businesses are unlikely to profit from any political change or instability. true or false?

Answers

Answer 1

The statement "businesses are unlikely to profit from any political change or instability" is false.

In reality, the impact of political change or instability on businesses can vary greatly depending on the specific circumstances. While some businesses may indeed struggle or experience losses due to political changes, others may actually benefit and find new opportunities.

For example, a change in government policy or regulation may create new opportunities for businesses in certain industries, such as renewable energy or healthcare. Additionally, political instability in one region or country may drive demand for goods or services from more stable regions, benefitting businesses that operate in those areas.

That being said, political change or instability can also pose significant challenges for businesses, such as increased regulatory burdens, economic sanctions, or market volatility. Businesses that are heavily dependent on government contracts or funding may be particularly vulnerable to political changes.

Overall, the impact of political change or instability on businesses is complex and can depend on a wide range of factors. While some businesses may struggle or face losses, others may find new opportunities to profit and grow.

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the double-declining balance method is applied by (1) computing the asset's straight-line depreciation rate, (2) doubling it, (3) subtracting salvage value from cost, and (4) multiplying the rate times the net value.

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The double-declining balance method is applied by computing the asset's straight-line depreciation rate. Option (1) is correct answer.

The double-declining balance method is a method of computing depreciation that is frequently employed in accounting. This method is often employed in accounting as a method of allocating the cost of an asset over its useful life. The following steps are involved in applying the double-declining balance method:

Compute the straight-line depreciation rate of the asset.

Double the rate computed in step 1.Subtract the asset's salvage value from its original cost to obtain the net value of the asset.Multiply the depreciation rate computed in step 2 by the net value of the asset to obtain the depreciation for the current period.Repeat steps 3 and 4 for each accounting period until the asset has been fully depreciated.

Therefore the double-declining balance method is applied by computing the asset's straight-line depreciation rate. Option (1) is correct answer.

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Suggest 3 ways in which the municipality can effectively use transparency to involve the community in matter of service delivery. Also indicate in your answer how this can improve the ownership of service delivery and thus avoid the destruction of already built infrastructure during protest matches

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The three ways in which municipality can effectively use transparency are openly communicate about service delivery plans, make data on service delivery available to the public and solicit feedback on service delivery.

What is service delivery?

Service delivery refers to the process of providing a service to a customer or client. It involves all aspects of the service, including its design, development, implementation, and ongoing support. Effective service delivery requires a combination of people, processes, and technology, and must be aligned with the needs and expectations of the customer. This includes understanding the customer's requirements, providing timely and accurate information, delivering the service in a timely and efficient manner, and following up with the customer to ensure their satisfaction. Service delivery can take many forms, including in-person interactions, phone and email support, self-service options, and more. Ultimately, successful service delivery requires a focus on continuous improvement, ensuring that the service remains relevant, effective, and valuable to the customer over time.

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demand for a product is given by cases of the product at a price of $ per case. at what price will consumers no longer purchase the product?

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Based on the demand of a product given, the price at which consumers will no longer purchase the product is $100.

The demand for a product is given by D (p) = -125 ln(0.01p) cases of the product at a price of $p per case. The price of the product when consumers no longer purchase it can be found by setting the demand function equal to zero.

The formula for the demand function is:

D(p) = -125 ln(0.01p)

To find the price at which consumers no longer buy the product, we'll set D(p) to 0 and solve for p.

0 = -125 ln(0.01p)

Divide both sides by -125.

-125 ln(0.01p)/-125 = 0/-125

ln(0.01p) = 0

We'll now solve for p by exponentiating both sides.

e^0 = e^(ln(0.01p))

1 = 0.01p

Divide both sides by 0.01.

p = 100

Therefore, consumers will no longer purchase the product at a price of $100 per case.

Note: The question is incomplete. The complete question probably is: Demand for a product is given by D (p) = -125 ln(0.01p) cases of the product at a price of $p per case. At what price will consumers no longer purchase the product?

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A company can reduce its costs by using ebusiness to change its business processes. Which of the following does not represent an example of how a company can reduce its costs through ebusiness? Creating an online travel reservation. Ordering a product online. Researching products to find the lowest price and visiting the store to purchase the item. All of these.

Answers

The one that does not represent an example of how a company reduce its costs via e-business is "researching products to find the lowest price and visiting the store to purchase the item." Thus, C is correct.

What is e-business?

E-business or Electronic business is any commercial or business activity that occurs through the use of the internet or other electronic technologies. E-business has become increasingly popular over the years as it allows for more efficient and cost-effective business operations.

In order to reduce costs, a company can use e-business to streamline business processes. For example, a company can use e-business to automate manual processes such as order processing, invoicing, and inventory management. This can help to reduce the cost of labor and reduce errors that can occur in manual processes.

In addition, e-business can help to reduce costs by allowing companies to reach a wider audience through online marketing and sales. This can help to reduce the cost of marketing and sales activities as well as increase sales by reaching a wider audience.

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mr. and mrs. clyde were married for 21 years before the couple divorced 2019. this year, the irs determined that the clydes underpaid their jointly filed 2019 tax by $19,650. in which case would mrs. clyde be relieved of liability for the underpayment under the innocent spouse rule

Answers

The case in which Mrs. Clyde be relieved of liability for the underpayment under the innocent spouse rule is that Mr. Clyde was the sole income earner during the entire marriage. Therefore, correct answer is option C.

The innocent spouse rule is a tax code provision that allows a spouse to be relieved of liability for underpayment if certain criteria are met. Under the innocent spouse rule, Mrs. Clyde would be relieved of liability for underpayment if she can show that she did not know and had no reason to know of the underpayment, and that it would be unfair to hold her liable for it.

There are three conditions that must be met to qualify for innocent spouse relief:

First, a joint return must have been filed. Both spouses must have signed and filed the joint return.Second, the understatement of tax must be due to erroneous items of the other spouse. An erroneous item may include unreported income, incorrect deductions, or credits.Third, the innocent spouse must prove that at the time of signing the joint return, they did not know, and had no reason to know, of the understatement.

In this case, since Mr. Clyde was the sole income earner during the entire marriage, Mrs. Clyde may be relieved of liability for the underpayment under the innocent spouse rule. Hence, option C is correct.

Note: The question is incomplete. The complete question probably is: Mr. and Mrs. Clyde were married for 21 years before the couple divorced 2019. This year, the IRS determined that the Clydes underpaid their jointly filed 2019 tax by $19,650. In which case would Mrs. Clyde be relieved of liability for the underpayment under the innocent spouse rule? Multiple Choice A) Mrs. Clyde did not read through the Form 1040 before signing the return. B) Mrs. Clyde remarried this year and is now Mrs. Novak. C) Mr. Clyde was the sole income earner during the entire marriage. D) None of these choices are correct.

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a country that alters the demographic of its workforce in a manner that increases the labor force, such as by raising the legal minimum retirement age, is likely to experience? a sustainable, high income growth rate b.more productive workers in all facets of the economy c.All of these are true

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The country that alters the demographic of its workforce in a manner that increases the labor force is likely to experience a sustainable, high-income growth rate. (option a)

When a country increases the size of its labor force, it can potentially increase its economic output and productivity, which can lead to higher incomes and growth rates. This is because a larger labor force can produce more goods and services, and can help to offset the effects of an aging population or declining birth rates.

Raising the legal minimum retirement age can help to increase the labor force by encouraging older workers to continue working, which can help to offset the effects of an aging population. This can lead to a more sustainable and productive workforce, which can contribute to higher economic growth rates and incomes over the long term.

Therefore, option (a) "a sustainable, high-income growth rate" is the most likely outcome for a country that alters the demographic of its workforce in a manner that increases the labor force, such as by raising the legal minimum retirement age.

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Consider the following statement about a firm's capital structure:
The firm's weighted average cost of capital (WACC)'s unaffected by its capital structure. Is the preceding statement consistent with the conclusions of Modigliani and Miller's capital structure theory? Yes/No

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The statement "The firm's weighted average cost of capital (WACC)'s unaffected by its capital structure" is consistent with the conclusions of Modigliani and Miller's capital structure theory. The correct answer is Yes.

A company's capital structure is the mix of debt and equity it uses to finance its operations. Modigliani and Miller (M&M) were the first to make formal statements about capital structure theory in the late 1950s. According to Modigliani and Miller's capital structure theory, a firm's weighted average cost of capital (WACC) is independent of its capital structure. Their theory is based on the following three assumptions:

There are no taxes.The capital markets are efficient and operate under perfect competition.The capital structure of a firm does not impact its operating profits.

The effects of capital structure on a firm's value are complicated. This is due to the various factors that must be taken into account when determining the appropriate capital structure for a company. A company's financial structure has an impact on its creditworthiness, borrowing costs, and earnings per share. As a result, companies must determine an optimal capital structure that balances the advantages and disadvantages of debt and equity financing.

Hence, the answer is Yes because a firm's weighted average cost of capital (WACC) is independent of capital structure.

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Compute the interest accrued on each of the following notes payable owed by Northland, Inc. on December 31:Use 360 days for calculations and round to the nearest dollar.Lender Date of Note Principal Interest Rate (%) TermMaple November 21 $23,000 10% 90daysWynam December 13 19,000 9% 60daysNahn December 19 21,000 12% 120days

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In the following question, among the various parts to solve- Interest accrued on each of the following notes payable owed by Northland, Inc. on December 31 is Maple: $575, Wynam: $285 and Nahn: $840 respectively.

The given problem is of calculating the interest accrued on each of the following notes payable owed by Northland, Inc. on December 31. Let's calculate the interest on each note payable as follows:

1. Interest on Maple:Date of Note = November 21, 20XXTerm = 90 days Interest Rate = 10%Principal = $23,000

Calculation of Interest: Interest = (Principal × Interest Rate × Term) / (360)Interest = ($23,000 × 10% × 90) / (360)Interest = $5752.

2. Interest on Wynam: Date of Note = December 13, 20XXTerm = 60 days Interest Rate = 9%Principal = $19,000

Calculation of Interest: Interest = (Principal × Interest Rate × Term) / (360)Interest = ($19,000 × 9% × 60) / (360)Interest = $2853.

3. Interest on Nahn: Date of Note = December 19, 20XXTerm = 120 days Interest Rate = 12%Principal = $21,000Calculation of Interest: Interest = (Principal × Interest Rate × Term) / (360)Interest = ($21,000 × 12% × 120) / (360)Interest = $840

Therefore, Interest accrued on each of the following notes payable owed by Northland, Inc. on December 31 is Maple: $575, Wynam: $285 and Nahn: $840 respectively.

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the labor force is the sum of the ______ and ______.

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The labor force is the sum of the employed and the unemployed.

Employed individuals are those who are currently working for pay or profit, either as an employee or self-employed. This includes those who are on temporary leave, such as vacation or illness, but are expected to return to work.

Unemployed individuals, on the other hand, are those who are currently not working but are actively seeking employment and are available for work. They may have recently lost their job or are new to the job market.

The labor force, therefore, consists of both those who are currently working and those who are available and actively seeking employment. It is an important measure of the economy's capacity to produce goods and services and is used to calculate key labor market statistics such as the unemployment rate and labor force participation rate.

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Which of the following information that comes to an auditor's attention most likely would raise a question about the occurrence of illegal acts?
A. The exchange of property for similar property in a nonmonetary transaction
B. The discovery of unexplained payments made to government employees
C. The presence of several difficult-to-audit transactions affecting expense accounts
D. The failure to develop adequate procedures that detect unauthorized purchases

Answers

The information that comes to an auditor's attention that would raise a question about the occurrence of illegal acts is B) The discovery of unexplained payments made to government employees.

What is auditing?

Auditing is the process of examining financial statements, accounting records, and evidence, including books of account and vouchers, to determine whether the information provided is consistent with the underlying transactions. An audit's objective is to provide an independent opinion on a company's financial statements' reliability.

The information that comes to an auditor's attention that would raise a question about the occurrence of illegal acts is The discovery of unexplained payments made to government employees. The answer is B.

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The steps involved in finding the bottleneck in a process with a product mix include all the following EXCEPT:
B) Compute the capacity level for each resource
C) Compute the flow rate for each resource
D) Compute in the implied utilization for each resource

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The stages below, with the exception of computing the flow rate for each resource, are involved in identifying the bottleneck in a process with a product mix.

The entire number of business units and various services and products that an organization offers is its portfolio mix. also referred to as a product selection or product portfolio. Product combinations differ amongst businesses. A product is something that a business produces and distributes to its clientele. A company's maximum number of business units or individual items is referred to as its product mix. The overall variety of product lines and varieties that a firm offers for sale to its clients is known as the product mix.

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Juanita and Neha are considering contributing toward the creation of a water fountain. Each can choose whether to contribute $300 to the water fountain or keep that $300 for a weekend getaway.Since a water fountain is a public good, both Juanita and Neha will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of the $0.70 of benefit. For example, if both Juanita and Neha choose to contribute, then a total of $600 would be contributed to the water fountain. So, Juanita and Neha would each receive $420 of benefit from the water fountain, and their combined benefit would be $840. This is shown in the upper left cell of the first table.Since a weekend getaway is a private good, if Juanita chooses to spend $300 on a weekend getaway, Juanita would get $300 of benefit from the weekend getaway and Neha wouldn't receive any benefit from Juanita's choice. If Juanita still spends $300 on a weekend getaway and Neha chooses to contribute $300 to the water fountain, Juanita would still receive the $210 of benefit from Neha's generosity. In other words, if Juanita decides to keep the $300 for a weekend getaway and Neha decides to contribute the $300 to the public project, then Juanita would receive a total befit of $300+$210=$510, Neha would receive a total benefit of $210, and their combined benefit would be $720. This is shown in the lower left cell of the first table.Complete the following table, which shows the combined benefits of Juanita and Neha has previously described:

Answers

Juanita keeps $300 for a weekend getaway

Juanita contributes $300 to the water fountain
 
Neha keeps $300 for a weekend getaway
Neha contributes $300 to the water fountain
 
 Total benefit: $510
Total benefit: $840
 

When both Juanita and Neha contribute $300 to the water fountain, each person receives $420 of benefit from the water fountain. Their combined benefit is $840. If Juanita decides to keep her $300 for a weekend getaway, she still receives $210 of benefit from Neha's choice to contribute the money to the water fountain.

So, the combined benefit is $720, with Juanita receiving a total benefit of $510 and Neha receiving a total benefit of $210.

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Ultimate Storage Solutions creates clear plastic drawer organizer containers in a variety of dimensions. They are self-contained units that can be mixed and matched for a custom design. This type of product exemplifies Multiple Choice
reverse engineering.
modular design.
standardization.
crowdsourcing.

Answers

Multiple crowdsourcing is an innovative business strategy that enables companies to access a vast array of talent and resources through an online platform. In the example of Ultimate Storage Solutions, they are leveraging the creativity of the crowd to produce their self-contained drawer organizer containers. By allowing customers to customize the size and design of their containers, Ultimate Storage Solutions is able to tap into a large network of talented and creative individuals. This approach not only reduces the costs associated with traditional product development, but it also increases the company's customer base, as customers are more likely to purchase a product that fits their individual needs.


Ultimately, multiple crowdsourcing allows businesses to gain access to an array of talent, resources, and customer feedback that would otherwise be inaccessible. This strategy can lead to increased customer satisfaction, increased efficiency, and reduced product development costs. As such, multiple crowdsourcing is an effective way for businesses to leverage the power of the crowd in order to produce innovative and profitable products.

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What do you call the people organizations and procedures involved in producing and delivering products and services from primary sources to end users?

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The people, delivering, and procedures involved in producing and delivering products and services from primary sources to end users are known as the supply chain.

What is a supply chain? A supply chain refers to the various entities, individuals, and activities that are involved in the production and delivery of products and services. From the point of origin to the point of consumption, supply chain management includes all activities, people, and organizations involved in delivering a product or service.A supply chain is made up of several components, including the following:Raw materials or components that are used in the production process.The manufacturer or producer of the goodsThe distributors and logistics providers responsible for moving the goodsThe retailer or end customer who purchases and uses the goods or services.Components of the supply chain:Planning, sourcing, manufacturing, delivery, and returns are the five main components of the supply chain. These components are essential for effective supply chain management, and they must work together seamlessly for the process to be successful. Each of these components has a critical role in the supply chain and requires careful attention to detail to ensure success.

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kate expects to receive an annuity that pays $5,000 at the beginning of each year for 10 years. assuming the interest rate is 5%, what is the present value of this annuity? round your answer to the nearest dollar.multiple choice question.$38,609$62,890$40,539$66,034

Answers

The present value of an annuity of $5,000 per year for 10 years with an interest rate of 5% is $40,539.

The steps to arrive at this answer are as follows:

First, we need to use the formula for the present value of an annuity. The formula is:

[tex]PMT*((1-(1/(1+r)^n))/r)[/tex]

where

PMT is the payment per period, r is the interest rate per period, and n is the number of periods.

In this case, PMT = $5,000, r = 5% (or 0.05), and n = 10 (since the annuity is for 10 years).

Substituting the values:

[tex]PV=5,000*((1-(1/(1+0.05)^1))/0.05)\\ =$40,539.11[/tex]

(rounded to the nearest dollar, which is $40,539).

Therefore, the answer to the multiple-choice question is $40,539.

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Sheffield Corp. took a physical inventory on December 31 and determined that goods costing $208,000 were on hand. Not included in the physical count were $22,000 of goods purchased from Wildhorse Co., FOB, shipping point, and $24,500 of goods sold to Waterway Industries for $35,000, FOB destination. Both the Wildhorse purchase and the Waterway sale were in transit at year-end. What is the ending inventory

Answers

Sheffield Corp. ending inventory, based on physical inventory take on December 31 is $219,500.

Sheffield Corp. took a physical inventory on December 31 and determined that goods costing $208,000 were on hand. Not included in the physical count were $22,000 of goods purchased from Wildhorse Co., FOB, shipping point, and $24,500 of goods sold to Waterway Industries for $35,000, FOB destination.

Both the Wildhorse purchase and the Waterway sale were in transit at year-end.

The ending inventory of Sheffield Corp. can be calculated as follows:

Ending inventory = Physical inventory + Purchase in transit - Sales in transit

In the given case,

Physical inventory = $208,000

Purchase in transit = $22,000

Ending inventory = $208,000 + $22,000 - ($35,000 - $24,500)

Ending inventory = $208,000 + $22,000 - $10,500

Ending inventory = $219,500

Therefore, the ending inventory of Sheffield Corp on December 31. is $219,500.

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The management of Zigby Manufacturing prepared the following balance sheet for March 31.
ZIGBY MANUFACTURING
Balance Sheet
March 31
Assets Liabilities and Equity Cash $ 30,000 Liabilities Accounts receivable 464,100 Accounts payable $ 206,400 Raw materials inventory 98,500 Loan payable 22,000 Finished goods inventory 450,840 Long-term note payable 500,000 $ 728,400
Equipment $ 620,000 Equity Less: Accumulated depreciation 160,000 460,000 Common stock 345,000 Retained earnings 430,040 775,040
Total assets $ 1,503,440 Total liabilities and equity $ 1,503,440
To prepare a master budget for April, May, and June, management gathers the following information.
Sales for March total 22,100 units. Budgeted sales in units follow: April, 22,100; May, 19,100; June, 19,500; and July, 22,100. The product's selling price is $30.00 per unit and its total product cost is $25.50 per unit.
Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,500 pounds. Each finished unit requires 0.50 pound of direct materials.
Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 17,680 units.
Each finished unit requires 0.50 hour of direct labor at a rate of $25 per hour.
The predetermined variable overhead rate is $3.50 per direct labor hour. Depreciation of $25,292 per month is the only fixed factory overhead item.
Sales commissions of 6% of sales are paid in the month of the sales. The sales manager's monthly salary is $4,000.
Monthly general and administrative expenses include $22,000 for administrative salaries and 0.9% monthly interest on the long-term note payable.
The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale).
All raw materials purchases are on credit, and accounts payable are solely tied to raw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase).
The minimum ending cash balance for all months is $30,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 1% at each month-end (before any repayment). If the month-end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans.
Dividends of $20,000 are budgeted to be declared and paid in May.
No cash payments for income taxes are budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter.
Equipment purchases of $100,000 are budgeted for the last day of June.
Required:
Prepare the following budgets for the months of April, May, and June:
1. Sales budget.
2. Production budget.
3. Direct materials budget.
4. Direct labor budget.
5. Factory overhead budget.
6. Selling expense budget.
7. General and administrative expense budget.
8. Schedule of cash receipts.
9. Schedule of cash payments for direct materials.
10. Cash budget.
11. Budgeted income statement for entire second quarter (not monthly).
12. Budgeted balance sheet at June 30.

Answers

Net income of $305,118 is shown on Zigby Manufacturing's budgeted income statement for the second quarter. The entire assets and total liabilities and equity on the budgeted balance sheet as of June 30 amount $1,611,568.

What is Manufacturing's general and administrative expense?

The $16,000 in administrative salaries as well as the 0.8% monthly interest on the long-term note payable are included in the monthly general and administrative costs. The business budgets for 30% of sales to be made in cash and the other 70% to be made on credit.

What is the manufacturing budgeting process?

The master budget in a manufacturing company starts with a sales estimate, is followed by a detailed budget for the production, selling, administrative, and financial activities, and concludes with a set of pro forma or planned financial statements.

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write a demand and a supply curve expressed in the form of an exponential and logarithmic functions respectively

Answers

Remember, a demand and supply curve is typically written after data is collected on the quantity of a good or service that consumers are willing to buy at different prices and the quantity that producers are willing to supply at different prices.

What is the demand and supply curve?

In business writing, a demand curve is a graphical representation of the relationship between the price of a good or service and the quantity that consumers are willing to buy.

While a supply curve on the other hand is a graphical representation that shows the relationship between the price of a good or service and the quantity that producers are willing to supply.

With this overview of demand and supply curves, based on the data set available, one can proceed to write a demand and supply curve expressed in the form of exponential and logarithmic functions respectively.

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Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 8% of its $100 par value. Preferred stock of this type currently yields 9%. Assume dividends are paid annually. What is the value of Rolen's preferred stock? Round your answer to the nearest cent. Suppose interest rate levels have risen to the point where the preferred stock now yields 11%. What would be the new value of Rolen's preferred stock? Round your answer to the nearest cent.

Answers

FV of an unendingness = C/r = 10/0.08 = 125 .

A perpetuity's FV is equal to C/r =10/0.12 = 83.33.

When a company issues eight preferred shares with a par value of $100, what does this indicate?

a business issued $100 par value 8% preferred stock. this entails: $100 par value multiplied by 8% preferred stock dividend yields an annual dividend of $8 per share. Therefore, a potential annual dividend of $8 per share could be paid to preferred stockholders. Divide the annual dividends paid per share by the price per share to determine dividend yield. For instance, on the off chance that an organization paid out around INR 412 in profits for every offer and its portions at present expense INR 12,370, its profit yield would be 3.33%. To determine the annual dividends, multiply the dividend per period by the number of payments made each year if your dividend frequency is not annual. Find out how much a share costs. Divide the share price by the annual dividends to get the dividend yield.

FV of an unendingness = C/r = 10/0.08 = 125 .

A perpetuity's FV is equal to C/r =10/0.12 = 83.33.

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in business meetings or conferences, individuals in the audience often allow their minds to wander because

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In business meetings or conferences, individuals in the audience often allow their minds to wander because of the lack of engagement by the speaker.

About business meeting

In business meetings or conferences, individuals in the audience can allow their minds to wander due to a lack of engagement or interest. To reduce distractions, the presenter should use engaging visuals, provide meaningful information, and establish a two-way dialogue to keep the audience involved and focused.

This can occur due to the speaker's delivery style, a lack of audience participation, and an uninteresting topic. Additionally, distractions such as cell phones, laptops, or conversations with others can contribute to a wandering mind among attendees.

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Which of the following statements is CORRECT? a. Since the ROA measures the firm's effective utilization of assets without considering how these assets are financed, two firms with the same EBIT must have the same ROA
b. Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target Tie ratio, c. Suppose ali firms follow similar financing policies, face similar risks, have equal access to capital, and operate in competitive product and capital markets. However, firms face different operating conditions because, for example, the grocery store industry is different from the airtime industry. Under these conditions, firms with high profit margins will tend to have high asset turnover ratios, and firms with low profit margins will tend to have low turnover ratios. d. Klein Cosmetics has a profit margin of 5.0, a total assets turnover ratio of 15 times, no debt and therefore an equity multiplier of 1.0, and an ROE of 75%. The CFO recommends that the firm borrow funds using long-term debt, use the funds to buy back stock and raise the equity multiplier to 20. The size of the firm cassets) would not change. She thinks that operations would not be affected, but interest on the new debt would lower the profit margin to 4,5%. This would probably not be a good move, as it would decrease the ROE from 7.5% to 6.5% e. Even though Firm A's current ratio exceeds that of Firm B, Firm O's quick ratio might exceed that of A. However, if A's quick ratio exceeds B's, then we can be certain that A's current ratio is also larger than B's

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The correct statement is: c. Suppose all firms follow similar financing policies, face similar risks, have equal access to capital, and operate in competitive product and capital markets.

However, firms face different operating conditions because, for example, the grocery store industry is different from the airtime industry. Under these conditions, firms with high-profit margins will tend to have high asset turnover ratios, and firms with low-profit margins will tend to have low turnover ratios.

Explanation:

a. This statement is incorrect because ROA does not solely depend on EBIT, but also on the amount of assets employed by the firm, which may differ between two firms with the same EBIT.

b. This statement is incorrect because the TIE ratio is calculated as EBIT/Interest Expense, and the firm cannot determine the required sales to maintain a specific TIE ratio without knowing its expected EBIT.

d. This statement is incorrect because the CFO's recommendation to increase the equity multiplier by using debt to buy back stock would increase the financial risk of the firm and decrease its ROE, contrary to what is stated.

e. This statement is partially correct. The quick ratio considers only the most liquid current assets, whereas the current ratio considers all current assets.

Therefore, it is possible for Firm A to have a higher current ratio than Firm B but a lower quick ratio. However, if Firm A's quick ratio is higher than Firm B's, then it is certain that Firm A's current ratio is also higher than Firm B's, as the quick ratio is a subset of the current ratio.

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what are the two types of costs associated with inventory?

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Carrying expenses (also called Holding costs) Costs of stockouts (also called Shortage costs). Ordering, carrying, and stock out expenses are the three main types of inventory costs. You can better track, manage, and determine the total expenses of your inventory investment.

If you are aware of the many costs that are related to inventory. The cost of money held in inventory is included in direct costs. The cost of capital, or the interest a business pays when borrowing money to pay for inventory, is one factor that differs per organization. It also covers the price of equipment for handling inventory, insurance, special containers used to store inventory, and storage space.

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Ace Hardware has a rewards program for loyal customers. After a certain number of purchases, Ace sends a customer a gift card to be used within a two-month period. This example shows that _______.a. CRM thanks all customers for their business with a rewards cardb. consumers are loyal to companies that have rewarded loyalty with a gift cardc. consumers are only loyal to companies that have low pricesd. CRM techniques focus on rewarding all customers

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The correct option is option b. Consumers are loyal to companies that have rewarded loyalty with a gift card.

What is CRM? Customer relationship management (CRM) is an approach that businesses use to manage their interactions with clients or customers. A rewards program for loyal customers is one of the ways that companies can use CRM techniques to thank all customers for their business with a rewards card. Additionally, it is a way to promote customer loyalty.

CRM techniques concentrate on rewarding loyal customers. Companies do not focus on rewarding all customers. They focus on the customers who have proven to be loyal over time. For instance, Ace Hardware's reward program is only for loyal customers who have made several purchases from the store.

In conclusion, this example shows that consumers are loyal to companies that have rewarded loyalty with gift cards. By rewarding loyal customers, companies can promote customer loyalty and build strong relationships with their customers.

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consider a risky portfolio. the end-of-year cash flow derived from the portfolio wits be either $40,000 or $180,000, with equal probabilities of 0.5. the alternative riskless investment in t-bills pays 4%. if you require a risk premium of 10%, how much will you be willing to pay for the portfolio? a) $57230 b) $28704 c) $75000 d) $96491

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The amount you would be willing to pay for the portfolio is: $96,491. The correct option is D.

This can be calculated as follows:

The expected end-of-year cashflow from the risky portfolio is $110,000, that is  [(40,000 x 0.5) + (180,000 x 0.5)].

The expected return from the riskless investment in T-bills is 4%, which equals $4,400 that is [(100,000 x 0.04)].

The risk premium required is 10%, so the expected return from the risky portfolio must be $14,400 that is [(100,000 x 0.10)].

Therefore, the amount you are willing to pay for the portfolio is $96,491 that is [(110,000 - 4,400) / 0.10)].

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Olympus Corporation, an international Japanese manufacturer of optics and reprography products, has adopted a structure that interconnects business units and functions such as manufacturing and R&D to create global integration with local responsiveness. This is an example of what type of structure?

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Olympus Corporation, an international Japanese manufacturer of optics and reprography products, has adopted a structure that interconnects business units and functions such as manufacturing and R&D to create global integration with local responsiveness. This is an example of Matrix structure.

What is the Matrix structure?

The matrix structure combines the advantages of two other organizational structures, functional and divisional, to address the disadvantages that are inherent in each.

Matrix organizations mix elements of functional and divisional structures to get the best of both worlds. They have a vertical hierarchy that divides departments and functions while also having a horizontal hierarchy that connects teams and employees to accomplish specific projects.

Olympus Corporation has adopted the Matrix structure that interconnects business units and functions such as manufacturing and R&D to create global integration with local responsiveness. This means that the organization has established an integrated global structure that allows them to work effectively and efficiently.

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__________ do not actually produce goods, but they do provide their customers with time, place, and possession utility by making goods available when and where consumers want them.

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Retailers do not actually produce goods, but they do provide their customers with time, place, and possession utility by making goods available when and where consumers want them.

What is retailing?

Retailing is the sale of goods or merchandise from a fixed location, such as a department store, boutique, or kiosk, or by mail or online sales.

It is a distribution mechanism that links the producer to the consumer, with the retailer playing a vital role in making sure goods are available at the right time and place, as well as providing other utilities such as possession and information.

Retailers can buy products from producers or wholesalers and sell them to consumers at a higher price in order to make a profit.

They play a critical role in the economy by assisting manufacturers in getting their products to market and providing consumers with access to the products they need.

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Consider a U.S.-based MNC with a wholly-owned French subsidiary. Following a depreciation of the dollar against the euro, which of the following best describes the mechanism of any effect of the depreciation?A. The change in the cash flow in euro due an alteration in the firm's competitive position in the marketplace is in part a function of the elasticity of demand for the firm's product.B. A given operating cash flow in euro will be translated to a higher U.S. dollar cash flow regardless of the firm's hedging program.C.Both a and bD.None of the above

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The mechanism of any effect of the depreciation can be best describe as "the change in the cash flow in euro due an alteration in the firm's competitive position in the marketplace is in part a function of the elasticity of demand for the firm's product." The correct answer is Option A.

What is MNC?

MNC refers to multinational corporations, and it is a business that has operations or subsidiaries in various countries. This sort of firm usually engages in international operations, like foreign investment or the sale of goods and services in foreign countries. MNCs are important participants in global business and trade, and they contribute to the worldwide economy.

How does the depreciation of the dollar against the euro affect MNCs?

When the dollar depreciates against the euro, it implies that the dollar is now weaker, and the euro is stronger. Because of this depreciation, MNCs with operations or subsidiaries in Europe, such as a U.S.-based MNC with a wholly-owned French subsidiary, will notice an impact on their profits. If we consider the aforementioned example, the mechanism of the effect of the depreciation would be the change in cash flow in euro due to an alteration in the firm's competitive position in the marketplace, which is in part a function of the elasticity of demand for the firm's product.

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if an economic integration has factor mobility, free move of product, labor, and capital, it should be .

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An economic integration with factor mobility, free movement of products, labor, and capital should be a Either common market or economic union.

What is either common market or economic union?

A common market allows for the free movement of goods, services, capital, and labor between the participating countries. This is different from other forms of economic integration, such as a customs union, which only allows for the free movement of goods.

By lowering or removing internal tariffs on products and establishing a unified collection of external tariffs, common markets facilitate the free flow of labor, capital, and many other productive assets. Economic unions closely integrate the country's economic strategies of the nations that make up its membership.

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Discrepancy of quantity is Select one:a. adjusting the quantities of products handled at each level in a channel of distribution.b. collecting products from many small producers.c. the difference between the lines a typical producer makes and the assortment final consumers or users want.d. usually seen with producers who specialize by product.e. the difference between the quantities of products that it is economical for a producer to make and the quantity final users or consumers normally want.

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The Discrepancy of quantity is, option (c). the difference between the quantities of products that it is economical for a producer to make and the quantity of final users or consumers normally want.

What is a discrepancy in quantity? Discrepancy of quantity is the difference between the quantities of products that it is economical for a producer to make and the quantity of final users or consumers normally want. It means that the producer would want to produce products in bulk to make it economical, but the consumers might want to buy the product in a lesser quantity. Thus, this creates a discrepancy in quantity.

What are the different types of discrepancies in marketing? The different types of discrepancies in marketing are as follows:

Discrepancy of quantity: It is the difference between the quantities of products that it is economical for a producer to make and the quantity of final users or consumers normally want. Discrepancy of assortment: It is the difference between the lines a typical producer makes and the assortment final consumers or users want.Discrepancy of time: It is the difference between the time when a product is prepared and the time when it is needed by the customers.Discrepancy of location: It is the difference between the location of the producers and the location of the customers or users.

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The Lucas critique argues that because the way people form expectations is based on government policies, economists_____ predict the effect of a change in policy without taking changing expectations into account. Select one: O a. in no way can o b. only partly, can O c.partly; cannot O d. in no way; cannot

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The Lucas critique argues that because the way people form expectations is based on government policies, economists partly cannot predict the effect of a change in policy without taking changing expectations into account.

Lucas critique refers to a criticism of econometric models that focus on macroeconomic policy analysis. In essence, it argues that the statistical relationships estimated from past data to determine future policy are not necessarily stable over time.

This critique was put forward by the economist Robert E. Lucas Jr. in his 1976 paper. The Lucas critique asserts that forecasting based on historical macroeconomic data is deficient because people will adjust their behavior based on the policy's expected consequences.

Lucas suggests that past relationships between economic variables cannot be relied on as a guide to future policies because economic agents adjust their expectations in response to government policy changes.

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