Answer:
Since consumption represents almost 70% of the GDP, any change in consumption affects the economy more than any change in the rest of the components of the GDP (net exports, investment, government). If consumption decreases, then the real interest rate will decrease.
The higher the interest rate, the lower the consumption level. This should increase the savings = more investment in the economy, but since consumption is so important to the economy, a decrease in consumption will decrease the equilibrium interest rate. This lowering in the real interest rate will be carried out in order to try to increase consumption.
Which of the following is a true statement? A. The prices of bonds are unrelated to the interest rate. B. The prices of bonds are inversely related to the interest rate. C. The prices of bonds are directly related to the interest rate. D. The prices of bonds increase when the interest rates rise.
Answer:
B. The prices of bonds are inversely related to the interest rate.
Explanation:
Bonds prices have an inverse relationship with interest rate. when interest rate increases, the price of bonds falls and when interest rate decreases, the price of bonds increases.
Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as
Answer:
Resource allocator.
Explanation:
Marquez, the hotel manager, knows that the number of guests at his hotel has significantly decreased. Therefore, corporate has made it clear that the amount each department can spend on certain items will need to be cut for the year. Marquez needs to work with the hotel department managers on how to cut costs, as a part of his role as resource allocator.
A resource allocator can be defined as an individual who is saddled with the responsibility of assigning and management of available or scarce resources to effective use.
This is a strategic process which helps a business entity or organization to achieve its goals, objectives and success by efficiently avoiding wastage.
Jeremy reminded the board members that it is important to understand the inflation rate of a country before entering into business. Jeremy is concerned with the ________ risks of doing business.
Answer:
Economic risk
Explanation:
Economic risk is defined as the probability that a business venture will fail in a foreign country as a result of a macroeconomic factor such as inflation, exchange rate, government regulation, and politics.
Inflation is the tendency of money losing its purchasing power.
In this scenario Jeremy is trying to understand the inflation rate of a country before entering into business.
He is weighing the risk of making loss as a result of inflation in the country
Shelley has been hired as a marketing specialist at a large, international firm. On Shelley's first day of work, she attends an orientation session. Which of the following is LEAST likely to be addressed during Shelley's orientation program?
a. Company policies and rules
b. Organizational structure
c. Daily and weekly task requirements
Answer: Daily and weekly task requirements
Explanation:
From the question, we are informed that Shelley has been hired as a marketing specialist at a large, international firm and that on Shelley's first day of work, she attends an orientation session.
The least likely to be addressed during Shelley's orientation program will be the daily and weekly task requirements. This is because this is really not important at the orientation.
There are other important things to talk about such as the organization Structure, company policies etc.
Which of the following statements is CORRECT? a. The specific risk premium used in the CAPM is the same as the risk premium used in the bond-yield-plus-risk-premium approach. b. Beta measures market risk, which is, theoretically, the most relevant risk measure for a publicly-owned firm that seeks to maximize its intrinsic value. This is true even if not all of the firm's stockholders are well diversified. c. An advantage shared by both the DCF and CAPM methods when they are used to estimate the cost of equity is that they are both "objective" as opposed to "subjective," hence little or no judgment is required. d. The discounted cash flow method of estimating the cost of equity cannot be used unless the growth rate, g, is expected to be constant forever. e. If the calculated beta underestimates the firm's true investment risk—i.e., if the forward-looking beta that investors think exists exceeds the historical beta—then the CAPM method based on the historical beta will produce an estimate of rs and thus WACC that is too high.
Answer:
Correct Answer:
b. Beta measures market risk, which is, theoretically, the most relevant risk measure for a publicly-owned firm that seeks to maximize its intrinsic value. This is true even if not all of the firm's stockholders are well diversified.
Explanation:
In the Options given above, the only one that is TRUE is Option B which is about a Beta measures market risk found in a publicly-owned firm.
DEF Company is incorporating and coming to market with an initial public offering of common stock. The company has already filed their registration statement and the registration has become effective. The company sees that demand for securities is high, and decides to amend the total amount of common stock that will be offered. Would this amendment be allowable under the rules of the Uniform Securities Act
Answer: Yes. The amendment be allowable under the rules of the Uniform Securities Act.
Explanation:
Based on the scenario that have been provided in the question,the amendment will be allowable under the rules of the Uniform Securities Act.
It should be noted that even though the amendments that are made to a registration statement are not allowed when it's beyond the effective date, there is a limited exception when the modification is made to the amount of securities that are being offered.
Leaf Co. purchased from Oak Co. a $20,000, 8%, 5-year note that required five equal annual year-end payments of $5,009. The note was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of $19,485. What should be the total interest revenue earned by Leaf over the life of this note
Answer:
$5,560
Explanation:
Given the following:
Present value of note recorded by Leaf on purchase date = $19,485
Annual year end payments = $5,009
Number of payments required = 5
Therefore, total amount received by Leaf :
Annual year-end payment * number of payments
$5,009 * 5 = $25,045
Present value of note recorded at purchase =$19,485
Therefore, total interest revenue earned by Leaf over the life of this note:
Total amount received - present value of note recorded
$25,045 - $19,485
= $5,560
Karen Smith bought Coca-Cola stock for $475 on March 31, 20X1. On November 15, 20X1, Karen received a non-taxable distribution of $155 on the 50 shares of stock she owned. She sold the stock for $300 on December 22, 20X1. What is her gain or loss on the sale
Answer:
$20 loss
Explanation:
Karen Smith bought a coca-cola stock for $475 in March 31, 20X1
She received a non taxable distribution of $155 on November 15, 20X1
The first step is to calculate the adjusted basis
= $475-$155
= $320
Karen sold the stock for $300 on December 22, 20X1
Therefore, her gain or loss on the sale can be calculated as follows
= $300-$320
= $20 loss
Hence Karen has a loss of $20 on the sale
Jeremy is a business student at ABC University. He is currently enrolled for 18 credits, mostly of quantitative courses with high workloads. He also works 25 hours a week as a bartender. Final exams are coming soon and he is worried about his grades. How would you characterize the cause(s) of Jeremy's stress?
Answer: work overload
Explanation:
From the question, we are informed that Jeremy is a business student at ABC University and that he is currently enrolled for 18 credits, mostly of quantitative courses with high workloads.
We are further told that he also works 25 hours a week as a bartender. This shows that Jeremy has many works he's doing and the likely cause of his stress is work overload. He's performing too much tasks.
Once a document conveying an interest in real property is placed in the public records it is binding on the public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is known as the:________.
a. Statute of Frauds
b. doctrine of constructive
c. notice habendum clause
d. actual notice
Answer:
b. doctrine of constructive
Explanation:
According to the doctrine of constructive, the company or the people under the provisions of the companies law should have the knowledge of memorandum of association and the article of association but there is an exception towards the indoor management
Here in the given situation, represents the doctrine of constructive scenario
Hence, the correct option is B.
An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit. The desired ending inventory in units is 15% higher than the beginning inventory of 1,000 units. Total October sales are anticipated to be a.$70,000 b.$80,500 c.$92,000 d.$69,000
Answer:
$80,500
Explanation:
An October sales forecast project 7,000 units which is going to be sold at the price of $11.50 for one unit
The desired ending inventory is 15% higher than the beginning inventory which is set at 1,000 units
Therefore, the total October sales can be calculated as follows
Total October sales= 7,000 × $11.50
= $80,500
Hence the total October sales is anticipated to be $80,500
Joseph Brown signs a contract with Lewis Johnson allowing Johnson to buy Brown's home for $63,200 anytime between the date of the contract and the following February 8. Brown also agrees not to sell his home to anyone else until after February 8 and received $300 as consideration. This contract is called
Answer:
An option.
Explanation:
In this scenario, Joseph Brown signs a contract with Lewis Johnson allowing Johnson to buy Brown's home for $63,200 anytime between the date of the contract and the following February 8. Brown also agrees not to sell his home to anyone else until after February 8 and received $300 as consideration. This contract is called an option.
An option is a contract (financial derivatives) which provide buyers the right, however not the obligation, to buy or sell an underlying asset at an agreed price and specified period of time (date). It comprises of call options and put options.
Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs expense for 20X9 will be $1,200,000. This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired. What amount should Mason deduct for property taxes and repairs in each quarter for 20X9?
Answer:
$360,000 per quarter
Explanation:
we must allocate both property taxes and annual repairs expenses equally to each quarter:
total payments = property taxes + annual repairs = $240,000 + $1,200,000 = $1,440,000
allocation to each quarter = $1,440,000 / 4 quarters = $360,000 per quarter
Accrual accounting states that expenses must be recorded when they occur and not necessarily when they are associated with a cash outflow. Since both payments involve the whole year, they must be distributed equally in all 4 quarters.
Victoria runs a flower shop. She recently made some changes so that one employee answers phones and completes the order and payment process, while another creates arrangements, and a third packages and delivers floral arrangements. Previously, each employee was responsible for the order from the phone call through the delivery. Victoria has made changes to
Answer:
Task identity.
Explanation:
In this scenario, Victoria runs a flower shop and recently made some changes so that one employee answers phones and completes the order and payment process, while another creates arrangements, and a third packages and delivers floral arrangements. Previously, each employee was responsible for the order from the phone call through the delivery. Therefore, Victoria has made changes to task identity.
Task identity can be defined as the overall extent to which each employee does a job completely, typically from the start point (beginning) to finish point (end). In this context, the start point or beginning of the job is the "phone call" while the finish point or end of the job is to deliver the product to the rightful consumer.
Hence, task identity mainly involves starting a job from the beginning to the end with visible outcomes for all to see or acknowledge.
Becker Industries is considering an all equity capital structure against one with both debt and equity. The all equity capital structure would consist of 30,000 shares of stock. The debt and equity option would consist of 15,000 shares of stock plus $255,000 of debt with an interest rate of 8 percent. What is the break-even level of earnings before interest and taxes between these two options
Answer:
The break-even level of earnings before interest and taxes is $47,200
Explanation:
EBIT = Earnings before interest and taxes
EPS = Earnings per share
I = interest
n = number of equity shares
n1, n2 = number of equity shares outstanding after adopting financing plans 1 and 2
n1=30,000
n2= 15,000
Break-even EBIT level is the indifferent point where EPS under alternative financing plan is the same.
Mathematically, the break-even EBIT level is: EBIT/ n1 = (EBIT - I ) / n2
EBIT/30,000 =(EBIT -295,000 x 8%/ 15,000)
EBIT/2 = EBIT - 23,600
2*EBIT - 23,600 x 2 = EBIT
2EBIT - EBIT= 47,200
EBIT= $47,200
Rovermand Corporation is a small organization in which each member of the company is clear about his or her responsibility and whom he or she must report to. The best feature of the organization is the quick decision making, owing to its simple and direct chain of command. In the context of organization models, Rovermand Corporation is a _____ organization.
Answer: Line
Explanation:
Line organization is defined as an organization where the basic framework for the organization is well spelt out, addressing the roles of the employees, from the top to the least, and to whom each reports to. It is the simplest and oldest pattern for organization framework and it's also known as chain of command or scalar principle. Rovermand Corporation operates in a line organization pattern.
Consider the market for DVD movie rentals, which is perfectly competitive. The market supply curve slopes upward, the market demand curve sloped downward, and the equilibrium rental price equals $3.50. Consider each of the following events, and discuss the effects they will have on the market clearing price and the demand curve faced by the individual rental store.a. People’s tastes change in favor of going to see more movies at cinemas with their friends and family members.b. National DVD-rental chains open a number of new stores in this market.c. There is a significant increase in the price of downloading movies on the Internet.
Answer:
a. price falls, the demand curve moves inward
b. price falls, the demand curve moves inward
c, price rises, the demand curve moves outward
a. A change in people's taste for going to cinema would reduce the number of people going to movie rentals. As a result, the demand for movie rentals would reduce and move inward or leftward. As a result of the inward movement of the demand curve, supply would outstrip demand and prices would fall below $3.50
b. If a National DVD-rental chains opens nationwide, there would be a decrease in demand for DVD movie rentals. As a result, the demand for movie rentals would reduce and move inward or leftward and price falls
A rise in the price of downloading movies on the Internet would increase the cost of downloading movies. This would make people less interested in downloading movies. As a result, the demand for DVD movie rentals would increase. The demand curve would shift outward and price would rise as a result.
Explanation:
Check the attached image for a graphical representation
At a listing appointment, the seller of a large, expensive home on the water gives specific instruction to the sales associate not to show the home to anyone from a certain protected class. The sales associate tells the seller this is a clear act of discrimination, but the property owner insists. The sales associate should
Answer:
refuse the listing
Explanation:
In the scenario being described, the sales associate should refuse the listing. This is because such discrimination due to race, color, religion, sex, disability, familial status, or national origin is a violation of the Fair Housing Act. If the realtor is accused of discrimination she can face civil penalties of $16,000 USD if it is the first offense or even up to $65,000 if it has been a repeated violation of the Fair Housing Act.
Cat's Coaster Company uses cork in all of the protective drink coasters that it manufactures. If Cat's enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be Multiple Choice a requirements contract. a necessities contract. an output contract. an input contract.
Answer:
a requirements contract
Explanation:
Since in the question it is mentioned that the company used its cork for the protective drinks and if Cat comes into an agreement with a cork exporter in order to buy all of the cork that is required to manufacture the products. This would represent the requirement contract
As the requirement contract is the contract in which the purchased agrees to buy all the goods that are required from a seller
The difference between the economic impact upon a municipality by a convention center as opposed to a stadium or arena built for housing sporting events is A. visitors receive the benefits of a convention center. B. the increased presence of visitor spending within a municipality. C. sporting events lead to higher spending. D. business events lead to higher spending.
Answer:
increase presence of visitor spending
Explanation:
hope the answer satisfies
The difference between the economic impact upon a municipality by a convention center as opposed to a stadium or arena built for housing sporting events is the increased presence of visitor spending within a municipality. Thus, option (b) is correct.
What is economic?The term economic refers to the process of production, distribution, and consumption activities. The main components of economies are products and services. The primary sector of the economy is the industrial sector. The family (consumption) and company (product sales) are both parts of the economy.
The city and its residents are dealing with numerous difficulties. There were issues that needed to be resolved by the municipality. The municipality by a convention center are athletic events are the increasing presence of visitor spending on the more into the city the economic development was the created because the people are to spend.
As a result, the increased presence of visitor spending within a municipality. Therefore, option (b) is correct.
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Honda's new electric unicycle is very unique. It is steered by the rider leaning, computer stabilized through control of its single crabbing wheel (it can move sideways). It has a range of about 3 miles at 3 miles per hour. It takes on hour to recharge. It only weighs 25 pounds, so it can be carried. The cost would be about $2000. The only good reason to produce this would be that
Answer: Honda could get a lot of notice as innovative company
Explanation:
From the question, we are informed that Honda's new electric unicycle is very unique and that it is steered by the rider leaning, computer stabilized through control of its single crabbing wheel.
It also has a range of about 3 miles at 3 miles per hour, takes n hour to recharge and only weighs 25 pounds, so it can be carried while the cost would be about $2000.
The only good reason to produce this would be that people and every other organization will notice Hinds as being a company that is innovative. This will be advantageous for its brand.
Production possibilities frontiers are usually bowed outward. This is because a. resources are specialized; that is, some are better at producing particular goods rather than other goods. b. of the effects of technological change. c. the opportunity cost of producing a good decreases as more and more of that good is produced. d. the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
Answer:
d. the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all of its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result less of the other product would be produced. So, the opportunity cost of producing a good increases as more and more of that good is produced.
Please check the attached image for a diagram of the Production possibilities frontiers
Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole after 18 months. What term best summarizes the situation?
Answer: Variable interest rate loan
Explanation:
Given, Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole after 18 months.
That means the interest rate will change after 18 months.
The term that summarize the situations would be "variable interest rate loan"
A variable interest rate loan is defined as a loan in which the interest rate charged on the current balance fluctuates over time as market interest rates changes. It mostly generate more interest.Smart Wash is a popular brand of detergent powder. The stock needs to be continuously replenished in stores and supermarkets due to its high demand. The detergent powder belongs to the category of
Complete Question:
Smart Wash is a popular brand of detergent powder. The stock needs to be continuously replenished in stores and supermarkets due to its high demand. The detergent powder belongs to the category of?
Group of answer choices
A. expected merchandise
B. sample merchandise
C. staple merchandise
D. seasonal merchandise
E. fashion merchandise
Answer:
C. Staple merchandise.
Explanation:
In this scenario, Smart Wash is a popular brand of detergent powder. The stock needs to be continuously replenished in stores and supermarkets due to its high demand. The detergent powder belongs to the category of staple merchandise.
A staple merchandise typically comprises of finished goods, which are regularly being purchased, displayed and sold by the retailers in order to meet the need or want of the consumers. Some examples of staple merchandise are detergent powder, bread, milk, egg, butter, salt, sugar etc.
John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply _____, but if the bank lends out some of the $100, the money supply _____.
Answer:
John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply WILL NOT CHANGE, but if the bank lends out some of the $100, the money supply WILL INCREASE.
Explanation:
Any monetary injection to the banking system will increase the money supply only if the banking system (the whole set of banks) lends the money. The total effect is calculated by the increase in money x the money multiplier. The money multiplier = 1 / required reserves.
If the bank does not lend the money, then the money supply will not change.
The Bureau of Labor Statistics reported the CPI stood at 215.9 in December 2009, while one year earlier it was 210.2. Suppose Janice's nominal income rose by 4% from December 2008 to December 2009 while Jeff's increased by only 2%. By what percentage did each of their real incomes change?
Answer:
Annual rate of inflation = [(215.9 - 210.2) / 210.2] * 100
Annual rate of inflation = 2.7%
Real income change = Nominal income change - inflation rate
Janice Real income change = 4% – 2.7%
Janice Real income change = 1.3%
This means Janice's real income did increase by 1.3%.
Jeff Real income change = 2% – 2.7%
Jeff Real income change = -0.7%
This means Jeff's real income did decrease by 0.7%.
Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue center?
A. The number of units sold differs from planned sales levels
B. The cost of sales
C. The selling price per unit
D. Both the selling price and the number of units sold
Answer:
A. The number of units sold differs from planned sales levels.
Explanation:
The difference in the master budget and flexible budget lies in the level of operation (sales units). That is the planned sales levels included in muster budget are usually different from the actual sales levels included in the flexible budget.
The Quimbys obtain a loan that starts out at 5.5% interest. After five years, the interest rate will adjust to whatever the current market rate is and adjust every year thereafter. This is a/an
Complete Question:
The Quimbys obtain a loan that starts out at 5.5% interest. After five years, the interest rate will adjust to whatever the current market rate is. This is known as a/an:
Group of answer choices
a. two-step mortgage
b. balloon/reset mortgage
c. wraparound mortgage
d. interest-only mortgage
Answer:
a. two-step mortgage.
Explanation:
In this scenario, The Quimbys obtain a loan that starts out at 5.5% interest. After five years, the interest rate will adjust to whatever the current market rate is and adjust every year thereafter. This is a two-step mortgage.
A two-step mortgage can be defined as an adjustable-rate mortgage (ARM) which typically offers two interest rates; a beginning (fixed) interest rate for the first five to seven years period and a another interest rate for the remaining period of time.
Throughout the entire semester, you were trained to relate expenses to the revenues generated in the same accounting period. Differently put, the Income Statement must show the revenues and relevant expenses that took place in the same period. Which principle is related to this practice
Answer:
matching principle
Explanation:
In this scenario, the principle related to this practice is known as the matching principle. In accrual accounting, this states that revenues should be recorded during the period in which they are earned, regardless of when the transfer of cash occurs. Meaning that if a company earns $5,000 in product sales in August but receives a $1000 commission for those products in September, the commission needs to be reported on the August statement alongside the sales.
Which of the following is an element of a CPA firm’s quality control policies and procedures applicable to the firm’s auditing practice? Acceptance of a client relationship. Efficiency of organizational structures. Computer information processing. Professional skepticism of management.
Answer:
The correct answer is A
Explanation:
In addition to Independence, Integrity, and Objectivity ; Personnel Management ; Engagement Performance ; and Monitoring
the Public Accounting rules of Quality Control Standards require that a firm, as a matter of policy, must continually practice the Acceptance and Continuance of Clients and Engagements .
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