Answer:
(a) Here are two possible research questions for this problem:
1. What are the most important factors that Indian travelers consider when choosing a foreign holiday destination?
2.How do the preferences and needs of Indian families with children differ from those of other types of travelers when booking a foreign tour package?
(b) The unit of analysis in this study would be individual Indian travelers or families with children who are considering booking a foreign tour package with ABC Travels.
(c) The independent variable in this study would be the individual or family's characteristics, preferences, and needs. The dependent variable would be their decision to book a foreign tour package with ABC Travels.
(d) The research objectives of this study could be to identify the key factors that influence the decision-making process of Indian travelers when booking a foreign holiday, and to compare the preferences and needs of families with children to those of other types of travelers. The research hypotheses could be that Indian travelers place a high value on factors such as cost, safety, and cultural experiences, and that families with children have different priorities and needs compared to other travelers.
Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct
1 costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department?
J = $350,000 - (0.30 x M) and M = $50,000 - (0.50 x J)
J = $350,000 + (0.30 + M) and M = $50,000 + (0.50 + J)
J = ($350,000 x 0.30) + M and M = ($50,000 x 0.50) + J
J = $350,000 + (0.30 x M) and M = $50,000 + (0.50 x J)
With Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department J = $350,000 + (0.30 × M) and M = $50,000 + (0.50 × J)
Every business success story has a maintenance crew working in the background to make sure all operations and activities go without a hitch. The maintenance department has a lot of moving pieces, much like any other department in a firm. Getting them all to cooperate is a daily struggle, made more difficult if the department lacks resources and funding.
Perform household tasks like mopping, dusting, and more. Make small repairs, such as replacing faulty locks and caulking cracks in walls. To find problems, examine electrical wiring and control panels. Install machinery and appliances. Maintain your garden or yard by mowing the lawn, picking up garbage, etc.
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using exponential smoothing, if we want forecasts to be very responsive to recent demand, the value of alpha should be A) Large B) Small
The answer is A. Large, If we use exponential smoothing, the value of alpha should be large if we want forecasts to be highly responsive to recent demand.
A typical technique for smoothing time series data is known as exponential smoothing, and it uses the exponential window function.
In contrast to the ordinary moving average, which weights previous data equally, exponential functions use weights that decrease exponentially with time.
It is a simple process that can be understood and used right away to make a decision based on the user's existing assumptions, like seasonality. Exponential smoothing is often used in time-series data analysis.
While values of alpha closer to zero have a stronger smoothing impact and are less responsive to recent changes,
The smoothing effect is less pronounced and recent changes in the data are given greater weight when the alpha is close to 1.
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An advantage of exporting products to another country is that it _____.
A. gives firms access to local knowledge
B. minimizes exchange rate risks
C. faces less trade barriers
D. provides the ability to achieve experience curve and location economies
One of the benefits of exporting products to another country is that it offers the opportunity to gain experience curve and location economies.
What is the Experience Curve and how they are used?The experience curve is a concept introduced by the Boston Consulting Group that states "there is a consistent relationship between a firm's cumulative output and production costs".
Experience curves are primarily used to estimate the reduction in production costs as a result of cumulative production.
Why is the experience curve important?Companies that benefit from the experience curve effect enjoy several advantages over their competitors. As the company grows and the production unit price drops, it will gain a larger market share than its competitors. This means controlling a large portion of the market and increasing your profit potential.
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James gets a job at a multinational corporation. On his first day at work, he finds out that the numerical code assigned by the Internet Corporation for Assigned Names and Numbers (ICANN) to his computer system is 115.248.178.233. This numerical code is referred to as a(n) _____.
Internet Protocol address
This numerical code at multinational corporation is referred to as an Internet Protocol address.
What is a multinational corporation?A multinational company (MNC), also made reference to as a multinational enterprise (MNE), a transnational corporation (TNC), an international corporation, or a stateless corporation with subtle but contrasting meanings, is a corporate organization that controls and owns the manufacturing of goods or services in at least one nation other than its home country. To set an MNC apart from worldwide portfolio investment organizations like some international mutual funds that invest in foreign firms purely to diversify financial risks, control is regarded as a crucial component. The majority of today's most significant and significant businesses, including the Forbes Global 2000 companies, are publicly traded global organizations.
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which of the following statements describing individual tax deductions is false? multiple choice individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the standard deduction. the majority of individual taxpayers itemize rather than taking the standard deduction. individuals who pay self-employment tax can deduct one half of the tax as an above-the-line deduction. in a year in which an individual takes the standard deduction, any itemized deductions yield no tax benefit.
The false statement is: "the majority of individual taxpayers itemize rather than taking the standard deduction."
In fact, the majority of individual taxpayers take the standard deduction rather than itemizing deductions. According to the IRS, in 2018, 70% of taxpayers took the standard deduction rather than itemizing deductions.
It's beneficial to contribute the maximum amount permitted to a traditional (i.e., non-Roth) retirement account like an IRA or 401(k) whether you itemise deductions or take the standard deduction (k). In this manner, an individual can lower your annual taxes while increasing your retirement savings.
Hence, the above given statement is false.
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When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current liabilities are deducted from net income.
A.True B.False
When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current liabilities are deducted from net income.
The given statement is TRUE.
Describe cash flow.
Cash flow is the difference between the net amount of cash and cash equivalents coming into and leaving a business.. Money spent and money received represent inflows and outflows, respectively.
Fundamentally, a company's capacity to produce positive cash flows—or, more specifically, to maximize long-term free cash flow—determines its capacity to add value for shareholders.
The flow of cash into and out of a business is referred to as its cash flow. Sales generate income for businesses, which also incur costs.
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karen provided advice to the team working on creating a flavored water beverage since she worked on a similar project in the past.
The creation of a statement of work is the first step in outlining the scope of the project. The formal document outlining the specifications for a certain project is this one.
It provides an overview of the work being asked, a deadline, a schedule, any specialised talents required, and the location of the job. The functional managers who provide the project's resources, the project manager, or both often approve the project plan. Identification and evaluation document of needs are the initial steps in establishing a training programme. It's possible that the organization's strategic, human resources, or personal development goals have already identified the training needs of its employees.
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Answer:
Consulted
Explanation:
Got it right.
Assume that the government imposes a binding price floor on a competitive
market.
a. quantity demanded will increase
b. consumer surplus will increase
c. price will decrease
d. quantity bought and sold will decrease
e. a shortage will result.
As a result of the government imposing a binding price floor on a competitive market, d. the quantity bought and sold will decrease.
In the field of business, a binding price floor can be described as a higher equilibrium price than the normal market price.
When a binding price floor is imposed by the government, then the products will cost more in production. This is because the raw materials for making the products will go higher and as a result, the prices will increase for the product. This will cause the number of products to be bought and sold to be decreased. As the market is already competitive, imposing a binding price floor will further decrease the bought and sold of production.
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a major benefit of social media marketing is the ability to reach new target markets, such as millennials. a firm wishing to target millennials would be advised to use___
a major benefit of social media marketing is the ability to reach new target markets, such as millennials. a firm wishing to target millennials would be advised to use: to attract and establish a consumer base.
To sell products and generate revenue, marketers employ online technologies including websites, social media profiles, emailing, and content branding.
A business employs search engine optimization (SEO) to make their website show up prominently on search engine results pages when consumers look for a product or service they provide. Money simplifies the process since you can just go someplace, like a store, to buy something rather than having to exchange for it. It would be challenging to shop since you would have to negotiate with someone in order to get the thing you wanted.
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The _____ specifies all of the terms of the agreement between the bondholders and the issuing organization.
indenture
The indenture specifies all of the terms of the agreement between the bondholders and the issuing organization.
A legal and enforceable contract, agreement, or instrument between two or more persons is referred to as an indenture. These manuscripts typically have perforated edges or indented sides. In the past, especially among European immigrants, the term "indenture" has also been used to describe a contract obliging one person to serve another for a predetermined amount of time (indentured servant). The term "indenture" is most frequently used in bond agreements, real estate transactions, and some parts of bankruptcy in contemporary finance.
An indenture is a formal, legally enforceable arrangement that is frequently related to real estate, bankruptcy, or bond transactions.
Detailed information on conditions, provisions, and covenants is included in an indenture.
There are numerous distinct sorts of indenture clauses as well as a few different forms of indentures.
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both the gross amount of receivables and the allowance for doubtful accounts should be reported in the financial statements. t/f
It is true that both gross receivables and allowance for doubtful accounts must be disclosed in the financial statements.
What do you mean by allowance for doubtful accounts?An allowance for doubtful accounts is taken as "contra asset" as it reduces an asset's amount (accounts receivable in this case). The allowance, sometimes referred to as the allowance for doubtful accounts, is management's estimate of the amount of receivables that will remain unpaid by customers.
How do you record allowance of doubtful accounts??When you create an allowance for doubtful accounts, you must record the amount in your financial statements. When a doubtful debt becomes a bad debt, it is recorded as an expense in the income statement.
Is allowance for doubtful accounts credit or debit?The allowance for bad debts is debit to increase the offsetting balance, whereas the allowance for doubtful accounts is recognized as credit to increase the expenses (contra-asset balance).
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Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average total cost of catching shrimp is $3 per pound. Bubba's annual Total Revenue is..
$8,000
Bubba makes $8,000 in total revenue each year.
Profit is the amount that remains after capital, labor, and land have been paid for. Profit is viewed in two ways: bookkeeping and financial benefit.
The difference between total revenue (return) and explicit costs in accounting is called accounting profit, while the difference between total revenue and both implicit and explicit costs in economics is called economic profit. Because of this, accounting profit is greater than economic profit.
The answer is correct: a. $8,000.
Considering that:
Q = $4, 000 P = $5 A T C = $3 Profit is the difference between total cost and total revenue = T R T C = ($ 5 4 000) + ($ 3 4 000) = $ 8 000 Bubba makes $8,000 in total profits each year.
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Full Question = Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average total cost of catching shrimp is $3 per pound. Bubba's annual total profit is:
a. $8,000.
b. $12,000.
c. $20,000.
d. $32,000.
a company may set up a lockbox service with its bank for receiving customers' payments. the company's customers send their payments to the po box. then the bank collects and processes these payments directly and deposits them to the company's account. a lockbox plan is therefore most beneficial to firms which
The correct answer to the question is option A) when a company's clients are spread out geographically, a lockbox arrangement is most advantageous.
Banks offer the service of "lockbox banking" to businesses so they can accept payments from clients. Instead of going to the business, client payments received through the service are sent to a designated post office box. The bank goes to the box, gets the payments out of it, processes them, and puts the money right into the business's account. A lockbox system can speed up collections and payment processing for companies that get a lot of payments or large-denomination checks with remittance papers. Banks have created a number of communication hubs for companies to use to collect payments and deposits using cutting-edge lockbox technology.
A company creates a post office box to accept payments from clients.
Question:
a company may set up a lockbox service with its bank for receiving customers' payments. the company's customers send their payments to the po box. then the bank collects and processes these payments directly and deposits them to the company's account. a lockbox plan is therefore most beneficial to firms which:
a. Send payables over a wide geographic area.
b. Have widely disbursed manufacturing facilities.
c. Have a large marketable securities account to protect.
d. Hold inventories at many different sites.
e. Make collections over a wide geographic area.
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Which of the following statements regarding accounting profits, opportunity costs, and economic profits is true?
The truth about accounting profits are- If accounting profits are less than opportunity costs, there will be economic losses.
Accounting profit can be defined as the financial profit or accounting profit, is the difference between total revenue and explicit costs for a business. It is a tool which is used to evaluate a company's performance and examine how it stacks up against rivals' financial positions.Major profits and economic profits. The complete earnings of a corporation are represented by accounting profit, which also takes explicit costs into account.To know more about Accounting profits here
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Consider the market for rides at an amusement park. All consumers have roughly the same demand as depicted in the following graph, which also shows the marginal revenue (MR) curve and marginal cost (MC) curve for rides at this amusement park. In particular, the marginal cost to the amusement park of an additional ride is constant at exist0.80. The park uses a linear pricing strategy by selling rides to all entrants for the same price. Place the red point (cross symbol) at the profit-maximizing price and quantity. Dashed drop lines will automatically extend to both axes. Then, use the purple rectangle (diamond symbols) to shade the area representing profit at the profit-maximizing price and quantity. Now suppose the park decides to switch to a two-part pricing scheme by charging an admission fee but also lowering the cost of an individual ride. In this case, the profit-maximizing per-ride charge would be ____. Use the green triangle to shade the region representing consumer surplus given this pricing plan. To maximize profits, the admission fee should be set equal to ____.
To maximize profits, the admission fee should be set equal to profit- maximizing per ride charge.
Profit: What Is It?Profit is the term used to describe the monetary gain experienced when the revenue from a commercial activity outpaces the costs, costs, and taxes incurred to support the activity in question.
Why is it vital to make a profit?Revenues less costs = profit for a business. Profitability affects a company's capacity to obtain bank funding, draw in investors to fund its operations, and expand its business, hence making a profit is crucial to a company's success. Without making a profit, companies cannot continue to operate.
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In which of the following scenarios does the project manager implement documentation well? Select all that apply.
a. The key stakeholder determines they want to add a feature to the product in development. The project manager includes this update in the project charter and communicates it to the team.
b. Because the project manager doesn't have all the project's details, they ask a current team member to onboard the new team member.
c. The project manager shares the project timeline on a cloud-based document sharing program.
d. A stakeholder talks with two different team members and receives conflicting information on a vendor. They cannot find information about the vendor in the shared document drive.
Option a and c are the two scenarios in which the project manager would implement documentation well.
How do project manager implement documentation?Project documentation is a group of documents that the project manager produces throughout the course of the development of the project. A project plan, timetable, and budget are just a few examples of the kind of procedures, standards, and rules the project team is expected to adhere to.
Both for each individual document and for the entire project documentation, the basis for quality, traceability, and history must be established. Additionally, the documentation needs to be comprehensive, clear, and well-organized.
Instead of managing the overwhelming paperwork, the project managers reuse effective project plans, business cases, requirement sheets, and project status reports to help them focus on their core expertise of managing the project. The four main phases of project management are commonly Initiation, Planning, Control, and Closure.
Project managers with extensive experience are excellent at creating and using standardized templates for their project papers. They recycle effective project plans, business cases, requirement sheets, and project status reports so they can concentrate on managing the project, which is their main strength, rather than managing the overwhelming amount of paperwork.
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Which of the following is the largest segment of the agriculture industry in the United States?grainlivestockpetscotton
The largest segment of the agriculture industry in the United States is Livestock.
Livestock is the tamed animals raised in an agrarian setting to supply labor and produce diversified products for consumption similar as meat, eggs, milk, fur, leather, and hair. The agriculture assiduity is made up of companies and pots that are involved in the production of food or crops for consumption purposes.
The meat and flesh assiduity is the largest member of U.S. agriculture. The U.S. agriculture sector extends beyond the ranch business to include a range of ranch-related diligence. The largest of these are food service and food manufacturing.
Agriculture in the United States is largely mechanized, with a normal of only one planter or ranch laborer warranted per forecourt kilometer of cropland for an agrarian product. Although agrarian exertion occurs in every U.S. state, it's particularly concentrated in the Great Plains, a vast breadth of flat pastoralist land in the center of the nation, in the region west of the Great Lakes and east of the Rocky Mountains.
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. In the Monopolistic Competition market structure, firms use marketing, advertising and good old-
fashioned competition to make their products and services as inelastic as possible.
True – Bubble A
False – Bubble B
It is true that in monopolistically competitive market structures, companies use marketing, advertising, and good old-fashioned competition to make their products and services as inflexible as possible.
What is monopolistic competition?Monopolistic competition is a type of market structure in which many firms exist in an industry and produce similar but different products. Neither company enjoys a monopoly and each company operates independently regardless of the actions of the other company.
Example: 1. Grocery store: Grocery stores exist in a monopoly market because there are many companies selling many of the same products, but with different brands and marketing. 2. Hotel: Hotels are a prime example of monopoly competition
What are the characteristics of monopolistic competition?A monopoly occurs if a supplier gives a particular good or service to a large number of consumers. A monopoly market allows a monopoly (or dominant firm) to control the market and set prices and supply. Conditions of monopolistic competition are: a large number of firms, similar but imperfectly fungible products, low barriers to entry, and imperfect information.
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suppose the capacity of each machine in station 1 in the littlefield technologies game is 12 contracts per day. suppose there are 4 machines in this station. the utilization of this station is 77%. on average, there are 22 contracts in this station (either in the waiting line or on the machines). compute the flow time in this station in hours (assume a day is 24 hours). enter your answer in terms of hours with one decimal point.
Total Flow Time in Station 1 is 57.1 Hours.
Flow time, also known as total processing time, is the amount of time a flow unit invests in a business process from start to finish. The flow time is equal to the length of the longest path if there are many paths through the process.
It is given that-
station 1's Capacity = 12
No. of machines in station 1 = 4
Utilization =77%
Average number of loads in this station =22
Flow rate = Capacity x Utilization
= 12 x 77%
= 9.24 orders/day
Flow time = Average number of loads/ Flow rate
= 22/9.24
=2.38x 24(hours)
Flow time = 57.1 hours
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the second step in the perception process is: question 2 options: observe information via the senses. organize the selected data into patterns for interpretation and response. screen the information and select what to process. identify mistakes in information. assign meaning to the data we perceive.
Screen the information and select what to process is the second step in perception process.
What is perception process?Information selection, organization, and interpretation are all parts of perception.Select stimuli that pass through our perceptual filters, are arranged into our preexisting structures and patterns, and are subsequently interpreted based on prior experiences are all included in this process.Even though how we view the world is mostly a cognitive and psychological process, it affects how we communicate with others.When we find something or someone to be favorable, we react differently than when we find them to be unpleasant.
The second step in the perceptual process is organizing, in which we classify and organize the information we perceive using ingrained and learned cognitive patterns. We categorize things into patterns using proximity, similarity, and difference as three different criteria.
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for financial accounting purposes, which one of the following is not a type of hedge carried out using derivatives? a. fair value. b. cash flow. c. speculative. d. foreign currency.
The type of hedge not carried out using derivatives is speculative
Hedging is a risk management strategy that is used to protect against potential losses. It involves taking offsetting positions in financial instruments or markets to reduce the risk of loss from price movements. One type of hedging that is not carried out using derivatives is called speculative hedging.
This type of hedging involves taking a position in a financial instrument or market with the intention of benefiting from price movements, rather than protecting against potential losses. In this case, the intention is not to hedge an existing position when derivatives are utilized for speculation because there is no existing position to hedge. Instead, the goal when employed for speculation is to earn a profit.
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Grant and Amy have formed a new business to be operated through an S corporation. They each own 50% of the corporation's outstanding common stock. During the first year of operations, the business incurred an operating loss of $100,000. In allocating this loss to the shareholders:
A. Grant and Amy must each be allocated $50,000 of the operating loss.
B. If the corporate charter permits, the S corporation can make a special allocation of 100% of the operating loss to Grant.
C. Because the shareholders have limited liability for the S corporation's debts, they are not permitted any deduction for the operating loss.
D. The corporation should also consider ownership of any outstanding preferred stock in making the loss allocation.
The Correct Answer (A) Grant and Amy must each be allocated $50,000 of the operating loss.
When you lose money operating your business, you are spending more than you are earning. Businesses sometimes experience temporary losses when they first launch or during periods of expansion.
The net operating loss is determined on a company expense sheet by deducting itemized expenses from adjusted gross income. You have net operational losses if the outcome is a negative figure.
Definition of Net Operating Losses: When a company experiences a loss during a financial reporting period (i.e., records negative Pre-Tax Income), "Net Operating Losses" are accumulated that the company can use to lower its Taxable Income in subsequent periods. These Net Operating Losses may also be valuable to potential acquirers in M&A deals.
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One important short-term financial goal for a company is to earn the projected operating income for the period. Attainment of this goal is measured by comparing the actual operating income for the period to the:
Master budget operating income
Attaining the goal for a company is to earn the projected operating income for the period is measured by comparing the actual operating income for the period to the master budget operating income.
In the field of business, short-term goals are such goals that a company wants to yearn in a short period of time. One of the main short-term goal is to reach the projected operating income.
The projected operating income is the money that is spent on the operational procedures by the company. It is calculated by comparing what the actual revenue was for the operating income and the difference it has with the master budget operating income. This can improve the financial goal of the company.
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Fiscal policy is...
a. the selling of government bonds by the treasury
b. the deliberate manipulation of the money supply designed to affect the interest rate
c. the deliberate manipulation of taxation and spending designed to affect the economy
d. the selling of foreign exchange reserves designed to change the exchange rate
e. all of the above
Fiscal policy is (c) the deliberate manipulation of taxation and spending designed to affect the economy
A federal government's fiscal policy affects the amount of taxes levied and other expenditures that have an impact on the economy. The Federal Reserve's monetary policy is always supported by the fiscal policy, which includes manipulating taxes and spending in order to have an impact on the economy.
They will be attempting to manipulate taxation and spending intended to have an impact on the economy since fiscal policy will reflect both the total amount of money the federal government collects in taxes and the total amount it spends on various types of public welfare projects.
All of the other claims are untrue since monetary policy has a connection to the manipulation of the money supply.
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True or False, Property voluntarily placed somewhere by its owner and inadvertently forgotten is lost property.
True. Mislaid property is anything which has been deposited freely by its owner and unintentionally overlooked.
What is the property known as?Property is something over which a person or a business has legal ownership. Intangible items having the potential for future worth, such as stock and bond certificates, as well as tangible items with current value, such as houses, cars, or appliances, can all be referred to as property.
Why are properties so important?Properties are the features that allow us to distinguish between different types of materials. An aspect of matter that is unrelated to its chemical makeup is called a physical property. Physical attributes include things like density, color, hardness, melting and boiling points, and electrical conductivity.
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Which statement a false? O A monopoly is both a firm and an industry. O A monopoly is an imperfect competitor. O There are monopolies in the United States at the regional and local levels. O None of these statements are false.
Option d is correct. None of these statements are false. A scenario known as monopoly occurs when there is only one seller in the market.
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.
Antitrust laws are in existence in the US to prevent monopolies, guaranteeing that one company cannot dominate a market and take advantage of its dominance to take advantage of its customers.
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.
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What is meant by functional finance?
Answer:
Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low Inflation
k wood in had the following balances deferred tax asset 80,000 dr valuation allowance unadjusted 10,000 cr management reveiews all available positive and negative evidence to estimate that it was more likely than not
The end result is that the deferred tax asset balance as of the end of the period would be adjusted to $70,000 ($80,000 - $10,000).
To calculate the number of deferred tax assets that can be recognized as of the end of the period, the following steps should be taken:
Calculate the total potential deferred tax asset available. This is calculated by subtracting the deferred tax liability from the current tax expense.
Calculate the amount of the deferred tax asset that can be recognized as of the end of the period (the “recognized amount”). This is calculated by applying the more-likely-than-not criteria. In this case, this involves estimating the likelihood of the deferred tax asset being realized.
The recognized amount is then used to adjust the deferred tax asset balance. In this case, the recognized amount would be $70,000 ($80,000 - the unadjusted valuation allowance of $10,000).
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Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by __________ of the total original asset value.
A) 5 percent
B) 10 percent
C) 15 percent
D) 25 percent
Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by 25 percent of the total original asset value.
The duration gap is a phrase used in finance and accounting that is frequently used by banks, benefits reserves, and other financial institutions to evaluate their risk associated with fluctuations in interest rates. This is one of the confounds known as resource risk jumbles that might occur.
The difference between the value responsiveness of interest-yielding assets and the value responsiveness of liabilities (of the association) to a change of market interest rates is another way to describe duration gap (yields).The duration gap calculates how closely the time of money inflows (from assets) and outflows are matched (from liabilities).
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Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Regular Supreme
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000
Overhead applied to Regular using traditional costing using direct labor hours is
A) $860,000.
B) $1,200,000.
C) $1,800,000.
D) $2,140,000.
Overhead applied to Regular using traditional costing using direct labor hours is $2,140,000. So option d is the correct option of the given statement.
Why is it called overhead costs?These expenses are classified as overheads since they have no direct connection to any specific organizational function and don't immediately generate any revenue. Instead, these expenses simply serve as the foundation for all other operations of the company.
How are operating expenses determined?Divide the indirect costs by the direct costs, then multiply by 100 to get the overhead rate. If your overhead rate is 20%, then means that 20% of your company's income is spent on the creation of products or the provision of services. An efficient business will generate more revenue with a lower overhead rate.
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