The long-term solution to the high price of gasoline is d) increase the price further through government taxation.
The high price of gasoline is due to the overconsumption of gasoline in various parts of the world. The supply of gasoline is less whereas the usage is more which ultimately causes the prices to go higher.
The long-term solution to the high price of gasoline is to further increase the price of gasoline through government taxation. Such an act will cause more revenue to be generated to search for more reserves to produce more gasoline. Also, the increase in prices will cause people to use less gasoline. This long-term solution can prove fruitful if more reserves of gasoline are made or gasoline is imported from other countries.
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using the values held by his organization, don has defined an ethical approach for dealing with the needs of his team members and their customers that he has implemented within his department. his team members know what is expected of them, and their customers know what to expect from the organization. the primary benefit of this approach for don's department is .
As Don has set out an ethical approach for dealing with the needs of his team members and their customers that he has implemented within his department which make his team members to know what is expected of them, then, the primary benefit of this approach for Don's department is a consistent operation
What is a consistent operation?An approach to ethics assumes that there are certain ideals toward which we should strive which provide for the full development of our humanity. These sort of ideals are discovered through the thoughtful reflection on what kind of people we have the potential to become.
When a company has reached the stage where it is looking to scale operations, then, maintaining a consistency in business processes is crucial to prevent chaos on work processes.
Therefore, the consistent operation is what Don is trying to achieve by setting out an ethical approach for dealing with the needs of his team members to make his team members know what is expected of them.
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For the year, simmons incorporated reports net sales of $100,000, cost of goods sold of $80,000, and an average inventory balance of $40,000. What is simmons’ gross profit ratio?.
Simmons Inc. reports net sales of $100,000 for the year, cost of goods sold of $80,000, and an average inventory balance of $40,000 Gross Profit Revenue: Net Sales minus Gross Profit
Net sales are the total of a company's gross sales less any discounts, returns, and allowances. External transparency of net sales computations is not always present. They are frequently accounted for when top line revenues are reported on the income statement. An illustration of net sales Your net sales are the total of your gross sales less all of your deductions. Your net sales, for instance, would be $96,000 if your gross sales were $100,000 and your sales discounts, allowances, and returns totaled $2,000, $1,000, and $1,000, respectively. Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period is Gross profit.
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ford motor company reorganized its procurement process by simplifying and streamlining the process itself and as a result was able to cut the size of the accounts payable department by 95 percent. this is an example of
Re-engineering is the example used to cut he size of the accounts payable department by 95 percent.
What is known as Re-engineering?A good business process reengineering can elevate a mediocre business to the top of its sector. A excellent illustration would be the Ford Company's restructuring of its production procedures, which replaced manual labor with an assembly line.
Re-engineering is the process of disassembling a system and modifying it so that it may be put back together differently. This method includes a number of related steps, such as rebuilding, reverse engineering, and forward engineering.
Business Method By removing inefficient processes and the workers who carry them out, reengineering lowers costs and cycle times. Reorganization by teams reduces the need for management layers, speeds up information flows, and gets rid of mistakes and redundancy brought on by several handoffs.
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Which of these is a way to grow
a business without sacrificing
equity?
A. take out a loan
B. review the budget
C. seek investors
william wants everyone to think his business is growing faster than it actually is so he built an impressive website with an exaggerated company history. his efforts to mislead are known as .
William created a stunning website with an embellished company history so that everyone would believe his business was expanding more quickly than it actually is. His deceitful actions are referred to as validity is a lie.
A website is a collection of web pages and related content that is published on at least one web server, goes by the same domain name, and is accessible via that domain name. The World Wide Web is the collective name for all websites that are open to the public. Additionally, there are private websites that are only accessible through a private network, such as an organization's internal website for staff members.
Websites are frequently devoted to a specific subject or objective, such as news, education, business, entertainment, or social networking. The site's navigation, which frequently begins with the main page, is aided by hyperlinks between individual web pages. Various devices, such as PCs, laptops, tablets, and smartphones, can be used by users to visit websites.
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of the following groups, who is eligible for unemployment insurance benefits? a. the unemployed who just entered the labor force b. the unemployed who were laid off because their previous employers no longer needed their skills c. the unemployed who quit their jobs d. the unemployed who were fired for cause
The correct answer is (b) i.e., unemployment insurance benefits will be given to those who were laid off because their previous employers no longer needed their skills.
Advantages from unemployment benefits are intended to provide momentary economic help to unemployed workers who are unable to find work without any fault of their own. Each state establishes its very own specific needs for recipients' eligibility, reward amounts, and terms of payment.
In this case the option (b) is correct because employees were fired because their previous employers no longer needed their skills means there is no fault of the existing employees, therefore they must be provided unemployment insurance benefits to secure their livelihood.
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requirement 1. prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods: straight-line, units-of-production, and double-declining-balance. show your computations. note: three depreciation schedules must be prepared. begin by preparing a depreciation schedule using the straight-line method.
The depreciation schedule is given below, including straight line method, units of production method and double-declining balance.
The given is three depreciation schedules:
1) Straight-line method:
Value of deprecation will be calculated as:
= Cost of asset- salvage value/life of asset
= $33,000-$6,000/4
= $6,750
2) Unit of production method:
Depreciation value= cost of asset-salvage value/ life of asset in hours
= $33,000-$6,000/6,750
=$4 per hour
3) Double- declining method:
Value of depreciation = 1/useful life *100
= 1/4 *100
= 25%
(Depreciation schedule is given below in pictures)
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joe smith resides in newton, ma and he is a successful independent insurance agent. recently, one of the life insurance companies with whom he places business offered him a special financial arrangement. if joe meets sales targets, he will receive large bonuse and will go on a trip to italy. joe will also be able to recruit and train sub-agents and receive an over-riding commission based on the amount of life insurance the sub-agents sell. based on this description, joe smith is a(n)
The joe smith entire amount of goods and services generated in an economy during a specific time period is known as the gross domestic product. One year's worth of productivity, for instance, is taken into account.
joe smith decides to sell the home he has called home for ten years. Since the house was included in GDP when it was purchased 10 years ago, the sale of property does not count as an addition to GDP. Recognizing that duplicate records will result from repurchase.
The commission paid to the real estate agent in this transaction increases GDP because the service was provided this year.
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joe smith Joe has sold the Smiths family the home he has lived in for the past ten years.
He received $300,000 for the residence.
Joe receives a $50,000 increase above the original price agreed upon ten years prior. He pays the real estate agent a 5% commission, or 5/100ths of one percent, or 0.05.
Consequently, the increase in GDP can be estimated as follows: $300,000 x 0.05 = $15,000
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Think of a product that you would use for innovation and enterprise.
Describing how the product will innovate within 5 years.
Answer:
it's 10/100
Explanation:
cause 5plus one more year will be ten but 5 more years is 100
knott's industries manufactures standard and super premium backyard swing sets. currently it has four identical swing-set-making machines, which are operated days per year and 8 hours each day. a capacity cushion of percent is desired. the following information is also known:
Knott's has enough capacity to satisfy the yearly demand since it only needs 4 machines, all of which are owned by Knott's.
Does Knott's have sufficient capacity to meet annualdemand?Number of hours per machine available = Number of days in a year* hours per day
The number of hours per machine that are available at full capacity = 275 * 8 = 2200 hours.
20% after the capacity cushion
Total capacity is 2200 * (1%–20%), which is 1760 hours.
The time needed for the Standard model:
The average lot size divided by yearly demand is 20000/50, or 400 lots.
Total production time is equal to 400 times setup time plus 20,000 times processing time, or 400 * 30 + 20,000 * 5.
Total manufacturing time each year is 112000 minutes or 1866.67 hours.
Super Premium model needed hours:
Annual demand divided by average lot size is 10000/30, which equals 333.33 lots or 334 lots.
Total manufacturing time is equal to 334*45 + 10,000*25, which is 265030 min, or 4417.167 hr.
Thus, The total hours needed to satisfy demand are 1866.67 + 4417.167, which comes to 6283.83 hours.
The required number of machines is equal to 3.57 machines (6283.83 / 1760).
As a result, Knott's has enough capacity to satisfy the yearly demand since it only needs 4 machines, all of which are owned by Knott's.
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CQ
Knott's Industries manufactures standard and super premium backyard swing sets. Currently it has four identicalswing-set-making machines, which are operated 275 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is alsoknown:
Standard Model
Super Premium Model
Annual Demand
20,000
10,000
Standard Processing Time
5 min
25min
Average Lot Size
50
30
Standard Setup Time per Lot
30 min
45 min
a. Does Knott's have sufficient capacity to meet annualdemand?
Knott's ▼(does not, does) have sufficient capacity to meet annual demand because __machines are needed.
knowledge management (km) benefits organizations because it . group of answer choices allows distributors to work within the company premises allows suppliers to work according to the organizational policies enables employees to solve problems and rectify mistakes later improves process quality and increases team strength improves data integrity, transmission, and value
Organizations gain from knowledge management (KM) because it enhances process quality and strengthens teams.
What does the term "knowledge management" (KM) mean?To gain a [competitive] advantage, knowledge management involves the production, dissemination, and interchange of organizational knowledge.
An organization's knowledge and information are created, shared, used, and managed using a variety of techniques known as knowledge management. It alludes to a multidisciplinary strategy that makes the best use of information to accomplish organizational goals.
Knowledge Management Strategies and Their ImportanceBy identifying and codifying information assets, making them available to employees, and promoting knowledge sharing and usage among staff members, a knowledge management (KM) strategy aids a company in making better use of its knowledge resources.
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control activities include a. risks faced by the entity from new technology b. authorization of purchases of new equipment c. market share data d. the control environment
Control activities include the control environment.
So, the correct option is D.
A control environment is composed of the organizational structure, procedures, guidelines, and standards used by an institution to uphold control throughout the company. The board of directors and senior management of a corporation define the expectations of standards of behavior inside the firm and form the company culture, which is also referred to as "the tone at the top."
Establishing an internal control environment is the first step for every organization and a part of control activities. It has been suggested that five factors—vision, skills, incentives, resources, and a plan—are required to successfully implement change. Confusion results from reform efforts without a clear vision. According to experience, a lack of knowledge, motivation, tools, or a strategy will lead to worry, resistance, annoyance, and failure.
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when audiences are allowed to preview actual movies such as pretty woman and national treasure: book of secrets before they are released to the general public, it is a part of the stage of the new-product process.
When people are allowed to preview actual movies before they are released to the audience, it is a part of the market testing stage of the new-product process.
Market testing is the final stage before the actual launch of products in the market. It is done on a limited basis with the purpose to ascertain the probable market success of the new products to be released. Market testing provides useable insight into the product acceptance level and customers’ satisfaction before it is commercialized in the market on a wider scale.
For example, providing the audience with a limited preview of actual movies before they are released is part of the market testing to explore necessary insights into audience response and feedback.
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deep falls timber has net sales of $642,100, net income of $50,800, dividends paid of $12,700, total assets of $658,000, and total equity of $444,400. what is the internal growth rate? a) 5.83 percent b) 6.24 percent c) 6.15 percent d) 5.18 percent e) 7.70 percent
If deep falls timber has $642,100 in net sales, $50,800 in net income, $12,700 in dividends paid, $658,000 in total assets, and $444,400 in total equity, its internal growth rate would be 6.15%.
Net Income 50800.00
Less: Dividends 12700.00
Retained earnings 38100.00
Retention ratio (Retained earnings/ Net income) 75.00%
Total Assets 658000.00
ROA = Net income / Total assets 7.72%
ROA* Retention ratio 5.79%
(1 - ROA *Retention Ratio) 94.21%
Internal Growth rate = (ROA *Retention ratio) / (1 - ROA *Retention ratio) 6.15%
Sales are computed as sales less cost of goods sold, selling, general and administrative costs, operating costs, depreciation, interest, taxes, and other costs. Net income (NI), often known as net earnings, is the difference between these two figures. Investors might use this figure to gauge the extent to which an organization's revenue outpaces its costs. This total assets figure can be found on an organization's income statement and serves as a gauge of profitability.
To determine their earnings per share, businesses use net income. Since net income is the last item on the income statement, business analysts frequently refer to it as the total assets bottom line. In the UK, analysts refer to NI as shareholder-attributable profit.
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You’ve decided to give the department with the most participation in the united way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?.
The reason that can be given to the supervisor for supporting your decision can be goals motivate employees.
Reaching a goal for which the employees will be rewarded always acts as a motivational source for the employees.
In the case above, if the employees of a department know that they will be given a reward such as a pizza for reaching a goal, they will function better to achieve that goal.
Hence you can ask your supervisor for a pizza party by saying that the goal that will be rewarded by pizza will help in motivating the employees.
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There should be no minimum wage in America. Workers should negotiate their pay! Do you agree with this statement? Why or why not?
Answer:
Minimum wage is important because it dictates the lowest hourly wage that a worker much be given. If it was removed, corporations may be able to give workers lower than what minimum wage would have been. Corporations also may outright refuse to pay the workers what they want leaving them jobless.
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only the operations function part of an organization must design and operate processes that are part of a supply chain and deal with quality, technology, and staffing issues.
Only the operations section of a company must create and execute procedures that are part of a supply chain and deal with quality, technology, and workforce challenges. The given statement is false.
What is Supply Chain network?
A supply chain is the network of all the people, organisations, resources, activities, and technology involved in the manufacture and sale of a product. A supply chain includes everything from the transfer of raw materials from the supplier to the producer to the final distribution to the end user.
Seven Workforce Challenges
Morale and Employee Well-Being.Safety and Workspaces.Navigating Uncertainty.Upskilling and Reskilling Workers.Communication.Remote Culture.Employee Experience.To know more about Supply chain here:
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question mode multiple select question select all that apply q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. consequently, the ending inventory on 12/31 was understated on the balance sheet. explain how this error affects the current year's income statement. (check all that apply.) multiple select question. the current year's cost of goods sold will be too high. the current year's net income will be too low. the current year's cost of goods sold will be too low. the current year's net income will be too high.
This error affects the current year's income statement as follows the current year's net income will be too low and the current year's cost of goods sold will be too high.
An income statement displays the revenues, costs, and profitability of a business over time. A profit-and-loss (P&L) or earnings statement is another name for it. expenses for running your firm and generating money.
Revenue, costs, and net income are shown on the income statement. The total cost of goods sold for your company is the sum of all expenses directly related to the selling of goods. Depending on your industry, this could be raw materials, packaging, direct labor, and products purchased for resale.
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a merchandiser has four closing journal entries at the end of an accounting cycle. select the correct entries below. (check all that apply.)multiple select question.close revenue accounts.close expense accounts.close the income summary account.close the withdrawals account.close the merchandise inventory account.close asset accounts.
Closing journal is one part of the financial statements that will be prepared at the end of the accounting period. This part of the financial statements is used to close nominal accounts to prepare the period-end balance sheet.
Closing entries are made at the end of the accounting period after the company's financial statements are prepared. This journal needs to be made because there are accounts whose balances must still be adjusted to zero, so as not to affect transactions for the next period. The preparation of this closing journal is adjusted to the form of the company, whether CV, firm, or PT. The preparation of this flexible closing journal aims to make it easier for interested parties to study it.
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you own 330 shares of stock in halestorm, incorporated, that currently sells for $84.70 per share. the company has announced a dividend of $3.80 per share with an ex-dividend date of february 4. assuming no taxes, what is the value of the stock on february 4?
You presently hold 330 shares of halestorm, incorporated stock, each of which is valued at $84.70. The stock was trading at $80.90 on February 4 when the business declared a dividend of $3.80 per share.
The shares of ownership in a corporation or company are known as stock (sometimes known as capital stock). A single share of stock represents a portion of the corporation's ownership in relation to the total number of shares. This often entitles the shareholder to a percentage of the business's revenues, cash from the sale of company assets, or voting rights, often allocating these in accordance with the sum that each stockholder has invested. Not all stock is created equal.
For instance, some classes of stock may be issued with improved voting rights, without voting rights, or with a specific priority to collect profits or proceeds from liquidation before or after other classes of shareholders. On stock markets or privately, stock can be purchased and sold.
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industries is planning on purchasing a new piece of equipment that will increase the quality of its production. it hopes the increased quality will generate more sales. the company's contribution margin ratio is 40%
Breakeven point = Fixed cost / Contribution Margin Ratio
Fixed cost=0.40 x 650,000
Fixed cost=260000
If the company's fixed expenses increase
Fixed cost=260000 + 35000
Fixed cost=295000
Breakeven point = 295000/ 0.40
Breakeven point = 737,500
The new breakeven point is 737,500 in sales revenue.
The break-even point is the point at which your small business experiences neither a profit nor a loss. break-even point is reached when total costs and total revenues are equal. In other words, you've reached the point in production where a product's sales are equal to its production expenses. The number of units that must be sold of a product in order to pay fixed and variable manufacturing expenses is revealed by break-even analysis. A financial ratio known as the margin ratio compares gross sales revenues of a good or service to the cost of producing or delivering that good, also known as the cost of goods sold
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lenore, incorporated gathered the following information from its accounting records and the october bank statement to prepare the october bank reconciliation: ending cash balance per books, 10/31 $ 4,400 deposits in transit 330 interest received from bank 1,300 bank service charge for check printing 120 outstanding checks 2,900 nsf check of t. owens 220 the up-to-date ending cash balance on october 31 is:
If the ending cash balance per books, 10/31 $ 4,400 deposits in transit 330 interest received from bank 1,300 bank service charge for check printing 120 outstanding checks 2,900 nsf check of t. owens 220 the up-to-date ending cash balance on october 31 is: $5,360
Ending cash balanceUsing this formula to determine or find the up to date ending cash balance
Up-to-date ending cash balance = Ending cash balance per books + Interest received from the bank − Bank service charge − NSF check of T. Owens
Where:
Ending cash balance per books, 10/31 = $ 4,400
Interest received from bank = $ 1,300
Bank service charge for check printing = $ 120
Nsf check of t. owens = $220
Let plug in the formula
Up-to-date ending cash balance = $4,400 + $1,300 − $120 − $220
Up-to-date ending cash balance = $5,360
Therefore the up-to-date ending cash balance is the amount of $5,360
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ssume that the economy is in long-run equilibrium with complete information and that input prices adjust rapidly to changes in the prices of goods and services. if there is a sudden rise in the price level induced by an increase in aggregate demand, real gdp will ▼
A sudden rise in the price level induced by an increase in aggregate demand, real gdp will not change, an increase in Aggregate demand will put upward pressure on price.
The total quantity of demand with all finished products and services generated in an economy is measured as aggregate demand. The total amount of money spent on such goods and services at a particular price level and time is known as aggregate demand.
People can purchase more when their salaries rise. As more people purchase goods and services, businesses may increase their profits and pay their employees more. Healthy growth and low inflation are the perfect conditions. The mathematical method below calculates aggregate demand. AD = C + I + G + (X-M)
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labo corp.'s year 1 pretax income for financial reporting was $125,000, which included a $17,000 penalty for operating without a proper retail license and a $15,000 depreciation expense. macrs depreciation on the tax return was $22,000. the enacted tax rates are 25% in year 1 and 30% in future years. what amounts should labo report as current and deferred tax liabilities on its year 1 balance sheet?
Labo should report $33,750 as current tax liabilities, and $2,100 as deferred tax liabilities on its year 1 balance sheet.
Calculations for current tax liabilities:
Income before Tax $125,000
Add: Inadmissible expenses
Penalty $17,000
Depreciation as per books $15,000
Less: MACRS depreciation ($22,000)
Income for calculating Tax $135,000
Given, Current tax rate is 25%
So Current tax liabilities=Income for calculating tax*Current tax rate
=$135,000*0.25
=$33,750
Calculations for deferred tax liabilities:
Deferred tax liabilities=Excess of tax depreciation*Future enacted tax rate
Excess of tax depreciation=MACRS depreciation-depreciation expense
=$22,000-$15,000
=$7,000
Future enacted tax rate=30%
So, Deferred tax liabilities=$7,000*30%
=$2,100
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on december 28, 2024, tristar communications sold 15 units of its new satellite uplink system to various customers for $10,000 each. the terms of each sale were 3/15, n/30. tristar uses the gross method to account for sales discounts. in what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on january 6, 2025? by how much?
In 2024, Income before tax will be reduced by $1500 and In 2025, Income before tax will be reduced by $6000.1.
In 2024, Income before tax will be reduced by $1500 = ( 15 units × $10,000 × 1% as paid with in 10 days) = $15002. In 2025, Income before tax will be reduced by $6000 =( 30 units × $20,000 × 1% as paid within 10 days) = $6000 Taxes are compulsory contributions that a government agency, whether local, regional, or federal, imposes on people or businesses.
Public works and services like roads and schools, as well as programmes like Social Security and Medicare, are funded by tax income. In economics, taxes fall on whoever bears the cost of the tax, whether this is the taxed entity, such as a business, or the final users of the items produced by the business. Payroll taxes, federal and state income taxes, and sales taxes are just a few of the taxes that need to be taken into account from an accounting standpoint.
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If the government levies a $5 tax per mp3 player on buyers of mp3 players, then the price paid by buyers of mp3 players would likely?.
The price paid by buyers of mp3 players would likely to be increased by less than $5.
Taxes may be defined as the mandatory payments made by an individual residing in any country under any government for smooth functioning of all the public sector services such as Railways. The revenues collected from taxes are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools. Taxpayers need to manage their finances to increased effects of taxes by having a clear understanding of what causes a tax situation. There are numerous types of taxes, and the most are levied as a percentage of a financial transaction.
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the segment margin is obtained by deducting the blank fixed costs of a segment from the segment's blank . multiple choice question. traceable; revenues common; revenues common; contribution margin traceable; contribution margin
The segment margin is obtained by deducting the common fixed costs of a segment from the segment's contribution margin.
The profit or loss generated by one portion of a business is referred to as segment margin. Segment margin only considers the segment's expenses and revenue. By analyzing a company's strengths and weaknesses, segment margin can provide a true depiction of where it is operating well and where it is not. The segment margin is calculated by subtracting a segment's common fixed costs from the segment's contribution margin.
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A home country wants to limit outward fdi flow. What policy should the country implement?.
The country should implement policies that make it more difficult for firms to engage in outward FDI.
What is FDI?
An entity headquartered in a different country makes an investment in the form of controlling ownership in a company in another country. This investment is known as just a foreign direct investment (FDI). Thus, the idea of direct control sets it apart from a foreign investment portfolio. The investment may be made "inorganically" by purchasing a company located in the target country or "organically" by expanding the processes of an established business in that country. The origin of the investment has no bearing on whether it qualifies as an FDI. In general, "mergers and acquisitions, building the new infrastructure, reinvesting profits earned from foreign operations, and intra company loans" are considered to be examples of foreign direct investment. In a strict sense, direct foreign investment only refers to the construction of new facilities and a long-term ownership stake in a company that operates in a different economy than the investor.
These policies could include increasing the taxes on outward FDI, making it more difficult to obtain financing for outward FDI projects, and increasing the regulations that firms must comply with in order to engage in outward FDI.
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You’ve decided to give the department with the most participation in the united way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?.
Goals can be a source of motivation for employees, especially when they come with rewards, like the pizza party in this example. This is the justification you give for your choice.
Setting goals helps employees stay motivation for employees because, if they succeed, they justification will receive recognition and rewards. This in turn inspires the other staff members and contributes to the expansion of the company. Goals and Motivation There is a strong relationship between goals and motivation.
One of the most influential and useful motivation for employees of motivation is the theory of goal-setting. In fact, it received the highest ranking (out of 73 ideas) in a survey of justification organizational behavior scholars (Miner, 2003). Setting goals is strongly associated with performance increases, according to the idea, which has received support from over 1,000 studies involving individuals from the blue-collar to the research and development industries.
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according to the keynesian-cross analysis, if the marginal propensity to consume is 0.6 and government expenditures and autonomous taxes are both increased by 100, equilibrium income will rise by:
If the marginal propensity to consume is 0.6 and government expenditures and autonomous taxes are both increased by 100, equilibrium income will rise by 100 according to the Keynesian-cross analysis.
A Keynesian cross diagram depicts three scenarios: one in which output exceeds aggregate expenditure, one in which aggregate expenditure equals output, and one in which output is below aggregate expenditure.
The equilibrium point for the economy will occur when the aggregate expenditure line crosses the 45-degree line. It is the only position on the average variable cost line where the total amount expended on aggregate demand equals total output.
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