Exempting things such as groceries and clothing from sales tax is an attempt by states to make sale tax less regressive.
A sales tax is a fee that is paid to the government when specified goods and services are sold. Typically, laws permit the vendor to charge the customer the tax at the time of purchase.
Use taxes are typically used to describe taxes on goods and services that consumers pay directly to a governing authority. The sale and use tax is frequently exempted for some goods and services, including food, education, and medical. A sales tax is similar to a value-added tax (VAT) that is levied on products and services. Key distinctions can be found in the comparison with sales tax.
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bill, a u.s. citizen, pays a spanish architect to design a metal casting factory. which country's exports increase?
Spain's exports will increase, if a US citizen pays a Spanish architect to design a metal casting factory.
What is export?Export describes the sale of products or services made in one nation but purchased by customers in another nation. This sale of goods or services generates foreign exchange revenues, which in turn drive the exporting nation's economic expansion.
Here, it is made clear in the question that Bill is a citizen of the United States and that he is employing the services of a Spanish architect to construct his factory. This suggests that Spain is the exporting nation while the United States is the importer. Spanish service exports will expand as a result of an architect from Spain creating a factory in the United States. The payment to the Spanish architect will be made in US dollars, boosting Spain's foreign exchange revenues.
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List examples of socially responsible business practices.?
what
Answer: Reducing carbon footprint, improving workers working conditions, and charitable donations to organizations.
convertible debt from early investors can turn into when money is received from a venture capitalist. a. a convertible note b. venture capital funds c. conventional debt d. equity
Answer: The answer is D
Explanation: The answer is Equity
Hope this was helpful
Suppose that the government changes the tax code to allow additional amounts of money to be placed in 401k retirement accounts, increasing the extent to which people can delay their tax obligation (effectively, this is a tax cut on retirement savings). Show the effect by shifting the appropriate curve in the market for savings.
According to this model, what is the result?
The supply curve will be shifted to the right in this situation where the government changes the tax code to allow additional amounts.
Private investment would rise as borrowing costs dropped. Right-shift the supply curve. Demand curves remain stationary.
The supply curve illustrates the relationship between the price of an item or service and the volume delivered over a specific time period. In a typical scenario, the amount supplied will be shown on the horizontal axis and the price will be shown on the left vertical axis.
The law of supply is expressed by the supply curve, which rises from left to right: The amount supplied rises as a certain commodity's price rises (all else being equal).
Hence, the supply curve will shift to the right.
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13) ten years ago, you put $150,000 into an interest-earning account. today it is worth $275,000. what is the effective annual interest earned on the account?
You invested $150,000 in an interest-bearing account ten years ago. It is now worth $275,000 The account's effective yearly interest rate is 6.25%.
What does the term interest mean?The cost of borrowing money is called interest, and it is typically stated as a percentage, like an annual percent rate (APR). For utilizing their money, borrowers can charge interest to lenders, or lenders may collect interest to borrowers.
Why is interest used?There are several significant reasons why lenders require borrowers to pay interest. First off, when people borrow money, they are no longer able to utilize it to pay for their own purchases. This difficulty is made up for by the interest payment. Second, a borrower might stop making loan payments.
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complete the sentences with the correct terms. the fed controls the money supply through open market operations. for instance, when the fed buys bonds, this in demand for bonds causes nominal interest rates to . when the fed buys bonds, bank reserves , which reduces the need for banks to borrow. this causes the federal funds rate to .
The fed indirectly controls money supply through the open market operations. For instance, when the fed buys bonds, this increases in demand for bonds causes nominal interest rates to decrease. When the fed buys bonds, bank reserves , increase which reduces the need for banks to borrow. this causes the federal funds rate to decrease.
Advertising Operations is a broad time period that collectively describes the human beings, strategies, and technologies that permit advertising and marketing to function effectively and to scale with fine and consistency.
Important banks conduct open market operations that allows you to regulate the cash supply in the economic system. for example, in India, open marketplace operations are undertaken by way of the Reserve bank of India or RBI.
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on january 1, year 1, saturn corporation issues $100,000 of bonds with a stated rate of 8% for $107,020. the bonds pay interest on june 30 and december 31. the market interest rate at the issue date was 6%. the journal entry to record the interest expense on june 30 will include which of the following?
If on january 1, year 1, saturn corporation issues $100,000 of bonds with a stated rate of 8% for $107,020. the journal entry to record the interest expense on june 30 is: Credit cash $4,000,Debit premium on bonds payable $789, Debit to interest expense $3,211.
What is journal entry?Journal entry is an essential part of accounting as it use by business to post their day to day business operations transactions.
Based on the information given the appropriate entry to record this transaction is;
Saturn corporation journal entry
Credit cash $4,000
($100,000×8%×6/12)
Debit premium on bonds payable $789
($4,000 - $3,211)
Debit to interest expense $3,211
( 6%/2 x$107,020)
(To record interest expense)
Therefore the entry is Credit cash $4,000,Debit premium on bonds payable $789, Debit to interest expense $3,211.
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why is it a good idea for macroprudential policies to require countercyclical capital requirements?
Macroprudential policies with countercyclical capital requirements increase Lending substantially in booms and decreases in downturns.
And It Requires more capital-held during booms to Reduce Lending. It helps to mitigate the credit bubble that can damage Later on. So, it is a good idea.
It also reveals that macroprudential coverage is powerful in decreasing bank threat as measured via the non-performing loan ratio. every usa paper further develops their own analysis including a story unique to their countrywide experience.
Macroprudential policies are monetary policies geared toward ensuring the stableness of the financial device as an entire to prevent significant disruptions in credit score and other vital financial offerings vital for stable monetary increase
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An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?.
The case indicates the provision of life insurance policy that It may last for the lifetime of the annuitant.
What is the life insurance policy?A contract between an insurance client and an insurance company in which the insurer agrees to pay a quantity of money in exchange for a premium upon the demise of an insured person or after a specific amount of time is known as life insurance.
In the given case, A head-on collision involves the insured's wife as well. The wife passes away 15 days after the husband, who passes away instantaneously. The firm pays the death benefit to the estates of the beneficiary.
Therefore, This suggests that the life insurance policy may be in effect throughout the entirety of the annuitant's lifespan.
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a principal-agent problem can arise when an insurance agent sells a policy to a buyer who uses it as an incentive to behave badly. a principal uses an agent to accomplish a task the principal wants credit for completing. an agent hires a principal to do something on their behalf, and the agent can observe the principal's actions. a principal hires an agent to do something on their behalf, but the principal cannot perfectly observe the agent's actions.
When a principal employs an agent to act on their behalf but is unable to closely monitor the agency's activities, principal-agent problems may develop.
The principal-agent problem refers to the conflict of interests between the owner of an asset and the person to whom ownership of the asset has been assigned. The problem can come up in a variety of situations, such as when there is a relationship between a client and a lawyer or between stockholders and a CEO.
The principal-agent relationship is sometimes shown by engaging a carpenter to fix a house, employing an attorney to handle legal matters, or requesting an investment adviser to diversify a stock portfolio.
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Suppose you're offered the following three accounts to invest $10,000 for 20 years: 14% simple interest, 4% Interest compounded monthly, and an annuity with quarterly payments of $125 at 9% interest compounded quarterly. Which is the best choice? Round your answers to the nearest cent. Part 1 of 4 The future value of $10,000 using 14% simple interest is $ 28,000 х Part: 1/4 Part 2 of 4 The future value of $10,000 using 4% interest compounded monthly is X
The greatest option among the three is to invest $10,000 at 14% simple interest since its future worth will be higher—$38,000—than that of the other two options
1)
Principal = $10,000
Simple interest rate,
R = 14%
Time = 20 years
$10,000's future value at 14% simple interest = Principal * [(1 + R) * Time]
Future Value = 10,000 * (1 = 14% * 20)
Future Value = 10,000 * (1 + 2.8)
Future Value = 10,000 * 3.8 = 38000
Therefore, $10,000's future worth at 14% simple interest equals $38,000.
2)
Annual Interest rate = 4% compounded monthly
Monthly rate (R) = Annual interest rate / 12
Rate = 4% / 12 = 0.33%
Principal = $10,000
Time = 20 years
Number of months (N) = Time * 12
Time = 20 years * 12 = 240 months
Future worth of $10,000 at 4% annual compounding interest equals Principal * (1 + R)ⁿ
Future Value = = 10,000 * (1 + 0.33%)²⁴⁰
Future Value = 10,000 * 2.2226 = $22,225.82
As a result, the future value of $10,000 at 4% interest per month compounded is $22,225.82.
3)
Quarterly payment (P) = $125
Annual interest rate = 9% (compounded quarterly)
Quarterly rate (R) = Annual interest rate / 4
Rate = 9% / 4 = 2.25%
Time = 20 years
No of quarterly payments (N) = 20 * 4
N = 80
Future value of Annuity = P * [(1 + R)ⁿ - 1] / R
Future Value = 125 * [(1 + 2.25%)⁸⁰ - 1] / 2.25%
Future Value = 125 * 219.1176 = $27,389.70
As a result, the Future Value of an Annuity for quarterly payments of $125 is equal to $27,389.70.
Therefore, the greatest option out of the three is to invest $10,000 at 14% simple interest since it will have a larger Future value ($38,000) than the other two options.
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an investor should be cautious when selecting a fund based solely on the manager's past performance because past performance may not be repeated in the future.
It is true that an investor should be cautious when selecting fund based solely on manager's past performance because past performance may not be repeated in future.
Who is an investor?A person who invests is one who takes financial obligations with the hope of making money or receiving an advantage down the road. These funds are typically used by the investor to purchase various types of real estate. A number of assets, including stocks, bonds, money, securities, land, infrastructure, commodities, tokens, and derivatives like put and call options, futures, and forwards, can all be invested in. Investors can anticipate long-term capital gains to continue to be advantageous even if the tax system changes. On the other hand, some people believe that after-tax returns ought to be taken into account, especially during retirement, on the grounds that stock allocation is frequently lower than any returns and ought to be maximized to the greatest extent possible.
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which of the following statements about the use of executive agreements by presidents is supported by the data in the pie charts?
The percentage of international agreements that were executive agreements has increased since 1839 is supported by the data in the pie charts.
International agreements are official pacts or commitments made by two or more nations. Bilateral and multilateral agreements are referred to as such by the number of participating nations in the agreement. Generally speaking, "States Parties" refers to the nations that are party to an international agreement. A treaty is any agreement between governments that is enforceable under international law (countries). A treaty may be referred to as a Convention, a Protocol, a Pact, an Accord, etc.; nonetheless, the agreement's terms, not its name, are what define it as a treaty. Thus, despite neither having the word "treaty" in its name, the Geneva Protocol and the Biological Weapons Convention are both treaties. A treaty is expressly defined as a legally binding agreement between nations under American law that needs Senate "advice and consent" in addition to ratification.
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question 39 winding up is the process of collecting, liquidating, and distributing the partnership assets. true false
It is True that winding up is the process of collecting, liquidating and distributing the partnership assets of a partnership firm.
What is the term "winding up a partnership business"?Sometimes a partnership needs to be wound up. Any assets that remain following the dissolution of the partnership business are distributed, or liquidated, as part of the process of winding up a partnership business. The only partners who have the right to partnership assets throughout the winding-up procedure are those who are still partners in the partnership.
How does winding up of a partnership business occur?Two basic methods exist for ending a joint business. These consist of a petition from a creditor and one from a partner.
A creditor may occasionally ask the court to dissolve a partnership. If the partnership owes a debt to a creditor, the creditor may file a petition to dissolve the insolvent partnership in order to collect the debt.If a partnership does not have a viable future, the partners may also seek to dissolve it.To know more about winding up, please refer to:
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The cash flow statement should be evaluated by examining the cash flow pattern ______.
The cash flow statement should be evaluated by examining the cash flow pattern of the subtotals for the three sections of the statement.
The cash flow statement is referred to as the statement or data that consists of the information about all the inflows and outflows of cash within the organization or firm. Within a firm a continuous inflow and outflow of cash takes place and the information is stored or stated in the form of cash flow statement. This statement also tells us that how easily and how efficiently the company manages its cash. A successful company always has its cash inflows more than the cash outflows. The three activities that lead to the flow of cash within the company are the operating activities, financing activities and the investment activities and the cash flow statement is the summation of the three activities.
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Which is true of variable-rate loans?
O The rate can only go up.
O The rate can only go down.
O The rate can go up or down, depending upon the index it is tied too.
O The interest rate can fall below 0
Answer:
c is the answer
Explanation:
The statement true of variable-rate loans is The rate can go up or down, depending upon the index it is tied to. Thus the correct option is C.
What are variable-rate loans?Borrowing with a variable rate means that the interest rate will change over time in accordance with market conditions. It is predicated on a fundamental benchmark interest rate or index, which fluctuates often with the market.
Since their initial rates of interest are typically lower than those of fixed-rate loans, the rates and payments are subject to fluctuation. Individuals are assessed an additional premium by banks and other financial institutions beyond this benchmark rate.
In addition to the payment schedule, variable-interest-rate loans operate much like credit cards. Variable interest rates may rise to the point that the borrower finds it impossible to repay the loan.
Therefore, option C is appropriate.
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which of the following are not the responsibility of central banks? select the correct answer below: promoting stability of the financial system conducting monetary policy providing banking services to individuals providing banking services to the federal government
Providing banking services to individuals is not the responsibility of central banks.
A central bank is a public institution that manages a country's or group of countries' currencies and controls the money supply or the amount of money in circulation.Price stability is a primary objective for many central banks.
The main objective of central banks is to maintain price stability for the currencies of their nations by limiting inflation. A country's monetary policy is governed by the central bank, which is also the only source of and printer of the notes and coins that are in use.
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A cost is considered controllable at a given level of managerial responsibility if.
At a specific managerial responsibility level, a cost is deemed manageable if the manager has the authority to incur it within a specific time frame.
Who is a manager?To run effectively and (in the case of for-profit businesses) to make a profit, business managers direct the work of others (if any). They should have a working understanding of the following fields, and they could be experts in one or more of them: marketing, public relations, and finance. Law, science, and computer programming are among further technical fields in which a corporate manager may be knowledgeable. Business managers occasionally even have control over human resources. The position may be created in many firms in order to free up the owner to concentrate on particular facets of business expansion. In order to ensure the operation of the business, the manager and owner frequently work together.
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n the united states, laws mandating that companies be responsible for take back of electronic wastes are becoming prevalent at the state level. today, there are more than 70,000 remanufacturing companies with revenues exceeding $55 billion in annual sales. how does remanufacturing relate to this legislation? how is remanufacturing related to green manufacturing initiatives?
This law looks to be addressing the e-waste issue head-on by requiring manufacturers to provide a minimum amount of take-back.
What steps comprise the remanufacturing process?Remanufacturing is the process of bringing a used product back to its original performance standards from the perspective of the customer and providing the finished product with a guarantee that is at least equal to that of a newly manufactured counterpart.
Which advantages come with remanufacturing?Remanufacturing uses less energy, less raw resources, and generates less waste than starting from scratch when creating a product. Each of these sectors experiences significant savings as a result, which frequently results in a product of comparable quality that is less expensive for both the remanufacturer and the consumer.
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As a promotion, the first 50 customers who entered a certain store at a mall were asked to choose from one of two discounts. The first discount choice was 20% off all purchases made that day. The second discount choice was 10% off all purchases for the week. Of those who received the discounts, 28 chose the first discount and 22 chose the second discount. One customer will be selected at random from those who received a discount. Let F represent the event that the selected person chose the first discount, and let S represent the event that the selected person chose the second discount.
Are F and S mutually exclusive events?
AYes, because P(F∩S)=0.
BYes, because P(F∩S)=0.12.
CYes, because P(F∩S)=1.
DNo, because P(F∩S)=0.
ENo, because P(F∩S)=1.
Let F represent the event that the selected individual chooses the first discount and let S represent the event that the selected individual chooses the second discount. Then F and S are mutually exclusive events.
50 customers were asked to choose from one of two discounts
The first discount choice = 20% off all purchases made that day
The second discount choice = 10% off all purchases for the week
28 chose the first discount
22 chose the second discount
When two events cannot happen at the same moment, they are mutually exclusive.
F represents the event that the selected person chose the first discount S represents the event that the selected person chose the second discount, yes F and S can not occur at the same time so in the case of mutually exclusive, P(F ∩ S).
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assume ibm just paid a dividend of $4.50 and expects these dividends to grow at 8% a year. the price of ibm is $100 per share. what is ibm's cost of equity capital?
if ibm just paid a dividend of $4.50 and expects these dividends to grow at 8% a year and the price of ibm is $100 per share then ibm's cost of equity capital will be 12.86%.
The rate of return anticipated on an investment financed with equity is referred to as the "cost of equity." The metric is used by investors and business owners to assess the value of a project or business venture. It is frequently used by businesses as a cap for the required rate of return.
The capital asset pricing model (CAPM), dividend capitalization, and weighted average cost of equity are the three methods used to determine the cost of equity (WACE).
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supporters of the merit selection system argue that its number one advantage would be which of the following?
Advocates of merit selection systems argue that profit is number one. One of the implementations is improving the quality of judges.
The judge is an official who exercises judicial power and presides over the trial as regulated by law. The judge means the person who adjudicates the case (in court and court). In carrying out their duties and functions, judges are obliged to maintain the independence of the judiciary. Judges have the main task, which is to resolve legal disputes in a final and open manner, indirectly the judge confirms the existence of the rule of law. Judges as state officials have significant authority in government. They oversee the trial procedures followed, with the aim of ensuring consistency, impartiality, as well as abuse of power. In addition, judges can give orders to the military, police or court officials so that the investigation process runs smoothly. Orders can be search, arrest, imprisonment, disturbance, confiscation, deportation, and other non-criminal acts. As for the court of appeal and the highest court which has higher power than a judge, they can examine the power of a judge.
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ABC Corporation has three support departments with the following costs and cost drivers:
Support Department Cost Cost Driver
Graphics Production $200,000 number of copies made
Accounting 500,000 number of invoices processed
Personnel 400,000 number of employees
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro Macro Super
Revenues $700,000 $850,000 $650,000
Direct operating expenses 50,000 70,000 100,000
Number of copies made 20,000 30,000 50,000
Number of invoices processed 700 800 500
Number of employees 130 145 125
The support department cost that will be allocated to the Super Division is
a.$125,000
b.$550,000
c.$100,000
d.$350,000
The operating income of the Micro Division after all support department allocations will be
a.$650,000
b.$345,000
c.$610,000
d.$305,000
The support department allocation rate for Graphics Production is
a.$2.00
b.$10.00
c.$6.66
d.$0.50
The support department allocation rate for the Personnel Department is
a.$2,758
b.$1,000
c.$3,200
d.$3,077
Answer:
Answer 1
d. $ 350,000
Answer 2
d. $ 305,000
Answer 3
a. $ 2
Answer 4
b. $ 1000
Explanation:Calculations and workings:
Micro Macro Super
Revenues $ 700,000 $ 850,000 $ 650,000
Operating expenses $ 50,000 $ 70,000 $ 100,000
Overheads
Graphics ($ 2* number of copies made) $ 40,000 $ 60,000 $ 100,000
Accounting ( $ 250* number of invoices processed) $ 175,000 $ 200,000 $ 125,000
Personnel ( $ 1000 * number of employees) $ 130,000 $ 145,000 $ 125,000
Total Suport department costs $ 345,000 $ 405,000 $ 350,000
Net income $ 305,000 $ 375,000 $ 200,000
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when examining your attribution report, you notice 85% of your leads that have closed into customers have downloaded your introductory ebook, but your sales team is only closing 1% of leads from social sources. how do you support your sales team to close more leads from social into customers?
Before interacting with sales, make sure that all leads obtained from social media are cultivated with the intro ebook.
How would you define sales?A sale is a deal in which a group of people exchange goods or services for cash or other assets. A sale in the capital sector is an arrangement involving the cost of a security but also its release for agreed-upon payment in between buyer and a seller.
What exactly do sales in company mean?General sales business operations refer to any exchanges of money or value for the right to possess a good or get a service. Sales, in the context of accounting, refers to the income generated by a corporation via the sale of services or goods (net sales).
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You purchase one MBI July 133 call contract (equaling 100 shares) for a premium of $13. You hold the option until the expiration date, when MB/stock sels for $139 per share. You will realize a on the investment
a. $600 loss b. $5700 loss c. $500 profit
On the investment made under the specified circumstances, you will incur a loss of $700.
How do call options work?A financial contract known as a "call option" grants you the right, but not the obligation, to buy a particular stock at a predetermined price on or before a given date.
Special terminology is used to describe different elements and actions in call options:
Strike Price: The strike price, also known as the "strike price," is the price at which the seller is willing to sell a single share of stock on or before the option's expiration date.
The contact is considered to be "in the money" when the underlying stock's current price is higher than the strike price.
Without money: The contract is said to be "out of the money" when the underlying asset's current value is less than the strike price.
On the mark: This refers to a contract when the strike price and the underlying stock price are identical, as one might expect.
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in the application process, you should: take advantage of all networking opportunities to stay competitive in the job market evaluate what type of education is needed for your career plan create and distribute your resume
In the application process, You ought to determine the kind of education required for your career plan.
The term "application process" refers to the procedure for reading, analysing, and choosing among Completed Applications.
The completion of the application is necessary for both admission and receiving merit-based financial aid. The majority of colleges and universities evaluate admissions applications and award financial aid based on merit. A computer software package known as an application, sometimes known as an application programme or application software, performs a particular task either directly for the end user or, in certain situations, for another application. Applications might consist of a single programme or a collection of applications.
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14. in what way can interactive presentations, such as media interviews and news conferences, be a positive method? a. they can provide messages at a low cost. b. they can add interest and energize both you and the audience. c. they can add complexity to the message. d. they are the most effective way to get information across.
They can add interest and energize both you and the audience is a way that can make interactive presentations, such as media interviews and news conferences, be a positive method.
A presentation allows a speaker to inform an audience. A presentation is usually a demonstration, introduction, lecture, or speech intended to educate, persuade, motivate, inspire, or present a new concept or good idea.
Typical presentation requirements include planning, organizing, writing, using visual aids, managing stress, and answering questions. Presenter, audience, message, audience response and speaking method are the key elements of a presentation. Presentations are often used in the service workplace, such as when accountants present an in-depth analysis of a company's finances or when entrepreneurs pitch their business ideas to investors.
Hence the correct option is B.
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Jorge Lopez worked 40 hours this week and earned $1,000 gross salary. Federaland state taxes and other withholdings totaled $350. Jorge's gross pay totals $
Jorge Lopez worked 40 hours this week and earned a $1,000 gross salary. Federal and state taxes and other withholdings totaled $350. Jorge's gross pay totals $650.
A tax is a obligatory monetary price or some other kind of levy imposed on a taxpayer (an man or woman or felony entity) by way of a governmental business enterprise as a way to fund government spending and diverse public prices (local, local, or countrywide),[2] and tax compliance refers to coverage movements and individual behaviour aimed toward making sure that taxpayers are paying the right quantity of tax on the proper time and securing the ideal tax allowances and tax reliefs.[3] the first regarded taxation befell in historical Egypt round 3000–2800 BC.
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Answer:
1,000
Explanation:
which marketing metric measures the percentage of the target market that has been exposed to a promotional message at least once during a specific time period? multiple choice reach kred frequency recall recognition
Option (a), reach, is a marketing metric that quantifies the proportion of the target market that has at least once over a certain time period been exposed to a promotional message.
Is reach a metric?Reach is the total number of people who have seen your content or advertisement. Your advertisement has been seen by 100 people if 100 people in total have seen it. Impressions are the total number of times your content or advertisement has appeared on a screen.
Although "reach" and "impressions," two social media measures that are frequently mentioned, are not universally understood. Simply put, these terms are frequently used in the same sentence.
Why is reach such an important metric?Reach is used to calculate the size of your target audience. Reach is important for campaigns since it enables you to assess the possible impact of your tweets. It is essential for establishing the size of the target audience for your message and evaluating a campaign's efficacy.
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An oligopoly knows that its _____ affect(s) its _____ and that the _____ of its rivals will affect it. Select one:
a. actions; rivals; reactions
b. price changes ; total revenue in a positive way; reactions
c. actions rarely; rivals; actions
d. price increases; total revenue in the long run only; large but not small price changes
Option a. actions, rivals, reactions is the correct answer. An oligopoly knows that its actions affect its rivals and that the reactions of its rivals will affect it.
The word 'Oligopoly' is coined by two Greek words: 'Oligoi, which means 'a a few' and 'pollein' which means 'selling.' It happens when a market consists of some companies producing the same or differentiated product.
Oligopoly- There are few sellers under this, and they enjoy a huge market share. Due to less competition and the oligopoly of a large firm, partnerships and collusion are possible. Firms under the oligopoly have a high degree of mutual interconnectedness because each firm takes into account the reaction curves of rival firms and determines their price and quantity.
An oligopoly understands that its actions have an impact on its rivals and that the reactions of its rivals will have an impact on it.
Hence, option a is the correct answer.
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