Implementing participatory decision-making across the organization with a focus on shared values and culture falls under the umbrella of organizational change. As a result, choice (D) is the appropriate response.
What is organizational change?Organizational change examines both the process through which a business or any other organization alters its operational practices, technologies, organizational structure, overall structure, or strategies, as well as the implications of these changes for the organization. Organizational change typically occurs in response to or as a result of pressures from the outside or within.
It ultimately comes down to reviewing and changing organizational structures, particularly management structures, as well as business processes.
Hence, option (D) is accurate.
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Common commitment and purpose and mutual accountability are among the elementsthat make teams function.True False
True. Teams function when there is mutual accountability, shared commitment, and a common goal.
Describe functions.An organization's tasks are referred to as business roles, and they may also be broken down into primary and secondary functions. The fabrication of finished goods or services destined for the industry or for other parties is one of a startup's primary operations.
What are the important functions?Functions are the broad classifications of a company's procedures and capabilities that define its work. Business units make ensuring a company is successful for its clients, staff, managers, and investors. A organization may have multiple major business functions or only one.
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Table 12.16
Firm B
High Price
Low Price
Firm A
High Price
20, 20
10, 30
Low Price
30, 10
15, 15
Reference: Ref 12-16
(Table 12.16) In the table, the payoffs represent profits measured in thousands of dollars. In this infinitely repeated game, Firm A and Firm B are both using grim trigger strategies and agree to charge a high price in period 1. If Firm A has a change of heart and decides not to charge a high price in period 1, what is Firm A's expected payoff from cheating? Assume that d = 0.9.
$580,000
$2 million
$315,000
$165,000
Firm A's expected payment from cheating is $165,000. In Grim Trigger strategy, players cooperate in first and subsequent rounds unless their opponent deviates from agreement.
Is Grim Trigger SPE?Trigger is SPE. If both players are playing Grim Trigger: One player is flawed According to history, both players should always be flawed. In these subgames, both react best when they cannot influence their opponent's play, as there is no reason to cooperate. Players are forever trampled when they realize their opponent betrayed them in the previous game.
Is the Grim Trigger strategy subgame perfect?For d ≥ 1/2, we conclude that the strategy pair where each player's strategy is the Grimm-his trigger strategy is an infinitely repeated subgame perfect equilibrium of the prisoner's dilemma.
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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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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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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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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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a 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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Tami recently became a waitress at a popular restaurant. The restaurant manager explained to her everything that she needed to do, how the tables were numbered, and that she had to memorize the menu and its contents. He also went on to explain what she should say to diners and how she should talk, She was also give details about her coworkers' responsibilities. Tami wasn't able to remember the important points that he had given her even though she was paying complete attention to everything he said. In this case, Tami's inability to remember the points is most likely caused byA) low instrumentalityb) lack of opennessc) filteringd) misperceptione) information overload
In this case, Tami's inability to remember the points is most likely caused by information overload. (Option E)
What is meant by information overload?When one has too much information on a subject, it can be difficult to comprehend it and make judgments that will have a positive impact. Information overload is typically related to the excessive amount of information that people receive on a daily basis.
What is the procedure for obtaining and analyzing information?Selecting, compiling, and interpreting information is the process of perception. We react to stimuli—whether they are items or people—differently depending on how we perceive them, which has an impact on how we communicate.
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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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is a method used to evaluate changes in financial data across time. is also called vertical analysis. is the presentation of financial ratios. is a tool used to evaluate financial statement items relative to industry statistics. evaluates financial data across industries.
Horizontal analysis is a method used to evaluate changes in financial data across time. is also called vertical analysis. is the presentation of financial ratios. is a tool used to evaluate financial statement items relative to industry statistics. evaluates financial data across industries.
A financial analysis method known as horizontal analysis is employed to assess a company's performance throughout time. A corporation is better able to identify the direction of change in account balances and the size of that shift by contrasting prior-period financial data with more recent financial figures.
Vertical analysis and horizontal analysis are comparable. Horizontal analysis contrasts a single financial statement with other periods or the cross-sectional examination of one firm against another company, in contrast to vertical analysis, which analyses a specific financial statement using only one base financial statement from the reporting period.
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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:
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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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 FalseBuilders 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
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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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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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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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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g: question at position 20 the underlying assumption of business ethics is not? the underlying assumption of business ethics is not? efficiency respect transparency integrity
Ethics has simple assumptions: one, that guy is a rational being, and , that guy is free. These simple assumptions have an effect on the diploma of our ethical responsibility.
The first of those assumptions is Heidegger's „preontological“ and „PR existential“ assumption, the second one his „existential“ assumption, and the 1/3 his „ontological“assumption.
One of the maximum dependable approaches to locate assumptions is to search for shifts in language among the premises and end of an argument. When new stuff seems withinside the end that wasn't mentioned withinside the premises, it generally was given there with the aid of using manner of an assumption.
An underlying assumption is that the extra generations supported, the extra the safety towards loneliness. The underlying assumption being that those 4 ecological variables are additive in figuring out the suitability of a region. The underlying assumption is that one of a kind styles of reforms have comparable causes.
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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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entrepreneurial competitive dynamics refers to a cycle of actions and responses between firms competing for different customers. T/F
It is true that entrepreneurial competitive dynamics refers to a cycle of actions and responses between firms competing for different customers.
Companies can utilize PESTLE and Porter's Five Forces as tools to strengthen their market competitiveness. Porter's 5 Forces analyzes the balance of power in a market. PESTLE explores the potential effects that various macro-environmental conditions may have on an organization and its ability to compete.
In order to determine a company's strengths and weaknesses, Porter's 5 Forces analyzes the five factors that contribute to its competitiveness.
PESTLE is a method for analysis that shows how various elements may influence an organization and its ability to compete.
According to Porter's 5 Forces model, there is competition, new industry entrants, supplier and buyer power, and the danger of replacement goods and services.
PESTLE looks at environmental, political, economic, social, technical, and legal aspects.
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True 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#SPJ4gerry 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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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 ...
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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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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which of the following would most likely result if the federal government increased spending without increasing tax revenues during a period of full employment? group of answer choices a recession a decrease in interest rates an increase in the price level a decrease in the national debt
In a situation when there is full employment in the economy and the government raises expenditure without boosting tax collection, prices for goods and services will rise.
What happens when the amount spent by the government rises?Government spending boosts overall demand, which drives up prices. More output is prompted by increased pricing, in accordance with the law of supply. More jobs are created in order to do this. Demand growth results in reduced unemployment rates and higher output.
What occurs when governments spend excessively?Overspending by the government results in budget deficits and imbalances. Overspending by the government has drawbacks including higher interest rates, a lack of national savings, and a default risk.
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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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In March, a US investor instructs a broker to sell one July put option contract on a stock. The stock price is $42 and the strike price is $40. The option price is $3. Explain what the investor has agreed to. Under what circumstances will the trade prove to be profitable? What are the risks?
A put option is a right for the option buyer to sell the underlying share to the option seller at the strike price on the date of maturity of the option. In the given case, the investor has sold one July put option with a strike price of $40.
This means that the option buyer can sell the underlying stock to the option-selling investor at the time of the expiry of the options contract in July $40. This is what the selling investor has agreed to. In lieu of taking this risk, the option seller gets an option premium which is $3 in this case.
The option buyer will exercise the option obviously only if the stock price at the time of expiry is below $40 (If the price stays higher than $40, he would prefer to sell directly in the market). The trade will be profitable if, at the time of the expiry of the option in July, the stock price remains above 37. This is because the revenue of the option sellers from the trade is $3. So, if his costs remain below $3, the trade stands profitable for him. If the price goes below $37, the option buyer will sell the stock to him for $40 which will have a market value of less than $37 and his loss would go higher than $3, thus resulting in a net loss to him.
Selling options is a high-risk game. This is because the return is limited and can maximum be equal to the option premium. However, the risk is unlimited depending on the movement of stock price. For e.g.: if in the given case, the stock price falls to $20 by the time of expiry in July, the option buyer would exercise the option by selling the share to him for $40 and the investor's loss would be $20 (I.e. $40-$20) against the premium earned of $3.
Therefore, the risks involved are significant financial losses against the limited returns available. Since the risk-reward scenarios are not too promising, these trades are only successful overall when the odds of their success are very high.
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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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