It is true that buyers of a particular new car model are being offered zero-percent financing. This is an example of a promotional allowance.
A price cut or discount given by a manufacturer to a representative of the marketing channel in exchange for unique product promotion.
The term "promotional allowances" refers to the retail value of any complementary goods or services given to customers, including but not limited to lodging, food, drinks, merchandise, chips, tokens, entertainment, and other services.
Discounts are the term for incentives used to encourage sales, whereas allowances are the term for incentives used to encourage payments (which apply only to purchases made on credit). Retail and wholesale businesses employ discounts most frequently (for instance, when a store has a 10% off sale). A marketing cooperative allowance or promotional allowance are other names for an advertising stipend. A strategy like this is an economical way to assist producers, distributors, wholesalers, etc.
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In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.
In an open-market purchase the Federal Reserve buys government bonds from the public and the supply of bank reserves increases.
The open-market refers generally to an economic condition close to free trade. It is also defined as an unrestricted market with free access and competition of buyers and sellers.
The open-market are of four types: main refinancing operations, longer-term refinancing operations, fine-tuning operations and structural operations.
The government bonds are those bonds which is issued by the government to repay borrowed money. The company gets less investor due to the government bonds because company gives low yields.
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changes in the discount rate or the required internal rate of return used to complete net present value analysis can have a significant impact on the estimated value of the investment
To consider the IRR as a trustworthy approach of project evaluation, a comparison between it and a discount rate is required. when the discount rate is greater than the IRR.
What is the formula for the discount rate?how to determine the discount rate The weighted average capital cost (WACC) or adjusted present value are the two main formulae for calculating the discount rate (APV). The APV discounting equation seems to be: APV Equals NPV + PV of the effect of financing, while the WACC discount equation seems to be: WACC = E/V x Ci + M s x Cd x (1-T).
What does 3% off mean?Using a 3% discount rate, we then assert that $1 is worth $1 today, which equals the current value of $1.03 paid in a year. If $1 is kept in a bank for further than a year, compound interest will be earned on the investment
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Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare tax will Peter and Joan owe with their 2021 income tax return?
Peter and Joan's additional 0.9% Medicare tax due with their 2021 income tax return is $2160.
What about the income tax return? The completion of a tax return is the documentation that determines the amount of income made by a person or corporation, the amount of taxes to be paid to the government or government agencies and, potentially, the amount of taxes to be returned to the taxpayer.Taxes are one of the key ways that the government generates revenue. Both direct and indirect taxes, which are included in both tax categories, generate tax income.How it's calculated?The given dat is,
Total taxable income=$240,000
Medicare tax=0.9%
Income tax return=(Total taxable income× Medicare tax)
=$240,000×0.9%
Income tax return=$2160.
Peter and Joan's additional 0.9% Medicare tax due with their 2021 income tax return is $2160.
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usage rate segmentation best explains how a fraction of the segment can make up a portion of consumption.
Customers are divided into groups based on how frequently they use the product using a technique called use rate segmentation. It aids product managers in learning which features people enjoy and dislike the most.
What is usage rate?Usage rate shows what proportion of a product's features are used by customers, as well as which aspects they prefer and avoid.
What are the type of usage rate segmentation?There are 4 types of usage rate segmentation:
New users
Power users
Advocates
Inactive users
What are the difference between Usage rate segmentation and behavioral segmentation?Usage rate segmentation is a crucial component of behavioral segmentation and one of its components.
The practice of segmenting users based on their behavioral participation is known as behavioral segmentation. Customers can be divided into groups, for instance, according to their NPS rating, customer journey stage, engagement score, reached milestones, etc.
Contrarily, utilization rate segmentation categorizes clients into groups based on the length of time they spend using your product and the number of features they access.
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The balance of payments on the financial account are transactions that comprise the buying or selling of "LOAN ABLE FUNDS", that create "NATIONAL DEBT".
The balance of payments summarizes an economy's economic transactions with the rest of the world, So the given statement is true.
What is balance of payments?The Balance of Payments (BOP) is an accounting statement that summarizes (measures) all economic transactions between residents of one's home country and the rest of the world over a given time period.The balance of payments summarizes an economy's economic transactions with the rest of the world. Exports and imports of goods, services, and financial assets, as well as transfer payments, are examples of these transactions (like foreign aid).The balance of payments accounts can be shown in two columns in a ledger. Credit entries are recorded in one column. The second column is where debit entries are recorded.The BOP is divided into three accounts: the current account, the capital account, and the financial account.The complete question :
" The balance of payments on the financial account are transactions that comprise the buying or selling of "LOAN ABLE FUNDS", that create "NATIONAL DEBT". State true or false."
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How to Find Your Ideal Customer with Target Market Analysis
There are aspects to a company. A marketing strategy is how a company can provide superior customer value to its target market that involves the formulation of a marketing mix.
What is the synonym of involves?Some common synonyms of involve are comprehend, embrace, and include. While all these words mean "to contain within as part of the whole," involve suggests inclusion by virtue of the nature of the whole, whether by being its natural or inevitable consequence.
How do you use involve?involve somebody (in something) to say or do something to show that someone took part in something, especially a crime synonym implicate His confession involved a number of other politicians in the scandal.
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Which of the following is true in the long run, following a deliberate expansion of the money supply?
Real GDP reaches its starting point.
GDP definition.overall economic output
The most often used metric for determining an economy's size is its gross domestic product (GDP). The GDP of a nation, a region (like Tuscany in Italy or Burgundy in France), or a group of nations (like the European Union) may all be calculated (EU).
How is GDP determined and what does it mean?GDP is the total of private consumption, gross domestic product, government investment, government spending, and any other items (exports – imports). The GDP is normally calculated using the international standard by the country's official statistical office.
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(h) based on the change in the equilibrium real interest rate identified in part (g), what will happen to economic growth in the country in the long run? explain.
Because of increased government borrowing to fund spending, the equilibrium real interest rate will be higher, as stated in the explanation.
When interest rates rise, which of the following will occur?Consumers and corporations both reduce spending when interest rates are rising. Due to this, both stock prices and earnings will decrease. However, when interest rates have dropped significantly, firms and consumers will spend more, driving up stock values.
Which circumstance is most likely to result in a drop in interest rates and a rise in loanable money?Option (A): As the supply curve moves to the right, more loanable funds are available as households increase their savings and cut down on their consumption.
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Which one of the following statements is NOT true?
A) Interest rate changes and bond prices are inversely related.
B) Interest rate risk is the risk that bond prices will change as interest rates change.
C) As interest rates increase, bond prices increase.
D) Long-term bonds are more price volatile than short-term bonds of similar risk.
One of the following statements is FALSE: Long-term bonds have more price volatility than short-term bonds with comparable risk. because the prices of bonds and interest rates are inversely correlated.
The danger of interest rates is greater for long-term bonds than for Long-term bonds. Additionally, these investments can be made by investors who are ok with the market's shifting interest rates. For investors wanting security and a fixed rate of interest paid semi-annually until the bond's maturity date, Treasury bonds can be an excellent investment. Bonds play a significant role in the asset allocation of an investment portfolio since their interest rate return serves to balance out the volatility of equities prices.
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Olena Mirrors records bad debt using the allowance, income statement method. 3 They recorded $343,160 in accounts receivable for the year and $577,930 in credit sales. The 4 uncollectible percentage is 4.4%. On May 10, Olena Mirrors identifies one uncollectible account 5 from Elsa Sweeney in the amount of $2,870. On August 12, Elsa Sweeney unexpectedly pays 5 $1,441 toward her account. Record journal entries for the followingA. Year-end adjusting entry for 2017 bad debtB. May 10, 2018 identification entryC. Entry for payment on August 12, 2018
A. Year-end adjusting entry for 2017 bad debt
In this case, the amount of estimated bad debt would be $343,160 * 4.4% = $15,039.60. The journal entry would be:
Debit Bad Debt Expense: $15,039.60
Credit Allowance for Doubtful Accounts: $15,039.60
The adjusting entry for 2017 bad debt at year-end would include a debit to Bad Debt Expense for the amount of the estimated bad debt, and a credit to Allowance for Doubtful Accounts, the contra asset account.
B. May 10, 2018 identification entry
The identification entry for the uncollectible account from Elsa Sweeney on May 10, 2018 would include a debit to Allowance for Doubtful Accounts for the amount of the uncollectible account, and a credit to Accounts Receivable. The journal entry would be:
Debit Allowance for Doubtful Accounts: $2,870
Credit Accounts Receivable: $2,870
C. Entry for payment on August 12, 2018
Debit: Accounts Receivable $1,441
Credit: Cash $1,441
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juliet company accumulated the following account information for the year: using this information, total factory overhead costs would be
The correct answer to the question about Factory Overhead costs is option e) $13,000
The expenses incurred in the factory, excluding the costs of direct labor and direct materials, are those related to the manufacturing process. Typically, cost pools of factory overhead are created and distributed to the units produced throughout the time period. When the created units are eventually sold as finished items or written off, the cost is tacked onto the expense. In contrast to absorption costing, which requires it, direct costing avoids allocating production overhead to the number of units produced. According to the requirements of the main accounting frameworks, the allocation of manufacturing overhead is necessary for creating financial statements.
Question
Juliet company accumulated the following account information for the year: using this information, total factory overhead costs would be
Beginning raw materials inventory $6,000
Indirect materials cost $2,000
Indirect labor cost $5,000
Maintenance of factory equipment $2,800
Direct labor cost $7,000
Options
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Which of the following statements about the opportunity cost associated with a capital budgeting project is correct?
A project's opportunity cost is a cash outlay that the firm has already paid; therefore, it should not be included in a capital budgeting analysis.
The terms sunk cost and opportunity cost generally are used interchangeably.
A project's opportunity cost is the return (cash flow) that will not be earned (generated) if funds are invested in a particular capital budgeting project.
A project's opportunity cost is not a relevant cash flow, therefore it should not be included in the capital budgeting analysis.
The stated statement indicates that The return (cash flow) that won't be generated (earned) if money is invested in a specific capital budgeting project is known as the opportunity cost of the project.
What does opportunity cost mean?According to microeconomic theory, the value or advantage forfeited by engaging in a specific activity in comparison to engaging in quite an alternative activity is known as the opportunity cost. In plainer terms, it indicates that by choosing one activity, you are forgoing the chance to select an other.
Why is the opportunity cost significant?Making smarter judgments can be aided by understanding opportunity cost. You may make a more informed decision including being better prepared for any ramifications of your choice when you fully comprehend the possible advantages and disadvantages of each option you are weighing.
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Which of the following statements about the statement of cash flows are correct? (Check all that apply.) Check all that apply. It is a detailed disclosure of individual cash flows. In certain circumstances, it can replace the statement of retained earnings. The purpose is to report cash receipts and cash payments during a period. Read about this Do you know the answer? Think so ns No idea 40 Items left
Reporting monetary inflows and outflows over a time is the goal. The correct response is option (c).
Define Cash flow.The amount of money a business made or spent overall during a given time period is measured by something called cash flow. Cash flow from operating operations, cash flow from investment activities, and cash flow from financing activities are frequently separated on the statement of cash flows, a common financial statement.
Cash flow analysis gives crucial details about a company's financial health at business profitability on the income statement. You can learn the source of cash inflows, such as sales, loans, or investors, as well as similar information on outflows. The majority of businesses can deal with short-term negative cash flows, but not long-term ones.
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After suffering a debilitating injury, Ahmad (47) retired on disability after teaching high-school math for several years. He had not yet reached the minimum retirement age for the district where he taught. If Ahmad's employer paid the premiums on his disability insurance policy using pre-tax dollars, how does he report the disability benefits reported to him on Form 1099-R?
A.) As taxable wage income reported on Form 1040, line 1.
B.) As nontaxable wage income reported on Form 1040, line 1.
C.) As taxable pension income reported on Form 1040, line 4.
D.) As nontaxable pension income reported on Form 1040, line 4.
Ahmad's employer paid the premiums on his disability insurance policy using pre-tax dollars, how does he report the disability benefits reported to him on as nontaxable wage income reported on Form 1040, line 1.
What is insurance policy?An insurance policy is a binding agreement between the insurance provider and the individual, firm, or other entity that will be covered. By reading your policy, you can make sure that it addresses your needs and that both you and the insurance provider are aware of your obligations in the event of a loss.
Everyone should have five different types of insurance: home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance.
Its goal is to lessen monetary uncertainty and manage unintentional loss. This is accomplished by exchanging the payment of a small, predetermined fee—an insurance premium—to a reputable insurer for the assumption of the risk of a significant loss and a guarantee to make payments in the case of such a loss.
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imagine you own a lawn-mowing business. identify the main function of money exhibited in each situation below.
Ima-gine you own a lawn-mowing busi-ness. The main func-tion of money exhib-ited Situations are - a. You swipe your de-bit card to purchase gas-oline for your lawn mower : Medium of excha-nge.
b. You stuff your earn-ings from mowing lawns into a pig-gy bank : Store of value.
c. You pay your fri-end Cornelius $5 to help you mow law-ns : Medium of exchange .
d. You calcu-late your net earn-ings for the year on your tax return : Unit of acc-ount .
e. You deter-mine how much value your new la-wn mower has add-ed to your busi-ness : Unit of account.
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toffel manufacturing has been requested by its employees' union to bargain with it. union representatives express interest in negotiating wages and working hours for its workers. management at the company declines to bargain with the union because any renegotiation would increase the company's operating costs. toffel manufacturing's refusal to bargain:
Toffel manufacturing's refusal to bargain is not permitted because employers and unions have a duty to bargain in good faith, and bargaining is mandatory for subjects relating to wages or working hours.
Refusal to bargain is a determination made by the administrative body that either the employer or the union did not negotiate "in good faith" in accordance with the statute's criteria.
Refusal to bargain is the result of the administrative body concluding that neither the employer nor the union engaged in "good faith" negotiations in line with the requirements of the statute.
The three primary categories of negotiation subjects are obligatory, permissible, and unlawful. The required category includes wages, health and safety, management rights, working conditions, and benefits. Topics that are permitted during the process are ones that are not required but may be discussed.
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Income from continuing operations, excluding special or nonrecurring items, is generally regarded as:Multiple Choicea) value-irrelevant earnings.b) transitory earnings.c) abnormal earnings.d) permanent earnings.
Income from continuing operations, excluding special or nonrecurring items, is generally regarded permanent earnings and transitory earning.
What exactly is meant by "income from continuous activities"?A company's continued operations are recorded in the net income category known as "income from continuing operations" on the income statement. Money from ongoing activities is sometimes referred to as operating income. The bulk of successful firms rely mostly on ongoing operations for their income.
The revenue a company makes from its main business operations less the costs it has to pay to make that revenue is the income from ongoing operations. The after-tax profits the company makes from its ongoing activities are noted in this line item on the income statement.
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for a retail website, the revenue per session kpi determines whether new traffic driven through additional advertising is profitable focuses on enticing shoppers to purchase higher-priced items during each sales transaction looks to increase the number of new sessions identifies the percentage of completed transactions
For a retail website, the revenue per session KPI helps to determines whether new traffic driven through additional advertising is profitable. The Option A is correct.
What is revenue per session?Also known as average revenue per session, refers to the average amount of money generated by every unique session or visit to your website. Retailers calculate the ARPS by dividing the total revenue in a particular time frame by the total number of unique website visits.
The session helps retailers to determine the health and performance of their brand and can provide insights into the effectiveness of existing strategies, identifying which efforts are generating result.
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In its macroeconomic equilibrium, the economy can be producing at i. below full employment. ii. full employment. iii. above full employment.
In its macroeconomic equilibrium, the economy can be produced at below full employment and above full employment.
When the amount of real GDP required and supplied are equal at the intersection of the AD and AS curves, macroeconomic equilibrium has occurred. Inventory builds up as a result of enterprises cutting production and prices when the amount of real GDP supplied exceeds the amount required.
When aggregate demand and short run aggregate supply (SRAS) are equal, there is a short-run macroeconomic equilibrium. Real GDP and the overall price level are determined by this equilibrium. An alteration in the equilibrium will result from changes (shifts) in the SRAS and/or AD.
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where the average total cost curve for a natural monopoly crosses the demand curve, the average total cost curve is rising. the marginal revenue curve also crosses the demand curve. the marginal cost curve is below the average total cost curve. the marginal revenue curve is rising. the marginal cost curve also crosses the demand curve.
The marginal cost curve is lower than the average total cost curve where the average total cost curve for a natural monopoly crosses the demand curve.
The total cost divided by the quantity produced represents the average overall cost of a firm's output. For the majority of businesses, a U-shaped graph results from graphing the average total cost (ATC) on the y-axis and the amount of production on the x-axis.
The little rectangle on top of the overall revenue rectangle represents the company's profit. It's a TR-TC. The company would experience a loss if the monopolist's average cost was higher than the price of its goods. The corporation is losing money in the right-hand graph since its average cost curve is higher than its pricing.
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10. public policy toward monopolies suppose that a computer software company controls the operating system market. although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovation in the high-tech industry, a policy goal of the government.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
a. Do nothing at all.
b. Regulate the pricing behaviour.
c. Turn the company into a public enterprise.
d. Use the law to increase competition.
The following policy alternatives might best help the government achieve its goals: turn the business into a public enterprise.
What do you mean by policy?An collection of people, a commercial organisation, an government, or perhaps a political party that has publicly agreed to a plan of action for dealing with certain circumstances.
Briefing:Any natural monopoly, like an electric utility, will go from a private to a public company when it is obliged must sell to a public organisation. The government that considers energy to be a public good might decide for such a programme, which is typically how utilities are provided in Europe.
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t/f: an organization should keep information, such as changes made to its incentive plan, confidential from its employees.
It is false that an organization should keep information, such as changes made to its incentive plan, confidential from its employees.
An employee remuneration system known as an incentive plan offers particular rewards to encourage team members to put in more effort and meet predetermined objectives.
This type of compensation goes beyond the pay check and benefits that all employees should receive for the hours they work. Incentive programmes frequently employ non-cash incentives like sports tickets, gift cards, or vacation days.
Incentives programmes are frequently used by business and organisational leaders to boost sales and maintain staff motivation. The idea is to strategically use incentives to encourage certain activities and match employee behaviour with organisational objectives.
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Horizontal conflict causes problem between different types of marketing intermediaries that handle similar products. The biggest advantage of a physical distribution system is that its components are independent and hence, a decision in one area is unlikely to affect the functioning of the other components. T/F
False. Horizontal conflict can cause issues between different types of marketing intermediaries because they can be competing for the same products or services. This can lead to inefficient decision making and inefficiencies in the system.
What does Horizontal conflict means?
Horizontal conflict occurs in the workplace when two or more people or groups with an equal level of power, such as peers, colleagues, or teams, disagree. Different personalities, working styles, goals, and values can all contribute to these conflicts. If left unresolved, horizontal conflicts can be detrimental to a workplace, resulting in decreased job satisfaction, increased stress, and decreased productivity.
What does Services mean?
Services are activities or benefits that are provided by someone or something to meet the needs of another. Services can range from basic needs such as food and shelter to specialized services such as medical care and entertainment.Services are usually provided in exchange for some form of payment, such as money, goods, or services. They can also be provided freely, as in public services, or as a charitable act.
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which of the following is not a development cost associated with an information system? group of answer choices training employees hardware and software all of the options are development costs. maintenance costs
This is not a development cost associated with an information system : Purchasing hardware and software up front is frequently.
An information system is a mixture of software program, hardware, and telecommunication networks to accumulate beneficial data, especially in an enterprise. Many businesses use information era to finish and manipulate their operations, engage with their clients, and stay beforehand of their competition.
An information machine is a proper, sociotechnical, organizational system designed to accumulate, procedure, store, and distribute data. From a sociotechnical angle, information structures are composed by means of four components: task, people, shape, and generation.
Statistics systems are collections of multiple records assets (e.g., software program, hardware, laptop machine connections, the machine housing, machine users, and pc machine facts) to gather, manner, keep, and disseminate statistics.
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During cold weather, skin appears pale because the blood vessels of the dermis undergo________ thereby reducing blood flow and heat loss.
During cold weather, skin appears pale because blood vessels of the dermis undergo vasoconstriction thereby reducing the blood flow and heat loss.
What is vasoconstriction?Vasoconstriction, which affects both big arteries and small arterioles, is the narrowing of blood vessels as a result of muscle wall contraction. The procedure is the antithesis of vasodilation, which widens blood arteries. The procedure is crucial for regulating bleeding and minimizing acute blood loss. Blood flow is restricted or reduced as a result of blood vessel constriction, which keeps body heat in or increases vascular resistance. Due to less blood reaching the skin's surface and decreased heat radiation, the skin becomes paler as a result. Vasoconstriction is a larger-scale method by which the body controls and maintains mean arterial pressure. One class of medication used to elevate blood pressure is a vasoconstrictor, commonly referred to as a vasoconstrictor medication.
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Yiannis is the CEO of a company that has cornered the market on products for both amateur and professional golfers and is the primary seller for the majority of
these products in the marketplace. What BEST describes the competitive structure that Yiannis's business participates in?
A. Monopoly
B. Perfect competition
C. Monopsony
D. Monopolistic competition
Monopolistic competition describes the competitive structure that Yiannis's business participates in.
What does Monopolistic competition mean?
Monopolistic competition is an economic model in which multiple sellers offer similar but slightly differentiated products. This type of competition allows a large number of firms to exist in the same market, each with some degree of pricing control. Firms can gain a competitive advantage by differentiating their products by adding features, improving customer service, or pursuing other strategies.
What does Services Mean?
Services are activities that benefit either an individual or an organization. Services can include a variety of tasks, ranging from financial advice and legal assistance to maintenance and repair work. Intangible activities such as emotional support, education, and entertainment can also be included.
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.Which of the following was a consequence of the shift to sharecropping and the crop lien system in the late nineteenth-century South?
(A) A major redistribution of land ownership
(B) A diversification of crops
(C) A cycle of debt and depression for Southern tenant farmers
(D) A rise in cotton yields per acre from antebellum production levels
(E) The termination of the control exerted by White landowners over former slaves.
In the late nineteenth-century South, the switch to sharecropping and the crop lien system resulted in a cycle of debt and misery for tenant farmers. The correct response is option (C).
Define sharecropping.A landowner who owns agricultural land will grant a tenant the right to use the land in exchange for a share of the crops that are raised there is called as sharecropping.
The crop lien system was a well-liked source of funding for cotton planters in the South of the United States between the 1860s and the 1940s.
In order to aid tenant farmers and sharecroppers in getting better conditions from landlords, the Southern Tenant Farmers Union was founded in July 1934, at the height of the Great Depression.
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TRUE OR FALSE breyona is a district manager who oversees several store managers in a national children's clothing retail chain. breyona reports directly to the vice president of marketing, a member of top management. breyona is a middle manager
It is accurate to say that since Beryona is a middle manager, he should answer to upper management.
A manger is who?A manager is someone who is responsible for supervising the allocation of resources or the coordination of human resources within an organisation. As a result, a manager is a person who performs managerial duties.
Who makes good managers?Effective listeners improve their communication abilities as managers. They allow other people to speak. They clearly understand the organization's mission and convey it to their team members in a way that motivates them. They updated their coworkers on company advancements.
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the balanced scorecard approach normally set the financial objectives first, and then sets the objectives in the other perspectives to accopmlish the financial objectives
Scorecards give management useful information on the service and quality of their company as well as its financial performance.
What exactly is a balanced scorecard?
The balanced scorecard is a strategy-based system for performance management that often establishes goals and benchmarks from four separate perspectives: the financial, the customer, the process, and the learning and development.
From a financial standpoint, a company's objective is to make sure that it realizes a profit on its investments and controls significant risks related to conducting business.
Therefore, A financial goal is a specific objective or target pertaining to the financial results, resources, and organizational structure of a corporation.
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Dozens of clothing manufacturers produce plain black undershirts. Consumers view plain black undershirts as identical and have no preference which company makes their undershirts. In a large city, one chain of coffee shops controls a large market share because locals believe its coffee tastes better than that of its competitors.
Yes, Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks is markets competitive.
No, In a large city, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than that of its competitors. It is one that is not identical product, buyers sees the sellers' products as one that is not identical.
What is markets competitive?In a competitive market, firms compete with one another for customers by offering goods and services at competitive prices. In order to be competitive, firms must offer products or services that are of good quality and at a price that is attractive to consumers.
In a competitive market, firms have limited control over the prices they can charge for their products or services. This is because if a firm raises its prices too high, consumers may choose to purchase from a competitor instead. Similarly, if a firm lowers its prices too much, it may not be able to cover its costs and may go out of business.
Therefore, Competitive markets can lead to lower prices and higher efficiency, as firms must continuously strive to improve their products and services in order to stay competitive. However, they can also be challenging for firms, as they must constantly adapt to changing market conditions and consumer preferences in order to remain competitive.
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See full question below
Is these markets competitive?
2. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks
