The bank is holding no excess reserves given the required reserve ratio of 8%, as its total reserves of $40 are just enough to cover the required reserves of $20.8.
To find the level of excess reserves, we first need to calculate the required reserves for this bank. The required reserve ratio is given as 8%, so we can calculate the required reserves as:
Required Reserves = Deposits x Required Reserve Ratio
Required Reserves = 260 x 0.08
Required Reserves = 20.8
Next, we can calculate the total reserves that the bank is holding, which includes both required and excess reserves:
Total Reserves = Reserves + Excess Reserves
Total Reserves = 40 + Excess Reserves
Since the total reserves must be equal to or greater than the required reserves, we can set up the following equation:
Total Reserves >= Required Reserves
40 + Excess Reserves >= 20.8
Solving for Excess Reserves, we get:
Excess Reserves >= 20.8 - 40
Excess Reserves >= -19.2
Since the level of excess reserves cannot be negative, we know that the bank is holding no excess reserves in this scenario.
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Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,028 and Number 5893 for $494. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.
Date Description Withdrawals Deposits Balance
September 1 $ 16,800
September 3 Check #5888 $ 1,028 $ 15,772
September 4 Check #5902 $ 719 $ 15,053
September 5 Cash deposit $ 1,103 $ 16,156
September 7 Check #5901 $ 1,824 $ 14,332
September 12 Cash deposit $ 2,226 $ 16,558
September 17 NSF check $ 600 $ 15,958
September 20 Check #5905 $ 937 $ 15,021
September 21 Cash deposit $ 4,093 $ 19,114
September 22 Check #5903 $ 399 $ 18,715
September 22 Check #5904 $ 2,090 $ 16,625
September 25 Cash deposit $ 2,351 $ 18,976
September 28 Check #5907 $ 213 $ 18,763
September 29 Check #5909 $ 1,807 $ 16,956
September 30 Collected note $ 1,485 $ 18,441
September 30 Interest earned $ 12 $ 18,453
From Chavez Company’s Accounting Records
Cash Receipts Deposited
Date Cash Debit
September 5 1,103
September 12 2,226
September 21 4,093
September 25 2,351
September 30 1,682
11,455
Cash Payments
Check Number Cash Credit
5901 1,824
5902 719
5903 399
5904 2,060
5905 937
5906 982
5907 213
5908 388
5909 1,807
9,329
Cash Account Number 101
Date Explanation PR Debit Credit Balance
August 31 Balance 15,278
September 30 Total receipts R12 11,455 26,733
September 30 Total payments D23 9,329 17,404
Additional Information
(a) Check Number 5904 is correctly drawn for $2,090 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,060.
(b) The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company.
(c) The collection of the note on September 30 is not yet recorded by the company.
The changed bank balance and changed total per book is $18271.45 ,which is $18901.70 minus $630.25
How would you track down the changed equilibrium?The changed equilibrium strategy for working out your money charge utilizes the past equilibrium from the finish of your last charging cycle and deducts any installments and credits made during the ongoing charging cycle.
The bank compromise articulation for Chavez Company for the month finished September 30, 2017 will be determined hence:
Book balance is $18453.25.
Add: Store on the way = $1682.75 .
Total = $20136.00 .
Less: 5893 outstanding checks equals $494.25.
5906 = $982.30 .
5908 = $388.00 .
Total = $1864.55 .
The adjusted bank balance is $18271.45, or $20136.00 minus $1864.55.
The book balance is $17404.20.
Add: Premium procured = $12.50 .
Add: Continues at least $15 = $1485.00 .
All out = $18901.70
Less: Check from NSF: $600.25
Error 5904 = $30.00 in check recording.
Total = $630.25 .
The adjusted balance per book is $18271.45, or $18901.70 divided by $630.25.
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Exercise 11-11 Capitalizing interest (LO 11-2)
Kobe Company began constructing a building for its own use in February 20X1. During 20X1, Kobe incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 20X1 was $60,000.
Required:
1a. What amount of interest should Kobe capitalize?
1b. Prepare the journal entry to record payment of the interest.
2. If interest computed on the weighted-average amount of accumulated expenditures for the building during 20X1 was instead $90,000, what amount of interest should Kobe capitalize?
1a. Kobe should capitalize $60,000 of interest.
1b. The journal entry to record payment of the interest would be:
Interest Expense 60,000 and Interest Payable 60,000
2. Kobe should still capitalize $70,000 of interest.
What is an interest?
1a. The amount of interest that Kobe should capitalize is the lesser of the actual interest incurred on the specific construction debt, which is $70,000, and the amount of interest computed on the weighted-average amount of accumulated expenditures, which is $60,000. Therefore, Kobe should capitalize $60,000 of interest.
1b. The journal entry to record payment of the interest would be:
Interest Expense 60,000
Interest Payable 60,000
2. If interest computed on the weighted-average amount of accumulated expenditures for the building during 20X1 was instead $90,000, Kobe would still only capitalize the lesser of the actual interest incurred on the specific construction debt, which is $70,000, and the amount of interest computed on the weighted-average amount of accumulated expenditures, which is $90,000. Therefore, Kobe should still capitalize $70,000 of interest.
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The Internet may not make corporations obsolete, but the corporations will have to change their business models. Do you agree? Why or why not?
Can Uber Be the Uber of Everything
ADD REFRENCE AT END
Answer:
I agree that the Internet has already brought significant changes to the business landscape, and corporations must adapt their business models to stay competitive and relevant in the digital age. While the Internet has not made corporations obsolete, it has disrupted traditional business models and forced companies to rethink how they interact with customers, distribute products and services, and compete in the global market.
The rise of the Internet and e-commerce has made it easier for consumers to access a wider range of products and services from anywhere in the world, which has increased competition and put pressure on corporations to adapt. Companies that have been slow to adopt new technologies and embrace the digital economy have been left behind, while those that have embraced new models and ways of doing business have thrived.
For example, companies like Amazon, Netflix, and Airbnb have disrupted traditional business models by leveraging the power of the Internet to create new and innovative business models. These companies have redefined how products and services are distributed and consumed, and have created new opportunities for consumers and businesses alike.
However, the challenge for corporations is not just about adapting to new technologies, but also about changing their mindset and culture to embrace innovation and agility. This requires a willingness to experiment, take risks, and invest in new ideas and technologies that may not have an immediate payoff but are necessary for long-term success.
Uber has become one of the most successful and recognizable brands in the world, with its ride-hailing service operating in hundreds of cities around the globe. However, the question of whether Uber can become the Uber of everything is a complex one that depends on several factors.
On the one hand, Uber has already expanded beyond ride-hailing with the introduction of Uber Eats and Uber Freight, which offer food delivery and freight shipping services, respectively. These services have been successful in their own right, and there is potential for Uber to continue to expand into other areas where on-demand services are in demand.
However, the challenge for Uber is that not all industries are the same, and different industries have different regulations, customer needs, and competitive landscapes. While Uber has been able to disrupt the traditional taxi industry with its ride-hailing service, it may not be as successful in other industries where entrenched players have a strong foothold.
Moreover, Uber's brand may not be as applicable to other industries as it is to ride-hailing. While "Uber" has become synonymous with on-demand services, it may not carry the same weight in other industries where trust, reliability, and quality are the most important factors.
In conclusion, while Uber has already expanded beyond ride-hailing and has the potential to continue to do so, it is unlikely that it can become the Uber of everything. Different industries have different needs, and there may be other players who are better positioned to provide on-demand services in those industries. However, Uber can still leverage its brand, technology, and expertise to expand into new markets and provide innovative solutions to customers' needs.
Explanation:
Income tax is calculated based on:
O A. gross income.
O B. net income minus profits.
о C. net income minus deductions.
D. gross income minus deductions.
Income tax is calculated based on: C. net income minus deductions.
How is income tax calculated?Income tax is calculated based on the net income of an individual or entity, which is the income after deducting allowable deductions from the gross income. Deductions are expenses or exemptions that are allowed by tax laws to reduce the taxable income, and they can include items such as business expenses, charitable donations, and certain personal expenses.
The net income, which is the remaining income after deductions, is then subject to the applicable tax rates according to the tax bracket of the taxpayer. Therefore, option C, "net income minus deductions," is the correct statement for how income tax is calculated.
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Draft an individual investment policy statement as a guide to your future investment planning. What will be the advantages of having an investment policy statement?
Your financial future is guided by a strong IPS. An investment policy statement can be a crucial and practical tool since it establishes the basis for a client-financial adviser relationship and offers a clear course of action. The IPS information includes information on the advisor's decision-making process.
What exactly is an investment policy statement?It is a contract between a client and a financial advisor stating how the advisor will help the client achieve their financial objectives. It needs to be customized based on the client's unique financial and investment information as well as the financial advisor's fees. Financial advisors use an Investment Policy Statement or IPS as a strategic document to lay forth principles that can help launch and manage a client's investment program.
A summary of investment policy statement
John Alberto, a 65-year-old individual investor
Individual, Taxable Portfolio
Condition: California
ID tax: xxx-xx-xxxx
$75,000 in current assets
Return Target: 8%
Worst-case scenario annual loss cap: 12–15%
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1.a) True or False: A firm is in the value destroying stage whenROIC < WACCb) True or False: ROIC and size are not correlated
If the ROIC is less than the WACC, it means that the company is not generating sufficient returns on its invested capital, and is effectively destroying value for its shareholders.
In some industries, such as manufacturing or retail, larger companies may benefit from economies of scale, which can lead to higher ROIC. In other industries, such as technology or biotech, smaller companies may have a competitive advantage due to greater flexibility and innovation, which can also lead to higher ROIC.
However, there is no clear or consistent relationship between ROIC and company size, and other factors such as industry structure and competitive position may play a more significant role in determining a company's ROIC.
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1.Below is a demand schedule facing an individual firm. Complete the table by computing average revenue, total revenue, and marginal revenue. Then answer the following two questions: (a) How can you tell whether a firm is operating in a market that is purely competitive? (b) What relationship exists between average revenue and marginal revenue? (6 marks)
Quantity Average Total Marginal
Price demanded revenue revenue revenue
$30 0 $_____ $_____ –––
30 1 _____ _____ $_____
30 2 _____ _____ _____
30 3 _____ _____ _____
30 4 _____ _____ _____
30 5 _____ _____ _____
30 6 _____ _____ _____
A) You can tell whether a firm is operating in a market that is purely competitive if the average revenue is equal to the price of the good or service being sold.
What is firm?Firm is an economic organization that produces and distributes goods, services, or both, to consumers. It is a business entity, typically owned and operated by one or more people, which provides the capital and resources for the production, acquisition, and distribution of goods, services, and other resources. Firms can range in size from sole proprietorships to large multinational corporations. A firm's success depends upon its ability to manage resources effectively and efficiently in order to achieve a desired level of profitability.
(b) The relationship between average revenue and marginal revenue is that they are both equal at the point of perfect competition.
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Which of the following characteristics typically makes a training module more effective for an employee?
a) It is tailored to the specific needs of the employee and focuses on realistic situations that employees’ face in their daily roles
b) It focuses on presenting abstract concepts to employees rather than getting into details about practical applications in their jobs
c) It is at a large, attractive venue where lots of people can sit and listen to a well-known speaker it at the same time
Option (a) It is tailored to the specific needs of the employee and focuses on realistic situations that employees face in their daily roles is the characteristic that typically makes a training module more effective for an employee. An organization will undoubtedly attract better talent and sustain itself if it develops its employees' talents and considers its expansion.
How do training programs in an organization benefit the employees?In order to increase an employee's performance and productivity in their present company or work role, employee training and development is a program that teaches them a specific skill as well as knowledge. It enhanced present performance and supported increased employee development. Also, it aids the firm in avoiding the expenditures associated with losing talent.
More staff can be retained by businesses with effective training and development programs, which also increase profitability and boost employee engagement. In addition to assisting an employee's progress, training and development also encourages business growth. Also, it aids in letting workers know that they are appreciated by the company. Employee development, however, has a wider focus. It is a sustained endeavor that is concerned with a person's growth.
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Explain with examples, why the study of macroeconomics is important to an undergraduate student of Economics in Nigeria.
Use the information below to answer questions 7-10 Mandated Company Ltd has established the following inventory levels for his manufacturing establishment: Normal usage Minimum usage Maximum usage Economic Order Quantity (EOQ) Delivery period 7. What is the re-order level? 20,000 units /day 12,000 units /day 26,000 units /day 100,000 units 26-30 days
The re-order level can be calculated by adding delivery period to the time it takes to receive an order. Therefore, the re-order level is 806,000 units.
What is re-order level?Re-order level is a term used in inventory management that refers to the minimum quantity of a product that a business needs to have on hand before placing a new order. It is also known as the reorder point or the minimum stock level. The purpose of setting a re-order level is to ensure that a business never runs out of stock, which could lead to lost sales and unhappy customers. The re-order level is determined by considering various factors such as lead time, demand variability, and safety stock. It is calculated by subtracting the lead time demand from the desired service level and adding the safety stock. By setting a re-order level, businesses can optimize their inventory management, reduce the risk of stockouts, and ensure they always have enough product to meet customer demand.
Re-order level = Maximum usage × (Delivery period + Time to receive an order) - Minimum usage
Re-order level = 26,000 units/day × (28 days + 5 days) - 12,000 units/day
Re-order level = 26,000 units/day × 33 days - 12,000 units/day
Re-order level = 818,000 units - 12,000 units/day
Re-order level = 806,000 units
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The sovereign rating for Vietnam is B2 (with a default spread of 5%), the standard deviation in the Vietnamese equity index is 30% and the standard deviation in the Vietnamese government bond is 24%. If the premium for a mature market (say, the US) is 5.5%, estimate the total equity risk premium for Vietnam.
Answer:
The total equity risk premium for Vietnam was 11.13 as of January 1st, 2023 according to Damodaran Online. The total equity risk premium starts with a mature market premium and adds a country risk premium based on the risk of the country in question. The country risk premium for Vietnam is estimated to be 5%.
Given that the premium for a mature market (say, the US) is 5.5%, we can estimate the total equity risk premium for Vietnam as follows:
Total Equity Risk Premium = Mature Market Premium + Country Risk Premium Total Equity Risk Premium = 5.5% + 5% Total Equity Risk Premium = 10.5%
Therefore, the estimated total equity risk premium for Vietnam is 10.5%.
I hope this helps!
Explanation:
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Scarcity exists when there are,
resources to meet unlimited needs and wants. Because of
, we must make choices about how to use resources. All the options for using resources that are not
Marginal means using one
"is the next-best alternative for the use of resources.
v unit of a resource.
This concept of scarcity, choice, and opportunity cost is fundamental to economics and helps us understand how resources are allocated in a world of limited availability and unlimited demand.
What is Scarcity for the question context?Scarcity exists when there are limited resources to meet unlimited needs and wants. Because of this limitation, we must make choices about how to use resources effectively. All the options for using resources that are not chosen are referred to as the opportunity cost.
What is Marginal for the question context?Marginal refers to using one additional unit of a resource, and the opportunity cost is the next-best alternative for the use of resources. In other words, when we choose to allocate resources towards one particular use, the opportunity cost is the value of the next-best alternative foregone.
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What is the difference between a future taxable amount and a future deductible amount? And does this affect the beginning balances of deferred tax asset and deferred tax liability?
A future taxable amount is an amount of income that is expected to be subject to taxation in the future, while a future deductible amount is an expense that is expected to be deductible from taxable income in the future.
What is taxable amount?Taxable amount is the total amount of income or profit that is subject to taxation. It is the amount of money that an individual or business must pay taxes on after deductions and exemptions have been taken into account. Taxable amount is calculated by subtracting the deductions and exemptions from the total amount of income or profit. This amount can be calculated on an individual basis or on a business basis. Depending on the jurisdiction, the taxes may be imposed at different rates and be collected by different levels of government.
This does affect the beginning balances of deferred tax asset and deferred tax liability. A deferred tax asset is created when a future deductible amount is expected to exceed a future taxable amount, resulting in an estimated future tax benefit. Conversely, a deferred tax liability is created when a future taxable amount is expected to exceed a future deductible amount, resulting in an estimated future tax expense.
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Question 12 (4 points)
A country's trade balance will fall if either
investment or saving rise.
investment falls or saving rises.
Saving falls or investment rises.
investment or saving fall.
The only response that accurately predicts when a nation's trade balance would decline is "Savings decreases or investment rises."
The concept of rise in investmentThe trade balance is the difference between a country's exports and imports of goods and services. If a country's exports exceed its imports, it has a trade surplus, and if its imports exceed its exports, it has a trade deficit.
Investment and saving are two important macroeconomic variables that can affect a country's trade balance. Investment refers to the amount of money that businesses and governments spend on capital goods, such as machinery, buildings, and infrastructure. Saving, on the other hand, refers to the portion of income that households and businesses do not spend and instead put into savings accounts or invest in financial assets.
If investment rises, businesses and governments are buying more capital goods, which can increase production and exports. Similarly, if saving falls, households and businesses are spending more money on consumption, which can increase imports. Both of these scenarios can lead to a trade deficit.
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It has been said that most systems fail because system builders ignore organizational behavior problems. Why might this be so? Add refrence
organizational behavior problems
Organizational behaviour issues may be overlooked by system builders for a number of reasons, which can ultimately result in system failure.
What do you mean by Organizational behaviour ?One factor that contributes to this is that some system developers are only concerned with the technical components of a system and may lack knowledge or experience about how human behaviour affects the system.
A mismatch in understanding the organisational needs and potential behavioural difficulties may also result from a lack of interaction and cooperation between both the system developers and also the organization's stakeholders, particularly employees and management.
Organizational behaviour concerns may also be unreported since they are sometimes more challenging to recognise and resolve than technological problems. Complex human connections and cultural norms can play a role in problems with organisational behaviour.
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Business Plan
Type questions and answers. Answers must thorough and in complete sentences.
Please answer I’m so confused??
The three types of business plans are:
Startup Business Plan: This type of plan is used by entrepreneurs who are starting a new business.
Strategic Business Plan: A strategic business plan is designed for existing businesses that want to set a clear direction for growth and expansion.
Operational Business Plan: An operational business plan is used to guide day-to-day operations and management decisions.
What does a Business plan means?A business plan is a written document that describes in detail how a business will achieve its goals and objectives. It typically includes information on the company's products or services, target market, marketing strategy, financial projections, and other critical details that are essential to the success of the business.
A business plan is often used to secure funding from investors or lenders, but it can also serve as a roadmap for the company's growth and development.
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how does inflation impact different institution? (households/ firms/ manufacture
Inflation can have a significant impact on the economy and different institutions within it. It is important for policymakers to manage inflation and maintain stable prices to promote economic growth and stability.
Inflation can impact households, firms, and manufacturers in different ways: Households: Inflation can reduce the purchasing power of households' incomes. As prices rise, households may have to spend more money to buy the same amount of goods and services, leading to a decrease in their standard of living. Inflation can also reduce the value of savings and fixed-income investments, such as bonds, as their real returns may not keep up with inflation.
Firms: Inflation can increase the cost of inputs, such as raw materials, labor, and energy, which can reduce profit margins. Firms may pass on these increased costs to consumers in the form of higher prices, leading to a decrease in demand for their products. Inflation can also lead to uncertainty in the economy, making it difficult for firms to plan and invest for the future.
Manufacturers: Inflation can increase the cost of production, which can reduce profit margins for manufacturers. Higher inflation can also lead to higher interest rates, which can make it more expensive for manufacturers to borrow money to finance new investments or expansion. Inflation can also lead to changes in the exchange rate, which can impact manufacturers' competitiveness in the global market.
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tanya is a financial analyst in RTE telecom as part of her analysis of the annual distribution policy and its impact of the firm's value
She makes the following calculations and observations
the company generated a free cash flow
The impact of the annual distribution policy on RTE Telecom's firm value was an increase from the original value of $250,000,000 ($50 * 5,000,000) to $242,500,000 after accounting for dividends and stock repurchases.
How to solveFirst, calculate the total earnings:
Total Earnings = EPS * Outstanding Shares
Total Earnings = $2.5 * 5,000,000
Total Earnings = $12,500,000
Next, calculate the total amount distributed as dividends:
Dividends = 40% of Total Earnings
Dividends = 0.4 * $12,500,000
Dividends = $5,000,000
Then, calculate the total amount used for stock repurchases:
Stock Repurchases = 60% of Total Earnings
Stock Repurchases = 0.6 * $12,500,000
Stock Repurchases = $7,500,000
Now, calculate the number of shares repurchased:
Number of Shares Repurchased = Stock Repurchases / Stock Price
Number of Shares Repurchased = $7,500,000 / $50
Number of Shares Repurchased = 150,000
Finally, calculate the new number of outstanding shares and the new firm value:
New Outstanding Shares = Original Outstanding Shares - Number of Shares Repurchased
New Outstanding Shares = 5,000,000 - 150,000
New Outstanding Shares = 4,850,000
New Firm Value = New Outstanding Shares * Stock Price
New Firm Value = 4,850,000 * $50
New Firm Value = $242,500,000
The impact of the annual distribution policy on RTE Telecom's firm value was an increase from the original value of $250,000,000 ($50 * 5,000,000) to $242,500,000 after accounting for dividends and stock repurchases.
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Tanya, a financial analyst at RTE Telecom, is analyzing the company's annual distribution policy and its impact on the firm's value. She gathers data on the company's dividends and stock repurchases for the past year and compares it with the firm's free cash flow, earnings per share, and stock price. She notices that the firm distributed 40% of its earnings as dividends and the remaining 60% as stock repurchases. The firm's free cash flow for the past year was $10 million, and there are 5 million outstanding shares. The earnings per share (EPS) for the past year was $2.5, and the stock price is currently $50 per share.
What was the impact of the annual distribution policy on RTE Telecom's firm value, considering its dividends and stock repurchases?
Step 1: Explore
Visit the website for Grubhub, grubhub.com, or another similar food delivery service website.
Step 2: Research and Reflect
Research Grubhub or a similar company’s website and the social media platforms where they have a presence. Explore and take note of their online presence. Observe how their online presence may change as current trends drive changes in the company.
Based on their online presence, answer the following questions:
Which of the entrepreneurship trends that you learned about in the unit were you able to find evidence for in this company’s online presence, if any? Which one do you think is most important and why?
How do you think changes and trends in this industry influenced the creation of this company and how it currently operates? Explain.
Which social media platform do you think is most impactful for their business? How are they using it to enhance the customer experience? Provide examples.
If you were working for this company, which entrepreneurship trend or new enterprise idea (not currently in evidence) would you introduce? How would you use it, and why? How do current changes and trends currently play a role in your suggestions? Explain.
Please create your case study in a word processing document and submit this along with any additional resources that you used to complete the activity. Refer to the rubric below for more information on how you will be graded.
Communities' hubs are their restaurants. Our goal is to expand their connections, deepen their roots, and broaden the beneficial effects they have on individuals and society.
How does Grub Hub benefit my company?It's simple for businesses to order meals for staff, clients, business meetings, and more using a Grub hub Corporate Account. By providing a line of credit, you can reduce costs by only paying for meals that are actually ordered.
Which is better, Grub hub or Doodahs?Driver Pay on Grub Hub. What you can make delivering orders ultimately determines which food delivery app is better for drivers. While Doodahs doesn't disclose pay rates, there are methods for drivers to make extra money on particular types of orders, and it is reported that Grub Hub drivers can make up to $23 per hour.
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On Gothic cathedrals, there are often waterspouts sculpted from stone that extend out from the building and may have a scary appearance. What are these structures called?
A.
apses
B.
gargoyles
C.
ribbed vaults
D.
flying buttresses
Answer:
These tructures are simply called, gargoyles
State the minimum monthly income, an hourly wage per hour, needed to cover monthly expenses for the family used in part a and explain how to calculate the hourly wage based on the monthly income and state the hourly wage. assume that each full-time worker works four 40 hour work weeks per month and each part time worker works two 40 hour weeks per month.
Divide wages by using hours and that is your hourly rate. If you work longer hours at positive times of the month, then track your time for a month, and divide your annual pay by way of 12.
How do you calculate hourly charge from monthly income?Get the hours per months = Hours in Year ÷ 12 (months) Get Hourly Pay = Monthly Salary ÷ Hours Per Month.
Daily fee of pay for a monthly-rated employee is calculated the usage of the formulation below: Regular Days Rate of pay = Employee's Monthly Rate of pay / 26 days.
The ADW calculated is the price of pay mirrored in the system. This is the formula used: Total Wage (for the applicable period) / Number of Days (same relevant period)
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https://brainly.com/question/27280083#SPJ1Step 1: Understanding the Situation
In Unit 3, you read a little bit about Rhonda, a woman who runs a small website development business that has annual revenues of about $500,000. You learned that Rhonda pays herself an annual salary of about $100,000.
While Rhonda’s business is doing pretty well and allows her to live comfortably, she has encountered a problem—she doesn’t know how to grow the business at this point.
Rhonda has been considering hiring some new salespeople to find more customers because her current staff have the availability to take on more work. However, hiring more salespeople is expensive and the cost would come out of what Rhonda pays herself. On the other hand, it could eventually lead to more business in the future and a higher salary for herself in the long run.
Step 2: Working through the Process
Rhonda is facing a complex situation and needs help figuring out what to do. Imagine that she hires you to help her tackle this challenge and make the right decision.
You will use the steps of a rational decision-making process to explore, evaluate, and ultimately offer Rhonda your professional opinion on how she should handle the situation.
For the purposes of this activity, you should list all seven steps in the rational decision-making process and provide an evaluation of the situation according to each step. For example, for Step #1: Defining the Problem, you would do exactly that. Briefly explain and define the problem that Rhonda is facing and trying to solve.
For the last few steps of the process, testing the solution and implementing it, you will obviously not be able to actually do this but you should hypothesize what these steps might look like if this were happening in real life. Furthermore, some of the steps may require only a 1-paragraph explanation while others may require 2–3 paragraphs. Please make sure to fully and comprehensively explore each step; if you do this, then whatever the length each answer is will be appropriate.
Step 3: Reflecting
Once you have completed all steps in the process, please compose 2–3 paragraphs reflecting on how and why rational decision making is essential to running a successful business.
Please refer to the rubric below for more information on how you will be graded.
The steps are:
Defining the ProblemIdentifying AlternativesWeighing the AlternativesWhat is rubric?A rubric is a tool used to evaluate a student's performance on a specific task. It is typically a grid or chart that grades a student's work on a scale from excellent to poor. Rubrics are used to provide a clear and consistent set of criteria for assessing a student's work.
Step 1: Defining the Problem. Rhonda is facing the challenge of how to grow her business. She is considering hiring additional salespeople to increase her customer base. But she is concerned about the cost of hiring additional staff and the fact that it may take some time for the investment to pay off.
Step 2: Identifying Alternatives
Rhonda has two main alternatives: she can hire additional salespeople or she can continue to operate the business as-is. Alternatively, keeping the business as-is may be less risky, but it may also prevent her from growing the business and increasing her profits.
Step 3: Weighing the Alternatives
Rhonda needs to weigh the pros and cons of both alternatives. If she hires additional salespeople, she will likely be able to bring in more customers and revenue in the long run, but she will have to sacrifice some of her own salary.
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