Uber recently redefining its business with the addition of Uber Rush and Uber Eats, now considers itself a logistics business.
Logistics? Please explain.The term "logistics" refers to the process of organizing and moving resources, including people, goods, inventories, and equipment, from one area to storage at the desired location. The movement of supplies and equipment to troops in the field is what the word logistics originally meant in the military.
How do logistics play a part?In order to transfer goods from the place of production or factory to the consumer swiftly and on time, numerous systems have been put in place. The tasks of logistics include transportation/delivery, storage, packing, cargo handling, distribution processing, and information processing.
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when creating a budget for the following full year, one of the first considerations when budgeting costs should be
Establishing a macroeconomic framework for the budget year should be the first step in the budget planning process (and ideally at least the next two years).
What happens initially when creating a budget?To start, evaluate your financial capabilities. The first step is to determine how much money you have coming in each month. This can come from a variety of sources, including investment income, grants, loans, employment income, retirement pensions, and money from other sources.
While creating a budget which three things are the most important?Start by evaluating your financial situation. Choose a budgeting strategy that works for you after you are aware of where you are and what you want to achieve. We advise using the 50/30/20 strategy, which divides your income into three main categories: requirements, wants, and savings and debt reduction (20%).
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When the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually. When the bonds mature, the issuer records its payment of principal with a (debit/credit) _______ to Cash in the amount of $______credit;60,000
Answer:debit
50000
Explanation:
Samantha is the headmistress of Harwell High School. She expects high standards of discipline from her staff. She often makes them work over the weekends and on their days off. To foster academic excellence, she discontinues all creative methods of teaching and replaces them with traditional methods. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Samantha using in this scenario?
a.
The middle-of-the-road style
b.
The country club style
c.
The authority-compliance style
d.
The impoverished style
The authority-compliance style is the leadership styles Samantha is using in this scenario. Hence option (c) is the answer.
What is the authority compliance style?A leadership style known as authority-compliance management places a greater emphasis on productivity than on members' emotions. To achieve the intended outcomes, the staff must be submissive and carefully abide by the regulations established by the boss.
People who fall into this kind of manager are also referred to as "authoritarian" or "authority-compliance" supervisors who consider their team members to be merely a means to an end. The needs of the team come second to its output at all times. Authorities are defined by their dominance, informality, reason, and accountability. The Authority-Compliance Manager is more concerned with results than with people.
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FILL IN THE BLANK. Marketers publicize inbound toll-free numbers to consumers in television and print ads, direct mail, and catalogs. The benefit to sellers is that it presents an opportunity for consumers to order products and for the seller to build the relationship. A benefit to consumers is ________.
The advantage to vendors is that it allows customers to purchase products while also allowing the vendor to build a relationship. Consumers will benefit from increased convenience.
What exactly is a marketer?
A marketer is someone who promotes the products and services of a company. They devise strategies to increase revenue and sales while ensuring that these strategies are in line with customer needs and market demand. Because there are so many various channels to use and types of content to produce, marketing experts are strategic to their time and resources.
What exactly is a marketer example?
Brochures, handbills, newspaper ads, and magazine ads are some examples. Marketing Direct: This entails delivering specific content to potential customers.
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which of the following line items from a 12-month inventory purchases budget are presented on the pro forma financial statements? assume that all purchases are paid in the month of purchase. (select all that apply.) multiple select question. desired ending inventory (i.e. ending inventory) for the last month purchases for the last month shown as accounts payable on the balance sheet total ending inventory for the twelve months total cost of goods sold (i.e. cost of budgeted sales) for the twelve months
The following items from a 12- month inventory purchases budget are presented on the pro forma financial statements are desired ending inventory (i.e. ending inventory) for the last month, and total cost of goods sold (i.e. cost of budgeted sales) for the twelve months.
The financial position and actions of a corporation are documented in its financial statements throughout a given time period. A company's financial health and success are shown via its financial statements. The income statement, balance sheet, and cash flow statement are considered to be the three fundamental financial statements.
Financial statements including the cash flow statement, balance sheet, and income statement must be prepared. With the use of these three statements, traders may learn more about a company's financial health and underlying worth. They also serve as useful tools for analyzing a company's financial strength.
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about 30 percent of franchises are owned by african americans, latinos, asians, and native americans. franchisors are becoming more focused on recruiting. t/f
It is completely appropriate to mention that the franchisors are becoming more focused on recruitments of franchisees. Therefore, the statement given above is true.
Franchisees can be referred to or considered as the business unit that operates after obtaining the license from the franchisor to do so under a contract or a legal agreement. Moreover, the franchisees are also subjected to share their revenues with the franchisors, if it has been specified under the minutes of the agreement between them.
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jillian runs a cupcake shop where she sells cupcakes for $1 each. she employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. her costs of equipment and raw materials add up to $75,000. her business ability is legendary, and other companies have offered to pay jillian $100,000 to come to work for them. she also knows she could sell her cupcake shop for $150,000. the bank in town pays an annual interest rate of 3% on all funds deposited with it.
Throughout One Year,
a) Jillian's total revenue is $20000.00.
b) Jillian's total explicit costs are $100,600.
c) Jillian's total implicit costs are $100,000.
Jillian's total revenue is determined by duplicating the number of cupcakes she sells each year (20000) by the cost she charges for every cupcake ($1.00), for a sum of 20000 * $1.00 = $20000.00.
Jillian's total explicit costs incorporate the expenses of work (5 representatives * 500 hours each * $10.00/hour = $25000.00), gear and unrefined components ($75,000.00), and the premium on her bank stores (3% *$20000.00 = $600.00). The complete unequivocal expenses are this way $25000.00 + $75,000 + $600.00 = $100,600
Jillian's total implicit costs are $100,000 .For this situation, Jillian's understood expenses incorporate the worth of the propositions for employment she has gotten ($100,000 ) and the possible worth of her cupcake shop if she somehow managed to sell it ($150,000). The complete certain expenses are in this way $100,000 +($150,000) = $250,000.
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at subaru, teams of workers make their own job assignments, plan their own work, control their material and inventory needs, and select new team members. this is an example of job
If at subaru, teams of workers make their own job assignments, plan their own work, control their material and inventory needs, and select new team members. this is an example of Job enrichment.
What is job enrichment?Job enrichment can be defined as the way in which an employees of an organization are given the chance to carryout different responsibilities . This is done by enabling the employees to organize their own job responsibilities, to choose new team members among others.
Job enrichment can tend to help motivate employees at work place as they will always be eager to work and contibute to the growth of their company.
Therefore this is an example of job enrichment.
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internal rate of return richins company produces automobile engine parts. the company is examining the possibility of investing in a new production system that will reduce the costs of the current system. the new system will require a cash investment of $11,551,968 and will produce net cash savings of $1,800,000 per year. the system has a projected life of 10 years. required: calculate the irr for the new production system. for discount factors use exhibit 12b-2. round your answer to the nearest whole percentage.
The new production system's IRR will be 9%. The internal rate of return (IRR) is the discount rate used to determine whether the after-tax retained earnings from an investment are equal to the initial investment.
Using a financial calculator, one can determine IRR:$11,551,968 was the cash flow in year 0
From the first year to the tenth, cash flow is equal to $1,800,000.
IRR = 9%
First, enter the cash flow values by clicking the CF button on a financial calculator to find the IRR. Press enter with the arrow pointing downward after entering the value.After entering all of the cash flows, click the IRR button, followed by the compute button.Therefore, the IRR for the new production system will be 9%.
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subseterm an increase in government spending financed by increased borrowing will most likely change the real interest rate and the gross private domestic investment in which of the following ways?
A lot of issues affect economy, when government borrowing to finance economy, an increase in deficit will lead to high increase in interest.
What is an economy?An economy is a setting where products and services are produced, marketed, exchanged, and used. The processes of an economy are largely influenced by a person's culture, values, education, technological advancement, history, social organization, political system, legal system, and access to natural resources. In addition to providing background and content, these variables also set the rules and conditions under which an economy operates. In other words, the economic sphere is a social setting made up of mutually reliant, connected, and behavior-based human interactions. People, companies, organizations, and governments are all examples of economic players. An economic transaction takes place when two people or groups agree on the value or price of the good or service being exchanged, which is frequently stated in a particular currency.
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The new ICH E6(R2) integrated addendum requires sponsors to implement systems to manage quality throughout all stages of the trial process. The system should use a risk-based approach including which of the following?
Identification of study risks to determine which may safely be omitted from continual monitoring.
The new ICH E6(R2) integrated addendum needs sponsors to implement systems to manage quality throughout all stages of the trial process. The system should use a risk-based approach including identification of study risks to determine which may safely be omitted from continual monitoring.
What is the ICH E6(R2)?ICH E6(R2) is an addendum to the International Council for Harmonisation E6(R1) which provides Good Clinical Practice (GCP) guidance and a unified standard for the European Union, Japan, and the United States to facilitate the mutual acceptance of clinical data by the regulatory authorities in those jurisdictions.
The E6 addendum (R2) sets out to achieve the aim which is stated in the ICH website, that is to enable implementation of innovative approaches to clinical trial design, management, oversight, conduct, documentation, and reporting that will better ensure human subject protection and data quality.
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Melinda wants to withdraw some money from her mutual fund. She has a minimum asset value of $10,000. Which of the following is not an option available for her to systematically withdraw some money?
-Withdraw a specified, fixed dollar amount each investment period until the fund has been exhausted
-Sell off a certain number of shares each investment period
-Withdraw a fixed percentage of asset growth
-Withdraw all income dividends and capital gain distributions earned in an investment period
-Withdraw all principal and leave interest dividends and capital gain distributions in the account
A Systematic Withdrawal Plan (SWP) is a facility that approves an investor to withdraw cash from an present mutual fund at predetermined intervals. SWP helps traders to create a ordinary flow of earnings from their investments.
Is systematic withdrawal graph is safe?These schemes provide guaranteed returns with near-zero risk. You can opt for the dividend choice and make investments the dividend in a debt scheme using a SIP. Eventually, you can begin an SWP and earn everyday earnings barring risking your capital.
? A systematic withdrawal agenda is a method of withdrawing funds from an annuity account that specifies the quantity and frequency of the payments to be made to the annuitant
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https://brainly.com/question/1780667#SPJ4you are answering phones for a local utilities provider and are speaking with an extremely angry customer. because your company manual advises employees to transfer hostile calls to a superior, you do this. this decision reflects which of the following dimensions of quality with respect to decision making? group of answer choices due process coherence fairness justice accuracy
In essence, the conduct code or a manual needs to specify how employees are expected to behave in the workplace.
Every organisation has a set of criteria that describe how their workplace culture is to be found.This is frequently a clear indication of the company's market practises and where they stand in relation to them.It also depends on what sector of the economy the company operates in.As a result, the handbook ensures that there is a straightforward way for every employee inside a firm to comprehend the standards of behaviour, and even for managers and executives, there exists this manner of understanding what it is about.
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If there is a competitive outside market for the transferred product, then the best transfer price is the ________? A.) activity based price B.) cost based transfer price C.) market price
D.) negotiated transfer price E.) none of the above
if you contact a relative of the consumer who has prior knowledge of the consumer's debt information, the relative may grant you permission to discuss the details of such debt information.
The following statement "if you contact a relative of the consumer who has prior knowledge of the consumer's debt information, the relative may grant you permission to discuss the details of such debt information" is False.
A person who owes money or some other agreed-upon value to a third party, a creditor, is said to be in debt. Debt requires late payments or a certain number of installments, unlike buying now. A sovereign state or country, local government, business or individual can all be in debt.
Contractual agreements often specify the frequency and amount of principal and interest payments on commercial debt. There are many types of debt, such as loans, bonds, notes, and mortgages. In financial accounting, debt is a different type of financial transaction than equity. In a metaphorical sense, the phrase can also be used to describe moral obligations and other obligations not related to money.
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The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems.
Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note.
Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400.
13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000.
Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account.
14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account.
Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.)
May 11 Received from Bradford & Co. the amount due on the note of March 12.
13 Dry Creek Co. dishonored its note dated March 14.
July 12 Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note.
Aug. 1 Received from Trina Gelhaus the amount due on her note of April 3.
Oct. 5 Sold merchandise on account, terms 2/10, n/30, to Halloran Co., $13,500. Record the sale net of the 2% discount. The cost of goods sold was $8,100.
15 Received from Halloran Co. the amount of the invoice of October 5, less 2% discount.
Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Assume this is a year in which February has 28 days.
The journal entries for the given information are
Jan. 3
Cash 18,000
Notes Receivable 18,000
Feb. 10
Accounts Receivable 24,000
Inventory 14,400
Cost of Goods Sold 14,400
Mar. 12
Notes Receivable 24,000
Accounts Receivable 24,000
Apr. 3
Interest Revenue 720
Notes Receivable 18,000
Cash 18,720
May 11
Cash 24,000
Notes Receivable 24,000
Apr. 3
Notes Receivable 60,000
Interest Receivable 720
May 11
Notes Receivable 8,000
Cash 7,920
July 12
Notes Receivable 60,000
Interest Receivable 720
Interest Expense 720
Aug. 1
Notes Receivable 9,000
Cash 8,910
Oct. 5
Accounts Receivable 13,500
Cost of Goods Sold 8,100
Sales Revenue 13,500
Oct. 15
Cash 13,230
Accounts Receivable 13,500
Discounts Allowed 270
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Cournot competition Aa Aa Consider a town in which only two residents, Zach and Kim, own wells that produce water safe for drinking. Zach and Kim can pump and sell as much water as they want at no cost. Assume that outside water cannot be transported into the town for sale. The following questions will walk you through how to compute the Cournot quantity competition outcome for these duopolists. Consider the market demand curve for water and the marginal cost for collecting water on the following graph Suppose Zach believes that Kim is going to collect 4 gallons of water to sell. On the graph, use the purple points (diamond symbols) to plot the demand curve (D1) Zach faces; then use the red points (cross symbols) to plot the marginal revenue curve (MR1) Zach faces. Finally, use the black point (X symbol) to indicate the profit-maximizing price and quantity (Profit Max 1) in this case. Dashed drop lines will automatically extend to both axes PRICE (Dollars per gallon] D1 Market Demand MR1 Profit Max 1 MC 16 20 24 QUANTITY (Gallons of water Help Clear All
The profit-maximizing pricing per gallon is $1.80 based on the quantity demanded and overall revenue to Brian and Crystal. 210 liters are produced overall, and Brian and Crystal each make $189.
What is displayed in the demand schedule table?
The price at which the most money was made, or the profit-maximizing price, is $1.80
210 gallons are the total production at this pricing
Bryan and Crystal will each receive half of the profit, which is
= 378 / 2
= $189
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_____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.
A)Perpetual inventory
B)The materials adjustment system
C)Materials requirement planning
D)Controlled assembly plan
E)Raw material coordination planning
To guarantee that supplies of materials, manpower, and machinery are accessible for use in manufacturing, materials requirement planning makes use of a central computerized system. The right response in this case is option C.
Based on demand and the bill of materials, the material requirements planning (MRP) system determines what raw materials, components, and subassemblies are required, as well as when to assemble the completed items (BOM).
MRP, which is generally carried out using specialized software, aids in ensuring that the proper inventory is accessible for the manufacturing process precisely when it is required and at the lowest cost. MRP boosts the productivity, adaptability, and profitability of manufacturing processes in this way.
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If the income-expenditure multiplier equals 4 and a 1 percentage point increase in the real interest rate reduces autonomous spending by 100 units, then a 1,000 unit recessionary gap can be eliminated by _____ the real interest rate by _____ percentage points.
If the income multiplier equals 4 and a 1 percentage point increase in the real interest rate reduces autonomous spending by 100 units, then a 1,000 unit recessionary gap can be eliminated by decreasing the real interest rate by 2.5 percentage points.
Income, which is often stated in monetary terms, is the spending and saving opportunity acquired by an entity within a given duration. Conceptually, income is hard to define, and various disciplines may have distinct definitions. Haig-Simons income, which defines income as Consumption + Change in Net Worth and is commonly applied in economics, is a very significant definition of income.
Income is a total that includes any wages, salaries, profits, interest payments, rent, or other forms of earnings earned in a calendar year for families and individuals in the United States, as defined by tax law. The common definition of discretionary income is gross income less taxes and other deductions.
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someone responsible only for training associated persons at a financial industry regulatory authority (finra) member firm
Someone responsible only for training associated persons at a FINRA member firm must be registered as a principal of the firm.
The Financial Industry Regulatory Authority (FINRA) is a private American corporation that functions as an exchange market and member brokerage firm self-regulatory organization (SRO).
The National Association of Securities Dealers, Inc. (NASD) and the New York Stock Exchange's member regulatory, enforcement, and arbitration functions were replaced by FINRA.
The U.S. Securities and Exchange Commission is the U.S. government agency that serves as the ultimate regulator of the U.S. securities sector, including FINRA (SEC).
Equities, corporate bonds, securities futures, and options trading are all governed by FINRA. All companies that deal in securities and are not subject to the regulation of another SRO, such as the Municipal Securities Rulemaking Board (MSRB), must be FINRA members.
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HELLPPP
People want to buy products and services from companies they like and trust. Which principle of sales does this statement best describe?
Fixing Problems
Listening
Price and Value
Relationships
An event or outcome that is predicted based on known facts, common sense, and previous experience is a
An event or outcome that is predicted based on known facts, common sense, and previous experience is a probability.
Applications of probabilityProbability is used to make forecasts in many contexts of daily life, such as weather, statistical, mathematical, economic, medical, scientific, financial risk, gambling, sports, and many more.
There are cases in everyday life where we see the application of probability. For example, the possibility:
A bank customer pays his credit or not.You win a bet in a casino.Today is a rainy day or sunny. We live 100 years (life expectancy).You will get a 5 when a six-sided die is rolled.To learn more about probability, click here:
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Which of the following statements is (are) TRUE? I. The socially optimal quantity is 3. II. The deadweight loss associated with the perfectly competitive output level Is $4.50. III. The external marginal cost is $6. I II and III I, II, and III I and II
The socially optimal quantity of the following statement is 3. Deadweight loss associated with perfectly competitive output level is $4.50.
Rental costs are fixed operating or absorption costs of a business, as opposed to variable costs. Rent is often subject to his one- or two-year contract with extension options between the landlord and tenant.
The pension has three concepts: basic pension, economic pension, and quasi-pension. Landlords receive this price because the land is in short supply. Rent earned by the owner is considered income under existing Indian law. Landlords earning such income are therefore obliged to pay tax on their rental income in India.
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Consider the case of a positive externality with a non-zero marginal external benefit. In this case, which of the following statements are true? a.The amount of the externality produced by the competitive equilibrium quantity will equal the Pareto optimal amount. b.The amount of the externality produced by the competitive equilibrium quantity will exceed the Pareto optimal amount. c.The amount of the externality produced by the competitive equilibrium quantity will be below the Pareto optimal amount d.The competitive equilibrium allocation will be determined when private marginal costs equal social marginal benefits
When marginal private costs and social marginal benefits are equal, the allocation in a competitive equilibrium is established.
What exactly is a favorable externality?An externality is a good thing when it is exchanged with a third party. The government can reduce harmful externalities by taxing goods and services that have spillover costs. The government can foster positive externalities by offering subsidies for services and products which have positive spillover effects.
Who benefits from positive externality?When a third party benefits from production, this is known as a positive production externality. There is only a motivation to supply to individuals who can be charged because such third parties who profit cannot be charged.
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if demand for food at a restaurant would increase substantially based on a small reduction in price or drop precipitously based on a small increase in price the demand at this restaurant is
Based on a small increase in price, demand at this restaurant will decrease slightly.
What is demand?Demand in economics refers to the quantity of a good that consumers are willing and able to buy during a specific time period at various prices. Demand curve: This term describes the correlation between price and quantity demand. The demand curve in economics provides a graphic representation of the relationship between product price and the quantity that consumers are willing to buy. A curve that fluctuates as demand grows represents how much something costs. There is a distinct level of customer demand at each point on the curve, and the market price is high in accordance. The graph serves as an example of the rule of demand, which argues that when a product's price increases, less people will buy it and vice versa.
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Youare the owner of a baseball team. Your stadium has a maximum capacity(think of this as in thousands)of 60. The Marginal Costof having one additional fan attend the game is $0if attendance is less than 60 and then infinite for anything above 60. You cantake advantage of variable pricing togenerate extra revenue when teams that are more popular are in town. Suppose that whenthe Kansas City Royals are in town the demand for a ticket to the game is: P=100-Qand the Marginal Revenue is:P=100-2Q andwhen the New York Yankees are in town the demand for a ticket to the game is: P=300-Qand the Marginal Revenue is:P=300-2Q. Draw this graphically and calculate the price and quantity for Royals and Yankees tickets.
The term "marginal cost" describes the rise in manufacturing costs brought on by the creation of more product units.
What does the term "managing cost" mean?They fall into one of two categories: fixed or changeable. Whether a cost is variable or constant depends on whether its quantity changes as production volume changes. When a cost changes in response to changes in output or volume, it is said to be variable (decrease.)
How do you determine marginal cost?The additional costs spent by manufacturing more units of an item or service are known as marginal costs. By dividing the overall change in the cost of manufacturing additional items by the change in the quantity of goods produced, it is determined.
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TRUE/FALSE. employees making complaints to the occupational safety and health administration are protected under the occupational safety and health act's whistle-blowing provisions.
Employees making complaints to the occupational safety and health administration are protected under the occupational safety and health act's whistle-blowing provisions. is true.
What obligations do businesses have to make sure that their employees are safe?They are to establish a workplace free from significant known hazards and adhere to the guidelines, guidelines, and regulations published under the OSH Act. Check the working environment to see if OSHA regulations are being followed. Ensure that workers have access to and use safe tools and equipment, and that this equipment is maintained correctly.
Therefore, a safe workplace must be provided by the employer. Employers MUST obey all OSHA safety and health regulations and give their workers a workplace free from major hazards. Safety and health issues must be identified and fixed by employers.
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The FTC has recently put forth a new Privacy Protection Framework that includes _____.
Group of answer choices
incorporating consumer privacy throughout the organization
simplifying consumer choice
increasing transparency of data practices
A and C
all of the above
The FTC has recently put forth a new Privacy Protection Framework that includes all of the above.
The NIST Privacy Framework is a voluntary tool designed to assist enterprises in identifying and managing privacy risk so they may develop cutting-edge goods and services while safeguarding the privacy of individuals. It was created in partnership with stakeholders.
What fundamental ideas surround data privacy?
The capacity to choose when, how, and how much personal information about oneself is shared with or conveyed to others is known as data privacy. One's name, address, phone number, or online or offline conduct are examples of personal information.
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select the correct statement about executive compensation plans involving stock. the total amount of compensation expense for a restricted stock award plan is recognized when the stock is issued. the total amount of compensation expense for a restricted stock award plan is determined at the grant date. for stock-appreciation rights plans payable in cash, compensation expense is recognized only during the service period. for stock-appreciation rights plans payable in cash, compensation expense recognized in any given reporting period cannot be negative.
Option (b) that is the total amount of compensation expense for a restricted stock award plan is determined at the grant date is correct.
Executive compensation plans that include shares, the total amount of compensation for the specified share plan is determined on the grant date.
Executive compensation refers to the overall compensation package provided to executives for their performance and that of the organization. It may include pay, incentives, stock options, benefits and perks, bonuses, retirement plans, and other rewards.
The driving factors of the plan should be relevant to the company's mission and include the company's strategic plan, ability to attract and retain talent, ownership structure, culture, corporate governance, and cash flow.
For executive compensation plans that include shares, the total amount of compensation for a fixed share plan is determined on the grant date as the total amount of compensation is the product of the number of shares in the award and the market price of the shares on the grant date. This amount is recognized over the period of service required for the employee to receive or maintain the stock.
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XYZ Company made a mistake in counting its ending inventory. Determine which of the items below will be affected by this error. (Check all that apply.)
Multiple select question.
Cost of goods sold
Long-term assets
Reason: Long-term assets are unaffected because inventory is a current asset. Cost of goods sold, net income and current assets are affected.
Current assets
Net income
Revenues
Reason: Revenues are unaffected by this error in ending inventory. Cost of goods sold, net income and current assets are affected.
Four commonly acknowledged methods—specific cost, average cost, first-in, first-out (FIFO), and last-in, first-out—are available for allocating expenses to ending inventory and cost of goods sold (LIFO).
All the commodities, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. Example: Only the newspaper will be regarded as inventory if a newspaper seller utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset. Cash, cash equivalents, short-term investments, accounts receivable, inventory, supplies, and pre-paid costs are a few examples of current assets. Current assets are items that a corporation utilizes, replaces, or turns into cash during a typical operating cycle. They are also known as short-term assets (typically less than 12 months). It sets them apart from long-term assets, or those that a company utilizes for more than a year.
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