depression complicates treatment adherence and medical decision making and also interferes with patients adopting a managerial role enhanced risk of mortality from several chronic diseases.
What does a depression medical management program entail?The objectives of the Depression Disease Management Program are to help people achieve recovery, to promote self-empowerment in managing one's illness, to increase adherence to treatment, to decrease the incidence of relapse, treatment failure, ER visits, and re-hospitalizations, and to prevent tragic losses.
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what type of organizations benefit from a savings in pension benefits when switching from a defined-benefit plan to cash balance plans? group of answer choices organizations with many retired employees organizations with highly skilled, young employees organizations with many experienced employees organizations with many young employees organizations with a few skilled employees
An employee is guaranteed an employer contribution from a cash balance plan, a kind of defined benefit pension plan, equivalent to a percentage of annual earnings.
What advantages do businesses that choose to use pension funds get?A pension fund is regarded by the IRS as a qualified retirement plan and is eligible for tax deductions for contributions. The IRS provides a tax deduction for donations made to a qualified plan in order to promote retirement savings.
Who is helped by a pension plan?An employee benefit known as a pension plan requires the company to make regular contributions to a fund that is put aside to pay eligible employees after they retire.
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garden variety flower shop uses 187.5 clay pots a week. annual carrying costs are $0.60 per pot per year. ordering costs are $20 per order. lead time is 2 weeks. the store operates 48 weeks per year. how much should the store order at one time?
The store should order 745 clay pots at one time. The Economic Order Quantity is 745.
What is Economic Order Quantity?The optimal number of units to buy to satisfy demand while reducing inventory expenses including holding costs, stock outs, and order costs is known as the economic order quantity (EOQ).
Economic order quantity is a formula used by businesses to determine the ideal order amount in an effort to reduce the expenses associated with logistics, warehouse space, stock outs, and overstocks. The EOQ model's objective is to establish the ideal quantities you ought to have.
Given,
Weekly Demand (d) = 187.5 clay pots
Annual demand (D) = 187.5*8
= 9000
Ordering cost (S) = $20
Carrying Cost (H) = $0.60 per pot
[tex]EOQ=\sqrt{\frac{(2\times D\times S)}{H} }[/tex]
[tex]EOQ=\sqrt{\frac{(2\times 9000\times 20)}{0.60} }[/tex]
[tex]EOQ=\sqrt{\frac{360000}{0.60} }[/tex]
EOQ = 774.6≈775
Therefore, the store should order 745 clay pots at one time.
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management at microsoft is considering a new tablet product line that requires expertise that the current engineering group does not have. as a result, the engineering group sees management as a threat. such perceptions of management as the enemy can lead to
As a result, the engineering group sees management as a threat. Such perceptions of management as the enemy can lead to disruption in achieving goals.
The psychology of the company's executives affects disruption. Leadership will be rewarded if they can spot a chance for disruption and act quickly to counteract another disruptive company.
Enhanced agility. The tech firms that pioneered the disruption trend have a reputation for being adaptable, innovative, and agile. They are more future-ready because they have flat organizational structures and less hierarchy. Companies that adopt the disruption ethos will gain similar advantages.More potential for development You'll probably notice growth opportunities when you're keeping an eye out for disruption. These new sales channels, markets, or products may not be truly disruptive innovations, but they can still help you scale your business and increase revenue.Learn more about Business, here
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an investment that cost $30,000 provided annual cash inflows of $9,000 per year for five years. the desired rate of return is 10%. the internal rate of return from the investment is: (pv of $1 and pva of $1)
The internal rate of return from the investment is Greater than the desired rate of return.
A higher IRR means a higher go back on investment. Within the international of industrial real property, as an example, an IRR of 20% could be taken into consideration right, however it's important to take into account that it's always related to the value of capital.
Commonly, the better the IRR, the higher. However, a employer may additionally opt for a project with a lower IRR, as lengthy because it still exceeds the price of capital, because it has different intangible advantages, which include contributing to a larger strategic plan or impeding competition.
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you are working with team members to complete a project for school. person 1 has not been as active as they could during the brainstorming process. about one week into the project, person 1 suggests an alternative way to complete a task. you are confident this new approach would be counterproductive. how do you respond to person 1's request?
Let Person 1 know that he is not doing his share and communicate that you are willing to switch tasks or organize the work differently. Perhaps he just needs moral support or a different task.
- The choice that was just suggested fits the situation.
1. Describe the issue you wish to fix.
It could be simpler to say than to do. Keeney recounts a PhD student who is struggling to find an adviser and a topic for their dissertation. The pupil fumbles for ideas and expresses them as negatives rather than positives, with just the haziest notion of a purpose. It's "not intriguing to me," "it seems too hard," "it seems like it would take too much time," and "I don't believe I could accomplish it."
2. Determine a potential solution's goals.
The German energy company hired Keeney to perform these services, and he has also performed these services for a number of government organizations, including the Department of Homeland Security and the Energy Department.
3. Attempt to come up with individual answers.
Organizations should urge that employees first try to come up with their own answers before starting a collective brainstorming session.
4. Once you have a clear understanding of your issues, your goals, and your unique solutions, work as a group.
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if a supervisor acts in an aggressive, disrespectful way toward employees, how are the employees likely to respond? (choose every correct answer.)
The excellent way to cope up with such personnel is to remain calm and have patience.
What non-public competencies will assist you maintain Patience when you do that?Listening skills, empathy, emotional intelligence- knowing why the character is difficult, makes it simpler to empathize. They require constant effort; they do no longer occur quickly.
What are the 3 strategies of self-control?Monitoring, standards, and strength are the three main aspects of self-control. All the willpower methods involve at least one of these elements and try to create the motivation wished for controlling one's behaviors.
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https://brainly.com/question/10704882#SPJ4An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after a(n) ______ audit.
An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after an indepenfent audit.
What is independent audit?
An independent audit can be described as the examination of the financial records, as well as the accounts, business transactions, accounting practices, as well as the internal controls of a charitable nonprofit by an "independent" auditor.
It should be noted that the evaluation and unbiased opinion of the accuracy of a firm's financial statements is oner od the thing that can be associated to the indepenfent audit.
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clabber company has bonds outstanding with a par value of $117,000 and a carrying value of $107,500. if the company calls these bonds at a price of $103,500, the gain or loss on retirement is: multiple choice $13,500 loss. $9,500 loss. $9,500 gain. $4,000 gain. $4,000 loss.
$4,000 gain on the cancellation of securities (bonds) on retirement.
What is gain or loss on retirement?A security's (bond's) carrying value (CV) is the net value of the bond after deducting the discount or adding the premium on the par value. This will be taken into account when calculating gains on securities retirement (bonds). The issuer recognises a loss on retirement if the price paid to retire a bond is greater than the carrying amount of bonds. However, if the price paid is less than the carrying amount of the bonds at the time of retirement, the issuer records a gain on bond retirement.
Calculating the gain on the retirement or cancellation of securities (bonds):
Gain on Bond Retirement = Carrying value of Bond Call price of Bond = $ 107 500 $ 103 500 = $ 4 000.
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what is the price of a treasury strips with a face value of $100 that matures in 8 years and has a yield to maturity of 8.0 percent?
The price is $36.24. The price of a treasury STRIPS is the discounted present value of the face value. In this question, the face value of the bond is $100, and the discount rate is 7%.
U.S. bonds known as Treasury STRIPS are offered at a discount to face value and are fully repaid when they mature.
STRIPS are treasury bonds that trade as separate securities for the principal and coupon payments.
Holders of STRIPS only get the final payment on the maturity date instead of coupon payments.
Only a financial institution or broker may hold STRIPS.
Initially, only bonds with a maturity of more than ten years qualified for STRIPS; however, the program has now been expanded to include additional notes or bonds.
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no person may operate a large civil aircraft of u.s.-registry which is subject to a lease, unless the lessee has mailed a copy of the lease to the faa aircraft registration branch, oklahoma city, ok, within how many hours of its execution?
Within 24 hours of its implementation, to the Aircraft Registration Branch, no person may operate a big civil aircraft with a U.S. registry.
Which document is necessary while flying a civil aircraft registered in the United States?An Aircraft Registration Application, AC Form 8050-1, official ownership documentation, and the current registration cost are needed for this. Online forms and further details can be found at http://registry.faa.gov. Title 14 of the Code of Federal Regulations, Parts 47 and 48, contain regulations regarding aircraft registration.
What documents, as required by this regulation, must be carried on board by all US aircraft?They consist of a weight and balance report, registration certificate, operating restrictions, and airworthiness certificate. FAR 91.203 states that an aircraft must display a valid airworthiness certificate.
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the purpose of heat treating annealed glass (results are tempered or heat-strengthed glass) is to induce permanent compressive stresses in the edges and faces of the glass which makes the glass stronger than annealed glass and more resistant to thermal stress and impact.
True, Heat-treating annealed glass is done to create permanent compressive stresses in the edges.
Heat treatment is the process of heating metal, holding it at that temperature, and then cooling it back down. The mechanical properties of the metal part will change during the process. This is due to the fact that high temperatures change the microstructure of the metal.
Heat-treating metal can soften it and improve its formability. It can make parts harder in order to increase strength. To increase abrasion resistance, it can apply a hard surface to relatively soft components. It can form corrosion-resistant skin to protect parts that would corrode otherwise.
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the cobit framework primarily relates to group of answer choices best practices and effective governance and management of private companies. best practices and effective governance and management of public companies. best practices and effective governance and management of information technology. best practices and effective governance and management of organizational assets.
The COBIT framework places a strong emphasis on regulatory compliance, enables businesses to derive greater value from it.
Which of the following control elements is included in the analysis framework for internal control systems?An internal control structure must be implemented and followed throughout the business in order to accomplish these goals. The control environment, risk assessment, control actions, information and communication, and monitoring are the five elements that make up the internal control framework.
Which one of the aforementioned is an illustration of an IT control structure for IT governance?
While risk response is an important part of the ERM framework, it is not included in the COSO internal control structure.
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trinity needs to write up a report on native wildlife in her texan town for her work at a real estate company. what is her best first step?
Trinity is assigned to produce a presentation on the local animals in her Texan town as part of their job at such a real estate firm. Whatever should she accomplish first She needs to discover her identity.
As mentioned in the beginning of this section, some reports might require additional legal scrutiny. To ensure a professional paper, have a group of individuals review it independently without marking changes, errors, as well as questions along the way.
What tips do you have for writing a progress report Discuss the current work, including that of the people, things, methods, and locations At the beginning of the report, state the latest finish date of the project. Describe the difficulties at hand, but avoid discussing possible issues.
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to compensate for past racial discrimination in housing in an area, a property manager specifically sought to attract non-white tenants. this practice is
To compensate for past racial discrimination in housing in an area, a property manager specifically sought to attract non-white tenants. This practice is unlawful because it violates fair housing laws.
What do you mean by the house discrimination?Housing discrimination occurs when a person who is renting, purchasing, or selling a property is treated differently by someone else because they fit a specific description of a protected class.
A person who is non-White belongs to a group of people whose ancestry is not European. Certain jobs were essentially off-limits to non-White persons.
Federal housing discrimination is when a person is denied the right to rent or own a home because of their race, colour, religion, national origin, sexual orientation (including gender, gender identity, and sexual harassment), familial status, or disability.
Therefore, to compensate for past racial discrimination in housing in an area, a property manager specifically sought to attract non-white tenants. This practice is unlawful because it violates fair housing laws.
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if the fed decides it needs to decrease both the aggregate demand and the money supply, then it will institute:
Answer: It would follow tight monetary policy
Explanation: Hope this was helpful
aubrey is typing a 10 page research paper for her business law class on the branches of the us government. she decides to change the organization of the paper. which view would assist in performing this task?
Aubrey is writing a 10-page research project on the US government's branches for her business law class. She makes the decision to rearrange the paper's structure. This work would be made easier with the aid of outline view.
Business law , often called mercantile law or trade law, is the body of legislation that controls the rights, relationships, and conduct of individuals and businesses engaged in trade, commerce, merchandising, and sales. It is frequently regarded as a subset of civil law because it deals with both private and public law issues. Business law encompasses a variety of topics such as principal and agent, conveyance by land and water, merchant shipping, guarantees, marine, fire, life, and accident insurance, bills of exchange, negotiable instruments, contracts, and partnerships. Most of these categories fall under Financial law, a division of Business law with a focus on financing and financial markets. It can also be regarded to regulate business contracts, hiring practices, and the production
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The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year $ 20,300 33,100 44,200 409,400 312,000 S819,000 $ 59,500 61,400 519,000 106,700 72,400 S819,000 $ 41,700 41,500 95,500 150,500 84,700 S 413,900 $ 95,500 69,900 152,900 29,700 65,900 413,9005 819,00 6131000- S 436,500 (237,500) 162.400) $ 795,000 (400,700) 311,700 $ 82,600 $22.7 45 45% $ 33,700 $ 151,500 BLUE WATER COMPANY PRIME FISH COMPANY Ratio Profitability ratios: Return on equity Return on assets Financial leverage percentage Net profit margin Earnings per share 2. Turnover ratios: Total asset turnover Fixed asset turnover Receivable turnover Inventory turnover 9 Liquidity ratios 10 Current ratio Quick ratio 12. Cash ratio Solvency ratios 13. Debt/equity ratio Market ratios 14 Pricelearnings ratic 15. Dividend yield ratio
Direct expenses, or cost of goods sold (COGS), are subtracted from net sales, which are gross revenues minus returns, allowances, and discounts, to determine the gross profit margin. The gross profit margin ratio is determined by dividing that number by net revenues and then multiplying it by one hundred percent.
The Gross Profit Ratio (GP Ratio) of Blue Water Company is equal to (429,000-235,000)/429,000*100, or 45.22 percent. The Prime Fish Company Go Ratio is equal to (790,000-401,200)/790,000*100, or 49.22 percent.
The income before interest and interest expense divided by the times interest earned ratio is equal to 100 Blue water company = 194,000/163400 = 118.7% Prime fish company = 388,800/312,200 = 124.54%.
Cash coverage ratio is the ratio of cash and cash equivalents to current liabilities. Blue Water Company is 42,200 times 93,000, or 45.37 percent. Prime Fish Company is 19,800 times 34,600, or 57.23%.
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Take a look at the GDP components for the United States in the World Economic Statistics screen (ECST) below. Which GDP component was the biggest contributor at the time that this screen was captured?
Consumer expenses or personal consumption are simply the biggest GDP developer in the United States.
What is the.biggeat contributor to GDP?Consumer spending is the most important component of GDP, accounting for roughly two-thirds of GDP throughout the year. This indicates that consumers' spending decisions are the primary driver of the economy. When you look back in time, you will notice that you have not jumped too far. Rising consumer spending (goods and services) and private domestic investment are the main drivers of this increase, as government spending stagnates, imports outpace exports, and international trade contributes negatively overall.
The United States has the world's largest consumer market economy. Residents in the United States will spend approximately $12.5 trillion on durable and non-durable goods by 2020. That is more than $5 trillion less than the previous year. Consumer spending may not recover until 2022, and given the annual population growth of 2.5 million, the average American is spending the same amount as in 2019.
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you short-sell 200 shares of tuckerton trading co., now selling for $50 per share. what is your maximum possible gain, ignoring transactions cost?
No limit, To achieve a point when your loss is zero, the price of an option must increase to include the fair value in extra the already paid premium (breakeven).
What is the highest possible profit?To achieve a point when your loss is zero, the value of the option must increase to include the market price in extra to the existing premium (breakeven). As a call buyer, you have unlimited potential for profit because there is no increase in price cap.
The maximum gain is the strike price multiplied by the premium minus 100. Paid premium = maximum loss.
How are option gains and losses determined?The money from the sale, if the holder decides to sell the stocks or bonds that just bought at their market price, will also be money she earns. Subtract the amount she spent from the amount she earned to determine her profit or loss. That's all there is to it.
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when price discriminating, a company owner should set price for each customer. no higher than marginal cost at the competitive market equilibrium at or just below the marginal benefit equal to marginal cost
when price discriminating, a company owner should set price for each customer.just below the marginal benefit equal to marginal cost
What can we say about a firm that is perfectly price discriminating?
First-degree discrimination, or perfect price discrimination, occurs when a business charges the maximum possible price for each unit consumed. Because prices vary among units, the firm captures all available consumer surplus for itself or the economic surplus.
What is marginal benefit and marginal cost?
Marginal benefit is the maximum amount of money a consumer is willing to pay for an additional good or service. The consumer's satisfaction tends to decrease as consumption increases. Marginal cost is the change in cost when an additional unit of a good or service is produced.
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when you create a script, you should include the command that sets the particular shell to use on .
Shell scripts are collections of commands that you frequently use. Normally, this process is started by typing the script's name onto the command line.
As an alternative, you can utilise cron-enabled scripts to automate processes. Scripts can also be used in the UNIX start and shutdown process, where init scripts dictate how daemons and services should operate.
Open a brand-new, blank file in your editor to start writing a shell script. Any text editor will work, including vim, emacs, gedit, dtpad, etc. Vim or emacs are two more sophisticated editors that you might want to consider because they can be set up to recognise shell and Bash syntax and can be a huge help in commands.
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cumberland farms, a convenience store chain based in framingham, massachusetts, has a reputation for empowering its employees. in part, the company does this through online apps that allow workers to give input to decisions. if cumberland farms wanted to take other actions to empower its workforce, which of the following should it consider?
The correct answer is adopt a compensation plan that pays employees more when the company meets its goals.
Discuss the company's progress toward achieving its strategic goals on a regular basis, as well as the dangers and weaknesses that provide difficulties. Increase the amount of decisions that employees can make for themselves regarding how they carry out their work without management permission.
Giving your team members the authority to act and make decisions within your company is a key component of empowering your workers. It also implies that there is mutual trust and understanding to guarantee that these behaviors are consistent with corporate objectives. For a business to expand sustainably, employees need to feel empowered.
In fact, research has shown that "when people feel empowered at work, it's related with higher job performance, job satisfaction, and devotion to the firm," according to the Harvard Business Review.
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a broker works on a 50/50 commission split with her firm. if she lists a house at $156,000 for 6% commission and sells it for $154,000, how much will she receive?
The 06 is the full commission amount for a total of $9,240.
A sales fee is a sum of money paid to a worker upon the final touch of a project, normally promoting a sure amount of goods or services. Employers every now and then use sales commissions as incentives to increase employee productivity. A fee can be paid in addition to profits or in place of revenue.
Commission refers to the reimbursement paid to an employee after completing an assignment, which is, often, promoting a sure wide variety of products or services. selling products or services is tough. specialists who're into sales and advertising address hard competition.
A price paid for offerings is generally a percentage of the total price. instance: town Gallery sold Amanda's portrait for $500, Amanda paid them a ten% commission, and so ended up with $450 for the portrait.
.
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which one of the following is a correct statement? group of answer choices exercise of warrants results in more outstanding shares of stock, while exercise of listed call options does not.
The group of answer choices exercise of warrants results in more outstanding shares of stock, while exercise of listed call options does not. D) I only
Because it is true that, Exercise warrants result in more outstanding shares of stock, while the exercise of listed call options does not.
Stock shares are a fixed percentage of ownership. Stock price fluctuations serve as a gauge of investor sentiment. Even though the price of a share may fluctuate over time, you are always paying for the same percentage of ownership.
Types of Stock in Share
The meaning of the word "share" might vary based on the rights that shareholders are granted. Most buyers of common shares will do so through a broker. There are other sorts of shares to take into consideration, though.
The fundamental voting rights and dividend rights of other common stockholders are included with ordinary shares.
In the case of insolvency, preferred shares represent stock with a greater dividend or priority payout and a claim prioritizing assets. They are frequently non-voting shares given to early-stage partners and investors.
Ordinary and preferred shares have more rights than deferred shares, which normally get dividends or liquidation distributions last. After a specific date or when the owner achieves certain criteria, they often convert to ordinary shares.
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explain why a firm's financial statements should be audited. what might happen if audits do not occur? discuss.
Failure to conduct an audit can have serious repercussions.If auditors fail to spot errors in your financial reporting, the issues could become catastrophic and lead to a company's demise.Even if the company survives, unresolved liabilities can accumulate to the point where dealing with them becomes a significant challenge.
Why is it necessary to audit financial statements?
The assurance that financial statements are presented accurately and in accordance with generally accepted accounting principles (GAAP) is the goal of a financial audit, which enables business owners to make confident business decisions.
Why are audits so crucial?
A review is significant as it gives believe ability to a bunch of budget summaries and gives the investors certainty that the records are valid and fair.A company's internal controls and systems may also benefit.
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narton corp has provided the following information for a machine whose limited capacity is prohibiting the company from producing and selling additional units: actual run time this week 4,550 minutes machine time available/week 6,500 minutes actual run time this week 3.8 units per minute ideal run rate 4.0 units per minute defect-free output this week 16,000 units total output this week (including defects) 17,290 units
For a machine whose limited capacity is prohibiting the company from producing and selling additional units, 37.87% is the machine's OEE.
OEE (Overall Equipment Effectiveness) calculation:
OEE= Utilization rate * Efficiency rate * Quality rate. The utilization rate is calculated as follows: Operating time/Scheduled time = 4550/6500*100 = 70%.
The efficiency rate is calculated as follows: (total output*ideal run rate) / Operating time (17290 / 6.5) / 4550 = 2660/4550 = 58.46 percent. Good units produced divided by total units produced gives a quality rating of 16000/17290 or 92.54 percent.
OEE is calculated as follows: 70% * 58.46% * 92.54% = 37.87%.
The overall equipment effectiveness of a manufacturing operation is a measurement of how well it is used in comparison to its full potential during the times when it is scheduled to run. It determines how much of the time spent manufacturing is actually productive.
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mila thinks her boss, elliot, is a very effective leader. when mila is asked whether elliot is collegial and professional with his peers, she says yes, even though she's never actually observed elliot around his peers. this issue is most relevant to which theory of leadership?
Mila thinks her boss, elliot, is a very effective leader even though she's never actually observed Elliot around his peers. This issue is most relevant to implicit-leadership theory.
What are the three main theories of leadership?
The Great Man Theory, the Trait Theory, and the Behavioral Role Theory are three of the most important leadership theories. Because leadership is such a vast idea and term, there are many different viewpoints and theories about it.
Why is the theory of leadership important?Theories of leadership describe how and why particular people develop to be leaders. They place emphasis on the personality traits and behaviors that people might adopt to develop their leadership abilities. Strong moral beliefs and ethics are among the top traits leaders list as necessary for effective leadership.
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flash receives a distribution of long-term capital gain property worth $40,000 (basis to the s corp of $10,000) from the s corporation in which he is a 50% shareholder (never previously a c corporation). flash's basis in the s corporation before the distribution was $52,000. what is flash's basis after the distribution?
Flash's basis in the S corporation after the distribution will be equal to $27000.
Within any organization or firm, there are multiple shareholders of the firm. Each shareholder has a share in the company's profit and even has the say whenever any important decision has to be taken. Flash is also a shareholder in S corporation. Now, at first Flash increases his basis by 50% of the gain on property distribution by S corporation. This is expressed as
Increased basis = (Capital worth - Basis to S corporation) × 50%
Increased basis = ($40000 - $10000) × 0.5
Increased basis = $15000
Now, Flash reduces the basis as
Reduced basis = Basis before distribution + Increased basis - Capital worth
Reduced basis = $52000 + $15000 - $40000
Reduced basis = $27000
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Belinda thinks her company should use a push strategy for its new product line because it needs to educate consumers on how to use the product. How does a push strategy promote products?.
Push strategy promote products through personal selling.
What is personal selling?Personal selling occurs when a salesman meets with a potential client to close a deal. Many salesmen employ a nine-step sequential sales procedure. Some salespeople write scripts for the entire sales process or just a part of it. The sales process is used in both in-person and telemarketing engagements. Around the fourth century BCE, the Socratic philosophers voiced some reservations with the novel sale. Their analysis focused mainly on how selling's more social components would be disrupted. The social perspective that emphasizes the ties that bind society's constituents was fostered by traditional modes of transaction. People shared in their neighbors' suffering, for instance, during times of starvation or drought.
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The term _____________ describes a situation where a ________________ causes a reduction in the buying power of income, even though actual income has not changed.
A. substitution effect; lower price
B. intertemporal budget; higher price
C. income effect; higher price
D. intertemporal budget; lower price
The right answer is C. The term "income effect" describes a situation in which a higher price causes a reduction in the purchasing power of income, even while actual income is unchanged.
What does income effect mean?The income effect in microeconomics refers to the following change in demand for a good or service caused by an adjustment in a consumer's actual income or purchasing power. According to the income impact, when people's incomes increase, they will start to want more (and vice-versa).
Recognizing the Income EffectThe income effect describes how shifts in relative market prices and incomes have an impact on consumer spending habits for products and services. The idea of consumer choice connects preferences to consumption expenditures and curves of customer demand. Consumers will want to purchase more of the typical economic goods as real consumer income rises.
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