Information search is the stage in the purchase process when the consumer realizes a need and becomes determined to take action but may face challenges or worries.
Customers go through a series of actions in order to purchase a product. The buying process consists of steps that a consumer performs when deciding what to buy. In a typical consumer transaction, necessities and wants are acknowledged. The information search comes next followed by an analysis of all the options. Finally, the transaction is completed and an evaluation is conducted afterward.
The Information search stage starts when the consumer becomes conscious of his need or desire. He seeks more information about the solution to his dilemma and starts looking for the best available options for solving this issue. A consumer may research products by looking at commercials, print materials, videos, websites and even by asking his friends and relatives.
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an investor purchased 100 shares of acme shoelace stock for $20 per share. four years later, the investor sold the stock for $28 per share. this investor would report these transactions, on a per share basis, as
This investor would report these transactions, on a per share basis, as
$20 cost base, $8 capital gain.
Capital gain = Investor sold stock- shoelace stock
=$ 28- $ 20
= $ 8
Cost base:The price paid for a security is known as the cost base for the transaction. For stocks or bonds, the cost basis is actually the price you paid to purchase the securities, containing purchases made by reinvestment of dividends or capital gains distributions, add other costs like the commission or other fees that may have paid to complete the transactions.
How is cost basis per share calculated?To calculate your cost basis per share: Take the original investment amount ($20,000) and divide it by the new number of shares you hold (1,000 shares) to arrive at the new per-share cost basis ($20,000/1,000 = $20).
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synergy national bank issued a conventional loan that is eligible for purchase by fannie mae. when fannie mae purchases the loan, what will synergy national bank receive in return?
Synergy national bank issued a conventional loan that is eligible for purchase by Fannie Mae. When Fannie Mae purchase's the loan, what will Synergy national bank receive in return collect the fee's
Does Fannie Mae have anything to do with a conventional loan?A conventional mortgage loan is a "conforming" loan, which basically means it complies with Fannie Mae or Freddie Mac's standards. Mortgages are bought from lenders by government-sponsored companies Fannie Mae and Freddie Mac, who then sell them to investors.
To whom are loans sold to Fannie Mae?Fannie Mae is a GSE that buys mortgage loans from smaller banks or credit unions and backs or guarantees them on the mortgage market for borrowers with low to middle incomes.
Where can I locate any credits offered by the seller under the loan estimate?A: The Loan Estimate discloses seller credits as follows: The Calculating Cash to Close table includes information on general seller credits.
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compute the amount of ending inventory the shirt shop would report on the balance sheet, assuming the following cost flow assumptions: (1) fifo, (2) lifo, and (3) weighted average. compute the difference in gross margin between the fifo and lifo cost flow assumptions.
Amount of ending inventory would report on the balance sheet, on the assumptions of (b) lifo concept of the accounting principles of management.
LIFO concept of accounting is very simple which accepts the record on the basis of last in first out. As the inventory keeps on changing in the production process it is accounted under the lifo process of assumptions that it keeps changing.
The other techniques of recording the transactions is based on different entries and can be combined under the weighted average accounting.
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A wedding party hired a sole proprietorship to cater their wedding. In this situation, the sole proprietorship is a corporation and the employee who handled the job is a partner. If the sole proprietorship is a corporation and its employee poisons the cake, then who is NOT liable?
the employee who handled the job
the board of directors of the corporation
the corporation
none of the partners
If the sole proprietorship is a corporation and its employee poisons the cake, then the employee who handled the job is not liable.
So, the correct option is A.
Due to the fact that he completed the entire task, the sole proprietorship's employee is likewise accountable. A firm was hired by a wedding party to cater their event. The sole proprietorship in this instance is a partnership, and the worker who completed the task is a partner. A solo proprietorship is run and owned by one individual. All choices and actions made by the owner directly affect the operation of the company.
The business owner could hire employees to help in running the business. The employees do not become business partners; they remain employees. The owner is thought to be responsible for any business-related debts. The only proprietor in this marriage is completely accountable for his assistant's errors.
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liang has been a loyal customer of her hair salon for years—just like most of the other patrons. she believes that her stylist, the salon owner, is the best in the business. not only does the salon provide excellent beauty services, it also features an exceptional, talented staff that always puts the customer first. furthermore, the salon, which is right in the heart of town, is easily accessible. liang’s salon has earned
Since Liang has been a loyal customer of her hair salon for years because she believes that her stylist & salon owner is the best, hence, Liang’s salon has earned a sustainable competitive advantage.
What is a competitive advantage?In economics, a competitive advantage refers to those factors that allow a company to produce services (in this case) better cheaply than its rivals. The factors here allow the productive entity to generate more sales or superior margins compared to its market rivals.
The competitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival. It can also means the company's ability to produce something more efficiently than a rival which leads to greater profit margins.
That said, the competitive advantages are mostly attributed to a variety of factors such as a cost structure, branding, the quality of product offerings, the distribution network, intellectual property, customer service, customer loyalty etc.
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Typically, what percentage of the home cost should you have available for a down payment?
Responses
5%
25%
30%
50%
You can put down up to 50% of the total cost of the property if you have the necessary funds and your financial situation permits it.
Further more you can also.
Even 80% of the property's value is acceptable if you so choose. Everything depends on you and the amount of financial responsibility you are willing to take on. The greater the down payment you make, the less debt you are required to pay.
Now, speaking generally, the bank or an NBFC, depending on which one you choose to apply to for a home loan, will only lend up to 80% of the actual worth of the property. In exceptional circumstances, the lender might provide 85% finance, but not acent extra on top of that.
Therefore, it is abundantly evident from the calculations that you must put down at least 15-20% of the property's value.
In light of the actual worth of the property, you should correspondingly determine the down payment. I'm assuming that your property is worth somewhere between 35 and 37 lakhs based on the loan statistics you provided. That means your down payment will need to be at least 7-8 lakh.
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Do you think consumer should be expected to take into account the ethical track record of companies when making a purchase why or why not
Businesses have an ethical duty to the people who use their products and services. Businesses that practice socially responsible business act in their consumers' best interests.
Briefing:-Profit, customer satisfaction, and societal well-being are all valued equally by businesses in how business is conducted.
Customers care about ethical products, but how much?More than 84 percent of poll participants stated that they would be prepared to forgo convenience (such as slower delivery) in exchange for a good if they knew it had been manufactured or obtained ethically.
Why is studying consumer ethics important?Researching consumer ethics is essential to completely comprehending the forces that shape consumer behavior.
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the ""value"" portion of the customer value proposition is how much you could expect to sell one share of your company in an initial public offering (ipo).
False, The "value" part of the customer value proposition does not refer to the price at which one share of your business might be sold in an IPO (IPO).
The core cause why a services or product is ideal for a given customer is revealed in a company's value proposition. Customers should be directly informed of a company's value proposition through its web page or other advertising and promotion or advertising collateral.
A strong value proposition can provide these three crucial characteristics: Relevance by describing how particular product can help customer in a particular situation. Differentiation by highlighting the unique qualities. Delivering distinctive and quantifiable benefits to your clients will help you create quantified value.
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Busines
What does it mean for an employee to demonstrate professionalism by conducting oneself in a
manner appropriate for the profession and the workplace?
An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business.
What do you mean by business?An organization or enterprising entity connection in commercial, industrial, or professional activity exists referred to as a business. Businesses can be for-profit corporations or charitable institutions. Limited liability firms, sole proprietorships, corporations, and partnerships are among the several types of businesses. It entails having proper and effective communication as well as constantly looking for methods to be productive. Employers seek candidates with a strong sense of responsibility, ethics, and teamwork as well as excellent interpersonal, communication, and problem-solving abilities. Professionalism results when you combine these abilities.Deliver quality work on time, adhere to deadlines, and arrive for meetings on time. Be courteous and upbeat at all times, even when others aren't. Being professional can help you make a good first impression, foster fruitful relationships with others, and build a solid reputation within your company and sector.To learn more about business refer to:
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at what output level will average total cost equal average variable cost? group of answer choices where marginal cost intersects average variable cost. at all output levels where marginal cost is increasing. all output levels if fixed costs are zero. at all output levels where average variable cost is falling.
The output level that will see the average total cost being equal to the average variable cost is all output levels if fixed costs are zero.
When will average variable cost equal average total cost?The average total cost can be found by the formula:
= Average Variable cost + Average fixed cost
This means that for the Average total cost to be equal to the average variable cost, the average fixed cost would have to be $0.
The Average total cost and Average variable cost will therefore be equal at all the levels of output where average fixed cost is $0.
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local newspapers are typically a good source of blue-collar help and clerical employees, but they are not useful for finding any type of administrative workers.
Local newspapers are typically a good source of blue-collar help and clerical employees, so local newspapers are useful for finding any type of administrative workers. So, the statement above is false.
Local newspapers can be defined as a paper that is printed and distributed usually daily or weekly and that contains news, features, articles of opinion, and advertising. Local newspapers are very important, one of which is that local news sources help create a shared culture. Local newspaper also contain of political, social, and public health issues are tearing up our notions of community.
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juan works on a holiday for which he receives 8 hours' regular pay and 8 hours' holiday pay. during the rest of the workweek he works 32 hours. if his normal pay rate is $8.00 per hour, how much pay must he receive under federal law?
The pay that Juan must receive under federal law is equal to $320 if his normal pay rate is $8.00 per hour.
According to federal law, there is no obligation to pay the workers above their normal pay rate on a holiday, therefore we can consider the pay rate of Juan for both normal days and holidays to be $8 per hour.
First, we calculate the total hours worked by Juan by addition of the workweek hours to the hours worked on holidays.
Total hours worked = 32 + 8 = 40 hours.
Now the pay that Juan must receive can be calculated by the multiplication of the total number of hours worked by the pay rate. Therefore;
Pay = Total hours × pay rate
Pay = 40 × 8
Pay = 320
Hence, Juan must receive a payment of $320 under federal law.
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ivan, an industrial engineering student, is working on a homewokr problem for engineering economy. he needs to calculate the pw at 12% of a cash flow series with $1140 at t
If Ivan applies the equation,P = 1,140(P|A 12%,3) + 570(PG 12%,3), then P is now located at t=2.
What do you mean by equation?
A mathematical formula known as an equation uses the equals sign to express the equality of two expressions. =. The word equation and its cognates in various languages may have somewhat different definitions; for example, in French, an équation is defined as including one or more variables, whereas in English, an equation is any well-formed formula consisting of two expressions linked by an equals sign.
Based on the provided equation
He has worked as 3
Which is. 0,1,2
So, Time t =2
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Complete Question
Ivan, an industrial engineering graduate, is studying on an Engineering Economy homework issue.He must compute the PW at 12% of a cash flow series with $1,140 at t= 3, $1,710 at t = 4, and $2,280 at t = 5. If Ivan uses equation P = 1,140(P|A 12%,3) + 570(PG 12%,3), where is the P now located? Ot=2 Ot=4 Ot=1 Ot=0
assume the following information for the milling department: milling department units beginning work in process inventory 300 units started into production during the period 6,000 units completed during the period and transferred to the next department 5,770 ending work in process inventory ? using the weighted-average method, how many units were in ending work in process inventory?
In the weighted average let the weight of each unit be 1 so in beginning 300 + 6000 = 6300 units were under process in ending 5770 were transferred, so 6300 - 5770 = 530 units were in work in process inventory at the end.
A technique known as a weighted average accounts for the varied levels of significance of the values in a data collection. Each number in the data set is multiplied by a predefined weight before the final computation is completed when calculating a weighted average.
The accuracy of the data can be enhanced by a weighted average. Investors in stocks use a weighted average to keep track of the cost basis of the shares they have acquired over time. The method is used to calculate inventory at the beginning and at the end.
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Your grandmother has promised to give you $10,000 when you graduate from college. She is expecting you to graduate three years from now. What happens to the present value of this gift if you speed up your graduation by one year and graduate two years from now?.
Your grandmother has promised to give you $10,000 when you graduate from college. She is expecting you to graduate three years from now. The present value of this gift will increase even if you speed up your graduation by one year and graduate two years from now
The time value of money is the foundation for present value. The value of money obtained today exceeds that of money received tomorrow. Therefore, money received in two years would be worth more and have a increased present value than money received in three years because of this.
The formula of Present value is:
FV=PV * (1+r)∧t
FV=future value of the investment,
PV= present value,
r = stated interest rate,
t = time in years
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bob is from the united states. bob takes a transfer within his company to manage a manufacturing facility in india. while in his new assignment, bob tells others back in the united states that the management practices in india are faulty and not near as effective as those in the united states. bob is exhibiting a(n) .
A fundamental attitude known as ethnocentrism expresses the conviction that one's own ethnic group or culture is superior to that of other ethnic groups or civilizations, and that one's cultural norms may be universally applied.
What is an Ethnocentric Attitude?We fill positions around the world with people from our parent country because of the ethnocentric approach to recruitment. For instance, if we needed to fill an executive position in another nation, we could: Relocate one of our current workers who exists a citizen or permanent resident of our parent nation.
In this strategy, a company's national headquarters serves as the location of the leadership. Instead of in the country where activities are conducted, all decision-making and control are centralized there. At the local, operational level, there is hardly any autonomy.
Therefore, the correct answer is option E. ethnocentric attitude
The complete question is:
Bob is from the United States. Bob takes a transfer within his company to manage a manufacturing facility in India. While in his new assignment, Bob tells others back in the United States that the management practices in India are faulty and not near as effective as those in the United States. Bob is exhibiting a(n) _____.
A. geocentric attitude
B. polycentric attitude
C. power distance
D. individualism-collectivism
E. ethnocentric attitude
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in order to reduce the undesirable effects of moral hazard, an insurance company can multiple choice introduce a deductible. classify clients into different types according to their history. reject the renewal of policies of those people with really bad records. do all the items listed in the provided answers.
In order to reduce the undesirable effects of moral hazard, an insurance company can multiple choice introduce a deductible, client reject the renewal of policies of those people with really bad records.
Why moral hazard an economic problem?Because it results in an ineffective distribution of resources, moral hazard is a concern for the economy. It does so because one party is imposing a greater cost on another party, which, if carried out on a macro scale, would have extremely high consequences for an economy.
The moral hazard issue arises when one party feels more at ease taking risks in a trade or transaction—whether they are financial or physical—because they are aware that they will not be held accountable for any unfavorable outcomes, but rather the side who chose not to take any risks.
What Makes It a Moral Hazard?The reason it is named "moral hazard" is because morality plays a role in deciding what actions are acceptable and wrong in a transaction that could produce or avoid a hazard in which the party not acting in the hazardous manner might perhaps suffer the consequences.
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Luna company accepted credit cards in payment for $6,000 of services performed during july. The credit card company charged luna a 4 percent service fee; it paid luna as soon as it received the invoices. Required based on this information alone, what is the amount of net income earned during the month of july?.
The net income earned is $240
The term net income refers to a company's net earnings. It is determined by subtracting total expenses from total receipts. The term total expenditure can refer to a variety of things, such as taxes, business expenditures, interest payments, fees, and depreciation. The calculation of shareholders' earnings per share is aided by net income.
1.
Dr. Account Receivable $5,760
Dr. Service charges $240
Cr. Service revenue $6,000
2.
Dr. Cash $5,760
Cr. Accounts receivable $5,760
Working Notes
Assuming all the sales are performed on the account first Then cash is received after the issuance of the invoice.
Service revenue $6,000
Less: Credit card expenses $ (240)
Net income $5,760
Service charges = $6,000 x 4% = $240
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As someone who works with classified information, what should you do if you are contacted by a foreign national seeking information on a research project?.
As someone who works with classified information, I would inform my security proof of concept (POC) of all business on book-professional or non-routine contacts with foreign nationals.
Informing the security proof of concept is a key when contacted by a foreign national seeking information on a research project as this will help in determining whether the foreign national is authorized to access classified information.
Again doing so will protect the classified information to prevent further unauthorized disclosure.
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an increase in the capital stock will most likely cause the an increase in the capital stock will most likely cause the phillips curve to shift out. production possibilities curve to shift in. long-run aggregate supply curve to shift rightward. aggregate demand curve to shift leftward.
The Long-run Aggregate Supply Curve will most likely move to the right as capital stock rises.
Why do LRAS change to the right, and what does that mean?All production parameters, including the size of the labor force, the size of the capital stock, the level of education, and labor productivity, affect the long run aggregate supply curve (LRAS). The LRAS curve would move to the right in response to an increase in investment or a growth in the labor force.
Which of the following causes a rightward change in the aggregate supply curve over the long term?The economy must be able to generate more items in order to expand the long-run aggregate supply to the right.
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the common sources of information regarding products during the preshopping phase include personal , business organizations, media, and independent testing agencies such as consumer reports.
The common sources of information regarding products during the preshopping phase include personal, contacts business organizations, media, and independent testing agencies such as consumer reports.
What do you mean by consumer reports?
Consumer Reports (CR), previously Consumers Union (CU), is a non-profit consumer organisation based in the United States that focuses on independent product testing, investigative journalism, consumer-oriented research, public education, and consumer advocacy. CR was founded in 1936 to provide customers with information to help them evaluate the safety and efficacy of products. Since then, CR has continued to test and analyse products and services, as well as to advocate for consumers in legislative and rule-making forums. Among the measures in which CR played a role were the implementation of seat belt laws, the public awareness of the risks of tobacco, and, more recently, the improvement of consumer finance protection and consumer access to quality health care.
Personal factors include the consumer's age, occupation, lifestyle, social and economic standing, and gender. These factors can have an individual or collective impact on consumer purchasing decisions.
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the income statement for the month of june, 2021 of camera obscura enterprises contains: revenues, $7,000; expenses, $5,700; and net income, $1,300. the entry to close the expense accounts includes a .
Camera Obscura Enterprises' income statement for the month of June 2021 shows $7,000 in revenues, $5,700 in costs, and $1,300 in net income. a debit amount of $1,300 is to cancel the expense accounts.
A net profit is typically defined in the income statement as the difference between income and expenses for a certain period. This results in a credit balance in the income statement, but a debit balance in the income summary to close the account.
A net loss, on the other hand, is when an accounting period's expenses exceed its income. This results in a debit balance on the income statement, but a credit balance on the income summary that closes net profit the account.
The amount in the income statement will be a debit balance of $1,300 since Camera Obscura Enterprises had a net profit of $1,300 in the month of June.
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how does a first-mover firm’s ability to develop logistics and acquire raw material ahead of competitors impact success? more than one answer may be correct.
The key benefit of being first-move to market is brand material awareness. Even after rival businesses have entered the market, it not only fosters loyalty among current customers but also attracts new ones to a company's goods.
Having the ability to connect with customers early and leaving a lasting impression helps increase brand recognition and brand loyalty. first-move may be able to manage resources, for example, by establishing a high-value contract with important material suppliers, locating themselves in a tactical area, or acquiring exceptional personnel. When fast followers have enough resources and marketing power to overcome a first mover yet markets are slow to absorb the new product offering of a first mover.
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june 3 purchased goods for $4,100 from diamond incorporated with terms 2/10, n/30. june 5 returned goods costing $1,100 to diamond incorporated for credit on account. june 6 purchased goods from club corporation for $1,000 with terms 2/10, n/30. june 11 paid the balance owed to diamond incorporated. june 22 paid club corporation in full.
If june 6 purchased goods from club corporation for $1,000 with terms 2/10, n/30. june 11 paid the balance owed to diamond incorporated. june 22 paid club corporation in full. he cost of inventory as of June 30 is $3940.
Cost of inventoryFirst step is calculate the cost of goods returned using this formula
Cost of goods returned to D Inc. + Cost of goods purchased from C Corp.
Let plug in the formula
Total cost of goods purchased = $4,100 - $1,100 + $1,000
Total cost of goods purchased = $4,000
Using this formula to determine the cost of inventory
Cost of inventory = Total cost of goods purchased - [ (Cost of goods purchased from D Inc. - Cost of goods returned to D Inc.)×Discount rate ]
Let plug in the formula
Cost of inventory = $4,000 - [ ($4,100 - $1,100) × 2% ]
Cost of inventory = $4,000 - ($3,000×0.02)
Cost of inventory = $4,000 - $60
Cost of inventory = $3,940
Therefore the cost of inventory is the amount of $3,940.
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The complete question is:
june 3 purchased goods for $4,100 from diamond incorporated with terms 2/10, n/30. june 5 returned goods costing $1,100 to diamond incorporated for credit on account. june 6 purchased goods from club corporation for $1,000 with terms 2/10, n/30. june 11 paid the balance owed to diamond incorporated. june 22 paid club corporation in full.
Required:
Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30.
stagflation can be defined as a combination of . economic migration and inflation economic aggregation and deflation economic aggregation and inflation economic stagnation and inflation
A combination of inflation and economic stagnation is known as stagflation.
A state of economic stagnation known as stagflation is characterized by inflation, high unemployment, and weak economic growth. Because attempting to address one of the issues can worsen another, economic officials find this combination exceptionally challenging to manage.
In 1965, when the UK economy was under pressure, British politician Iain Macleod coined the phrase "stagflation" in a speech before the House of Commons. He coined the phrase "stagflation scenario" to describe the results of inflation and stagnation combined.
It was once thought impossible to experience stagflation. It was excluded from their models by the dominant economic theories in academic and policy circles during the majority of the 20th century. In particular, macroeconomic policy was described in the Phillips Curve economic theory as a trade-off between unemployment and inflation, which emerged in the context of Keynesian economics.
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if an excise tax is imposed on a supplier, the tax incidence will fall more heavily on consumers if group of answer choices demand and supply are both unit elastic. the price elasticity of supply is more elastic than supply. the price elasticity of supply is more inelastic than demand. the price elasticity of supply is perfectly elastic. the price elasticity of demand is more inelastic than supply.
If the excise tax is imposed on a supplier, the tax incidence will fall more heavily on consumers if the price elasticity of demand is more inelastic than supply.
What is an Excise Tax?It refers to the legislated tax on specific goods or services at purchase such as fuel, tobacco, alcohol etc. These taxes are more like an intranational taxes imposed within a government infrastructure rather than international taxes imposed across country borders.
Concerning the excise tax paid by consumers, when the demand curve is relatively steep, the demand is price inelastic. But if the supply curve is relatively flat, the supply is price elastic. Therefore, in a situation when demand happens to be price inelastic and supply is price elastic, the majority of the tax burden falls upon the consumer.
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At a convenience store, two candy bars and two bags of potato chips cost $4. 00, and three candy bars and two bags of potato chips cost $4. 75. What is the price of one bag of potato chips?.
The price of one bag of potato chips is $1.25.
The problem we dealing with is related to the linear equation which is referred to be an algebraic condition of the shape y=mx+b, where m is the slope as well as b is the y-intercept, and as it were a steady and a second-order term is included. Each term in a direct equation has an exponent of 1, and when this algebraic condition is graphed, it continuously produces a straight line, which is the way It is called a "linear equation".
As we are provided that two candy bars and two bags of potato chips cost $4. 00, whereas it costs $4. 75 for three candy bars and two bags of potato chips .
let us consider the cost of potato chip packages is y and the cost of candy bars is x
From the first condition, we can say
2x+2y=4 ......(1)
From the second condition, we can say
3x+2y=4.75 ....(2)
subtracting equation (1) from (2) we get
=>3x+2y -(2x+2y) =4.75−4
=>(3x−2x)+(2y−2y)=4.75−4
⇒x=.75
Now we substituting the value of x in equation (1) we get
=>2(0.75)+ 2y=4
=>1.5+2y=4
⇒2y=4−1.5
⇒2y=2.5
⇒y=1.25
Cost of one candy bar is 0.75$ and the cost of one pack of potato chips is 1.25$
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merchandising includes all of the following activities except: group of answer choices ignoring competitors merchandising assortment to develop a unique plan buying goods and making them available for customers estimating customers' wants and needs planning purchases
Merchandising includes all of the following activities except: Ignoring competitors merchandising assortment to develop a unique plan.
Merchandising
Merchandising is any practise that aids in the sale of products to retail customers. At the retail level, merchandising refers to the imaginative display of products for sale in order to attract buyers to purchase additional items or products. Visual display merchandising in retail commerce refers to merchandise sales that use product design, selection, packaging, pricing, and presentation to encourage customers to spend more money. This includes disciplines and discounts, physical product presentation and displays, and decisions about which products to present to which customers at what time.
Merchandising entails determining quantities, pricing commodities, designing display displays, planning marketing strategies, and arranging discounts or coupons. Merchandising may also apply to retail sales in general: the distribution of items to end-user consumers.
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financial management deals with two things—managing a company's finances and . operations management inventory control raising money production management supply chain management
Answer:true
Explanation:
they come hand to hand running a bussiness
Based on the profit-loss statement, name two ways Janet and Omar can improve their cash flow
Please list two methods Janet and Omar might increase their cash flow based on the profit-loss statement. Reduce your expenses, the particularly your payroll costs. their sales should rise.
The first line item of the cash flow statement, net profit or net burn, connects the cash flow statement to the income statement. The cash flow from operations is then determined using the profit or loss on the income statement. The indirect method is what is meant by this. The fundamental distinction between the accounting statement of cash flows and the financial cash flows is how interest expense is the handled.
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