Equitable Life: creating chaos out of order A good case of chaos emerging out of order is shown by the Equitable Life Assurance Society. For 200 years Equitable was a 'safe pair of hands looking after life insurance and pensions, typically for society's professionals - doctors, engineers, teachers and managers. However, in the years before 1988 it sold policies to some investors that guaranteed the pay out of certain benefits. Time passed and interest rates rose and fell.
A situation built up in which Equitable did not have enough money to keep paying out to those to whom it had guaranteed returns Realizing this, Equitable tried to stop paying out the rates it had guaranteed. But people with the guaranteed return policies wanted their money. Legal action was taken, ending up in the House of Lords where the Law Lords ruled that the policies had to be honoured. But where could Equitable find the money to honour its promises? Its answer was to take money from its policyholders who did not have guaranteed return policies and give it to those with guarantees.
The Lords' decision caused Equitable to close to new business- not that anyone in their right mind Diagnosing change situations 59 would have taken out a new policy with them. Most of its policyholders were worried about their investments and many looked to transfer their policies to a secure institution.
Equitable's 200-year-old world collapsed and along with it the well-being of thousands of policyholders. Investors who decided to transfer their money out to another investment company saw the value of their policies reduced by transfer penalties. Even so, many investors cut their losses and transferred to what they hoped would be a safer investment company.
The Lords' decision forced Equitable to seek a buyer, but with a £1.5 billion gap in one day exploded. The events central to this case appear to be traceable to decisions taken by 'top' managers under the influence of environmental forces. That said, if the Law Lords had come to a different decision, then perhaps Equitable and thousands of its customers would have avoided so big a crisis. Thus, some environmental 'throw of the dice' was at play. We can also see how warming signs and signals were ignored.
Before the turmoil, the Treasury had realized that Equitable would be insolvent if it had to find cash to meet its guarantees (Senior, 2001). Furthermore, the true poor performance of Equitable was an open secret in financial circles, yet it continued to pay out relatively high bonuses (and so top the league tables) in preference to putting aside funds that could be used when markets were less prosperous (Miles, 2000). The Board, in what seems to be a rather pathetic action, thought about suing former executives, financial advisors and auditors.
Q1. Refer to the section on 'environmental turbulence' in Chapter 1. Which (one or more) of the five levels of environmental turbulence do you think fits the situation Equitable Life found itself in?
02. What type(s) of change was Equitable Life pushed into? Do you agree or disagree with the changes the organisation made?
Q3. What recommendations would you make to have improve the situation at the organisation?

A balance sheet is one of the most important financial statements that any company or organization prepares. It provides an overview of a company's financial situation by showing what assets and liabilities it has. The balance sheet is different from an income statement, which shows the company's revenues and expenses over a specific period.

The balance sheet equation is Assets = Liabilities + Equity. This means that a company's assets must equal its liabilities plus equity.

This equation is important because it ensures that a company's assets are always balanced with its liabilities and equity.

The income statement equation is Revenues - Expenses = Net Income.

This equation shows how much money a company has earned after deducting all of its expenses. Some of the principal assets on a balance sheet include cash, accounts receivable, inventory, property, and equipment. Some of the principal liabilities include accounts payable, loans, and taxes owed. These assets and liabilities are related to bank, stability, profitability, and money creation in several ways.

For example, if a company has a lot of cash and accounts receivable, it can easily pay its bills and maintain stability. Similarly, if a company has a lot of inventory and property, it can create more products and generate more revenue, which leads to greater profitability.

On the other hand, if a company has a lot of debt, it may be less stable and less profitable. Rapidly rising interest rates led to the collapse of the Savings and Loan industry because many Savings and Loans (S&Ls) had made long-term loans at low interest rates and then had to pay higher interest rates to attract depositors. This made it difficult for S&Ls to make a profit and led to many of them going bankrupt.

Additionally, many S&Ls had invested in risky assets that lost value when interest rates rose, further contributing to their financial problems. As a result, the federal government had to step in and bail out many S&Ls to prevent a complete collapse of the industry.

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Fudging numbers or producing substandard merchandise to cut costs is unethical and unacceptable. Transparency, integrity, and delivering quality products are crucial for business success and customer satisfaction.

False. Fudging numbers on performance records or producing substandard merchandise is not acceptable, regardless of the motive to keep costs down. Ethical business practices dictate that companies should uphold integrity, honesty, and quality in their operations. Falsifying performance records or delivering substandard products not only undermines trust with customers and stakeholders but also carries legal and reputational risks.

Maintaining accurate performance records is essential for transparency, accountability, and informed decision-making within an organization. It allows for proper assessment of business performance, identification of areas for improvement, and strategic planning. Similarly, producing high-quality merchandise is crucial for customer satisfaction, brand reputation, and long-term success. Cutting corners or compromising on quality may result in dissatisfied customers, negative reviews, and damage to the company's image.

Businesses should prioritize ethical conduct, which includes adhering to legal requirements, maintaining transparency, and delivering value to customers. Finding ways to control costs should involve legitimate strategies that align with ethical principles, such as process optimization, resource efficiency, and innovation, rather than resorting to unethical practices that compromise integrity and customer trust.

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The relationship between the interest rate paid on pass-through certificates and the interest on the loans in the pool is closely linked. Pass-through certificates are financial instruments that represent a proportionate share of the cash flows from a pool of underlying loans, such as mortgages.

The interest rate paid on pass-through certificates is typically derived from the interest rates on the loans in the pool. When a pool of loans is securitized and transformed into pass-through certificates, the interest rate paid on these certificates is usually based on a weighted average of the interest rates on the underlying loans.

For example, let's say a pool of loans consists of mortgages with varying interest rates, such as 3%, 4%, and 5%. If these loans are securitized and transformed into pass-through certificates, the interest rate paid on the certificates may be calculated as the weighted average of these rates. If the loans have equal principal amounts, the interest rate paid on the certificates may be the average of 3%, 4%, and 5%, which is 4%.

It's important to note that the interest rate on the loans in the pool may change over time due to various factors such as market conditions or borrower creditworthiness. As a result, the interest rate paid on the pass-through certificates may also change, reflecting the changes in the underlying loan interest rates.

Overall, the interest rate paid on pass-through certificates is directly influenced by the interest rates on the loans in the pool, as it represents the income generated from these loans. Any changes in the loan interest rates will have an impact on the interest rate paid on the certificates, making it important for investors to monitor the performance and characteristics of the underlying loans in the pool.

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Under GAAP (Generally Accepted Accounting Principles), the land owned by Westside Company would be listed on the firm's balance sheet today at $250,000. The correct option is B.

GAAP requires assets to be reported on the balance sheet at their fair value. In this case, the fair value of the land is determined to be $250,000, considering the current market conditions and the required hazardous waste cleanup costs.

This valuation reflects the amount that Westside Company could reasonably expect to receive if they were to sell the land today.

The initial purchase price of $1,000,000 made 10 years ago is not relevant for the current valuation under GAAP. Accounting standards focus on the current market value and economic conditions to provide users of financial statements with relevant and reliable information.

Therefore, the land would be listed on the balance sheet at $250,000, representing its fair value in light of the required hazardous waste cleanup costs. Hence, option B is correct.

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Nominal interest rate: The nominal interest rate is the actual rate charged by the creditor. It is also known as the rate of interest charged by the loan provider, before accounting for inflation.

does not take into account the inflation rate.Inflation rate:Inflation rate is defined as the rate at which the general price level of goods and services is increasing over time. Inflation decreases the purchasing power of a currency, and people will have to pay more for goods and services.

The real interest rate:Real interest rate is defined as the interest rate that has been adjusted for inflation. It is the rate at which the actual purchasing power of the investment increases. It is calculated as the nominal interest rate minus the inflation rate.

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Taylor's principles of scientific management involve scientific analysis of work processes, careful selection and training of employees, fostering a cooperative environment.

Taylor's four principles of scientific management can be summarized as follows: Scientifically study and analyze work: The first principle emphasizes the need to scientifically examine and analyze work processes to identify the most efficient methods. This involves breaking down tasks into smaller elements, studying each element, and determining the most effective ways to perform them. Select and train employees: The second principle focuses on selecting the right employees for specific tasks and training them to perform their work using the scientifically developed methods. Taylor believed that workers should be matched to their jobs based on their abilities and skills.

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The attributes of sustainability strategy that has made the company to achieved its goal are;

In order to create long-term benefits for an organization and its employees while keeping an eye on resource conservation and protection, a sustainable business strategy takes economic, environmental, and social factos into account in all of its policies, practices, and procedures.

A prioritized list of actions makes up a sustainability or corporate responsibility strategy. It offers a shared structure for concentrating investment, enhancing performance, and involving both internal and external stakeholders.

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The red curve is the production possibility curve, which shows the possible combination of goods that can be produced from the economy's available resources. The black curve is the indifference curve, which shows the different combinations of goods that will give the same level of utility to an individual.

The point of intersection of the two curves represents the point of equilibrium. The production possibility frontier shows the tradeoff between the production of two goods in an economy that uses all its resources efficiently.

Allocative efficiency: The economy must produce the goods and services that are demanded by consumers at a price that is equal to the marginal cost of production. This condition is achieved where the marginal rate of substitution of each consumer is equal to the price ratio.3. Pareto efficiency: The economy must reach a Pareto-efficient allocation of resources, where no one can be made better off without making someone else worse off.

Explanation of how competitive equilibrium leads to an efficient allocation of resources: The competitive equilibrium set of prices results in an efficient allocation of resources because it ensures that the marginal rate of substitution of each consumer is equal to the price ratio. This means that the goods and services are produced at the lowest possible cost, and that the consumers are able to consume the goods and services that they value the most.

When the economy is in a competitive equilibrium, the production is efficient and the allocation is allocatively efficient, which is the most efficient use of resources.

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Many advertisers believe that the multimillion-dollar costs of advertising during the Super Bowl make good economic sense. This is because the Super Bowl is one of the most-watched TV events globally, with a massive viewership. In the US alone, around 100 million people watch the Super Bowl every year.

This makes it an excellent opportunity for advertisers to promote their products to a massive audience. To many advertisers, the Super Bowl provides an ideal platform for them to showcase their products or services. In addition, the game is usually aired live on many TV networks globally, making it a perfect avenue for advertisers to reach out to their target audiences. Since it is a live event, advertisers can quickly adapt their ads to suit the mood and tone of the game, increasing the effectiveness of their marketing campaigns.

In addition, the Super Bowl is known for its high-quality commercials, with brands investing millions of dollars to create ads that are both entertaining and memorable. These ads are usually talked about for weeks after the game, making it an ideal opportunity for brands to establish themselves as thought leaders in their industry. To sum up, advertisers believe that the multimillion-dollar costs of advertising during the Super Bowl make good economic sense due to the massive viewership and the opportunity to promote their products to a massive audience.

Additionally, the high-quality commercials and the ability to create memorable ads make it an excellent opportunity for brands to establish themselves as thought leaders in their industry.

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- B. Link parallel activities instead of integrating their results.

In reengineering, the principle of linking parallel activities instead of integrating their results is not one of the basic principles. Let's go through the other principles and explain them in more detail:

A. Have those who use the output of the process perform the process:

This principle emphasizes that the individuals or departments who rely on the output of a particular process should be involved in performing that process. This ensures that those who understand the requirements and expectations of the output are directly involved in its creation. By doing so, it reduces handoffs, delays, and miscommunications between different groups.

C. Absorb information processing work into the real work that produces the information:

This principle suggests that instead of treating information processing as a separate activity, it should be integrated into the actual work process that generates the information. By doing this, it reduces the need for additional administrative tasks and streamlines the flow of information.

D. Organize around strategic initiatives, not tasks:

This principle focuses on aligning the organizational structure and processes with strategic goals and objectives. Rather than organizing based on specific tasks or functions, reengineering encourages a more holistic approach where processes are designed and structured around strategic initiatives. This enables greater flexibility, efficiency, and adaptability to changing business needs.

E. Put the decision point where the work is performed and build control into the process:

This principle emphasizes empowering employees by placing decision-making authority at the point where the work is performed. It involves giving employees the necessary information, tools, and authority to make decisions and take ownership of their work. By building control into the process, it reduces the need for excessive layers of management and promotes quicker decision-making.

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Neda runs a stock market consultancy firm where she advises clients on investing and maximizing profits. Through her firm, she provides valuable guidance on where to invest and how to earn maximum profits.

Neda's role: Neda is the owner or manager of a stock market consultancy firm. Her firm specializes in providing advice and guidance to clients on investing in the stock market.Client advisory services: Neda's firm offers advisory services to clients who are seeking guidance on where to invest their money. This means that Neda and her team analyze market trends, assess risks, and identify potential investment opportunities for their clients.

Expertise and knowledge: Neda and her team have expertise and knowledge in the stock market. They stay updated on market trends, financial news, and economic factors that can impact investments. This allows them to provide valuable insights and recommendations to their clients.Overall, Neda's stock market consultancy firm provides clients with expert advice on investing and helps them maximize their profits. This guidance is valuable for individuals looking to navigate the complex world of the stock market.

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The most useful sampling plan would be random sampling. Random sampling involves randomly selecting 50 units from the stockroom for quality control checks.

The most useful sampling plan to test the 50 units would be a random sampling plan. Random sampling involves selecting items from the population in a completely random manner, without any specific criteria or bias. In this case, it means randomly selecting 50 vacuum cleaners from the stockroom for quality control checks.

Random sampling is beneficial because it provides an unbiased representation of the entire population. By randomly selecting the units, the sample is likely to be representative of the overall quality of the produced vacuum cleaners. This allows the inspectors to assess the quality of the entire batch based on a smaller sample size.

Using random sampling helps to ensure that the sample is not biased towards certain serial numbers or other factors that could potentially affect the quality. It provides a fair and objective evaluation of the overall quality control process and helps identify any issues or defects that may be present in the production line.

It's important to note that other sampling techniques, such as stratified sampling or systematic sampling, may also be considered depending on specific factors and objectives of the quality control process.

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Critical Method is a project management tool used to aid in the planning, scheduling, and control of large, complex projects. The critical path method (CPM) is a mathematical technique used to schedule a set of project activities to complete the project on time.

CPM is used to determine the duration of a project, how to allocate resources, and which tasks are critical to the completion of the project.There are numerous advantages of critical path method, including the ability to allocate resources more effectively, maximize efficiency, identify the most critical activities, and reduce the amount of time and money spent on unnecessary tasks. The critical path method also provides a systematic and objective approach to project management, which can improve project success rates.

Additionally, it provides a better understanding of the project's risks, and it allows for more accurate forecasting and budgeting. The critical path method also has some disadvantages, including the high cost of implementation, the need for specialized software and training, and the possibility of inaccurate estimates due to human error or unexpected events. It may also be challenging to identify all the project's critical activities, particularly in large, complex projects. Finally, it can be challenging to apply the critical path method to projects that have multiple paths or those that are subject to frequent changes

.In conclusion, the critical path method is a valuable tool in project management, and it is beneficial in scheduling and cost control. However, it is essential to weigh its advantages and disadvantages before deciding to use it in a project.

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Radical innovations often occur because of technological change, as they involve significant advancements in technology that lead to transformative changes in products, services, or processes.

The correct option is B

Radical innovations, by definition, are significant and transformative changes in products, services, or processes. They often involve the introduction of entirely new technologies or a significant improvement in existing technologies. Therefore, option B) often occur because of technological change, is the most accurate answer.

Radical innovations can result from advancements in scientific research, engineering, or even societal changes. These innovations can disrupt industries, create new markets, and revolutionize the way we live and work. For example, the invention of the personal computer and the internet were radical innovations that fundamentally transformed the way we communicate, access information, and conduct business. On the other hand, options A) often result in quick profits and C) usually apply simultaneously to products and processes are not necessarily true for all radical innovations. While some radical innovations may indeed lead to quick profits, others may require significant investments and take time to become profitable. Similarly, radical innovations can be applied to either products or processes individually, not necessarily simultaneously.

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Germany and Ukraine have experienced periods of high unemployment rates between 2005 and 2021. The following types of unemployment contributed significantly to the unemployment rate in these countries.

Frictional Unemployment: This type of unemployment occurs when people are between jobs. In Germany, frictional unemployment contributed to the highest unemployment rate. Workers may take some time to transition to their next job, particularly if they need to develop new skills or move to another region or country.

Similarly, young people who are just entering the job market may experience frictional unemployment as they seek the best employment opportunities for their skills. Structural Unemployment: This type of unemployment is caused by a mismatch between the skills that workers have and the skills that employers need.

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The Sharpe Ratio serves as a valuable tool for evaluating the efficiency of a portfolio and assists investors in understanding the amount of return achieved per unit of risk assumed.

The Sharpe Ratio is a widely used performance measurement for assessing portfolios when they represent the entirety of an investor's investments. It calculates the ratio of portfolio returns over the risk-free rate divided by the portfolio's standard deviation. This ratio provides insights into the additional return earned per unit of risk undertaken by the investor.

The Sharpe Ratio evaluates the excess return of a portfolio relative to the risk-free rate, considering the level of risk involved. Its calculation involves dividing the portfolio's excess return by the standard deviation of its returns. In mathematical terms, the Sharpe Ratio is expressed as:

Sharpe Ratio = (Rp - Rf) / σp

Here, Rp represents the expected portfolio return, Rf denotes the risk-free rate, and σp symbolizes the standard deviation of the portfolio's return.

By utilizing the Sharpe Ratio, investors can effectively analyze the risk-return tradeoff of their portfolio. A higher Sharpe Ratio indicates that the portfolio has generated superior returns for the level of risk taken. On the other hand, a lower Sharpe Ratio suggests that the portfolio has generated comparatively lower returns in relation to the risk undertaken. Overall, the Sharpe Ratio serves as a valuable tool for evaluating the efficiency of a portfolio and assists investors in understanding the amount of return achieved per unit of risk assumed.

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Introduction to the existing businessOur existing business is a boutique fashion store named Fashionista located in Sydney, Australia. It sells high-end fashion brands for women, men, and kids. The business has been operating for three years and has achieved great success in the local market.

The company aims to extend its business in New York, one of the fashion capitals of the world. New York is a hub for luxury fashion and home to several high-end boutiques. Besides, New York is considered the largest fashion capital in the United States. The city has a high population and has more than 8 million residents.

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Introduction: A company is a group of individuals with shared objectives who perform tasks together. There are four fundamental principles of administration: planning, organizing, leading, and controlling.

The organization's framework is defined and implemented through these principles, ensuring that the objectives are accomplished. The following essay will outline an organizational analysis of ABC Corporation.

ABC Corporation is a technology-driven firm specializing in creating custom software solutions for businesses of all sizes. ABC Corporation is devoted to the highest level of customer satisfaction, quality software, and customer service. With 24-hour customer support, the company guarantees that all clients' issues are resolved promptly and efficiently. The organization's mission is to assist businesses in achieving their goals through the use of cutting-edge technology.

The company has established long-term objectives that will guide it through 2030, such as improved consumer satisfaction, which is reflected in customer surveys, product and service excellence, innovation, and organizational efficiency. The organization is committed to providing the best possible service and expertise to its clients, as well as creating a safe and supportive environment for its employees. The organization's product portfolio includes software development and IT solutions. ABC Corporation is committed to investing in high-tech technology and talent in order to provide the best and most innovative products and services to its clients. The organization recognizes the importance of being current and remaining up-to-date in order to meet client needs and remain competitive. This involves a continuous cycle of research and development, as well as regular product and service upgrades, with the goal of achieving a competitive edge and offering superior services to clients.

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Benjamin must save $40.80 each month while on deployment, and his total premium for the year will be $1,447.20.

To calculate the amount Benjamin must save each month while on deployment to pay for the discounted premium, we can follow these steps:

1. Calculate the discounted premium while on deployment:

  Discounted premium = Original premium * (1 - Discount percentage)

  Discounted premium = $1,080 * (1 - 0.66)

  Discounted premium = $1,080 * 0.34

  Discounted premium = $367.20

2. Calculate the number of months Benjamin will be on deployment:

  Number of months = 9

3. Calculate the amount he must save each month while on deployment:

  Savings per month = Discounted premium / Number of months

  Savings per month = $367.20 / 9

  Savings per month = $40.80 (rounded to the nearest cent)

When Benjamin returns, his premium will revert to the amount prior to deployment, which is $1,080.

To calculate his total premium for the year, we can add the premium while on deployment and the premium after returning:

Total premium = Discounted premium + Premium after returning

Total premium = $367.20 + $1,080

Total premium = $1,447.20

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Satisfying physiological needs before growth needs is not a step in forming equity perceptions. It is a concept from Maslow's hierarchy of needs, which is a theory of motivation.

The steps in forming equity perceptions are:

Form a perception of how a comparison-other is being treated. This means comparing the inputs and outcomes of the comparison-other to your own inputs and outcomes.

Compare one's own circumstances with those of a comparison-other. This means comparing your own inputs and outcomes to the comparison-other's inputs and outcomes.

Evaluate how one is being treated by an organization. This means evaluating whether you feel that you are being treated fairly by the organization.

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The post hoc ergo propter hoc fallacy states that if one event occurs after another event, it must be caused by it.

Thus, the statement that illustrates the post hoc ergo propter hoc fallacy is "The sun rose after the rooster crowed, so the rooster crowing must have caused the sunrise."Post hoc ergo propter hoc is a type of causal fallacy, where one event is assumed to have caused another event just because it happened after it.

The fallacy is evident in the first statement, which implies that the sunrise is due to the rooster crowing.

Therefore, the statement illustrates the post hoc ergo propter hoc fallacy. Barbara likes chocolate, so all women must like chocolate, is an example of the fallacy of hasty generalization. The argument draws a conclusion about all women based on a single case. This is an invalid argument.

Big Mining Company believes all of its costs are sunk costs, is an example of a circular argument. The company is assuming that all costs are sunk costs without any supporting evidence. It is a flawed argument since it assumes what it is trying to prove.

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The following actions must be completed in order to finish the eight-column worksheet and change the accounts that Whispering Winds Corporation needs to change:

1. Begin by examining the offered trial balance, which shows the account balances as of December 31, 2020. 2. Examine the supplied data for each account that may require adjustment, then make the appropriate changes.  For instance, add the price of newly acquired patents and their enhancements to the Intangible Assets—Patents account. Based on the patents' legal life, determine and record the amortisation expense.  Based on an evaluation of future net cash flows, value in use, resale value, and disposal costs, determine the impairment loss for the patents.  The licencing accounts should be adjusted to reflect the short lifespan of licencing agreement no. 1 and  the duration of the licencing agreement no. 2. Take into account any impairment loss brought on by the flood and explosion damage.  Amortise the incorporation-related legal costs over a 30-year restricted life and record the associated entry.  Spread out the price of moveable assembly-line equipment and leasehold improvements over the course of each item's useful life.  Make adjustments to the selling costs to account for employee wages and materials used for R&D. 3. After incorporating the changes made in step 2, create the updated trial balance. 4. Create the income statement, statement of financial position (balance sheet), and any other necessary statements using the corrected trial balance. 5. Ensure that all computations are correct and that all essential accounts are properly categorised. 6. Examine and Check the financial accounts for consistency with the modifications made by doing a reconciliation 7. Display the final worksheet, which has eight columns and contains the income statement, statement of financial condition, adjustments, and trial balance. Note: Given the word limit, it is not possible to provide a thorough eight-column spreadsheet due to the complexity and minute details of the revisions. To complete the spreadsheet and make the necessary adjustments to the accounts for Whispering Winds Corporation, follow the steps provided.

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The statement "a driver knows more than his auto insurer about how cautiously he drives" is an example of a hidden action.

In insurance contexts, a hidden action refers to a situation where one party possesses private information or has the ability to take actions that are not observable or known to the other party.

In this case, the driver's level of caution while driving is not directly observable by the auto insurer. The driver has more information about their driving behavior, such as their adherence to traffic rules, speed limits, and general cautiousness. The insurer, on the other hand, relies on observable factors such as the driver's age, driving record, and other relevant information to assess the risk associated with insuring the driver.

The presence of hidden actions can lead to issues of adverse selection, which is the tendency for individuals with higher risk profiles to seek or retain insurance coverage more than those with lower risk profiles. Adverse selection occurs when the party with private information (the driver in this case) uses that information to their advantage in securing insurance coverage, potentially leading to imbalances in the risk pool and higher costs for insurers.

While adverse selection is related to hidden actions, it is not the best choice for this specific example as the focus is on the driver's knowledge about their driving behavior rather than the selection of insurance coverage based on risk. Therefore, the most appropriate answer is c. a hidden action.

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If the client asked for the employee wages to post to separate accounts, they are allocated to a single account by default. In order to post their salary to several accounts, you must create several pay types.

Follow these instructions to create pay types and edit the accounts for each employee so that their wages are posted to the appropriate accounts. Go to Payroll and then to Employees. Select the name of the employee whose account you'd like to modify. Click the edit icon in the Pay box .Now choose the Pay Type box, and then click Add Earnings Type .To save your changes, click Done. In the list of pay types, locate the new pay type you created and choose Edit accounts. Assign accounts to the employee's new pay type.

The salary of the employee is distributed across all accounts that are assigned to the pay type. Save your changes after you've made them. If you've made a mistake or need to modify an account, just go back to the Accounts tab and click Edit for the appropriate account, then choose the correct account.

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False.

An effective sexual harassment program should not solely rely on oral communication to employees. While oral communication can be an important component of the program, it should be supplemented with comprehensive written materials and training sessions. Oral communication alone may not provide sufficient clarity, consistency, and documentation of the program's policies and procedures.

A well-designed sexual harassment program should include written policies and guidelines that clearly define what constitutes sexual harassment, provide examples of inappropriate behavior, outline reporting procedures, and explain the consequences for engaging in such behavior. These written materials can be distributed to employees, ensuring that everyone has access to the information and can refer back to it as needed.

Additionally, training sessions are crucial to educate employees about sexual harassment, its impact, and how to prevent and address it. Interactive training sessions can provide a platform for discussing scenarios, asking questions, and promoting a better understanding of the subject matter.

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The negative values show that the company's growth rate is not sustainable. Thus, we can conclude that the company's stock is not in a stable position currently. Therefore, we can't estimate the stock's current price.

Given that the current dividend per share of the company, D0 = $3.8 and it is expected to grow at a rate of 22% for the next two years and then grow at a constant rate of 7% thereafter. Also, the stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 3.5%.

To find the estimate of the stock's current price we will have to find out the cost of equity using the Capital Asset Pricing Model (CAPM).The formula for CAPM is;

Ri = Rf + βi(Rm - Rf)

Where Ri is the cost of equity, Rf is the risk-free rate, βi is the stock's beta, and (Rm - Rf) is the market risk premium.

Substituting the values in the formula,

Ri = 0.075 + 1.2(0.035)

Ri = 0.075 + 0.042Ri = 0.117 or 11.7%

The cost of equity is 11.7%

Next, we will have to find out the dividend growth rate for the first two years using the following formula;

D1 = D0(1+g1)

Where D0 is the current dividend per share, D1 is the dividend per share after one year, and g1 is the dividend growth rate for the first year.

Substituting the values in the formula,

$4.676 = $3.80(1 + g1)1 + g1

= $4.676 / $3.80g1

= 23.89%

We get the dividend growth rate for the first year as 23.89%.

Using the same formula, we can find out the dividend growth rate for the second year.

D2 = D1(1+g2)

Where D2 is the dividend per share after two years, D1 is the dividend per share after one year, and g2 is the dividend growth rate for the second year.

Substituting the values in the formula,

$5.789 = $4.676(1 + g2)1 + g2

= $5.789 / $4.676g2

= 23.68%

We get the dividend growth rate for the second year as 23.68%.

Substituting the values in the formula,

D2 = $4.676(1+0.13233)

D2 = $5.334

Next, we will find the price of the stock using the new dividend value in the Dividend Discount Model.

P0 = D2 / (r - g)

Substituting the values in the formula,

P0 = $5.334 / (0.117 - 0.13233)

P0 = $5.334 / (-0.01533)

P0 = -$349.22

This is an absurd value. This is because the stock price can't be negative.

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As a result, in the medium run (t=2), the output level remains at the natural level of output and the price level also stabilizes at the initial level (P0). Thus, the economy returns to its equilibrium state in the medium run.

a) Plot the AS-AD curves at t=0. Be sure to label properly these curves and all the relevant variables. You can label the curves as AS 0​ and AD 0​ respectively.

At time t=0, output exceeds the natural level of output.

As per the given information, during that period, there are no changes in nominal money M, government spending G, taxes T, labor force L, firms' markup m, and the catchall variable z. Hence, there will be no change in the natural level of output.

We can plot the AS-AD diagram as follows:

b) In a new graph, plot the AS-AD curves both at t=0 and at t=1. At time t=1, output is below the natural level of output.

In this case, both the AS curve and AD curve shift towards leftward direction.

The new AS-AD diagram is as follows:

c)

In the same graph of part b), show the adjustment of output and the price level over time. You can assume that the economy returns to the natural level of output at t=2

Assuming that the economy returns to the natural level of output at t=2, the adjustment of output and price level over time can be shown in the graph as follows:

We can observe from the graph that initially, the output level is higher than the natural level of output (Y1 > Yn). As a result, the price level increases from P0 to P1.

However, due to the decrease in output at t=1, the price level also decreases from P1 to P2. Over time, the economy moves towards the natural level of output (Yn).

As a result, the price level decreases from P2 to P0d)

Explain the transition from the short run (t=0) to the medium run (t=2).Initially, at t=0, the output level is higher than the natural level of output.

Due to the higher output level, the price level also increases.

However, at t=1, the output level decreases and hence, the price level also decreases. Over time, the economy moves towards the natural level of output (Yn).

As a result, in the medium run (t=2), the output level remains at the natural level of output and the price level also stabilizes at the initial level (P0).

Thus, the economy returns to its equilibrium state in the medium run.

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Price takers are firms that accept the market price and lack the power to influence that price. Market prices, in a perfect market, are determined by the interactions between supply and demand. Because perfect competition is a theoretical ideal rather than a practical one, most businesses are not price-takers. 

A price taker is a business that is too small to have a significant impact on the marketplace and must accept the current market price regardless of what it is. Price takers are usually too small to influence the market and lack the power to set prices.

As a result, they must adapt to the current market price and create their goods and services with that price in mind. Because prices fluctuate, businesses are often price-takers in certain industries.

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The cost assigned to the ending inventory is $1,945, and the cost of goods sold is $2,145 using the weighted average method.

To determine the cost assigned to the ending inventory, we need to multiply the number of units in the ending inventory by their respective costs. Since the specific identification method is used for the ending inventory, we need to consider the costs from different purchases.

January 30 purchase: 230 units * $7.50 = $1,725

January 20 purchase: 5 units * $8.00 = $40

Beginning inventory: 20 units * $9.00 = $180

Cost assigned to the ending inventory = $1,725 + $40 + $180 = $1,945

Calculate the cost of goods sold:

Cost of goods sold = Total cost of goods available for sale - Cost assigned to the ending inventory

Cost of goods sold = $4,090 - $1,945 = $2,145

Therefore, the cost assigned to the ending inventory is $1,945, and the cost of goods sold using the weighted average method is $2,145.

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Project x1 is acceptable as its IRR exceeds the required return of 6%. On the other hand, Project x2 is not acceptable as its IRR falls below the required return.

The expected net cash flows for Project x1 are -$104,000, $37,000, $47,500, and $72,500 for years 1, 2, 3, and 4, respectively. For Project x2, the expected net cash flows are $78,000, $68,000, and $58,000 for years 1, 2, and 3, respectively.

By applying the IRR function in Excel, we can determine the rate of return for each project. If the calculated IRR is higher than the required 6% return, the project is considered acceptable. To calculate the internal rate of return for each project, we can use the "IRR" function in Excel.

In Excel, we enter the expected net cash flows as a series of values and use the initial investment as a negative value. For Project x1, the cash flows would be entered as -$168,000, $37,000, $47,500, $72,500, and $78,000. Using the IRR function, Excel calculates that the internal rate of return for Project x1 is approximately 8.63%.

Since this rate is higher than the required 6% return, Project x1 is considered acceptable. For Project x2, the cash flows would be entered as -$168,000, $78,000, $68,000, and $58,000. Using the IRR function in Excel, the internal rate of return for Project x2 is approximately 5.28%. Since this rate is lower than the required 6% return, Project x2 is not considered acceptable.

In conclusion, based on the calculated internal rates of return, Project x1 is acceptable as its IRR exceeds the required return of 6%. On the other hand, Project x2 is not acceptable as its IRR falls below the required return. The IRR calculation helps assess the attractiveness of each project by comparing the rate of return against the company's required return, allowing Tiger Co to make informed investment decisions.

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Project x1 is acceptable as its IRR exceeds the required return of 6%. On the other hand, Project x2 is not acceptable as its IRR falls below the required return.

The expected net cash flows for Project x1 are -$104,000, $37,000, $47,500, and $72,500 for years 1, 2, 3, and 4, respectively. For Project x2, the expected net cash flows are $78,000, $68,000, and $58,000 for years 1, 2, and 3, respectively.

By applying the IRR function in Excel, we can determine the rate of return for each project. If the calculated IRR is higher than the required 6% return, the project is considered acceptable. To calculate the internal rate of return for each project, we can use the "IRR" function in Excel.

In Excel, we enter the expected net cash flows as a series of values and use the initial investment as a negative value. For Project x1, the cash flows would be entered as -$168,000, $37,000, $47,500, $72,500, and $78,000. Using the IRR function, Excel calculates that the internal rate of return for Project x1 is approximately 8.63%.

Since this rate is higher than the required 6% return, Project x1 is considered acceptable. For Project x2, the cash flows would be entered as -$168,000, $78,000, $68,000, and $58,000. Using the IRR function in Excel, the internal rate of return for Project x2 is approximately 5.28%. Since this rate is lower than the required 6% return, Project x2 is not considered acceptable.

In conclusion, based on the calculated internal rates of return, Project x1 is acceptable as its IRR exceeds the required return of 6%. On the other hand, Project x2 is not acceptable as its IRR falls below the required return. The IRR calculation helps assess the attractiveness of each project by comparing the rate of return against the company's required return, allowing Tiger Co to make informed investment decisions.

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