The assembly department's comparable units for conversion costs for the month are 44,640 units.
Equivalent Units (E.U.) are whole notional units that represent unfinished work and are used to divide expenses between work that is still in progress and work that has already been completed.
The calculation for the given information is given below:
But the transferred units is
= Beginning work in process inventory units + additional units - ending a career in process inventory units
= 3,200 units + 64,000 units - 24,000 units
= 43,200 units
Now the equivalent units for conversion costs equal to
= Transferred units × percentage of completion + ending work in process inventory units × percentage of completion
= 43,200 units × 70% + 24,000 units × 60%
= 30,240 units + 14,400 units
= 44,640 units
Therefore, the equivalent units for conversion costs in the assembly department for the month are 44,640 units.
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to avoid errors in writing, what precautions should be taken with every business communication?
To avoid errors in writing, the precautions that should be taken with every business communication are pay particular attention to the spelling of people's names and titles, watch for auto-correct errors.
In a business communication or document, highly measured precautions are to be taken when a contract or any other document is being made because a little fault can lead to a diverse loss in the business.
One should always ensure that the name of every party in business communication is written correctly. Double-check the spelling of every name that is involved in business communication.
Also, for online documents, one always has to recheck the document twice due to auto-correct errors.
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you are considering an investment in a municipal bond that has a yield of 4%. your tax rate is 25%. what is your taxable equivalent yield?
A 4% yielding municipal bond might be an investment to think about. 6.66% is our taxable equivalent yield if your tax rate is 25%.
Taxable equivalent yield = YTM / (1-Tax Rate)
= 5% / (1 - 0.25)
= 5% /0.75
= 6.66%
The yield on a comparable tax-exempt bond, such as a municipal bond, that a taxable bond would have to offer in order to match that yield is known as the tax-equivalent yield.
Investors can use the computation to contrast the returns of tax-free investments versus alternatives that are subject to taxes.
Tax ramifications are generally a complex, significant, and much ignored component of any financial strategy.
Tax ramifications are generally a complex, significant, and much ignored component of any financial strategy. Investors, especially those in higher tax bands, can benefit from the tax-equivalent yield computation. The yield on a bond that would be taxed is known as the tax-equivalent yield.
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Consider a situation in which a coffee chain opens across the street from a locally owned cafe. Theoretically, the prices at both stores should be similar because the costs and customer demand will be similar. However, because the coffee chain can rely on corporate backing for support, it makes the decision to radically lower prices, attracting more customers to its facility and eventually driving the competition out of business. This scenario illustrates which ethical issue in pricing?.
This scenario illustrates Penetration Pricing ethical issue in pricing .
Penetration Pricing is the strategy to drive out the competition by lowering the price.
What does the term "penetration price" mean?
Using a lower price during the initial offering of a new product or service, firms utilize penetration pricing as a marketing approach to draw clients to the new offering. A new product or service can more easily enter the market and draw clients away from rivals thanks to a reduced price.What are some examples of penetration pricing?
When you walk into a grocery store, you frequently see advertisements for introductory sales on certain fresh items, which are ideal examples of penetration pricing. In order to boost demand for their organic products, Costco and Kroger apply penetration pricing to those items.Learn more about Penetration Pricing
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bert reed owns a junior secured bond of a firm that has entered bankruptcy proceedings. mia tano owns a senior unsecured bond of the same firm. as a result of the bankruptcy, reed and tano each recover 80% of the interest and principal owed on their bonds. this outcome is least likely the result of:
The pari passu ranking of these creditors.
Secured creditors have priority of claims over unsecured creditors in a bankruptcy, rather than ranking pari passu with unsecured creditors.
A secured creditor is a creditor who has a security interest in some or all of the debtor's assets.
What's the distinction between a secured and an unsecured creditor?
The secured creditor has first priority in collecting debts from the property on which it has a lien. The unsecured creditor receives no such protection; voluntary repayment from the debtor is the best method of repayment.
However, claim priority may not always be followed, either because creditors have agreed to a different outcome or because a bankruptcy court has ordered one.
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Using a loan could help with the purchase of which of the following?a) A new televisionb) A dream weddingc) A housed) Airline tickets to your dream vacation
Using a personal loan could help with the purchase of A house .Option C is correct .
What does the term "personal loan" mean?
When someone borrows money for a personal need, such as investing in a business, it is referred to as a personal loan (also known as a consumer loan).
What is an example of a personal loan?
A personal loan is a sum of money that you can borrow and use for a number of things. For instance, you may utilize a personal loan to pay off debt, finance home improvements, or finance your ideal wedding. Online lenders, credit unions, and banks can all provide personal loans.Learn more about personal loan
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long island city issued $4 million of bonds to fund the construction of a new city office building. the bonds have a stated rate of interest of 5% and were sold at 102. which of the following entries should be made in the capital projects fund to record this event? debit cash $4.02 million; credit bonds payable $4 million and premium on bonds payable $.02 million. debit cash $2.08 million; credit other financing sources - proceeds ($4 million to face value and $20k to bond premium) . debit cash $4.08 million; credit other financing sources - proceeds ($4 million to face value and $80k to bond premium) . debit cash $2.02 million; credit other financing sources - proceeds ( $2 million to face value and $20k to bond premium) .
The entity that should be made in the capital projects fund to record this event is debit the cash $2.02 million; credit the other financing sources $2.02 million.
What is a capital project?A capital project is a lengthy, money-intensive expenditure made to increase, supplement, or improve a capital asset. Compared to other investments that require less planning and resources, capital projects are distinguished by their size and high cost. A major undertaking with a high cost that is capitalized or depreciated is referred to as a capital project. Accelerating growth within a corporation or government may require ongoing capital investments, such as new facilities, buildings, or systems. To boost productivity on the production floor, for instance, a corporation can decide to build a larger warehouse or buy new manufacturing equipment. Because they demand a considerable time and resource commitment from the organization, capital projects must be managed properly. The project takes a calculated risk in the hopes that the capital asset would be profitable.
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natalie's company has its headquarters in chicago and three areas of the world -- the far east, latin america, and europe. her company is an example of the blank area structure. multiple choice question. local worldwide product localization
It expands our economic research using better data and provides fresh perspectives on how businesses and nations interact in the web of flows.
It made sense for Meredith to organize the firm into three divisions when she first started her company.It made sense for Meredith to structure her business into three divisions when she first started it: manufacturing, marketing, and transportation. She believes it will be preferable to reorganize the company now that it has expanded so that each division is in charge of a separate line of business.
What three resources may a business utilize to attain economies of scale?purchasing (buying in bulk through long-term contracts), managerial (specializing managers), financial (obtaining lower interest rates when borrowing from banks and having access to a wider choice of financial instruments), and marketing (spreading) are common sources of economies of scale.
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i. aligning risk appetite and strategy ii. enhancing risk response decisions iii. reducing operational surprises and losses iv. identifying and managing multiple and cross-enterprise risks the above are all key components of:
Aligning risk appetite, enhancing risk response, reducing operational losses, and identifying multiple cross-enterprise risks are key components of Enterprise risk management (ERM).
Enterprise risk management is a firm-wide strategy helping in assessing and controlling hazardous risk with a company's finances, operations, and objectives. It advises managers to shape the whole firm as risk resistant by encouraging certain activities favoring in firm's goals and disengaging from risk factor activities. This management is working for all units of a firm making the risk plan of action from top officials to local assessment on the ground which requires coordination between different units along with aligning risk strategy, reducing operational surprises, and managing cross-enterprise risk harming the firm.
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people remember comments accompanied by gestures more than those made with words alone.
a. true
b. false
TRUE, people remember comments accompanied by gestures more than those made with words alone.
A gesture is a shape of non-verbal communique or non-vocal communique in which seen bodily moves communicate particular messages, both in area of, or along with, speech. Gestures encompass movement of the hands, face, or different components of the body.
A gesture is a motion of the hand, arms, or other body element that is supposed to suggest or emphasize some thing, regularly while talking. In other words, gestures are frame movements that express some thing. as an example, a wave of the hand is a common gesture used to mention hey to a person.
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Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve. As a result A. both the equilibrium price and quantity of DVD players will decrease. B. the equilibrium price of DVD players will decrease: the equilibrium quantity may increase or decrease. quantity will decrease increase or decrease. C. the equilibrium price of DVD players may increase or decrease; the equilibrium D. the equilibrium price of DVD players will increase; the equilibrium quantity may
Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve. As a result the equilibrium price of DVD players will increase; the equilibrium quantity will decrease.
How is the equilibrium of the market impacted by changes in the supply and demand curves?
The impact on price results from a shift along the supply curve rather than an abrupt change in supply. Price and quantity traded decrease as a result of an inward shift in demand. The supply elasticity determines how much the price and quantity will shift from one equilibrium to another. An equilibrium price, also known as a market clearing price, is the agreed upon price when a product transaction takes place. On a graph, this price is determined by the interaction of supply and demand.
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a store owner reports that the probability that a customer who purchases a lawn mower will also purchase an extended warranty is 0.68. which of the following is the best interpretation of the probability 0.68 ? responses for all customers who purchase a lawn mower, 68% will also purchase an extended warranty. for all customers who purchase a lawn mower, 68% will also purchase an extended warranty. for all customers of the store, 68% will purchase a lawn mower. for all customers of the store, 68% will purchase a lawn mower. for all customers who purchase an extended warranty, 68% will use the warranty. for all customers who purchase an extended warranty, 68% will use the warranty. from the next 25 customers, 17 will purchase an extended warranty. from the next 25 customers, 17 will purchase an extended warranty. from the next 25 customers, 17 will purchase a lawn mower.
It means that there is a 68% chance that the customer who purchased the lawnmower will also purchase the extended warranty since the percentage is always calculated in 100.
If your garden is small, you may choose a low-price reel mower for about $one hundred fifteen on average. However, in case you need a driving mower for huge belongings, it'd cost a mean of $3,070. The walk-behind mower, which is the maximum not unusual style for owners, costs a median of $475.
The overdue spring and early summer time provide several possibilities for reductions on the whole lot from lawn furniture to lawn system. Hold an eye fixed out for massive sales around Memorial Day (late May), Father's Day (mid-June), Independence Day (July four), and hard work Day (early September) for reductions on mowers.
Fuel mowers are extra durable; they definitely last longer. In phrases of engine existence, a fuel mower will run for 10 years or greater, while battery-powered lawnmowers will need to get replaced after about 5 years, on common.
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martinez company's ending inventory includes the following items. product units cost per unit market per unit helmets 23 $ 51 $ 55 bats 16 79 73 shoes 37 96 92 uniforms 41 37 37 compute the lower of cost or market for ending inventory applied separately to each product.
According to this rule, inventory should be listed at the lower of its cost and market value. Since the company anticipates receiving a profit from the sale of the inventory, the market value must be adjusted.
The lower of ending inventory's market or cost is shown below. Each item's cost and market should be compared rather than the inventory's cost and market as a whole because inventory will be used per inventory.
According to the lower of cost or market rule, a company must record inventory costs at its original cost or its current market price. This typically occurs when market prices have dropped or inventory has deteriorated or become obsolete.
What does it mean to have lower costs?
A method of valuing assets that uses either the historical cost or the fair market value, whichever is lower, is referred to as lower of cost or market. A business can choose the lower of cost or the market method when the value of the inventory falls below its cost.
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Those with a broader view concerning business obligations believe that with power comes.
Those with a broader view concerning business obligations believe that with power comes. This is because they believe that business will enable the perpetrators to gain recognition, become leaders for themselves, earn more income, be able to manage time as desired, and have a good future.
A business is a series of businesses carried out by individuals or groups by offering goods and services for profit (profit). The meaning of business can also be defined as providing goods and services for the smooth running of the economic system.
Businesses are useful for producing most of the goods and services we consume. In addition, it can also open jobs to employ the majority of the workforce. Businesses can create innovations as well as opportunities for new businesses as their suppliers. Business can affect the quality and standard of living of the community.
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what type of economies tend to produce higher wealth levels because they enable more efficient allocation of resources to promote sustainable, long-term economic growth? group of answer choices command market-oriented centrally planned none of the options
Because they allow for more effective resource allocation to foster long-term, sustainable economic growth, "centrally planned" economies typically create higher wealth levels.
Define the term Centrally Planned Economy?The centrally planned economy, commonly referred to as a command economy, is a form of capitalism where decisions about the production and consumption of goods are made by the government.
Market economies, from which these decisions are the consequence of hundreds of choices made by producers and consumers, are different from centrally planned economies.Although individual businesses may occasionally be brought into economic planning, state-owned corporations produce goods and services throughout planned economies frequently. In most cases, a centralized bureaucracy determines the costs, salaries, and production schedules. Important economic choices in a planned economy are made by a number of political as well as administrative organizations. Typically, this entails local administrators informing central authorities of their capabilities and requirements, and the latter using that information to draft a national economic plan.As a result of their ability to allocate resources more effectively to foster long-term, sustainable economic growth, "centrally planned" economies typically produce higher levels of wealth.
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when edward finds out that his organization, which is struggling financially, is contemplating the implementation of a new enterprise system, it worries him. does edward have any valid reason to be concerned?
Edward is alarmed to learn that his organization, which is having financial trouble, is thinking about implementing a new business system. a good reason to be worried yes, because problems with an enterprise system implementation can be expensive to fix.
ERP implementation is challenging since it involves a complicated procedure and has an impact on the entire company. By making room for automation in place of manual operations, it causes a paradigm shift in how working mechanisms operate.
Poor planning, poor resource management, and a lack of risk awareness are the main causes of ERP installation failure. This failure can occur on a number of levels, including crucial business operations that can overwhelm a technical team's capacity to successfully manage risks and change.
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The periods of time into which an mrp record is divided is called?
Security stock excess inventory held by a business to protect against demand, lead time, and supply uncertainty. Time frames. The segments of time that make up an MRP record.
What exactly is MRP?
By determining, based on demand and the bill of materials (BOM), which raw materials, components, and subassemblies are required and when to assemble the finished goods, a Material Requirements Planning (MRP) system speeds up the manufacturing production process.
Material Requirements Planning (MRP) is a software solution that assists manufacturers in more precisely determining the materials they require, at what times, and in what quantities.
Just-in-time, or JIT, is a way to manage inventory that only gets goods from suppliers when they are needed. This strategy's primary goal is to boost inventory turnover and reduce inventory holding costs.
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what recent trend has been embraced by businesses as an alternative to offset the fees associated with allowing purchases on credit? multiple choice question. allowing trial purchases putting customers on a payment plan accepting mobile payments accepting cryptocurrency for routine purchases
The trend been embraced by businesses as an alternative to offset the fees associated with allowing purchases on credit is by putting customers on a payment plan.
What are Credit purchase?Basically, a credit purchase or purchasing something on credit means to purchase something you receive today that you will pay for later. For instance, when you swipe a credit card, the financial institution pays for the goods or services up front, then collects the funds from you later.
By putting customers on a payment plan allows periodic payment of the credit at the comfort of debtors. Therefore, the Option B is correct.
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in year 1, moss company signed a contract with a supplier to purchase 42,000 subassemblies at $30 each during year 2. when the contract was signed, the contract price was less than the net realizable value of the inventory. the company uses the fifo method to account for inventory. assume moss company uses a periodic inventory system. required a. the cost of subassemblies has declined, and the estimated net realizable value is now $1,190,000 on december 31 of year 1. prepare any year-end entry required for this cost decline. b. the subassemblies are received in year 2 when the net realizable value is estimated at $1,190,000. the contract was paid in full in cash. prepare the required purchase entry in year 2.
To keep track of the quantity and movement of inventory items, inventory transactions are employed. 42,000 subassemblies for $30 from Moss source.
A checkbox should be used to indicate whether the registrant (1) has submitted each report required under Section 13 or 15(d) of the Securities Exchange Act of 1934.
What is an inventory transaction?The quantity & movements for inventory items are tracked using inventory transactions. Applications that communicate with the inventory system, like Purchasing, Receiving, and Task Management, produce transaction records. Transactions can also be produced from activities on inventory objects.Transaction records are created by programs like Task Management, Purchasing, and Receiving that interact with the inventory system. Actions on inventory objects can also result in transactions.Use this report to examine the details of inventory movement by date, warehouse, transaction code, and reason code. Totals for each warehouse and date are provided at the report's end.Shifting the cost of both the finished products sold to the expenditure account for such cost of goods sold will allow you to document this transaction. As a result of this transfer, the cost of inventory is accounted for it as an expense on the income statement rather than an asset on the balance sheet.To learn more about inventory transactions refer to :
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the u.s. department of education put out a contract for 250,000 smartboards and the contract stated that preference would be given to bids that declared at least 51 percent of the materials by value in the smartboards were produced in the united states. which legislative act is this stipulation based on?
The stipulation is based on the American Recovery and Reinvestment Act.
What is stipulation?
A stipulation is indeed a formal legal acknowledgment as well as agreement reached between opposing parties prior to a hearing or trial under American law. For instance, both parties might agree on certain facts, avoiding the need for a courtroom debate. The stipulation is presented to a judge after it has been signed. The phrase can also refer to the a special rule inside a professional wrestling match that can make the loser take a specific action, like retiring, or to any other modification to the match type's fundamental rules. The word is a translation of the Latin word for straw, stipula. The custom in Ancient Rome was for the parties to an agreement to break a straw as a symbol of their understanding and to record the terms of the agreement in writing (stipulationes).
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companies rarely sell one product, but offer a
companies rarely sell one product but offer a Blank 1: product
, Blank 2: mix or line.
the company, abbreviated as co., is a legal entity representing the associate association of people, whether natural, legal or a combination of both, with a particular objective. Company members share a typical purpose and unite to realize specific, declared goals. corporations take numerous forms.
such as A company being created as a legal person in order that the corporate itself has limited liability as members perform or fail to discharge their duty consistent with the publically declared incorporation, or printed policy. once an organization closes, it should be liquidated to avoid more legal obligations.
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mucho tacos, inc., sells franchises. mucho tacos imposes on its franchisees standards of operation and personnel training methods. what is the potential pitfall to mucho tacos if it exercises too much control over its franchisees?
Respondeat Superior is a potential pitfall to mucho tacos if it exercises too much control over its franchisees.
According to Respondeat Superior, a franchisor is more liable for the actions of its staff the more control they have over its franchisees. So, Mucho Tacos can be held accountable if an employee behaves unethically or commits a crime. There are undoubtedly benefits and drawbacks to controlling franchisees.
A franchisee's employees may commit crimes if their employer has too much control over them, according to the respondeat superior doctrine. That is if the franchisor has the power to significantly influence the franchisee's business operations and exercises that power, and if an employee working under that control engages in illegal or tortious behavior that causes harm to another, the franchisor may be held vicariously accountable.
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fifth fourth national bank has a savings program which will guarantee you $9,500 in 9 years if you deposit $75 per month. what apr is the bank offering you on this savings plan?
The Annual Percentage Rate, also known as the APR, aids in determining the true cost of borrowing over a specific time period. It represents the annual cost of the loan and is stated as a percentage. It accounts for the nominal interest rate as well as all additional costs related to obtaining and maintaining the loan.
Payment assured in 9 years, FV = $9,500
Number of years is 9 and there are 12 months in a year.
NPER = Years * m times the number of monthly payments
9 * 12= 108
$75 is the monthly deposit.
PMT = -75
Cash outflow is indicated by a negative sign.
Let's start by utilising Excel's RATE function to determine the monthly rate. Rate: 0.298 percent per month
APR = RATE*m = 3.49%
However, when determining the real interest cost of the loan, compounding is not taken into account. The nominal interest rate levied on loans will never be lower than the annual percentage rate, which will always be higher.
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describes methods to maximize operating income when faced with some bottleneck and some nonbottleneck operations.
Theory of constraints methods to maximize operating income when faced with some bottleneck and some non bottleneck operations.
The term “income” generally refers to the quantity of money, property, and alternative transfers important received over a collection amount of your time in exchange for services or products. there's no single, commonplace definition: income is outlined in line with the context within which the thought is used. For example, it will embrace income and regular dividends from investments.
normal income additionally includes distributions from retirement accounts or pensions. Us centralized taxes ordinary income at rates that vary from ten to thirty-seven % in 2022. Income, because it is mostly understood in economics, is in theory defined as the most amount that a household, or alternative unit, will consume while not reducing its real internet worth.
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Candidates for the management development program at genco enterprises must first complete a personality assessment to determine the distinctive characteristics that account for the effectiveness of leadership role. Based on this, it would appear that genco believes in the ___ approach to leadership.
Based on this, it appears that Genco believes in the trait approach to leadership.
What is the leadership trait approach?The trait theory of leadership, commonly known as trait theory, proposes that the most effective leaders have certain personality traits and characteristics. These personal attributes can assist leaders in accomplishing the following:
Performance InfluencingIncreasing ProductivityObtain respectAccording to this notion, certain people are predisposed to be better leaders than others due to their natural characteristics. It also allows for the prospect of someone gradually turning into an effective leader by honing their leadership skills.
You can do this by learning about common characteristics of effective leaders and putting those characteristics into practice in your own life.
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nonprice changes in consumption, investment, government spending, or net exports: multiple choice do not affect aggregate demand. decrease inflation and increase gdp. cause a movement along the aggregate demand curve. shift the aggregate demand curve.
Non price changes in consumption, investment, government spending, or net exports: shift the aggregate demand curve.
What is demand curve?The demand curve is a graphical representation of the relationship between the price of a good or service and the volume demanded for a given period of time. In a typical representation, the price will appear on the left perpendicular axis, the volume demanded on the vertical axis.
Why is the demand curve important?The demand curve can be an important tool when concerns make pricing opinions. This is because the demand wind can show the price point where the consumer responsiveness drops and which price point elicits the loftiest demand.
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Which of the following options is correct?
If in the money market, the quantity of money demanded exceeds the money supply, we would expect the interest rate to
(a) stay the same, causing no change in the money held by households and businesses.
(b) rise, causing households and businesses to hold more money.
(c) fall, causing households and businesses to hold more money.
(d) rise, causing households and businesses to hold less money.
(e) fall, causing households and businesses to hold less money.
If in the money market, the quantity of money demanded exceeds the money supply, we would expect the interest rate to rise, causing households and businesses to hold less money.
What is Money Market?
The trading of very short-term debt investments is referred to as the money market. It involves substantial trades between institutions and dealers at the wholesale level. Retail money market accounts opened by bank clients and money market mutual funds purchased by individual investors are included.
By purchasing a money market mutual fund, a Treasury bill, or by creating a money market account with a bank, a person can invest in the money market. Money market accounts have greater minimum balance requirements and withdrawal restrictions than standard savings accounts, but they also pay higher interest rates.
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one of the key reasons why organizations must not rely on external providers for thought leadership is that:
One of the key reasons why organizations must not rely on external providers for thought leadership is that they are unaware of the organization's internal dynamics.
The presentation of ideas that show your competence in a certain industry, field, or topic is known as thought leadership. Being a thought leader in their respective professions is something that many executives and business leaders aspire to. It requires commitment, dedication, tolerance, planning capabilities, and a lot of knowledge.
Most thought leaders are willing to share their expertise with others in order to help a business, organization, or cause. They additionally possess a mastery of their subject matter. Successful thought leadership requires maximizing your authority and impact through content marketing, social media, and other channels.
In a nutshell, thought leadership is original thinking that is informed and insightful.
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if an american water company $1,000 par value bond has a coupon rate of 9.0 percent and is selling for $920, then the yield to maturity must be: greater than 9% equal to 9% less than 9% zero cannot be determined
If an American water company's $1,000 par value bond has a coupon rate of 9 percent and is selling for $920, then the yield to maturity must be greater than 9%.
To determine the bond's value, add the present value of the interest payments to the present value of the principal received at maturity. To calculate the present value of interest payments, multiply the amount by the number of equal payments made over time.
A bond is a type of debt security that pays a fixed rate of interest until it matures. When a bond matures, the bond's principal amount is returned to the bondholder. Bonds are issued by governments to raise funds for public projects such as roads and bridges. Corporations issue bonds to raise funds for business expansion.
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a new website and app has been created called buycott. a consumer can choose from boycotting companies with income inequality to end animal testing and more. this action is a way for consumers to demand more from businesses. refusing to buy from companies because of social or ethical standards is known as:
Voting with your wallet is the practise of refusing to support businesses that violate your social or ethical standards.
What is ethical standards?
The founders of the organisation created a set of ethical standards to communicate the moral principles that underlie the organisation. This code offers a framework that can serve as a guide for making decisions. The culture of an organisation should include these standards. They set the standards of conduct that owners as well as top executives anticipate from staff members as well as suppliers, at least insofar as their relationship with the company is concerned. A corporate governance system will work very hard to spread and uphold these principles. The majority of this is accomplished through behaviour modelling, which calls for senior executives to act as role models for lower-level employees.
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a firm that operates under perfect competition is confronted with a demand function, in the relevant segment of which the price elasticity of demand is -1.5. the marginal cost is equal to $40. what is the profit-maximizing quantity for this firm?
Price elasticity of demand in market A is 6 while it is 1.5 in market B. How should the company operate if the marginal cost of creating a book is $10.
How do you react when prices are elastic?If demand is elastic, profits can be made by lowering prices, but if demand is inelastic, profits can be made by rising prices. You can use marketing and other promotional strategies to lessen the elasticity of PED when it is excessively elastic.
How can you determine the cost function's profit-maximizing quantity?We are aware that marginal revenue and marginal expense must match in order to optimize profit. This means that in addition to the Revenue function and its derivative, R'(x), we also need to determine C'(x) (marginal cost) (marginal revenue). We must make marginal revenue equal to marginal cost and then solve for x in order to maximize profit.
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