought to be professionals who rely on theft for the majority of their revenue.

Why do individuals shoplift?

People may shoplift for a variety of reasons, the majority of which have nothing to do with a shortage of funds or a requirement for the item being taken, according to Psychology Today. An addiction to stealing and a mental illness that promotes the activity are two frequently cited causes. People may, for instance, struggle to restrain themselves from grabbing something if they have an impulsive problem. A brain injury or other sort of brain damage is another reason why someone might not understand or even be aware that taking something without paying for it is wrong.

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suppose your refrigerator uses 300 w of power when it's running, and it runs 8 hours a day. what is the yearly cost of operating your refrigerator?

Answers

If our refrigerator uses 300 w of power when it's running, and it runs 8 hours a day than the yearly cost of operating at Rs.4.00 per kWh will be Rs. 3504.

Power of refrigerator =300W=0.3kW

Total operation hours 8×365=2920h

Work done or total electrical energy  (W)=0.3×2920=876kWh

Total cost of energy to operate =Rs.(876×4.00)=Rs.3504

1 kWh is equal to 3 600 000 joules.

Yearly cost of operating is the continued expenses incurred from the traditional daily of running a business. in operation prices embody each prices of products sold (COGS) and alternative in operation expenses—often referred to as marketing, general, and body (SG&A) expenses.

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suppose your refrigerator uses 300 w of power when it's running, and it runs 8 hours a day. what is the yearly cost of operating your refrigerator at Rs.4.00 per kWh?

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Which strategy benefits from upside price movement and has some protection should the price of the security fall?.

Answers

The Bull Spread strategy benefits from price movement to the upside and provides some protection if the security price falls. Thus, the correct answer is Bull Spread.

What is Bull Spread?

A bull spread is a bullish vertical spread options strategy meant to profit from a slight rise in the underlying security's price. Because of put-call parity, a bull spread can be built using either put or call options. It is a bull call spread when built with calls. A bull put spread is formed by employing puts. A bull put spread is created by selling higher strike put options and purchasing the equivalent amount of lower strike put options on the same underlying securities with the same expiration date. The options trader adopting this approach believes that the underlying security's price rises sufficiently to make the written put options worthless.

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what is not a product characteristic? group of answer choices complexity trialability observability relative advantage price

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The one which is not a product characteristic is observability.

Product characteristics are considered to be the attributes of the product itself which are thus needed in order to be controlled. Thus, the examples of the product characteristics are tend to be shape, size, weight, color, quality, hardness, etc.

However, the list of the product characteristics tend to depend on your product and how its functional design requirements have been defined. Product is said to be complex of tangible and also the intangible attributes, including packaging, color, price, prestige, etc.

Hence, the one which is not a product characteristic is called observability.

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business continuity management is a multiple choice preventive control. detective control. corrective control.

Answers

Business continuity management strategies include preventive control, detective control, and corrective control.

How can business continuity be achieved?

Business continuity strategy refers to a stage of the BCM planning procedure. It provides a conceptual overview of the crisis response tactics, preventive (mitigation) measures, and recovery strategies that must be put into place between the time a disaster strikes and the moment that regular operations can resume.

How does business continuity consist of its three elements?

Resilience, recovery, and contingency are the three crucial parts of a business continuity plan. An company can increase its resilience by incorporating employee rotation, data redundancy, and maintaining a surplus of capacity when creating essential infrastructure and functions.

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for each market, determine whether each market is likely to have sufficient barriers to entry to allow individual firms to make positive economic profits in the long run. classify each market as possessing sufficient barriers to entry or not possessing sufficient barriers to entry.

Answers

Barriers to entry refer to  restrictions placed on  new firm or  market entry.

Barrier cost is an economic term that refers to high initial costs that limit or prevent other competitors in the industry from entering the business. . These barriers or restrictions make it difficult for other companies to participate in  business. They can be

a). Government Regulation - Sometimes the government imposes many restrictions on the entry of a new business. This could be a licensing requirement or a resource availability limitation.

b). Economies of scale - These refer to production efficiencies  that occur when a firm grows and can cover the entire market at a lower cost than many smaller firms producing the same product in smaller quantities. Production costs are lower in one company than in many companies.

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how does warehousing enable you to take advantage of transportation economies? a. warehousing lets you ship in less-than-truckload quantities. b. warehouses enable you to receive full inbound shipments, which can be broken down and stored. c. warehouses allow you to consolidate outbound shipments, helping you ship in full truckload quantities. d. warehouses let you produce in large quantities. e. all of the above f. only b and c

Answers

The warehousing enable a person to take advantage of transportation economies, as the  warehousing lets to ship in less-than-truckload quantities. Thus, option A is correct.

What is the warehousing?

A warehouse is a structure used to store goods. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, and others use warehouses. They are typically large plain buildings located on the outskirts of cities, towns, or villages.

Therefore, Warehousing allows a person to take advantage of transportation economies by shipping in less-than-truckload quantities, so, option A is correct.

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which outsourcing organizations should protect strategic information because it can become vulnerable

Answers

Suppliers are businesses or people who offer procurement services. Organisations should safeguard strategic information while outsourcing since it may be at risk in the hands of providers.

What is an example of outsourcing?

The best instances of outsourcing are in advertising, workplace and warehouse housekeeping, and website creation. The majority of business owners assign control to outside professionals for tasks like bookkeeping, maintenance, and hiring. This enables businesses to concentrate the majority of the resources on the primary operation.

How is outsourcing carried out?

Business Process Outsourcing is another name for outsourcing (BPO). This is the procedure you go through when you hire a local or foreign company to manage your business operations.

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quizlret gdp is adjusted to reflect changes in the quality of the environment such as changes in air and water quality. true false

Answers

This announcement is false. GDP is adjusted to mirror changes in the great of the surroundings such as adjustments in air and water quality.

To determine “real” GDP, its nominal fee ought to be adjusted to take into account fee modifications to permit us to see whether or not the fee of output has gone up due to the fact more is being produced or honestly because expenditures have increased.

Which GDP is adjusted for rate changes?

The gross domestic product implicit charge deflator, or GDP deflator, measures changes in the expenses of goods and services produced in the United States, including those exported to other countries. Prices of imports are excluded.

How regularly is GDP adjusted?

BEA estimates the nation's GDP for each year and each quarter. But new GDP records are launched each and every month. Why? Because for each quarter, BEA estimates GDP three instances

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what is the maximum amount of expenses on which the child and dependent care credit is based for tax year 2022?

Answers

Answer: You may deduct a maximum of $3,000 for one person's care costs in 2022 and $6,000 for two or more persons. You may deduct 20% to 35% of your eligible expenses.

Explanation: Is income a factor when determining tax credits?

Earned Income Tax Credit

A person's adjusted gross income, earned income, and investment income are taken into account when determining their eligibility and credit amount.

What does the term "tax credit" mean?

A tax credit equals a dollar-for-dollar reduction in your income. For instance, if you owe $1,000 in total tax on your return but qualify for a $1,000 tax credit, your net liability is zero.

Does tax credit depend on adjusted gross income?

The following factors determine eligibility for premium tax credits:

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an individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions less the qbi deduction. true or false

Answers

A tax simply means a compulsory financial levy that is imposed on a taxpayer by a governmental organization to fund government expenditures.

Why is my standard deduction more than my income?Many people may also find the standard deduction amount greater than the total that they could reach if they added up all their eligible tax-deductible expenses separately. Whether you use the standard deduction or itemize your deductions is up to you, but you cannot do both.The standard deduction amount typically increase each year due to inflation. You usually have the option of claiming the standard deduction or itemizing your deductions. However, you can't claim both in the same year.Taxation refers to an involuntary and compulsory fee that are usually levied on individuals or business firms (entities) by the government, in order to generate revenues which are used in funding public institutions and activities.Taxable income can be defined as an individual or a business firm's earnings (amount of income) that is used by federal or state authorities, as a base to determine the tax to be levied on them.

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in economic systems, which kind of decisions must be made about productive resources? responses allocation allocation growth growth protection protection sustainability sustainability

Answers

In economic systems, allocation kind of decisions must be made about productive resources. Option A

What are economic systems?

Generally, An economic system is a method that communities or governments use to organize and distribute the resources, services, and products that are accessible within a geographic area or nation.

The elements of production, which might include land, capital, labor, and physical resources, are controlled by the economic systems that run the world.

An economic system, also known as an economic order, is a structured method of production, the distribution of resources, and the exchange of goods and services that exists within a community or a specific geographical region.

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in a closed economy government spending was $30 billion, consumption was $70 billion, taxes were $20 billion, and gdp was $110 billion this year. investment spending was $10 billion. as a result:

Answers

A $10 billion net influx of capital.

Describe net capital.

The gap between a company's current assets and current liabilities is known as net working capital. A company's balance sheet is used to calculate net working capital. The more net working capital you have, the more probable it is that your business will be able to pay its present commitments.

Briefing

Given that,

Government spending = $30 billion,

Consumption = $70 billion,

Taxes = $20 billion,

GDP = $110 billion

Investment spending = $10 billion

Y = Consumption + Investment spending + Government spending

  = (Consumption - Taxes) + $10 billion + $30 billion

  = ($70 billion - $20 billion) + $10 billion + $30 billion

  = $50 billion + $10 billion + $30 billion

  = $90 billion

Due to the fact that GDP is bigger than income (Y). Consequently, there has been a net influx of capital:

= GDP - Y

= $110 billion - $90 billion

= $20 billion

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place the statements based on whether they increase or decrease the bargaining power of suppliers.

Answers

The product is not differentiated from those of other suppliers, the supplier's bargaining power will be reduced if it sells an undifferentiated product.

Since there is only one supplier in the market, this will increase their bargaining power.

Because the input is specialized, it will give the supplier more bargaining power because it is specialized.

Therefore, the response will be to increase or decrease because the only supplier on the market sells a product that is not differentiated and the input is specialized.

How can suppliers' bargaining power be reduced?

Integration in retrospect: This is one of the strategies generally utilized today to decrease the haggling force of providers. Backward integration is the process by which a company acquires its suppliers to establish a monopoly in its industry or reduce supply chain volatility.

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A_____occurs when there is only one company that sells a product in a given market. when competitors agree to sell a product for the same price instead of competing, this is called a____. both monopolies and trusts reduce____, which results in increased for consumers.

Answers

A market situation where one business controls all of the market share and the prices and output is referred to as a monopoly.

How Does a Monopoly Work?A monopoly is a market arrangement where one producer or seller holds a disproportionate amount of power within a certain market. Monopolies are forbidden in free-market economies as they limit customer alternatives and impede competition.A market arrangement known as a monopoly has just one seller or producer.A monopoly restricts the number of product alternatives accessible and makes it difficult for rivals to enter the market.Monopolies may result in dishonest business practices.Government regulations apply to certain monopolies, such as those in the utility industry.A company that enjoys monopoly status lacks substitutes for its goods and faces little internal competition. Monopolies have the power to set prices and erect obstacles to entry for rival businesses.Rarely do pure monopolies exist, but when they do, antitrust rules do apply when some corporations control a sizable amount of the market.

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Answer:

Monopoly, trust, competition, prices

Explanation:

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A person who is friendly, open, and confident possesses essential skills for

an assembly line worker
a customer service position
a mail carrier position
a maintenance worker position

Answers

A customer service position would be a positive role for a friendly, open and confident person. Option B is correct.

What does effective customer service look like?

It is necessary that the professional who works with customer service has some characteristics, such as ease of communication, empathy and cordiality. Customer needs must be the focus of service, in addition to ethics and equal treatment of any customer indiscriminately.

Therefore, a person with such openness, reliability and friendly characteristics can be beneficial in making the customer feel that he was treated well during a service and doing business with the company again.

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as the global market for eyeglass products has become extremely competitive in recent months, u-see products' newly appointed cfo believes the company should address its minimum efficient scale and attempt to lower it. what is a consequence of a low minimum efficient scale?

Answers

The result is that by producing the same item in many places, a company may protect itself against currency risk.

What are the four basic product types?

There are four different types of products, and they are categorized according to customer behavior, cost, and technology products: Convenience items, and shopping items, specialty items, and unexpected items

Why is a product good?

Good goods must have a strong value proposition, or solve a genuine problem, be simple and easy to use, and get stronger and harder to leave with with each usage. They should also be straightforward to comprehend by users.

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Help!!!!!! i need help Quick

1. What is the savings in a bank referred to as? (1 point)

A. A pile of money under your mattress

B. A real estate property

C. A luxury car

D. An interest bearing savings account


2. Which option is an investment with compound interest?(1 point)

A. a rental property

B. a checking account

C. a mutual fund following the S&P 500

D. a savings account


3. Which of these is considered a financial market?(1 point)

A. Sotheby’s auction

B. New York Stock Exchange

C. J.P. Morgan Chase

D. Ferrari dealership


4. Which of the following is not a characteristic of a typical bank savings account?(1 point)

A. no restrictions on money withdrawals or deposits

B. savings are easily accessible for the customer

C. a high interest rate

D. an average of 0.05% interest with no other restrictions


5. Which of the following are considered to be capital gains?(1 point)

A. the new value of a stock after the market closes

B. the profit earned on the sale of an asset which has increased while it was owned

C. the money lost when a stock is sold for less than it was purchased for

D. the interest earned from a government bond


6. Which of these is a mutual fund? (1 point)

A. a fund that pools money from many investors to buy securities

B. a fund used to pay shared bills and expenses

a fund used by the government to gather taxed money

a fund that you share with your family to save in the bank


7. Which is a source of passive income?(1 point)

A. teaching about personal finance

B. owning dividend stocks

C. owning luxury cars

D. working as a consultant


8. Which is an employer-sponsored retirement plan?(1 point)

Responses


A. a type of account offered to employees at very little or no cost

B. a Social Security coverage that is offered only to employed citizens

C. a strategy offered by the company that will advise employees on how to invest in order to retire

D. a private bank plan that is recommended by the company


9. Which is an appropriate use of money in an emergency fund?(1 point)

A. buying a brand new car

B. replacing the furnace in July

C. replacing the furnace in January

D. painting the house


10 Which option defines a tax benefit? (1 point)

A. a type of tax form that needs to be completed each year.

B. some type of savings for taxpayers

C. a government loan

D. a government bond affiliated to tax collection

Answers

An asset or object acquired with the intention of creating income or recognition is referred to as an investment.

What is Investment ?

A purchase of products that are not consumed right away but will be utilized to create wealth down the road is referred to as an investment in an economic outlook.

Investments refer to a portion of revenue that is set aside each year for capital formation rather than being used for consumption.

1. What is the savings in a bank referred to as option D is correct.

2.Option C is correct .

3.Option B is correct .

4. Option C is correct .

5. Option D is correct .

6. Option A is correct .

7.Option B is correct .

8.Option B is correct .

9. Option C is correct .

10. Option B is correct .

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historical cost is the primary basis for asset valuation under u.s. gaap. why is historical cost not as important in the accounting systems of latin america as in the u.s.?

Answers

The countries of Latin America have experienced very high rates of inflation, which would make historical costs meaningless to readers of financial statements.

What is historical cost?

Historical cost is an accounting principle which requires that assets be recorded on the company's balance sheet at their original cost. This cost is usually determined by the price paid at the time of purchase and may include the cost of shipping, taxes, and other fees. Historical cost is the most common method used to value assets, and it is considered the most reliable in terms of accuracy and consistency. It is also the basis for calculating depreciation and amortization. This method of accounting is used because it is considered to be the most reliable, as it is based on actual costs.

Historical cost is not important in the accounting systems of Latin America as in the U.S as many countries of Latin America has experienced high inflation rates which makes prices unstable  and thus historical costs prove to be meaningless to readers of financial statements.

Hence, historical cost not as important in the accounting systems of Latin America as in the U.S is because of high rates of inflation in Latin America.

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during tough economic times, customers are happy when firms extend for purchases.

Answers

During tough economic times, customers are happy when firms extend credit for purchases.

What is credit?

Credit can be understood as a person's or business's ability to pay back debts or credit history. A change to a company's balance sheet lowers its assets or raises its liabilities or equity.  

Credit is a relationship between a borrower and a lender. The borrower borrows money from the lender. The borrower pays back the money at a later date along with interest. Credit cards are the most common way to buy something on credit right now.

This adds a middleman to the credit agreement.

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if an online retailer has focused almost exclusively on demand harvesting efforts for the last few years, it should

Answers

If an online retailer has focused almost exclusively on demand harvesting efforts for the last few years, it should focus on demand generation.

The meaning of the word "retailer"

Instead of purchasing products from producers or wholesalers for their personal use, buyers obtain items for resale to clients through the retail process. Between the wholesaler and the consumer, the retailers act as a middleman. They buy products from wholesalers and resale them in small quantities to clients.

What role does the shop play?

Retailers buy products in bulk from wholesalers and then sell them in smaller amounts to clients. A shopkeeper essentially keeps a range of items on hand. The ultimate aim of a business is to maximize client satisfaction by going above and beyond their expectations and providing excellent services.

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hich practices are regulated by federal laws, in terms of a salesperson's ability to telephone potential customers?

Answers

The broad and permanent rules that the executive departments and agencies of the federal government publish in the Federal Register are codified in the Code of Federal Regulations (CFR).

The 50 titles indicate the major categories covered by federal regulation. The government controls company operations in five key areas: advertising, labour, the influence on the environment, privacy, and health and safety. A Federal Regulations is a list of requirements made by a federal government departments to implement a piece of legislation that Congress has approved. For instance, the Federal Reserve Board has produced regulations over the years to aid in the implementation of statutes like the Dodd-Frank Act.

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true or false: a key aspect of managing a brand's online reputation is to create positive content about the brand that will rank well in serps.

Answers

It is true that a key aspect of managing a brand's online reputation is to create positive content about the brand that will rank well in SERPs.

What is a SERPs?

The list of outcomes a search engine produces in response to a specific word or keyword phrase query is known as a search engine results page (SERP). Search engine results pages (SERPs) typically feature paid search and pay-per-click (PPC) advertisements in addition to organic search results.

In addition, featured snippets, knowledge panels, video carousels, and image packs are typical examples of SERP features. Because results are indexed using ranking signals, which affect where a website appears on the results page, SERPs are significant.

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Because double-declining balance depreciation recognizes depreciation expense faster than straight-line, it is called a(n) ____ method.

Answers

The double-declining balance depreciation method is an accelerated depreciation method.

What does Double declining balance means?

Double declining balance is an accelerated depreciation method for calculating an asset's depreciation expense over its useful life. It is a depreciation method in which the asset's book value is multiplied by a fixed rate that is twice the straight-line rate. This means that the first year's depreciation expense is greater than subsequent years.

What does fixed rate mean?

A fixed interest rate is one that does not change over the life of a loan or other financial obligation. This means that the interest rate on the loan or other obligation will remain constant regardless of how long it is outstanding.

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when a firm offers a list price reduction to channel members for the job they are going to do, they are offering what is known as a .

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While a firm offers a listing fee discount to channel contributors for the activity they may be going to do, they're supplying what is known as a Trade (functional) discount.

A trade discount is a discount given by a seller to a buyer for purchasing goods in large quantities or at regular intervals. It is usually offered as a percentage of the list price and is often referred to as a functional discount. Trade discounts are typically offered to retailers, wholesalers, and other commercial buyers as an incentive to purchase more of the seller’s products.

They are also used to reduce the amount of money the buyer needs to pay, thereby improving the buyer’s profit margins. Trade discounts can also be used to encourage buyers to purchase a certain product, or to reward them for their loyalty. Generally, the more buyer orders, the higher the trade discount they receive.

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