Garret has created an exemption trust which leaves exactly $2 million to his husband in anticipation of his income needs.
An arrangement known as a business will typically take the form of a buy-and-sell option. It guarantees a smooth transfer of ownership in the event of a business owner's death, total and permanent disability, or trauma.
A married couple's estate can significantly cut or completely avoid federal estate taxes by establishing an exemption trust. This kind of estate plan creates an irrevocable trust to hold the assets of the first to pass away spouse.
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When making scrap or rework decisions, management should consider: (check all that apply. ).
When making scrap or rework decisions, management should consider:
revenue from selling defective units as scrap.incremental costs.What is meant by rework decisions?Rework is the process of fixing a product that initially does not fulfill the minimal quality requirements of an entity. The product can now be sold thanks to the corrective work, allowing a company to recoup some of the margin from a product that would have otherwise been destroyed.
After inspection, rework is the process of fixing products that are flawed, unsuccessful, or nonconforming. Disassembly, repair, replacement, and reassembly are all parts of this process.
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When making scrap or rework decisions, management should consider: (Check all that apply.)
revenue from selling defective units as scrap.
incremental costs.
existing sales.
costs already incurred in producing defective units.
Answer:
revenue and incremmental
Explanation:
what is a health care system in which all citizens receive medical services paid for by tax revenue?
The main tools that the Fed can use to alter the reserves of commercial banks are the required-reserve ratio and the following, except:
A. Exchange rate B. Discount rate C. Interest on reserves D. Open market operations
The main tools that the Fed can use to alter the reserves of commercial banks are the required-reserve ratio and the following, except Exchange rate.
A commercial bank is what?A commercial bank is a type of financial institution that accepts public deposits and grants borrowers loans for profit-making investments and consumption. To distinguish it from a retail bank and an investment bank, it can also refer to a bank, or a section of a big bank, that works with corporations or a large/middle-sized firm. Public and private sector banks are both considered commercial banks.
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a price shock (inflation shock) is: a change in the price level that is not caused by a change in output or a change in input prices. a change in output prices that is not caused by a change in output or a change in the price level. a change in input prices that is not caused by a change in output or a change in the price level. a change in the price level that is caused by either a change in output or a change in input prices.
A supply shock is an unanticipated occurrence that alters the supply of a good or commodity, which prompts an abrupt shift in price. In contrast to a negative supply shock, which reduces output and raises prices, a positive supply shock boosts output and lowers prices.
An inflation shock is what?An inflationary shock occurs when prices of goods rise abruptly (for instance, after a reduction in government subsidies) without immediate salary adjustments throughout society (resulting in a temporary loss of purchasing power for many consumers); or when production costs start to outpace corporate.
We discover that a positive inflation expectations shock is deflationary and contractionary using data for the United States: inflation, output, and interest rates all decrease. The traditional New Keynesian model, which forecasts rising inflation and interest rates, is at odds with these findings.
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the introduction phase of the product life cycle (plc) for an industry is usually characterized by .
The introduction phase of the product life cycle (PLC) for the industry is usually characterized by the building of awareness of the product or service in certain markets. The introduction stage happens when a product is launched in the marketplace.
There are different stages of the product life cycle. These include development, introduction, growth, maturity, saturation, and decline. The development stage of the product life cycle is the research phase before a product is introduced to the marketplace. In this stage, companies typically spend a lot of money without bringing in any revenue because the product isn't being sold yet.
In the introduction phase, marketers focus on advertising and marketing campaigns. They also work on testing distribution channels and building product and brand awareness.
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Provide an example of how a company could make modifications to their business operations to incorporate sustainable best practices. How could these modifications be measured in terms of triple bottom line?.
This may mean switching to a green energy provider or investing in solar or wind energy equipment.
What Is the Triple Bottom Line (TBL)?According to the triple bottom line (TBL) economic theory, businesses should make a commitment to giving social and environmental issues the same amount of attention as they give earnings. According to TBL theory, there ought to be three bottom lines: profit, people, and the environment. According to the triple bottom line (TBL) economic theory, businesses should make a commitment to giving social and environmental issues the same amount of attention as they give earnings. According to TBL theory, there ought to be three bottom lines: profit, people, and the environment. A TBL aims to evaluate an organization's level of adherence to corporate social responsibility and its long-term effects on the environment.
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creating an active brand community is one of the goals of nutrisystem. which of the following is indicative of an active brand community? mass email blasts online banner advertising free shipping to customers. customer interaction through social media, blogs, and website content. complaning about the company's product
Creating an active brand community is one of the goals of Nutrisystem. which of the following is indicative of an active brand community complaining about the company's product.
The application can fee approximately $250 to $350 in step with month plus the fee of extra ingredients from the grocery store, inclusive of vegetables, fruit, and dairy products. Unhealthy processed ingredients: The prepackaged meals at the Nutrisystem weight loss program are closely processed.
The company's internet site claims that ladies can lose as much as thirteen kilos and seven inches withinside the first month and guys can lose as much as 18 kilos and eight inches withinside the first month on Nutrisystem for Men. After that, dieters can lose a mean of one to two kilos in step with week. Limited sodium.
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According to the text, the development of a strong relationship between salesperson and prospect begins:
A. with a follow-uo
B. when the salesperson analyzes the customers needs
C. when the order is first placed
D. when all objections have been handled
E. when the customer is presented with product benefits
According to the text, the development of a strong relationship between salesperson and prospect begins B. when the salesperson analyzes the customers needs.
Building relationships with clients and potential consumers is a priority when using the relationship selling strategy to close deals. The salesman emphasizes their connections with customers rather than just the pricing and other facts in order to sell a good or service.
When a salesperson builds a personal rapport with a customer, that customer is more likely to develop loyalty toward a product or service. Because they feel appreciated by the business, familiarity helps keep loyal consumers and attract new ones.
This sales strategy is effective when selling expensive goods or purchases that need a greater level of commitment because these clients typically need more time and consideration to make a decision.
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A company that wants to use scenes from the pixar movie soul in its advertising campaign would have to have a __________ with the pixar company to use the movie.
A company that wants to use scenes from Pixar movie soul in its advertising campaign would have to have a licensing agreement with the Pixar company to use movie.
What is a licensing agreement?The licensor and the licensee are the two parties to a licensing agreement, which is a formal legal contract. The licensor typically grants the licensee permission to create and sell items, use the licensor's brand name or trademark, or make use of any patented technology in a licensing agreement. In return, the licensee typically consents to a number of restrictions on how to use the licensor's property and agrees to pay royalties. A wide range of well-known circumstances are covered by licensing agreements. Or a small manufacturer can, in order to acquire a competitive edge, license a proprietary production technology from a bigger company rather than investing the time and resources to try to develop its own technology.
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16. standard approaches to waste disposal are generally regulated and managed by the: a. osha b. dot c. epa d. fema
Standard approaches to waste disposal are generally regulated and managed by the: EPA.
Waste disposal is the collection, processing, recycling, or disposal of human society's waste materials. Waste materials can be either liquid or solid. usually, waste is categorised on the basis of the source and content the waste is made up of. The major components of waste disposal might be harmful or inert in terms of their effects on health and the environment.
EPA (USA Environment Agency) has taken several steps for improving the climate.
They have adopted new technology for Climate change, use various indicators, and also proposed a new protection policy by reducing the use of HFCs. In recent years, they have proposed a new rule to revise its existing National GHG Emissions Standards for Passenger Cars and Light Trucks Through Model Year 2026.
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oil-refining technology was sold to firms in saudi arabia and other gulf states and now those western firms that sold the technology have to compete with these countries in the oil industry. this shows how a(n) blank strategy can be a disadvantage.
It has been demonstrated that a strong relationship with the partner, mutual trust, a minimal commitment from both parties, and clear objectives and strategy are the most important factors affecting alliance success.
When a company enters a market before its competitors, what does this mean?
A service or product that enters the market first gains a competitive advantage by being a first mover.Before competitors enter the market, being first typically enables a business to establish strong brand recognition and customer loyalty.
What kinds of intangible assets might be included in a licensing agreement?
Intellectual property can be licensed in the form of copyrights, trademarks, and patents.Mechanical devices and systems, healthcare products and services, electronic hardware, computer software, chemical compositions, and business practices, for instance, can all benefit from patent licenses.
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When using the indirect method, adding a decrease in prepaid insurance to net income eliminates the effect of recording insurance expense that ______.
Using the indirect method, each non-cash object is introduced returned to net earnings to produce cash from operations.
What is subtracted from internet income when the use of the oblique method?A gain increases net earnings however cash is not received so it ought to be subtracted out of net earnings when changing to a money groundwork from operating activities.
Does the oblique technique begin with net income?Understanding the Indirect Method
The indirect technique provides the statement of cash flows beginning with net profits or loss, with subsequent additions to or deductions from that quantity for non-cash income and price items, ensuing in cash drift from running activities.
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https://brainly.com/question/25530656#SPJ4Stellar Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Replacement Cost/Unit Estimated Selling Price/Unit $11.24 Item Unit Cost Quantity 1,800 Completion & Disposal Cost/Unit $1.61 0.96 Normal Profit Margin/Unit $1.93 1.28 A $8.99 $8.03 8.77 B 1,500 8.45 10.06 с 5.99 5.78 1.23 0.64 1,700 1,700 D 0.86 7.70 6.74 7.17 4.07 6.85 1.61 4.49 6.74 E 2,100 0.75 1.07 Greg Forda is an accounting clerk in the accounting department of Stellar Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant.
An inventory rule called Lower of Cost or Market (LCM) is used to follow the conservatism principle. Inventory should be recorded in the books at the lower of its historical cost and market values, as stated in this rule. Replacement cost is limited by a ceiling, or net realizable value, and a floor, or net realizable value less normal profit, to define the market.
What is the Market or Lower Cost Method?According to the lower of cost or market (LCM) method, a company's inventory is valued by recording it on its balance sheet at either its historical cost or its market value. Verifiable expense alludes to the expense at which the stock was bought.
Is market or cost reduction GAAP?After asset values change, a GAAP-approved method for revising the reported book value of certain assets is the Lower of Cost or Market Rule. The lower of either (a) the historical cost or (b) the market value is reported by owners as the new book value of securities or inventories in accordance with the LCM rule.
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The Michigan Studies, discussed in the text, pinpoint two basic types of leader behavior. From what you saw in the video, which of the following is more likely to represent founder Reynolds's type of leadership?A.Employee-centered behaviorB.Achievement behaviorC.Consideration behaviorD.Job-centered behaviorE.Structure behavior
A. Employee-centered behavior is more likely to represent founder Reynolds's type of leadership.
Employee-centric CEOs put their people first on purpose and consistently. They encourage innovation, ideas, good communication, and creativity among their teams, which helps them retain their finest workers and foster the support needed to achieve organizational objectives.
People who earlier found tremendous security and comfort in receiving a biweekly income are increasingly going independent, selecting short-term initiatives that make them happy rather than getting indulged into destructive business cultures and office politics.
Many people who just lost their full-time jobs due to the pandemic are likewise applying to vacant positions more selectively and carefully choosing whether to work as freelancers, contractors, or full-time employees.
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under activity-based costing, nonmanufacturing costs blank . multiple choice question. may be allocated to products based on cause are never assigned to products are always treated as period costs are always assigned to products, regardless of cause
Costs that are not related to the production of a product are known as nonmanufacturing overhead costs.
These costs are not assigned to items when calculating the cost of terminating inventory or the cost of goods sold since they are not related to products. Selling, general, and administrative costs, as well as finance charges, are non-manufacturing overhead expenses. Nonmanufacturing overhead expenses should not be viewed as discretionary costs because they support essential business functions like sales and marketing. As an alternative, product price points should be set so that a company makes a profit once all of these expenses have been paid.
The pay for sales and marketing staff, rent and utilities for office space, loan and credit line interest, marketing expenses, liability insurance, and office supplies are a few examples of non-manufacturing overhead costs.
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a passive investor carefully studies investment alternatives, regularly monitors them, and makes decisions to buy and sell with or without the advice of a professional.
A passive investor studies investment alternatives, regularly monitor them and make decisions to buy and sell with or without the advice of a professional. - False
A person who invests money in a corporation, such as a business, in the hopes of making a profit is known as an investor. A passive investor is one who abstains from taking part in the operational decisions that go into running a business. Such investors may be regarded as restricted partners rather than general partners in partnerships.
The passive investor assumes that the market is efficient and that equities are priced reasonably to represent the risk associated with purchasing the stock. A passive investor depends on the controlling shareholders and management to run the corporation's operations in a way that maximizes its worth and shares the opportunity for growth with the passive investor. These investors rarely carefully study or monitor the trends.
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which, if any, of the following statements is correct? select one. c corporations have unlimited liability. sole proprietorships offer limited liability. question 3 options: a. 1 only b. 2 only c. both 1 and 2 d. neither 1 nor 2
Corporations have limited liability whereas the sole proprietorship offers unlimited liability.so neither 1 nor 2.
what is Liability?
According to the definition of a liability in financial accounting, a liability is the obligation an entity has to forgo future financial gains to other entities as a result of previous transactions or other past events, the resolution of which could lead to the transfer or use of assets, the rendering of services, or other future financial gains.
Financial accounting liabilities might be based on equitable duties or constructive obligations rather than having to be legally enforceable. A responsibility based on moral or ethical principles is referred to as an equitable obligation. Contrary to an obligation that is founded on a contract, a constructive duty is one that is suggested by a particular combination of circumstances.
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while internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the and associated with internally sourcing a product or service.
While internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the internal coordination and overhead costs associatee with internally sourcing a product or service.
External sourcing alternatives or outsourcing is a strategy chosen by a company to reduce its production costs through appointing external parties or subcontractors to do the job for them. A company outsources some of their non-core and less important works to subcontractors.
However despite many benefits from outsourcing, there are many disadvantages as well from this strategy especially in the financial aspects. Those disadvantages are known as the hidden costs of outsourcing. The hidden costs of outsourcing are consisted of:
Quality costsCosts of strategic supplier relationship managementInternal coordination costsCosts related to implementatiton of external sourcing modelCost of product/service design and developmentGovernmental and political expensesCosts related to supply chain risk managementQuality costs are costs associaated to preventative, appraisal, internal failure and external failure. When outsourcing a part of production processes to subcontractors, a company has to ensure that proper mechanisms are placed by those subcontractors. A company has to make sure t be able to detect any quality failures by an external source.
Not all external sourcing relationship are made equal. Outsourcing relationship involving commodity products may not require extensive relationship building and coordination. However the external sourcing of strategic products is the other hand of the spectrum. This kind of relationship require extensive relationship building and coordination activities.
While internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the internal coordination and overhead costs associatee with internally sourcing a product or service. Outsouring might not directly eliminate any internal coordination costs related to the works outsourced.
Supplier search activity, evaluation and contracting, transfer of the physical assets, domestic and internal travel during startup, and training the new sources to ensure of smooth transition and seamless integration incurred when switching sources. These kinds of costs included in costs related to implementation of external sourcing model.
The costs of tightly coupled and integrated product designs required higher levels of coordination and make it unappropriate for external sourcing. A literature finds that the difficulty and cost with which knowledge is shared accross firms are high.
When a company is considering internationally outsourcing alternatives, a company has to clearly understand the costs involved to ensuring compliance with the local goverment laws, regulations, and local business customs. This kind of cost is not limited to legal expenses.
Outsourcing risks include beaching in intellectual property, provider shirking, and opportunistic renegotiation.
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Michelle Robinson is thinking about two different decisions. One decision is quite risky, while the other decision is more conservative. To help her make the right decision, she decides to calculate the:
a. quickratio. b. managementanalysis. c. moneyfactor. d. risk-return ratio. e. entrepreneurial ratio.
To be able to make the right decision between the risky and conservative decision, Michelle Robinson should take a d. risk-return ratio calculation.
What is the benefit of the risk - return ratio calculation?The risk - return ratio allows us to find out if we are getting enough returns from an investment, relative to the risk that we are incurring. In other words, the risk - return ratio would show us if we are being adequately compensated for the risk that we take when we decide that an investment is the best option for us.
The risk - return ratio is important because it allows us to compare investments that have different risks. This means that Michelle Robinson can adequately compare the two decisions which are risky and conservative based on which decision brings in more returns, relative to the investment.
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when selecting an investment, which criteria relate to how quickly you can get back your invested funds if you want or need them?
When selecting an investment, liquidity relate to how quickly you can get back your invested funds if you want or need them.
Give a brief account on investment.An investment is anything that is bought with the hope of making money or appreciating in value. A rise in an asset's value over time is referred to as "appreciation." When a person buys a product as an investment, they don't intend to utilize it right away; instead, they plan to use it to make money later on.A typical investment is the use of a resource today—time, effort, money, or an asset—with the expectation of getting back more than what was initially invested. An investor, for instance, might purchase a financial asset today in the hopes that it will generate income down the road or be worth more when it is time to sell it.
Investments are made with the intention of making money and building value over time. Any process utilized to produce future income can be referred to as an investment. This includes, among other things, purchasing securities such as bonds, stocks, or real estate. Buying a property that can be utilized to manufacture things is another investment option.
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frankin corporation's net cash provided by operating activities was $205; its capital expenditures were $86; and its cash dividends were $43. the company's free cash flow was:
Free cash flow = $205 - $86 - $43. Therefore, Free cash flow = $76.
What do you mean by free cash flow?The money a business has remaining after paying its operating expenses (OpEx) and capital expenditures is known as free cash flow (FCF) (CapEx). The more free cash flow a business generates, the more it may invest in dividends, debt reduction, and expansion opportunities.
How do you calculate free cash flow?Sales revenue minus (operating costs plus taxes) minus necessary operating capital investments equals free cash flow.
Net operating profit after taxes minus net investment in operational capital equals free cash flow.
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Free cash flow = $205 - $86 - $43. Therefore, Free cash flow = $76.
What do you mean by free cash flow?The money a business has remaining after paying its operating expenses (OpEx) and capital expenditures is known as free cash flow (FCF) (CapEx). The more free cash flow a business generates, the more it may invest in dividends, debt reduction, and expansion opportunities.
How do you calculate free cash flow?Sales revenue minus (operating costs plus taxes) minus necessary operating capital investments equals free cash flow.
Net operating profit after taxes minus net investment in operational capital equals free cash flow.
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Vansel Inc. retains most of its earnings. The company currently has earnings per share of $11. Vansel expects its earnings to grow at a constant rate of 2 percent per year. Furthermore, the average PE ratio of all other firms in Vansel's industry is 12. Vansel is expected to pay dividends per share of $3.50 during each of the next three years. If investors require a 10 percent rate of return on Vansel stock, a fair price for Vansel stock today is $____.
If investors require a 10 percent rate of return on Vansel stock, a fair price for Vansel stock today is $106.32.
The discounted present value of future dividends is used to determine the stock's price. We only have data on dividends for the following three years in this query. This can be avoided by computing the stock price at the conclusion of the fourth year using the PE ratio and earnings per share, and utilising that price (also known as the terminal value) to approximatively determine the discounted value of all future dividends.
It is given that earnings per share is $11 and growth rate is 2%. PE ratio is 12.
Earning per share after 4th year = earnings (1+g)ⁿ
where, g is the growth rate = 2% and n is no of years = 4 years
Thus,
Earning per share after 4th year = 11 (1+2%)⁴
= 11.91
Price per share = 11.91 * PE ratio = 11.91 × 12 = 142.92
It is also given that Dividend per share is $3.5 for 3 years and rate of return is 10%.
Thus, fair price = ∑(n=1 till 3) (Dividend per share÷ (1+r)ⁿ) + (142.92 ÷(1+r)⁴
= ∑(n=1 till 3) (3.5 ÷ (1+10%)ⁿ) + (142.92 ÷(1+10%)⁴
= 106.32
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when 1,3-cyclopentadiene, a symmetric conjugated diene, is reacted with hcl, it produces an allylic carbocation whose contributing resonance structures are , resulting in a single product.
when 1,3-cyclopentadiene, a symmetric conjugated diene, is reacted with HCL, it produces an allylic carbocation whose contributing resonance structures will be , resulting Equivalent.
The organic compound cyclopentadiene has the chemical formula C5H6. Because the cyclopentadienyl anion is abbreviated Cp, it is frequently written as CpH.
The odor of this colorless liquid is overpowering and disagreeable. This cyclic diene undergoes a Diels-Alder reaction at room temperature, dimerizing over the course of several hours to yield dicyclopentadiene. The monomer can be obtained by heating this dimer to recover it.
The substance is mostly used to make cyclopentene and its derivatives. The cyclopentadienyl anion (Cp), a crucial ligand in cyclopentadienyl complexes in organometallic chemistry, is frequently utilized as a precursor to this compound.
A colorless liquid with a pleasant, turpentine-like aroma is cyclopentadiene. Insecticides, fungicides, resins, and other compounds are produced using it.
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zorn incorporated makes a sale for $400. the company is required to collect sales tax of 9%. what is the amount that will be credited to the sales tax payable account?
$36 will be credited to the sales tax payable account.
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.
Sales tax is an indirect tax that is often assessed at the time that certain taxable products are purchased or exchanged. It is assessed as a percentage of the item's retail price.
The formula to calculate sales tax is Total Sales Tax = Cost of item x Sales tax rate.
Cost of item = $400
Sales tax rate = 9%
Total Sales Tax = 400 × 9/100 = 36
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which of the following statements are true for both monopolistically competitive markets and monopoly markets? check all that apply. firms can earn positive profit in the long run. firms are not price takers. price equals average total cost in the long run. firms earn zero profit in the long run.
According to the claim, monopolistic competition makes others believe that its product is superior.
Why do you use the word "market"?Market: A mechanism whereby buyers and sellers come into touch with one another, both directly and through intermediary agents or organizations, and supply goods and services.
What does a company' market entail?A bazaar is a process in which the parties come together to transact business. Markets might be real-world, like a physical store, or digital, like an online merchant. The black market, the auctions market, as well as the financial market are more examples.
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The complete question is-
Which of the following statements are true about both monopolistic competition and monopolies?
a. Price equals average total cost in the long run.
b. Price is above marginal cost.
c. Firms are not price takers.
d. Firms can earn positive profit in the long run.
jewel's buyer client recently bought a house, and jewel can now be compensated for her work as a kansas buyer's agent. from whom will jewel receive her commission check?
Jewel's buyer client recently bought a house, and jewel can now be compensated for her work as a kansas real estate agent. Jewel will receive her commission check from her employing broker.
A real estate agent is a qualified individual who coordinates real estate transactions by connecting buyers and sellers and representing them in discussions. The ability to close a deal determines how much money a real estate agent makes because commissions, which are often a percentage of the property's purchase price, make up the majority of their compensation.
A real estate agent must, in virtually every state, work for or be associated with a real estate broker either an individual or a brokerage firm, who is more skilled and has a higher level of licensing. Typically, real estate brokers choose to focus on either commercial or residential properties.
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question 4 you are presenting to your stakeholders and want to convey confidence. how should your body language reflect your composure? select all that appl
Keep your body language poised when presenting if you want to come off as confident to your audience. You may also prevent disturbing your audience by standing upright, being motionless, and making eye contact.
It relates to a type of non-verbal communication in which a combination of physical cues may be used to send a message. Examples include gestures, which show a stronger expression of what is being said, and eye contact, which shows assurance.
In order to project confidence during a business presentation, it is crucial to employ body language, a type of communication that may transmit nonverbal messages. It is crucial for the speaker to recognize and match his body language to the expectations of his listeners in order to increase engagement and credibility for what is being conveyed.
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james, an american who works for a u.s.-based company, has been sent to england for a work assignment. james would be known as a(n)
James, an american who works for a u.s.-based company, has been sent to england for a work assignment. James would be known as an expatriate.
Who is an expatriate?Basically, an expatriate is a person who resides outside their native country.In common usage, it refers to educated professionals, skilled workers, or artists taking positions outside their home country either independently or sent abroad by their employers.
In other word, an expatriate means the individual living and/or working in a country other than their country of citizenship often temporarily and for work reasons. It can also be an individual who has relinquished citizenship in their home country to become a citizen of another.
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The multiplier effect suggests that Not yet Wswered Select one a. spending $1 increases GDP by more than $1. Marked out of 1.00 Flag b. spending $1 increases GDP by less than $1. C. spending $1 decreases GDP by less than $1. question d. spending $1 decreases GDP by more than $1.
Tax multiplier amount = -9.00.Real GDP changed or increased by $9 billion. Less than $1 billion in spending would be required by the government. The explanation is that the tax multiplier's absolute value is bigger than the expenditure multiplier's absolute value, which is 10.
MPC = 1 - 0.90 = 0.10 MPS = Marginal Propensity to Save = 1 MPC = 1 - 0.90 = 0.10
As a result, we have:
The tax multiplier is equal to MPC / MPS, which is 0.90 / 0.10, or -9.00.Reduced tax X=-$1 billion
Tax multiplier equals -9.00.
Amount of change or growth in real GDP equals a decrease in taxes, multiplied by a -$1 tax multiplier.Multiplier for expenses = 1/ MPS = 1/ 0.10 = 10Real GDP growth is equal to the change in government spending multiplied by the expenditure multiplier (1). Solve for by substituting the appropriate values into equation (1). Government spending has changed.We possess.Change in government spending of $9 billion $9 billion / 10 = $0.90 billion in changes to government spending in one year.Given that the expenditure multiplier produced a change in government spending of $0.90 billion, this suggests that less than $1 billion in expenditures would be required.
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which of the following is consistent with the idea that high money supply growth leads to high inflation? a. the quantity theory and data from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland. b. the quantity theory but not evidence from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland. c. evidence from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland but not the quantity theory. d. neither the quantity theory nor evidence from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland.
The quantity theory and evidence from 4 hyperinflations in the 1920s is consistent with the idea that high money supply growth leads to high inflation.
What is meant by the "quantity theory of money"?The quantity theory of money states that the relationship between an economy's money supply and price level is inverse. In proportion to changes in the money supply and vice versa, the price level fluctuates.
What causes hyperinflation to happen?Hyperinflation is caused by a country's money supply growing quickly, frequently as a result of a government creating more and more currency. As more cash is made available, the value of each unit decreases, driving up costs.
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