Verbal communication, nonverbal behavior, conformity to norms, decision-making capacity, and cooperation are the components that make up a GD. You should try to be as true to these aspects as you can.
What are the three Cs of group conversation?Clarity (the main points to be discussed), content (the vertical depth in each point), and confidence are the three "Cs" that rank you highly on this parameter.
Which three kinds of group discussion are there?The following subcategories can be added to the topic-based Group Discussion: Dubious Themes. Subjects based on knowledge Topics in a nutshell.
What is the most critical component of a productive discussion?Learning the art of participation is the first and most important advice for achieving success in a group discussion. You shouldn't expect other people to make you speak. Take charge, contribute to the discussion, and share your thoughts with the group. In a group discussion, you should never shout and always wait for your turn to speak.
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a business process is a logically related set of activities that define how specific business tasks are performed. group of answer choices true false
A business process is a logically related set of activities that define how specific business tasks are performed. Given Statement are false.
The accomplishment of a business function is accomplished through the interaction of a network of activities, facilities, resources, and information. A business process is a system, and business systems are sometimes used to describe them.
They are the procedures that produce money right away. Manufacturing things, the order-to-cash process, and delivering goods to clients are a few examples.
A business process is fundamentally a set of repeated procedures used by a corporation to achieve a goal. Making progress toward your goals and enhancing the operations of your company depend on effective processes. The purpose of a business process is to help your company reach a specific target
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A local carbonated beverage business enters a foreign market. what problems could it face while entering a new country’s market?
a. the business has to invest heavily in establishing a bottling plant or commissioning a concentrate syrup project, and for this the company has to revise or plan a____.
b. advertisements and promotional schemes have to be introduced to make people aware of their product.
c. the company also has to hire an so that it does not face issues in____.
d. in order to avoid hurting sentiments, advertisements should be in accordance with the region’s____.
The problems it could face while entering a new country’s market are advertisements and promotional schemes have to be introduced to make people aware of their product. Thus, option B is correct.
Despite the fact that small firms have a far higher likelihood of failing than larger ones, many of them do survive and some even expand, according to the evidence. The following factors have been identified as impediments to small businesses' success in entrepreneurship economies of scale, the application of human capital, a lack of resources, location, and management abilities.
As a result, management service is a crucial differentiator between good, bad, and neutral companies. When expectations are not satisfied, people feel angry. Our industry operates in a fiercely competitive, increasingly global market. Customers now have a wider selection of options for products and services, thus it is crucial to have exceptional management skills. While poor customer service drives away consumers and their friends, good management service keeps customers coming back.
Therefore, option B is the ideal selection.
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What is the biggest disadvantage to savings accounts?
A savings account is an effective way to store your money in a secure location where it can earn interest
What is savings accounts?Although there are many various kinds of savings accounts, the deposit account, money market account, and certificate of deposit are the three most popular forms. Each one begins with the same fundamental premise: send your money to the bank in exchange for interest.An efficient approach to keep your money safe and earning interest is in a savings account. You can keep your savings in a liquid state with a savings account, which allows you to access your money anytime you need to, while also creating some breathing room between your savings and your daily spending requirements. Savings accounts frequently have lower APYs than other interest-bearing choices like certificates of deposit (CDs). Account limitations Savings accounts frequently come with limitations, like minimum balance or deposit requirements, withdrawal caps, and only a few different ways to deposit or withdraw money.To learn more about savings accounts refer to:
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What are the 2 functions of price?
The functions of price are exchange facilitation and resource allocation
Prices coordinate the market purchasing and selling choices and also influence how goods and other resources are distributed across the economy. In a market, exchanges of commodities and services are made possible through price. The value that a seller places on their product can be communicated to prospective customers by setting a price, and customers can then choose whether or not they are willing to pay that price.
Price also signals to producers which commodities are in great demand and which are not, aiding in the proper allocation of resources in an economy. This aids producers in choosing what to create and how much of it, ensuring that resources are utilised effectively.
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Which is a feature of a Super PAC?
Super PACs are political committees with the sole aim of supporting independent expenditures and other independent political activity. They may accept an unlimited amount of money from people, businesses, labour organisations, and other political action committees.
Super PACs, also known as "independent expenditure-only political action committees," differ from conventional PACs in that they may raise money from individuals, businesses, and unions and may engage in unrestricted political spending (on things like commercials, for example).
Super pac is permitted to make limitless financial contributions to oppose or support a candidate, but they are not permitted to personally coordinate with or support a candidate of their choice. They have no restrictions on accepting donations from individuals, unions, or businesses, unlike standard PACS.
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The difference between an extensive-form game and a simultaneous-move game is that. Simultaneous-move games have zero-sum payoffs, but extensive-form games do not in simultaneous-more games players have only two actions to choose from, but in extensive-form games the players can have more than two choices simultaneous-move games have two players, but extensive-form games can have more than two players in extensive-form games the player can observe the other player's action before deciding, but in simultaneous-move they can't
Games in extensive form model the sequence of player moves.In strategic form games,a set of strategies is associated with each player. Payoffs to a player result from combinations of strategies
While sequential games are played in turns,simultaneous games are played with each player making their decision at the same time.Each player chooses a strategy from his strategy set.Image result for the difference between a game of extensive form and a game of simultaneous movements is that.Simultaneous move games have zero sum payouts but extensive form games do not in simultaneous games players only have two actions to choose from but in extensive form games players may have more than two options two players,but extensive form games can have more than two players in extensive form games the player can observe the action of the other player before deciding,but in simultaneous movement they cannot in a simultaneous game,the players will make their moves simultaneously, determines the outcome of the game and receives its payouts.A game in extensive form specifies when each player in the game must move,information is about the sequence of previous moves,random moves occur,and the final payoffs are such games are discussed in Chaps.
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Which of the following expenditures is most likely to be deductible for a construction business?Â
a. A fine for a zoning violation.
b. A tax underpayment penalty.
c. An "under the table" payment to a government representative to obtain a better price for raw materials.
d. A payment to a foreign official to expedite an application for a business permit.
e. An arm's length payment to a related party for emergency repairs of a sewage line.
Option(e) An arm's length payment to a related party for emergency repairs of a sewage line is most likely to be deductible for a construction business.
Working in the construction industry will usually result in a number of tax deductions.
According to the IRS, you can deduct any ordinary and necessary business expense.
The Income Tax Act allows a taxpayer to claim a deduction from taxable income if he or she has purchased or built a home. Section 80C of the Act makes it possible for taxpayers to claim the deduction.
Personal expenses are generally not deductible, but expenses incurred in connection with a trade or business activity or in connection with the production of income are.
From the following options
option(e) An arm's length payment to a related party for emergency repairs of a sewage line is the most likely to be deductible for a construction business
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Was the creation of NAFTA a success?
For some, NAFTA has been a success, as the United States, Mexico, and Canada have all experienced improved gross volumes of trade and financial flow. But the agreement has additionally been blamed for growing unemployment in the U.S.
Was NAFTA a success or failure?The 1994 North American Free Trade Agreement (NAFTA) used to be the first alternate treaty that attempted to promote and protect place of work fitness and protection through a "labor facet agreement." NAFTA failed to shield workers' fitness and security due to the weaknesses of the facet agreement's text; the political and diplomatic
Hundreds of heaps of auto manufacturing jobs have also been created in the country, and most research have determined [PDF] that the settlement expanded productivity and reduced client fees in Mexico.
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https://brainly.com/question/644093#SPJ4a machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. what is the amount of depreciation for the second full year, using the double-declining-balance method? a.$37,500 b.$17,500 c.$16,667 d.$18,750
If a machine with a cost of $75,000 has an estimated residual value of $5,000. the amount of depreciation for the second full year, using the double-declining-balance method is: d. $18,750.
How to find the depreciation?Straight line rate = 1/Useful life × 100
Straight line rate = 1/4 × 100
Straight line rate = 25%
Year 1 Depreciable expense = Machine cost ×(Straight-line rate× Multiplier)
Year 1 Depreciable expense = 75,000 × (25% × 2)
Year 1 Depreciable expense = 75,000 × 0.50
Year 1 Depreciable expense = $37,500
Depreciable expense for year 2 = (Machine cost - Depreciable expense for year 1) × (Straight-line rate× Multiplier)
Year 2 Depreciable expense = (75,000 - 37,500) × (25% × 2)
Year 2 Depreciable expense = 37,500× 0.50
Year 2 Depreciable expense =$18,750
Therefore the correct option is D.
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1-An example of an individual financial COI is: A researcher's wife... 1-An example of an individual financial COI is: A researcher's wife works at the same university as the researcher. A researcher's 10-year-old son wins a local science competition, the prize for which is a $5,000 scholarship to a workshop sponsored by a local company that sponsors one of the researcher's ongoing projects. A researcher's wife holds equity in a publicly traded pharmaceutical company that is also the sponsor of the researcher's study. A researcher is considering buying stock in a publicly traded company that specializes in making and delivering hand tossed pizza. 2-The COI management plan aims to: Provide procedures or extras steps to be taken to minimize the risk of bias when a COI is disclosed Eliminate all COIs in research when a COI is disclosed Address disclosure of COIs in multi-center research when a COI is disclosed Reduce IRB review burden when a COI is disclosed 3-During an Institutional Review Board (IRB) meeting, any IRB member who may have a potential COI with a study under review should: Leave the meeting immediately Disclose their potential COI and not participate in any action Disclose their potential COI and may answer questions, but recuse themselves from voting Disclose their potential COI, but not answer any questions about the study
A researcher's wife holds equity in a publicly traded pharmaceutical company that is also the sponsor of the researcher's study. Option (c) is correct.
What do you mean by Research?Research is a systematic inquiry process that includes data gathering, documentation of important information, analysis, and interpretation of that data and information in accordance with appropriate procedures established by particular academic and professional disciplines.
Conflicts of interest that can jeopardize participant protection or the legitimacy of the human subject protection program shall not exist among researchers and study team members who are involved in research that is carried out under the direction of NHG or partner institutions.
Conflict of Interest - In a broad sense, a conflict of interest is any personal or professional interest of an investigator, a member of the study team, or a member of their immediate family (which includes parents, siblings, spouses, and each dependent child) that conflicts with their duty to uphold the rights and welfare of research subjects.
Financial Interest - When a financial interest in a research project is mentioned, it refers to a financial stake in the sponsor, the tested good or service. Any financial interest that is material, including but not limited to pay, is considered significant.
Therefore, Option (c) is correct. A researcher's wife holds equity in a publicly traded pharmaceutical company that is also the sponsor of the researcher's study.
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Who provides the infrastructure for IaaS?
Web apps. IaaS provides all the infrastructure to support web apps, including storage, web and application servers, and networking resources. Your organization can quickly deploy web apps on IaaS and easily scale infrastructure up and down when demand for the apps is unpredictable.
The full name of IaaS is Infrastructure as a Service. One of IaaS's biggest benefits is its quick scaling up and down capabilities in response to an enterprise's needs. IaaS providers often have the most advanced, powerful servers, networking, and storage hardware to satisfy the needs of their customers. IaaS is a practical cloud service model for workloads that are cyclical, experimental, or prone to unanticipated change. An example of a cloud computing service is infrastructure as a service, which offers essential networking, processing, and storage capabilities as needed and on a pay-as-you-go basis. software as a service is also (SaaS)
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What are your own feelings about credit scores and how they are used in our society? do you think they are accurate? fair/just? perpetuating inequality? explain your reasoning.
The FICO score, which is utilised by the major credit agencies to assess your creditworthiness, is the credit scoring system that you will hear about most frequently in the United States.
The range of your FICO score is 300 to 850, with a higher score being preferable. Your financial life might be dramatically impacted by your credit score. It is very important in determining if a lender will provide you credit. For instance, subprime borrowers are often those with credit scores below 640.
There may be variations in the data gathered by the three credit bureaus, but there are five key elements taken into account when determining a credit score: Financial history Amount owed in full History of credit used credit types extra credit.
Many credit cards, notably the most lucrative rewards cards, are only made available to customers with a certain level of creditworthiness. Numerous of the top credit cards are only promoted to people with excellent credit scores. Your credit score might impact the terms of your credit card application.
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four seasons and ritz carlton are among hotels that keep records of all customer requests such as which newspaper the guest prefers or what type of pillow the customer uses. this is an example of what type of culture?
The sort of pillow the client uses or the type of newspaper the guest enjoys.
What do a client and an example mean?In order to make your customers' contacts with you easy and enjoyable, as well as when they buy and use your products or services, you must give them with customer care. Outstanding customer service is a need if you want to grow your clientele and your business.
What means customer service?Customer service is the help you give your customers so that the interactions with you easy and enjoyable, as well as when they buy and use your products or services. You must deliver exceptional customer service if you want to maintain customers and grow your organization.
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Is a barter economy an economy with no money?
In a barter system economy, goods and services are available exchanged or transacted without the use of money. The correct response is (A) As traders sought to facilitate trade, money emerged out of a barter economy.
A barter economy is an economic system in which the exchange of goods and services occurs without the use of money and instead involves a negotiated exchange of products and services at a rate that is agreed upon by the people involved. Before the creation of the monetary system or money, the barter economy is regarded as one of the earliest economic systems.
A barter economy can be described by the following truths: A barter economy can be anticipated to have lower average living standards than a money system because traders sought to make trading easier and during the evolution of money. A barter economy is one in which goods and services are exchanged for other items of equal worth. Cash is not involved in barter.A lot of prehistoric cultures traded goods by bartering.However, early societies like the Phoenicians created the first kind of money to ease trade and allow the determination of a good's value.
complete question:
Is a barter economy an economy with no money?
(A) As traders sought to facilitate trade, money emerged out of a barter economy.
(B) Compared to a money system, a barter economy has reduced transaction costs for exchanges.
(C) It is reasonable to anticipate that average living standards will be lower in a barter economy than in a money economy.
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What was FDR's economic recovery program called?
The New Deal was a sequence of programs, public work projects, monetary reforms, and policies enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.
What was once Roosevelt's program of relief recuperation and reform?The New Deal had three goals: relief, recovery, and reform. Relief intended that the president desired to assist those in disaster without delay by using growing jobs, bread lines, and welfare. Recovery used to be aimed at fixing the economy and ending the Depression
What have been the three New Deal programs?The New Deal packages have been acknowledged as the three "Rs"; Roosevelt believed that collectively Relief, Reform, and Recovery should bring economic balance to the nation. Reform packages centered especially on methods for ensuring that depressions like that in the Thirties would never have an effect on the American public again.
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https://brainly.com/question/11739226#SPJ4Which type of data analysis helps answer the question what will happen next therefore forecasting what might happen in the future?
Identifying and forecasting likely future events is the goal of predictive analytics. Predictive models created by data analysts using previous patterns and trends can be used to determine the likelihood of a future event or outcome.
What situations use predictive analytics?Almost any business or industry, including banking, retail, utilities, the public sector, healthcare, and manufacturing, can benefit from using predictive analytics to improve operations, increase revenue, and reduce risk. Machine learning on big data sets is occasionally combined with augmented analytics.
What are some applications of predictive analytics?Cross-selling opportunities are encouraged by using predictive analytics to monitor consumer behavior or purchasing decisions. Businesses can attract, retain, and expand their most lucrative clients by using predictive modeling. operational improvement Businesses frequently employ predictive models to forecast inventory and manage resources.
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what role of the federal reserve has been cited as contributing to the banking crisis of 2008? it kept the reserve requirement too high. it kept interest rates too high. it kept the cost of borrowing too low. it eliminated the discount rate.
The federal reserve has been cited as contributing to the banking crisis of 2008 by keeping the cost of borrowing too low. Hence, option D is appropriate.
What is the Federal reserve?To guarantee that the financial system supports a strong economy for American people, communities, and businesses, the Federal Reserve analyzes financial sector risks and actively participates at home and abroad.
The Federal Reserve System is governed by the Board of Governors, which is based in Washington, D.C. Seven people referred to as "governors," would be chosen either by the American president but also confirmed in their positions or by the American senate in charge of it.
The Fed is the main regulator overseeing banks that are participants within Federal Reserve System and has considerable authority to take action to promote financial stability. It serves as the member institutions' last-resort lender when they have nowhere else to turn for financing.
Hence, option D is correct.
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Does federal income tax include Social Security and Medicare?
Federal income taxes do not include FICA. Both taxes are based on the employee's gross salary, but they are two independent amounts that are calculated separately. Your federal income tax or refunds are rarely impacted by the Medicare and Social Security levies.
The Social Security and Medicare federal programs, which offer benefits to retirees, individuals with disabilities, and offspring of deceased workers, are funded by contributions from both employees and employers under the Federal Insurance Contributions Act. Title 26, Subtitle C, Chapter 21 of the United States Code contains the tax legislation known as the Federal Insurance Contributions Act. Medicare offers hospital insurance coverage for seniors; Social Security benefits include old-age, survivors, and disability insurance (OASDI). The amount of payroll taxes one pays over the course of their working career is indirectly related to the annuity amount they would get from social security once they retire. As a result, Kevin Hassett claimed that because FICA is directly related to benefits that one is qualified to receive later in life, it is not a tax. Although no one has an earned property right to benefits from the system, regardless of how much they may have contributed, the US Supreme Court declared in Flemming v. The Social Security system is neither a pension nor an insurance plan, according to Nestor (1960). FICA functions as a tax in all actuality since money is set aside by Congress for specific purposes but is still entirely under its control, including the ability to be redirected. Only earned income is subject to the FICA tax; investment income, such as rental income, interest income, or dividend income, is not subject to this tax. Healthcare Insurance (HI)
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What is traditional credit?
Experian, TransUnion, and Equifax receive information from businesses about their accounts receivable, which is referred to as traditional credit.
What was the objective of traditional credit?These housing loans are typically given by banks and then sold to other organizations like Fannie Mae and Freddie Mac. These are Traditionally known as "conventional loans."
With a domestic banking license and a physical location, banks are considered to be practicing traditional banking. Typically, only two of the three credit bureaus' ratings are required when qualifying for a mortgage using traditional credit.
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What are the duties of a union steward?
a. To represent employees during grievance procedures against managers
b. To make sure the contract between workers and employers is properly enforced
c. To investigate complaints lodged by workers against employers
The duties of a union steward are to represent employees during grievance procedures against managers, to make sure the contract between workers and employers is properly enforced and to investigate complaints lodged by workers against employers. So all options are correct.
A union steward, often referred to as a union representative or shop steward, is a worker for a business or organisation who simultaneously serves as a labor union official, defending the rights of other workers. The job is optional, and the incumbent is typically chosen democratically by the other employees.
In most collective bargaining agreements, there is a steward clause that grants the union steward the ability to participate in union activity at work and to handle union business during working hours.
Hence, the duties of a union steward are:
a. To represent employees during grievance procedures against managers
b. To make sure the contract between workers and employers is properly enforced
c. To investigate complaints lodged by workers against employers
So all options are correct.
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a machine with a cost of $178,000 and accumulated depreciation of $109,000 is sold for $59,200 cash. the amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is:
Under the indirect approach, a total of $9,800 should be shown for this machine in the operational section of the statement of cash flows.
What are the calculation and depreciation?The machine book value is $178,000 minus $109,000 to equal $69,000. $59,200 was earned on the sale. Therefore, $9,800 is the loss on the sale.
Depreciation is a phrase used in accounting to describe two related concepts: first, the real decline in an asset's fair value over time, such as the value of industrial equipment declining year as it is used and wears out; and second, the allocation in accounting accounts of the asset's initial cost to the periods during which the item is used (depreciation with the matching principle).
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Joining the ROTC is a great way to
gain military experience
earn money
highlight your creativity
manage your time
Answer:
Explanation:
Opportunity To Serve as an Officer
If you are interested in joining the military as an officer, ROTC can be a great way to achieve that. You will gain significant experience and have proven credentials within the military structure
Answer:
Joining the ROTC ((Reserve Officers' Training Corps) is a great way to gain military experience. This can be an excellent opportunity for individuals who are interested in pursuing a career in the military, as it provides hands-on training and experience in a variety of areas such as leadership, discipline, and teamwork. Additionally, participating in the ROTC can also help individuals develop important skills such as time management and communication, which can be valuable in both military and civilian settings.
Explanation:
Which Agile methodology refers to a pull system focused on limiting the amount of work in progress to the capacity of the team?
Work in progress (WIP) limitations in agile methodology define the most quantity of work that can be present in each workflow phase.
Teams employ the iterative agile development process for software development. Cross-functional, self-organized teams frequently adapt projects by analysing the environment and user requirements. In sprints with short-term deliverables, Scrum teams continuously improve quality. The Agile methodology divides a project into many parts and uses these phases to manage the project. Continuous improvement at every stage and ongoing collaboration with stakeholders are required. Teams cycle through a process of planning, carrying out, and assessing once the job starts. Collaboration between team members and project stakeholders must always be ongoing.
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Which of the following are substantiated by research on diversity in the workplace? Select all that apply.
a. The presence of faultlines increases cohesiveness at work.
b. Diversity management programs lead to higher stock prices for their companies.
c. There is a positive correlation between racial diversity in the firm and company performance.
d. Diverse teams make higher-quality decisions.
e. Minority managers rarely experience racial discrimination at work.
c. There is a positive correlation between racial diversity in the firm and company performance and d. Diverse teams make higher-quality decisions. Both are substantiated by research on diversity in the workplace.
Research has shown that organizations with greater racial and ethnic diversity tend to perform better financially, as measured by their return on equity, return on sales, and other indicators of financial performance. Additionally, research has also revealed that diverse teams make higher quality decisions and are better able to solve complex problems than homogenous teams.
Hence , option c and d both apply.
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Which term describes the QuickBooks Online accounting system? Answer: A. Cash B Cloud-based C. Summary D. Double-entry
Cloud-based is the term that describes the QuickBooks Online accounting system. The cloud-based system is often referred to as cloud computing. Hence, option B is appropriate.
What is the meaning of Cloud-computing?The on-demand availability of computer system resources, in particular data storage and processing power, without direct active supervision by the user is known as cloud computing. Functions in large clouds are frequently dispersed over several sites, each of which comprises a data center.
To provide quicker innovation, adaptable resources, and scale economies, cloud computing is the distribution of computing services over the Internet, including servers, storage, databases, networking, software, analytics, and even intelligence.
Hence, option B is correct.
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What do the 4 Agile values mean?
The agile approach to software development is defined by a commitment to producing software gradually, or in small, frequent increments.
The Agile Manifesto states that there are four key concepts of Agile software development:
Individuals and interactions take precedence over procedures and tools, functional software beats out thorough documentation, customer engagement beats out contract negotiations, and adapting to change takes precedence over sticking to a schedule.
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Is the integral part of management?
Decision-making is considered to be an integral part of the management.
Decision-making tends to involve the selection of a course of action which is said to be from among two or more possible alternatives in order to arrive at a solution for a given problem. So, the decision-making is an integral part of management.
However, it needs to make all kinds of decisions, which are from strategic development and the use of resources to employees motivation and to control of all processes in the management. Business is considered to be all about management which is an integral part of any business.
Hence, a good management tend to lay the foundation of a successful business.
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a widow wishes to take out a reverse mortgage on her house. what annual payment can she get if she decides on a $100,000 debt at the end of 10 years
Calculation of Future Value of $10,000 after 10 years at 9% Interest Rate
Future Value = Advance Amount x (1 + r)n
= $10,000 x (1 + 0.09)10
= $10,000 x 2.367363
= $23,674
The Amount available for annuity payment
The Amount available for annuity payment = Debt – Future Value of Advance payment
= $10,000 - $23,674
= $76,326
Calculation of the Annual Payment that she would get
Future Value of an Ordinary Annuity = P x [{(1+ r)n - 1} / r ]
Future Value = $76,326
Interest Rate (r) = 9%
Number of period = 10 Years
Annual Payment (P) = ?
Future Value of an Ordinary Annuity = P x [{(1+ r)n - 1} / r ]
$76,326 = P x [{(1 + 0.09)10 – 1} / 0.09]
$76,326 = P x [(2.36736 – 1 ) / 0.09]
$76,326 = P x [2.36736 / 0.09]
$76,326 = P x 15.19293
P = $76,326 / 15.19293
P = $5,024 per year
“Therefore, she would get annual payment of $5,024 per year”
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How do you track profitability by client in QuickBooks Online?
In QuickBooks Online, you can track client profitability by creating a Profit & Loss report and then filtering the report by customer.
To do this, select Reports from the left menu, then select Profit & Loss under Standard. On the Profit & Loss report, select Customize and then select the Filter tab. Under the Filter tab, select the checkbox for Customer and select the customer you are interested in tracking.
When you run the report, it will show you the total profit for the customer. Additionally, you can drill down into the report to see more detailed information about the customer, such as the individual products or services they purchased and the associated revenue and costs for each.
By tracking the customer profitability in this way, you can get a better understanding of which customers are most profitable and make more informed decisions about how to best serve them.
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Susan quit her job as a teacher, which paid her $48,000 per year, in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10 percent interest per year, on equipment for her business. She also borrowed $12,000 from her bank at 10 percent interest per year, which she also spent on equipment. For the past several months she has spent $1000 per month on ingredients and other variable costs. Also, for the past several months she has taken in $4700 in monthly revenue. What should susan do in the short run and the long run?.
Because her company is currently earning an accounting profit, Susan can continue operating for the foreseeable future; nevertheless, unless her revenues improve, she shouldn't do so in the long run. Economic profit/loss in the long run equals $0, and Susan is not even close. Until she can return to her previous teaching position, she should continue working at her catering business (or get a new one).
Total sales minus total expenses equals Susan's accounting profit/loss ($3,500 x 12). - [($1,000 x 12) + ($12,000 x 10%)] = $42,000 - $13,200 = $28,800
Accounting profit minus opportunity expenses equals Susan's economic profit or loss.Opportunity costs are the additional expenses or benefits foregone when selecting one course of action or investment over another. Susan's opportunity cost in this instance is $37,000, which is comprised of $36,000 in lost wages and $1,200 in lost interest.
Susan's financial loss is equal to $8,400 ($28,800 - $37,200).
Because her company is currently earning an accounting profit, Susan can continue operating for the foreseeable future; nevertheless, unless her revenues improve, she shouldn't do so in the long run. Economic profit/loss in the long run equals $0, and Susan is not even close. Until she can return to her previous teaching position, she should continue working at her catering business (or get a new one).
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