unter is seventeen years old. Under the Fair Labor Standards Act, Hunter cannot work a in a hazardous occupation. Ob for her parents. O in the agriculture industry. od in the entertainment industry,

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Answer 1

Hunter is seventeen years old. Under the Fair Labor Standards Act, Hunter cannot work ​in a hazardous occupation.

The Fair Labor Standards Act (FLSA) specifies standards for minimum wage, overtime compensation, recordkeeping, and youth employment that are applicable to employees both in the private sector and in federal, state, and municipal governments.

For the majority of non-farm jobs, the minimum age is fourteen. However, minors of any age are allowed to distribute newspapers, take part in radio, television, film, or theater productions, work for their birth parents in their solely owned non-farm business (apart from hazardous occupation in the mining and manufacturing industries), and harvest evergreens to manufacture evergreen wreaths. Most of the data in Fair Labor Standards Act is kept in accordance with other regulations and guidelines and is of the type that employers typically retain in normal business operations.

The question is incomplete. The complete question is, "Hunter is seventeen years old. Under the Fair Labor Standards Act, Hunter cannot work

​in the entertainment industry.​in a hazardous occupation.​for her parents.​in the agriculture industry."

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Related Questions

High quality products marketed to high income individuals A) Economy Pricing B) Bundle Pricing C) Market Penetration D) Price skimming E) Premium pricing

Answers

The ANWSER is A,B and E

how does free trade tend to benefit society? multiple select question. it helps businesses succeed by monopolizing their industries. it reduces animosity among nations that trade with each other. it encourages businesses to use low-cost production techniques. it spurs economic growth by encouraging business to innovate.

Answers

Countries that are open to international trade tend to grow faster, innovate, improve productivity, and provide their citizens with higher incomes and more opportunities. hence option C and D is correct

What is Free Trade ?

Open trade also benefits lower-income households by making goods and services more affordable to them.

Trade is critical to America's prosperity because it fuels economic growth, supports good jobs at home, raises living standards, and allows Americans to provide affordable goods and services for their families.

Free trade agreements do more than just reduce and eliminate tariffs; they also assist in addressing behind-the-border barriers that would otherwise impede the flow of goods and services; encouraging investment; and improving rules governing issues such as intellectual property, e-commerce, and government procurement.

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ssume that the average bitcoin return is 1.5 percent per week, the riskfree rate is 0.05 percent per week, and the average market portfolio return is 0.2 percent per week. we know from class that the capm beta of bitcoin is about 3. does capm account for the bitcoin returns?

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The Capital Asset Pricing Model is a contemporary interpretation of financial theories that can be suitable for managing your cryptocurrency investments (CAPM).

This concept extends beyond diversification to control risk and is based on the two main types of investments: systematic and non-systematic. Beta analysis for bitcoin might be cryptocurrency to asset elasticity or market sensitivity. In other words, it's a metric that depicts how an equity instrument compares to the financial market where it's traded. The capital asset pricing model (CAPM) is an idealised representation of how securities are valued in financial markets, which in turn establishes projected returns on capital investments.

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what is a characteristic of a high-context culture? multiple choice workers get right to the task, without the need to socialize during the first 30 minutes at work. workers get right to the task, after they ease into the workday. relationship building is considered a waste of time. relationship building and group trust are considered very important and occur before performing business tasks.

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A characteristic of a high-context culture is that relationship building and group trust are considered very important and occur before performing business tasks.

The high-context cultures are said to be more likely to be contemplative, intuitive, and concerned with the collective. Here, the communicators in high-context cultures tend to pay attention to more than the words spoken and they also pay attention to interpersonal relationships, physical settings, non-verbal expressions, and the social settings.

However, before performing business tasks, relationship building and group trust are considered very important and they are said to occur before. Thus, here subtlety and collective understanding rule the day.

Hence, a high-context culture communicates dominantly.

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If the planned budget revenue for 5,000 units is $120,000, what is the flexible budget revenue if the actual activity is 4,500 units?

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If  the planned budget revenue for 5000  units is $120,000 , the flexible budget revenue of actual activity of 4500 unit is $108,000.

What is budget revenue?

The revenue budget is made up of the government's revenue receipts (tax revenues and other revenues) and the expenditures met from these revenues. Tax revenues are the proceeds of the Union's taxes and other duties.Revenue budgets ensure that businesses allocate resources efficiently, saving time, effort, and money.

Budget revenue = $120,000

                 Units = 5000

As a result, $120000 / 5000 =  $ 24 per units

So, $24units X 4500 =$108,000 units.

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true or false: the fed is composed of 12 regional banks and is governed by a seven member board of governors and one appointed director.

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It is true that the Federal Reserved Bank  is composed of 12 regional banks and is governed by a seven member board of governors and one appointed director.

What is the Federal Reserved Bank?

A Federal Reserve Bank is a regional branch of the Federal Reserve Institution, which oversees the nation's monetary policy. There are a total of twelve, or one for each of the twelve Federal Reserve Districts created by the Federal Reserve Act of 1913.

The Federal Reserve Bank is in charge of supervising and regulating banks and other key financial institutions in order to maintain the security and stability of the nation's banking and financial system and to protect consumers' rights to credit.

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team composition reflects the collection of jobs, personalities, values, knowledge, experience, and skills of team members.

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Team composition reflects the collection of jobs, personalities, values, knowledge, experience, and skills of team members. This statement is true.

What overarching principles or standards of decency are adhered to by the majority of members?

Social norms are accepted standards of conduct among various social groups. Social norms may be unwritten rules and laws or they may be formalized understandings that direct how people of a society behave.

Infractions of the code could lead to legal and regulatory violations as well as, of course, harm to our reputation. For specific people, it might also entail disciplinary action or termination. Because of this, it's crucial that you understand and abide by the code.

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a retailer is considering building a large store. if the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. if the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. analysts estimate a 20% chance for the local economy to experience an expansion next year (hence an 80% chance for contraction). what is the expected monetary value (emv) of building the large store? group of answer choices $80,000 $720,000 $1,520,000 $1,600,000 $2,000,000

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The expected monetary value of building the large store is $80,000. Expected monetary value (EMV) is a measure of the expected value of an investment or decision in terms of money.

The EMV represents the average amount that an investment or decision is expected to yield over time, taking into account the likelihood of different outcomes. To find the expected monetary value (EMV) of building the large store, we need to multiply the probability of each outcome by the profit or loss associated with that outcome and then add those values together.

In this case, there is a 20% chance of experiencing an expansion, which would result in a profit of $2,000,000. The EMV for this outcome is:

20% * $2,000,000 = $400,000.

There is an 80% chance of experiencing a contraction, which would result in a loss of $400,000. The EMV for this outcome is:

80% * -$400,000 = -$320,000.

Adding these two values together gives us an EMV of $400,000 + (-$320,000) = $80,000. Therefore, the expected monetary value of building the large store is $80,000.

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what is the process where marketers can compare the response of similar people under different circumstances?

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Experimentation is the process where marketers can compare the response of similar people under different circumstances.

Any group of individuals taken as a whole is referred to as a people. It is a phrase used in politics and law to describe the collective or community of an ethnic group, a nation, or the general populace of a state.

As a result, it is a notion in the law relating to human rights, international law, and constitutional law, and is notably used to claims of popular sovereignty. The right to self-determination belongs to "peoples," according to the United Nations Charter. even with only our human identity and our freedom to self-determination.

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travel substitution, transportation optimization, and environmental control systems are are aspecs of what level of environmental sustainability?

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Decarbonizing transportation aims to reduce, mitigate, and even eliminate carbon emissions by adapting transportation infrastructures, conveyances.

Sustainable transportation refers to low- and zero-emission, energy-efficient, affordable modes of transport, including electric and alternative-fuel vehicles, as well as domestic fuels. The benefits of sustainable transportation in the United States include: Cost savings on fuel and vehicles.

Sustainable transport includes public transportation, such as electric buses and trains and BRT systems that can carry people far more efficiently than cars. Notably, while electric cars pollute less and reduce individual carbon footprints, they do not reduce congestion.

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You are researching buying your first car and have found the following information. Use the information below to calculate how much owning the car will cost you over 5 years. (Note: Not all information is useful/needed)
• Purchase Price: $20,000
• 4--Year Auto Loan payment: $450
per month
• Depreciation: 10% of the original price each year
• Checkups/Oil changes: $100 per year
• 5-year Average Repair Costs:
$3,000
• Insurance: $1,200 per year
• Gas cost: $3,000 per year

Answers

Using mathematical operations, the total cost of owning the car will be $46,100 over its 5-year life.

How is the total cost determined?

The total cost is the sum of the different costs associated with the ownership of the car over its 5-year period.

Some costs, like gasoline, checkups/oil changes, and insurance are multiplied by 5 years while others were not.

Auto loan repayment per month = $450

Period of auto loan repayment = 48 months (4 years x 12)

Auto loan repayment for 4 years = $21,600 ($450 x 48 months)

Checkups/Oil changes = $500 ($100 x 5 years)

5-year Average Repair Costs  = $3,000

Insurance = $6,000 ($1,200 x 5 years)

Gas cost - $ 15,000 ($3,000 x 5 years)

Total cost = $46,100

Thus, we can use mathematical operations (multiplication and addition) to determine the total cost of the car over 5 years.

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information in data warehouses and data marts generally are ____, which means they are organized by business dimensions, which are subjects such as product, geographic area, and time period.
a. time variant
b. integrated
c. nonvolatile
d. multidimensional

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Information in data warehouses and data marts generally are multidimensional, which means they are organized by business dimensions, which are subjects such as product, geographic area, and time period. The Option D is correct.

What is data warehouses and data mart?

A data warehouse is a large collection of historical data that supports decision making in an organization. A data mart is a smaller subset of a data warehouse that focuses on a specific topic or department.

A multidimensional data model allows users to view and analyze data from different perspectives and levels of detail. For example, a user can query the sales data by product, region, and month, or drill down to see the sales data by product, city, and day.

A multidimensional data model is often represented by a cube or a hypercube, where each dimension is a side or an axis of the cube. Each dimension can have multiple attributes or levels of hierarchy. For example, the product dimension can have attributes such as category, subcategory, and name. The data values are stored in the cells of the cube, which can be aggregated or disaggregated along the dimensions.

Some benefits of a multidimensional data model are:

It is intuitive and easy to understand for business users, as it reflects the way they think and talk about their data.It supports complex and ad hoc queries, as it allows users to slice and dice the data along any dimension or combination of dimensions.It improves query performance, as it precomputes and stores the summary data for each possible combination of dimensions, reducing the need to scan large tables.

Some examples of multidimensional data models are:

Star schema: A star schema consists of a fact table and multiple dimension tables. The fact table contains the measures or metrics of the business process, such as sales amount or quantity. The dimension tables contain the descriptive attributes of the dimensions, such as product name or region name. The fact table and the dimension tables are linked by foreign keys, forming a star-like structure.Snowflake schema: A snowflake schema is a variation of the star schema, where some of the dimension tables are normalized into multiple tables. This reduces data redundancy and storage space, but increases the complexity and number of joins in the queries.OLAP cube: An OLAP (online analytical processing) cube is a data structure that stores the precomputed summary data for a multidimensional data model. An OLAP cube can be created from a star or snowflake schema, or from other sources of data. An OLAP cube allows users to perform fast and interactive analysis on the data, using operations such as roll-up, drill-down, slice, dice, and pivot."

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calculate by how much will gdp change if firms increase their investment by $8 billion and the mpc is 0.80?

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The rise in GDP can be computed as follows given that the increase in investment is $8 billion and MPC is 0.8: As a result, the GDP will grow by $40 billion.

What GDP means?

A country's gross domestic product is the most commonly used measure of its size (GDP). GDP can be computed for an entire country, a region (like Tuscany in Italy or Burgundy in France), or perhaps an association of countries (like the European Union) (EU). A gross domestic product measures the total value of the final goods and services produced inside a nation's borders (GDP).

What causes GDP to increase?

The number of people who would like to work when the labor market is strong, or their potential labor force, as well as their potential labor productivity together make up their potential GDP growth. Consumption, investment, government spending, exports, and imports are the components used in the expenditures approach to computing GDP.

Briefing:

The following formula determines the multiplier:

= 1 / (1 - MPC)

= 1 / ( 1 - 0.8)

= 5

Therefore, the GDP change is:

= 8 billion x 5

= $40 billion

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suppose you are 25 years old and would like to retire at age 60. moreover, you would like to have a retirement fund of $400,000 when you retire. assuming a constant apr of 4.5%, compounded daily, how much must you deposit each month to reach your goal?

Answers

Contributions and investment gains are not taxed until distributed.

How does a retirement fund work?With a 401(k), an employee sets a percentage of their income to be automatically taken out of each paycheck and invested in their account. Participants can choose how to allocate their funds among the investment choices offered by the plan, which usually include a variety of mutual funds.We have to calculate final value i.e. balance to earn $100,000 annually from interest.A pension plan is a retirement plan that requires an employer to make contributions to a pool of funds set aside for a worker's future benefit. The pool of funds is invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.Contributions are easy to make through payroll deductions. Interest accrues over time, which allows small, regular contributions to grow to significant retirement savings. Retirement assets can be carried from one employer to another.

Three types of retirement and how to plan for each

Traditional Retirement. Traditional retirement is just that.Semi-Retirement.Temporary Retirement.

Other Considerations.

= [tex]\frac{100,000}{0.08}[/tex] = $1,250,000

Now, N = n × y  = 12 × 25 = 300

 I  = 8% =  APR = 0.08

PV = 0  = PMT = 0

FV = 1,250,000 = A

[tex]PMT=\frac{A*(\frac{APR}{N})^{} }{[1+(\frac{APR}{N})}{ny} -1][/tex]

[tex]=\frac{1,250,000*(0.006667)}{[(1+0.006667)^{300-1}] }[/tex]

Monthly payment (PMT) = $1314.369409 ≈ $1314.37

$1314.37 is required monthly payment in order to $100,000 interest.

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about 30% of the united states land mass is used to grow corn. explain the role that government policy plays in making corn such a dominant crop.

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Processing of corn results in industrial food. Corn is bought by large food firms at government-subsidized prices (because the government is lobbied by those companies.)

Why does the government subsidize corn?Agriculture receives financial assistance from the government in the form of agricultural subsidies, which helps farmers face less risks from the elements, commodities traders, and fluctuations in demand. They have, nevertheless, developed to be highly sophisticated. The only producers that can benefit from agriculture subsidies are the big ones.The Great Depression and the Dust Bowl further made matters worse as the oversupply drove maize prices to such low levels that they were practically worthless. In order to stabilize the shifting prices, the federal government then decided to put a subsidy on corn.Governmental payments made to farmers and agribusinesses for the purpose of boosting their income, controlling the flow of agricultural products, and affecting the price and availability of these products are referred to as agricultural subsidies.

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True or false: A capital gain on a stock is counted as part of the total return whether or not the gain is realized from selling the stock.

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True: A capital advantage on a inventory is counted as a part of the overall go back whether or not or now no longer the advantage is found out from promoting the inventory.

The required details for Stocks in given paragraph

A inventory, additionally acknowledged as equity, is a safety that represents the possession of a fragment of the issuing company. Units of inventory are called "shares" which entitles the proprietor to a percentage of the company's assets and earnings identical to how plenty inventory they own.  Stocks are sold and bought predominantly on inventory exchanges and are the muse of many person buyers' portfolios. Stock trades need to comply with authorities guidelines supposed to defend buyers from fraudulent practices. A inventory is a shape of safety that shows the holder has proportionate possession within side the issuing company and is bought predominantly on inventory exchanges.

Corporations problem inventory to elevate budget to function their businesses. There are most important kinds of inventory: not unusual place and preferred. Historically, shares have outperformed maximum different investments over the long run.

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when the cost of inventory is rising, which inventory cost flow method will produce the lowest amount of cost of goods sold

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When the cost of inventory is rising, which inventory cost flow method will produce the lowest amount of cost of goods sold is FIFO.

FIFO follows the natural glide of inventory (the oldest products are offered first, with accounting going by using the ones charged first). This makes bookkeeping easier with less danger of errors. less waste (an organization in reality following the FIFO approach will usually be shifting out the oldest stock first).

FIFO makes a specialty of the use of up antique inventory first, at the same time as LIFO uses the newest inventory available. LIFO helps preserve tax bills down, but FIFO is plenty less complex and easier to paint with. however, it's far all down to the organization you own as to what technique you pick.

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assume you own a corporate bond that has a face value of $1,000 and pays 4.9 percent. what is the current yield if the bond is currently selling for $980?

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The current yield if the bond is currently selling for $980 is $5.

A corporate bond could be a bond issued by a company so as to boost funding for a range of reasons like to in progress operations, M&A, or to expand business. The term is typically applied to longer-term debt instruments, with maturity of a minimum of one year.

Face value is that the actual price of the digit whereas place price is that the position of a digit during a variety. for instance, the face price of five in five432 is five whereas the place price of 5 is 5000 (five-thousands).

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the abs company has a capital base of $200 million, an opportunity cost of capital ( k) of 17%, a return on assets (roa) of 12%, and a return on equity (roe) of 21%. what is the economic value added (eva) for abs?

Answers

The economic value added for ABS is $19,000,000.

What is an economic value?

The benefit that a good or service provides to an economic actor is measured by its economic value in economics. There are various value theories among the opposing schools of economic thought. Economic value and market value are neither the same thing, nor are they equivalent to each other. A consumer who is willing to purchase something is likely to value it more than its current market value. "Consumer surplus" is the gap between what the consumer perceives as valuable and the market price. One case when the true worth is significantly higher than the market price is when drinking water is purchased.

Economic value added = (return on the assets x Cost of capital) x Capital base

=(10%-20%)x190,000,000

=19,000,000

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use the following data to determine the total dollar amount of assets to be classified as current assets.

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The total dollar amount of assets to be classified as current assets = $596900

What is Current Asset ?

A corporation expects to use up, convert into cash, or sell a current asset, also known as a liquid asset, within one fiscal year or operational cycle.

On the other hand, non-current assets are long-term assets that are difficult to quickly turn into cash within a year.

According to the Given information

Amount of current assets = Cash + Accounts receivable + Inventory +  

                                               Prepaid insurance                

                                          = $186000 + $144000 + $172000 + $94900

                                           = $596900

So

The total dollar amount of assets to be classified as current assets = $596900

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cantrell company is required by law to collect and remit sales taxes to the state. if cantrell has $5,500 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?

Answers

Debit Cash $5940 ; Credit Sale $5500 ; credit Sales Taxes Payable $440.

What is cash sales?

Debit your Cash account and credit your Sales Revenue and Sales Tax Payable accounts to record the sales tax that you have received from clients. You can go back and undo your first journal entry once the sales tax has been paid to the government. To achieve this, debit your Sales Tax Payable account and credit your Cash account.

The entry for a cash sale is [debit] Cash. Since the customer pays cash at the moment of sale, cash is increased.

In a cash sale, the buyer pays for the goods or services right away. Payment is made right away in a cash transaction. It doesn't matter how the customer pays, as long as money is transferred. Cash is one possibility.

Therefore, the journal entry to record the cash sales is  Debit Cash $5940 ; Credit Sale $5500 ; credit Sales Taxes Payable $440.

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Which of the following is NOT a factor that is used to measure the health of the economy?
A. Unemployment rate
B. Gross Domestic Products (GDP)
C. Inflation
D. Consumer Price Index (CPI)

Answers

B explanation) I got it right

consider the term marginal utility. which word is the best synonym for marginal?

Answers

Additional word is the best synonym for marginal utility.

Explain.

Utility in economics refers to the pleasure or advantage obtained from using a thing. A good or service's marginal utility quantifies how much consumers enjoy or are satisfied after increasing or decreasing their use by one unit. Three different kinds of marginal utility exist.The general rule in economics is that marginal utility equals total utility change divided by change in quantity of goods. The equation looks like this: Total utility difference / difference in the amount of commodities equals marginal utility.

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the united states recently imposed a tax on coconuts in order to raise money to be used for government spending. the tax can best be described as

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Recently, the United States levied a tax on coconuts to generate revenue for government spending. The best way to explain the tax is as a revenue tax.

What is revenue tax?The majority of the government's revenue comes from taxes. Taxes, which are imposed on people and businesses without their consent to fund governmental operations, are the government's main source of income. There are two different sorts of revenue receipts: tax revenue and non-tax revenue. Tax revenue is the money the government receives by collecting taxes.The Receipt Budget, which is a component of the Union Budget's Annual Financial Statement, includes tax income.The outcome of applying a tax rate to a tax base is tax revenue. The proportion of GDP attributable to total tax revenue shows how much of the nation's output is taken in via taxes. One indicator of how much the government has resource control over the economy is tax revenue.The government's tax revenue comes from both direct and indirect taxes. It consists of receipts from taxes such as income tax, corporate tax, customs, wealth tax, and tax on land revenue, among others.The tax that is paid directly to the government by the individual or business it is imposed is known as a direct tax. Direct taxes include things like income tax, wealth tax, corporate tax, and property tax. Indirect taxes are those that are collected from people and businesses who suffer the cost of the tax and given to the government by middlemen. Indirect taxes include, for instance, the Goods and Services Tax (GST). A significant portion of the government's tax revenue comes from corporation tax.

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Comparing actual costs to what the costs should have been for the actual level of activity is done on a(n) ___ budget.

Answers

Comparing actual costs to what the costs should have been for the actual level of activity is done on a flexible budget.

What is a flexible budget?

A flexible budget is one that changes depending on the activity or volume levels of a business. A flexible budget continuously varies with a company's cost variations, as opposed to a static budget, which remains fixed from the numbers decided upon when the budget is created. With a flexible budget, it is simple to demonstrate that even while expenses for a given month may have exceeded projections, sales were also higher than expected, thereby justifying the rise. To more precisely estimate future expenditures, you can also review the monthly changes and notes. Flexible budgeting can be used to more readily adjust a budget for which income or other activity figures have not yet been completed. This strategy involves management approving all fixed spending.

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when the federal government's collection of tax revenues is less than what it spends in a given year, it results in a

Answers

When the federal government's collection of tax revenues is less than what it spends in a given year, it results in a balance of payments deficit.

Demonstrate balance of payments deficit.

A country with a balance of payments deficit imports more goods, capital, and services than it exports. To pay for its imports, it must take from other countries. The country could make use of its foreign exchange reserves to make up any shortfall in the BOP: Official reserve sales occur when the reserve bank sells foreign currency when there is a deficit. The overall balance of payments deficit or surplus is defined as the change in official reserves. The underlying premise is that any deficit or surplus in the BOP is ultimately financed by or received by the monetary authority. Under the rule of fixed exchange rates, official reserve transactions are more important than when exchange.

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question content area principal components of a master budget include a.sales budget b.production budget

Answers

The production budget, sales budget, and capital expenditures budget are the three main components of a master budget. Hence, both are correct.

What is included in a production budget?

The word "production budget" is used particularly in film production and, more broadly, in business.

A "film production budget" specifies how much money will be spent on the whole film project. This entails identifying and calculating the ingredients for each phase of filmmaking (development, pre-production, production, post-production, and distribution). Normally, the budget structure divides "above-the-line" and "below-the-line" expenditures.

In business, a "production budget" refers to a corporation's budget for the number of units of a product that will be required and produced; see also demand forecasting, capacity planning, Revenue management Forecasting, and financial forecasting in general.

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suppose that the value of the euro fell from $1.32 on april 30, 2012, to $1.24 on july 5, 2012. this implies that:

Answers

Explanation:

the rate of currency decreased from may to july

Which statement best describes geocentric managers?
We know best, and we should follow our customs.
What's best is what's effective, regardless of origin.
They know best, and we should follow their customs.

Answers

The statement best describes geocentric managers is What's best is what's effective, regardless of origin.

Option B is correct.

What is an example of a geocentric approach?

Adopting a geocentric approach requires a global perspective on recruitment. For example, if a position becomes vacant in the host or home country, the hiring team can:Before using a local job board, first place an ad on the global job board and clearly state the location of the job.

What is Geocentric Culture?

Global corporate culture. This culture transcends the diverse national cultures that our employees bring with them, creating beliefs and values ​​that are clear, relevant, and desirable for all employees, regardless of nationality, occupation, education, politics, or other background. should be promoted.

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Why the economy sees business cycle fluctuations rather than slow, smooth growth is a central issue of ______.

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The financial system sees commercial enterprise cycle fluctuations in preference to slow, easy boom is a crucial trouble of Economic shocks.

The required details for Economic shocks in given paragraph

An financial surprise refers to any extrude to fundamental macroeconomic variables or relationships that has a considerable impact on macroeconomic effects and measures of financial performance, which includes unemployment, consumption, and inflation. Shocks are regularly unpredictable and are generally the end result of occasions concept to be past the scope of regular financial transactions. Economic shocks have full-size and lasting outcomes at the financial system, and, in accordance to actual commercial enterprise cycle theory (RBC), are concept to be the foundation purpose of recessions and financial cycles. Economic shocks are random, unpredictable occasions which have a full-size effect at the financial system and are due to matters outdoor the scope of financial models.

Economic shocks may be labeled with the aid of using the financial area that they originate from or with the aid of using whether or not they mainly affect both deliver or demand. Because markets are connected, the outcomes of shocks can pass via the financial system to many markets and feature a main macroeconomic effect, for higher or worse.

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