A korean-imported automobile, wheat exported to somalia, a factory location bought in Ireland, and $2 million in American funding to rehabilitate schools in Afghanistan interest on swedish bonds of $500.
The balance of payments is zero over the long term. Surpluses in the other account will make up any deficits in the first account.
Trade is essential to the prosperity of the United States because it boosts economic expansion, promotes domestic employment, raises living standards, and enables citizens to sustain their families with reasonably priced goods and services.
Its capital account must be in surplus. The balance of payments is equal to zero over the long term, as explained. Interest in the other account will make up any deficits in the first account.
When Cesc Fabregas returns to the Emirates Stadium on Sunday wearing the blue of Chelsea, Arsene Wenger wants people to treat him with the "respect he deserves."
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A higher cost of living in your state means you will pay more for____
A. housing, goods, and services
B. stocks and bonds
C. attending school out of state
D. vacations and travel
A higher cost of living in your state means you will pay more for housing, goods, and services.
What happens when living costs are too high?When the cost of living rises, the amount of money that can be spent by individuals will decrease, and they will not be able to purchase high-end goods but will instead look forward to lower-quality alternatives. The money the government gets from the GST will go down as people stop buying as many goods.
What drives up living expenses?The quantity of a good that is available is called the supply, and demand is the amount that people want. Prices can be set by how these two things relate to one another. In some situations, these two variables can raise the cost of living, but they usually have opposite effects.
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a mass protest organization and a grassroots organization both rely on high levels of membership participation, but a grassroots organization:
A grass root organization relies on high levels of community-based membership participation to promote social change.
What is Grass Root Organization?The bulk of grassroots organizations are composed of ordinary citizens who are fighting for a cause to bring about change at the local, national, or international levels. As implied by the name, grassroots organizing is a type of mobilization that starts at the ground level.
In order to accomplish social change, it is a special type of social movement organization that largely relies on membership participation from the neighborhood. It lacks a hierarchical structure and functions through already-established political structures.
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As a firm moves along its long-run average cost curve, it is adjusting the size of its factory to the quantity of production. t/f
True, A firm adjusts the size of its plant to the volume of production as it advances along its long-run average cost curve. All short-run cost curves are on or above the long-run average cost curve because long-run enterprises have more flexibility.
Whenever the long-term average cost curve slopes downward?The Long Run Average Cost Curve demonstrates how a firm's average costs change over time. Because of economies of scale, the average cost rises less proportionately to output along the downward sloping region of the curve. How much competition is anticipated to exist in the market will be predicted by the relationship between the amount at the minimum of the long-run average cost curve and the quantity sought in the market. Numerous businesses will compete if the market's volume demands are significantly higher than the LRAC's minimum volume.
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suppose that a business incurred implicit costs of $380,000 and explicit costs of $2 million in a specific year. if the firm sold 100,000 units of its output at $27 per unit, its accounting
When the firm sold 100,000 units of its output at $27 per unit, its accounting Profit were $700000 and its Economic profit were $320000
How to calculate the profit?The business incurred implicit costs of $380,000 and explicit costs of $2 million in a specific year.
Accounting Profit = Total Revenue - Explicit Cost
Accounting Profit = Price*quantity - 20,00,000 = 27*100000 - 20.00,000 = 27,00,000 - 20,00,000 = 7,00,000
Economic Profit = Accounting Profit - Implicit Cost = 7,00,000 - 380,000 = 320000
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Complete question
suppose that a business incurred implicit costs of $380,000 and explicit costs of $2 million in a specific year. if the firm sold 100,000 units of its output at $27 per unit, its accounting profit is ...
Which of the following is an accurate statement regarding testing for impairments of tangible assets and amortizable intangible assets? Multiple Choice Assets may be tested as a group if they are used in combination with other assets in the group. Assets are to be tested only as individual assets. Assets may be tested as a group only if they were purchased as a group. Assets need not to be tested for impairment annually.
Assets may be tested as a group if they are used in combination with other assets in the group.
What are intangible assets that are amortizable?The process of depreciating expenditures related to intangible assets, such as patents and trademarks, over the length of their lifetime is referred to as amortization of intangibles. This is carried out for accounting or tax purposes. These assets are expensed into an amortization account, often known as amortization.
Do tangible assets have an impairment?If the carrying amount of the asset group is greater than its fair value and cannot be recovered, an impairment loss on the tangible or finite-lived intangible asset is reported.
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can be used to improve the value that the business provides to its customers by working with the customers.
Utilizing downstream strategies, a business can increase the value it offers to its clients by collaborating with them.
In a business context, what does downstream mean?The term "downstream operations" refers to the final steps in the manufacture and sale of goods, where finished goods are produced and offered for sale to customers. Sales may be made at the wholesale level, to businesses (B2B), or at the retail level, to consumers (B2C).
What makes upstream and downstream different?Simply put, downstream refers to the procedures used after extraction until it is delivered to the customer in whatever format is required, whereas upstream works include the exploration and production of crude oil and natural gas.
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if the government spends an additional $3 billion to buy police cars, aggregate demand might increase more than $3 billion because of the , but might increase less than $3 billion because of the . group of answer choices investment accelerator; multiplier effect crowd-out effect; investment accelerator. multiplier effect; crowd-out effect. crowd-out effect; multiplier effect. multiplier effect; investment accelerator.
Due to the multiplier effect on aggregate demand, if the government spends $3 billion to purchase police cars, aggregate demand may rise by more than $3 billion. The crowding-out impact on aggregate demand could result in an increase of less than $3 billion in aggregate demand.
How might the Fed change the economy's location on this curve?By altering the money supply, the Fed can shift from one point on this curve to another. The unemployment rate is decreased and the inflation rate is raised when the money supply is increased, whereas the opposite is true when the money supply is decreased.
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In a/an ____, all partners assume unlimited personal liability and responsibility for the management of the business. a. limited partnerships
In a general partnership, every partner accepts unlimited personal liability and is in charge of running the company.
Are general partners subject to perpetual personal liability?An owner's assets may be forfeited in order to satisfy liabilities in a general partnership since partners agree to unconstrained liability, which means that obligations are uncapped. Any partner could also be held responsible for the company's debts.
General partners are individually liable for all firm debts and obligations, while limited partners are simply accountable for the amount of their investments. Limited partnerships can be a smart choice when combining the resources of multiple people or when only a few partners have financial resources to contribute.
Exists a type of partnership where each general partner is liable without limit?A general partnership is a contract between partners that outlines how they will launch and run a business together (GP). It is one of the legal entities that are most frequently utilized for business establishment. In a general partnership, each partner is responsible for the business and liable for any debts it accrues.
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gerry signs a lease with driftwood apartments to lease a studio apartment for the next year for $650 per month. shannon signs on driftwood behalf. gerry and driftwood have ____.
Gerry signs a lease through Driftwood Apartments for a small apartment for $650 per month for the following year. On behalf of driftwood, Shannon signs. Driftwood and Gerry have a written agreement.
The appeal of driftwood is what exactly?The ecosystem of the sandy beach is stabilized by the driftwood. Beaches are naturally disturbed and continually shifting due to winds and waves. Driftwood aids in keeping the sand in position and promotes plant germination, much like the borders you construct around a garden.
How does the driftwood rule work?A word on a regional custom if you intend to beachcomb. The rule that states you can only start picking up driftwood as well as other detritus if it is laying may not be a law in and of itself, but breaking it will result in a fine beneath the mark of the highest tide.
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Each individual firm will maximize its profits or minimize losses by hiring a specific type of labor up to the point where the marginal revenue product is ______ marginal resource cost.
Equal to
Each individual firm will maximize its profits or minimize losses by hiring a specific type of labor up to the point where the marginal revenue product is Equal to marginal cost.
Why does profit increase if MR = MC?The biggest difference between total revenue and total cost is reached at production levels where MR = MC, which serves as our definition of producer's equilibrium and promotes profit maximization. Therefore, MC MR is a prerequisite for a scenario with sustained profit. The additional money that results from raising the quantity is known as the marginal revenue. The additional revenue "at the margin" is another name for this. Profit is therefore maximized when marginal cost equals marginal revenue, or when marginal profit is equal to zero. Profit depends on the equation profit = Total revenue - Total cost. As a result, a company optimizes profit when the first order, MR = MC, and the second order depend on the first order.
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with respect to employee termination, a(n) suit typically attempts to establish that the termination either violated an implied covenant or violated public policy.
The end of an employee's employment with a corporation is referred to as termination of employment.
What exactly public policy?The end of an employee's employment with a corporation is referred to as termination of employment. Termination can be voluntary, such as when a worker departs on their own. When a corporation downsizes, layoffs, or terminates an employee, this is known as involuntary termination.
An employer is not allowed to fire an employee if doing so would offend public policy. When an employee is fired for engaging in an activity that is protected by either a constitutional right or a legislation, public policy may be violated.
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Answer
Explanation
Refer to Figure 12.1. Assuming the economy is on the production possibilities curve,
crowding out suggests that an increase in government spending financed by
internal borrowing would move the economy from pointA. B to point AB. A to point fC. C to point ED. C to point A
We refer to a country's economic activity as efficient production when it is on its production potential curve.
What assumption is the production possibility curve?Resource availability and stability are the fundamental presumptions behind the production possibility curve. The production process's utilization of technology never changes. Technologies and resources are effectively and fully used.The Production Possibilities Curve (PPC) is a model that illustrates the trade-offs involved in dividing resources between the production of two items. Concepts from the PPC can be utilized as examples.The graph known as the "production possibilities curve" (PPC) depicts all the possible permutations of output that can be created with the available resources and technology. The Production Possibilities Curve (PPC), also referred to as the Production Possibilities Frontier (PPF), depicts scarcity and tradeoffs.To Learn more About production potential curve refer to:
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strategy involves: senior managers and board members managers at all levels senior and middle manager senior management
Strategy involves managers at all levels. The business strategy leads by the managers at all levels which include senior, middle manager etc. at different level.
The business strategy is the plan to execute for the growth in marketing, win the competition, and solve the business problem and business operations.
The business strategy which include planning, decision-making, execution to achieve the targeted goal.
The business strategy is planning to achieve the targeted goal. The goal is to increase the sales, to reach the customer expectation, to update and marketing the product.
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The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with: Multiple Choice A debit of $7600 to Office Equipment, a debit of $4.200 to Accounts Receiveble, and a credit of $3.400 tó Accounts Payoble. A debit of $7600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts ReceivableA debit of $7600 to Office A debit of $3.400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7600 to Cffice Equipment A debit of $7600 to Office Equipment, a credit of $4.200 to Cash, and a credit of $3,400 to Accounts Payable
The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with : A debit of $7600 to Office Equipment, a credit of $4.200 to Cash, and a credit of $3,400 to Accounts Payable. Thus, option D is the correct answer.
What is office equipment?Office equipment is a fixed asset account that stores the costs of purchasing office equipment. Because the asset costs recorded in this account are expected to be held for more than a year, it is classified as a long-term asset account.
For the purchase of office equipment, the Office equipment account is debited with the cost of the asset, cash account is credited with the amount of immediate payment ,and Accounts payable is credited by the amount due.
Therefore, A debit of $7600 to Office Equipment, a credit of $4.200 to Cash, and a credit of $3,400 to Accounts Payable is the correct answer.
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I walk into a guitar shop, find a guitar I have to own. The seller says the cost is $500, and I agree to buy the guitar for $500. Before I pay and the shop gives me the guitar.There is a bilateral, express contract.
There is a bilateral, express contract.
What Is a Bilateral Contract?
A bilateral contract is an arrangement in which both parties commit to upholding their end of the transaction. Although it is not always the case, bilateral contracts often entail equal responsibility or consideration from the offeror and the offeree.
A bilateral contract may be a so-called "side deal" in more complicated circumstances, such as multilateral trade negotiations. In other words, both parties are involved in the overall negotiations but may also decide that a unique contract tailored to their shared interests is necessary.
The most typical form of legally binding arrangement is the bilateral contract. Each party is both an obligee (a person to whom another is compelled or bound) and an obligor (a person to whom another is bound) on the promises of the other party.
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allens company has raised concerns about network information that can be observed without a hacker being discovered
allens company has raised concerns about network information that can be observed without a hacker being discovered is passive
What does CVE vulnerability stand for?Common Vulnerabilities and Exposures
CVE stands for Common Vulnerabilities and Exposures. CVE is a glossary that classifies vulnerabilities. The glossary analyzes vulnerabilities and then uses the Common Vulnerability Scoring System (CVSS) to evaluate the threat level of a vulnerability.
What is CVE vs Cvss?CVSS is the overall score assigned to a vulnerability. CVE is simply a list of all publicly disclosed vulnerabilities that includes the CVE ID, a description, dates, and comments. The CVSS score is not reported in the CVE listing – you must use the NVD to find assigned CVSS scores
What is difference between CVE and CWE?CWE refers to the types of software weaknesses, rather than specific instances of vulnerabilities within products or systems. Essentially, CWE is a “dictionary” of software vulnerabilities, while CVE is a list of known instances of vulnerability for specific products or systems.
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Suppose your uncle offers you $100 today or $136 in 5 years. You would prefer to take the $100 today if the interest rate is 6 percent. 5 percent.7 percent. 4 percent.
Your uncle offers you $100 today or $150 in 10 years. You would prefer to take the $100 today if the interest rate is 5 percent yes because after 5 years it will be $2,591,85 .
What occurs if interest rates rise excessively?A recession and an increase in unemployment may result from it.
It is possible for the economy to enter a recession if the Fed raises rates too quickly and excessively. For both consumers and businesses, higher interest rates make debt more expensive and borrowing more difficult.
What Takes Place When the Fed Raises Interest Rates?The Fed's intention when raising the federal funds target rate is to raise the cost of credit across the board. Everyone ends up paying more in interest fees as a result of higher interest rates, which make loans more expensive for both firms and consumers.
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FILL IN THE BLANK. suppose you own 5% of coastal corporation's 200,000 outstanding common shares. the stock was trading for $135 per share before coastal executives announced a 3-for-2 stock split. after the split, you will own___shares worth___per share.
The price of the share after split is $90 per share. Therefore, you will own 15000 shares worth $90 per share.
How to calculate the price of the share?From the information, the 5% of coastal corporation's 200,000 outstanding common shares, the stock was trading for $135 per share before coastal executives announced a 3-for-2 stock split.
The shares own after split will be:
= (200000 × 5%) × 3/2
= 15000
The price per share will be:
= $135 / (3/2)
= $90
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FILL IN THEBLANK as distribution manager, hassan is constantly gathering information about shipping rates, improvements in logistics analysis, and competitors' strategies for reducing distribution costs. hassan is playing the_______ role
As distribution manager, hassan is constantly gathering information about shipping rates, improvements in logistics analysis, and competitors' strategies for reducing distribution costs. hassan is playing the monitor role.
What are the Functions of distribution manager?Depending on where you work and your area of specialisation, you may need to meet certain requirements to be a distribution manager. Depending on the products they provide for their consumers, various employers may also have different needs for their distribution managers.A company's leaders who organise and oversee the process of product delivery and transportation are known as distribution managers. They keep an eye on how much product is produced, how it is delivered to clients, and when shipments depart the facility.You may boost performance and perhaps even your income as a distribution manager by developing your abilities. Depending on where you work and the items you contact with, the specific talents you require may change.To learn more about distribution manager refer to:
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below is a t-account for inventory. inventory jan 1. 25,000 mar. 25 58,000 62,000 apr. 24 sep. 30 72,000 69,000 oct. 5 ? which of the following is true?A) Inventory sold during the year had a cost of $131,000. B) The ending balance of inventory is $24,000. C) Inventory purchases during the year had a cost of $130,000,D) All of the other answer choices are correct.
Considering the t-account for inventory, the true statement are:
Inventory sold during the year had a cost of $131,000.The ending balance of inventory is $24,000.Inventory purchases during the year had a cost of $130,000,The Option D is correct.
What is an inventory?An inventory mean the raw materials used in production as well as the goods produced that are available for sale. Its represents one of most important assets it has because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders.
The explanation which lead to the conclusion in the main answer is explained as follows:
The amount of Inventory sold:
= $62,000 + $69,000
= $131,000.
The amount of Ending inventory:
= ($25,000 + $58,000 + $72,000) − ($62,000 + $69,000)
= $24,000.
The amount of Inventory purchases:
= $58,000 + $72,000
= $130,000.
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In economics we assume people are rational actors who try to maximize their happiness. Using economic concepts, discuss and describe why volunteering and charitable giving exist in a capitalistic society.
It should also be noted that the entire concept of philanthropy and charity in general are tools of capitalism.
How charity contributes to capitalism?The money they give away is returned to them through the exploited labor of their employees. Furthermore, many of their charitable contributions are tax deductible, allowing them to reduce their tax burdens and thus protect their wealth.It is critical to invest in your community. When you donate to a charity that spends its funds locally, you help your own economy. The funds you provide are not used to pay executive salaries for a national charity, but are instead used locally.To summarize, charity is important because it helps to improve the quality of life for others, strengthen communities, and assist those in need. Furthermore, charity can aid in the spread of positive values.To learn more about capitalism refer to :
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in 2017, macy's paid $459 million of cash dividends. these dividends reduced assets and reduced retained earnings.
The statement that the millions of cash dividends paid by Macy reduced assets and retained earnings is True.
What happens to retained earnings when dividends are paid ?The distribution of a corporation's profits to its shareholders in the form of cash dividends. Only the shareholders in good standing as of a particular date are eligible to receive the cash distribution, which is made on a per-share basis. Since dividend payments are made from retained earnings, the two concepts are intimately related.
When dividends are paid, the company's retained earnings and cash balance fall, which has an impact on the balance sheet. In other words, the total amount of the dividend is subtracted from retained earnings and cash.
By the time a firm releases its financial results, the dividend has been paid and the cash and retained earnings have decreased. Assets would decrease because cash is an asset and it is the source of the dividends paid.
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Options for this question are:
True FalseTrue or False : A potentially effective way to assure ethical behavior in an organization is to distribute rewards primarily on the basis of outcomes.
This declaration is False.A potentially effective way to assure ethical behavior in an organization is to distribute rewards primarily on the basis of outcomes.
Ethical behaviour is characterized with the aid of honesty, equity and equity in interpersonal, professional and tutorial relationships and in research and scholarly activities. Ethical behaviour respects the dignity, variety and rights of humans and organizations of people.
What is an example of ethical behavior?Examples of ethical behaviors in the workplace includes; obeying the company's rules, advantageous communication, taking responsibility, accountability, professionalism, believe and mutual recognize for your colleagues at work.
Why is ethical conduct so important?Ethics is what courses us to tell the truth, preserve our promises, or assist any individual in need. There is a framework of ethics underlying our lives on a every day basis, supporting us make decisions that create fine impacts and guidance us away from unjust outcomes.
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https://brainly.com/question/27265072#SPJ4a woman is the beneficiary of an irrevocable trust created by her mother. which of the following powers given to her by the trust will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes?
The grantor formally relinquishes all ownership rights to the assets and the trust, transferring all ownership of the assets into the trust.
How Can an irrevocable trust make a gift?In the following situations, contributions are frequently made through the Irrevocable Trust: 1. Life insurance. Giving life insurance policies (and the recurring sums required to pay the premiums) to an irrevocable trust enables the life insurance death benefit to pass without inheritance tax.
What privileges are available to an irrevocable beneficiary?Someone who has unrestricted access to the money from your life insurance policy is known as an irrevocable beneficiary. Because of the provisions of the policy, an irrevocable beneficiary will continue to be eligible to collect the death benefit even if you decide to alter the beneficiary.
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at zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. at 15000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $135000. total fixed costs and unit variable costs are: o $30000 fixed plus $9 per direct labor hour variable. $30000 fixed plus $7 per direct labor hour variable. $105000 fixed plus $2 per direct labor hour variable. $105000 fixed plus $7 per direct labor hour variable.
The total fixed costs and unit variable costs are B. $30,000 fixed plus $ 7per direct labor hour variable
What is a fixed cost?A company's fixed costs are its outlays that don't change over the course of a given fiscal year. These are the expenses that are unaffected by output size or volume. Because they must be paid regardless of output level, fixed costs are the costs of doing business. Rent, administrative salaries, insurance, depreciation, and license fees are examples of fixed costs.
Fixed costs are expenses that remain constant regardless of whether sales or production volumes rise or fall. This is so because they are not involved in the actual process of producing a good or providing a service. Fixed costs are therefore regarded as indirect costs.
The fixed cost is $30000. The unit variable cost will be:
= ($135000 - $30000) / 15000
= $105000 / 15000
= $7
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The adolescent brain is
A. a work in progress.
B. consistent since infancy.
C. not producing new brain functions.
D. fairly rigid with minimal plasticity
Inside the adolescent brain is the biggest modification is the "pruning" away of unused connections in your child's grey matter, which is the area of the brain responsible for thought and processing.
The Correct Answer is A. a work in progress.
What is Building a healthy teenage brain?Your child's behavior, thoughts, and feelings are influenced by a combination of their surroundings and their particular brain. For instance, the brain may become "hard-wired" with your child's favored activities and abilities.Brain development is greatly influenced by how youngsters spend their free time. It is therefore important to consider the variety of interests and experiences your child has, including music, sports, studies, foreign languages, and video games. What impact do these have on the type of brain your child will have as an adult?In your child's environment, you play a significant role. Your kid really appreciates you. It will be crucial for your child's development of a healthy brain how you influence and guide them.You can achieve this by: promoting good behavior, helping your youngster get lots of sleep while encouraging sound thinking.To Learn more About adolescent brain refer to:
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almira is a chocolatier with a small chocolate shop. there are three other chocolatiers in her city. almira should be concerned that new companies will enter her city's chocolate market and take away some of her customers if the average chocolatier in her city:
Almira should be concerned that new companies will enter her city's chocolate market and take away some of her customers if the average chocolatier in her city: is earning economic profits.
What is meant by economic profit?The difference between the proceeds from the sale of a product and the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit.
The difference between total economic revenue and entire economic costs is known as economic profit. Typically, economic profit exceeds accounting profit. To determine economic profit, both explicit and implicit expenses must be taken into account. Accounting profit less hidden costs equals economic profit.
The difference between total revenues less costs and the opportunity cost related to the income earned is referred to as economic profit (or loss).
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As the typical investor ages the composition of their wealth usually switches from primarily______ to primarily ______.
A.human capital; financial capital
B.financial capital; human capital
C.intellectual capital; physical capital
D.investable capital; noninvestable capital
As the typical investor ages the composition of their wealth usually switches from primarily financial to primarily human capital. Option B
What is meant by human capital?The information, skills, and health that people invest in and amass throughout the course of their life give them the opportunity to realize their potential as contributing members of society.
A nation's current pool of skill, aptitude, expertise, education, and information is referred to as its "human capital." To create more human capital from human resources, we must invest in human capital.
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Answer:
B.financial capital; human capital
Explanation:
Builders Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builders does not pay. Concrete can recover as damages
the purchase price plus incidental damages.
Builders Inc. and Concrete Supply Company enter into a contract for the sale of cement. Concrete delivers, but Builders does not pay. Concrete can recover as the purchase price plus incidental damages
What are the incidental damages?Generally, Consequential losses do not encompass distant or unexpected harm. Incidental damages are expenditures that were legitimately expended by a non-breaching party in conjunction with achieving cover (for example, expenses incurred in seeking substitute performance) or otherwise incident to the breach. These types of losses are not considered to be compensatory damages.
What are some instances of damages that are considered incidental?Incidental Damages
By the buyer in the event that the seller is in violation of the contract, including the expenses of inspection, transportation, care, custody, or disposal of rejected products; and costs connected with obtaining cover, such as the cost of sending the alternative goods...By the seller in the event that the buyer is in violation, including any fees spent as a result of the buyer's decision to cancel the delivery;Read more about incidental damages
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CQ
Builders Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builders does not pay. Concrete can recover as ________damages
is when an entrepreneur takes money from a savings account to finance a new business. loaning money loaning money investing investing self-financing self-financing asking friends and family asking friends and family
Self-financing is when an entrepreneur takes money from a savings account to finance a new business. loaning money investing self-financing self-financing asking friends and family asking friends and family.
Why is self-financing good?Self-funding is the most popular source of capital used by most business owners to launch a venture, and for good reason. With little to no outside risk, bootstrapping enables you to test a business idea. Being self-financing allows you to set your own goals and avoid having to answer to collaborators, financiers, or lenders.
If the activity is profitable and it is decided not to distribute the profits, self-financing will take place. In accounting, self-financing is defined as the net profit after tax that is not distributed and is included in the liabilities listed on the balance sheet in terms of reserves and results reported.
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