According to research by Dunn & Bradstreet, 20 to 25 percent of all outsourcing relationships end in failure after two years, and almost half do so after five.
This suggests that there is a strong possibility that similar costs will be incurred again, as well as expenditures related to re-internalizing an outsourced operation. The effect on the internal workforce when outsourcing is a crucial financial factor.
This outsourcing model focuses on how the customer and their third-party supplier handle both ownership and accountability during the course of the collaboration.
Because another organization can complete these minor jobs more effectively than the company itself, outsourcing non-core operations can increase productivity and efficiency. Additionally, this approach may boost industry competition, shorten turnaround times, and reduce overall operating costs.
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a portfolio’s expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. which of the following would make for the greatest increase in the portfolio’s sharpe ratio? (lo 6-3) a. an increase of 1% in expected return. b. a decrease of 1% in the risk-free rate. c. a decrease of 1% in its standard deviation.
A portfolio’s expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. which of the following would make for the greatest increase in the portfolio’s sharpe ratio?
1% increase in expected return, Sharpe Ratio = (0.13-0.04)/0.2 = 0.45
Sharpe Ratio = (Expected Return - Risk free Rate) / Standard Deviation of Portfolio
Sharpe Ratio = (0.12-0.04)/0.2 = 0.4
1. 1% increase in expected return, Sharpe Ratio = (0.13-0.04)/0.2 = 0.45
2. 1% decrease in risk free rate, Sharpe Ratio = (0.12-0.03)/0.2 = 0.45
3. 1% decrease in Standard Deviation, Sharpe Ratio = (0.12-0.04)/0.19 = 0.42
Both 1 & 2 increases Sharpe Ratio most.
1% increase in expected return, Sharpe Ratio = (0.13-0.04)/0.2 = 0.45
A portfolio is a set of financial investments like stocks, bonds, commodities, coins, and coins equivalents, together with closed-end price range and trade traded price range (ETFs). humans typically trust that shares, bonds, and cash incorporate the core of a portfolio.
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Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $50,000 of its accounts receivable from its customer P Moore. On October 30, P. Moore unexpectedly paid his account in full to Solstice company. Record Solstice's entries to reflect recovery of this bad debt view transaction list view general journal Journal Entry Worksheet 12 Record the reinstatement of the account previously written off. General Journal Debit Credit Date Oct 30 *Enter debits before credits clear entry done record entry
The reinstatement of the account previously written off. General Journal Debit Credit Date Oct 30 Debit $50,000 from Cash $50,000 in Credit Accounts records that reflect the repayment of debt that has been wiped off.
The entries posted in regard to the bad debt written must first be reversed before the $50000 cash receivable may be reported as a bad recovery.The reversed entries would appear as follows:Accounts payable Dr Cr A $5,000 bad debt expense account Recovering bad debt that has been written off.The following information is then recorded in relation to the cash receipt$50000 Dr Cash $50000 Cr Receivables $50000.Receiving no money from client receivables total ($50000).How these entries affect the accounts.A $50000 previous expense is now being offset by a $5000 revenue, thus there is no effect on the income statement at all.
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WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of?
entrepreneurism.
a low-cost strategy.
consumer surplus.
diminishing returns.
offshoring.
This demonstrates a diminishing return.
The econometric law of diminishing returns, in its most basic form, states that, assuming other factors remain constant, when investment in a given sector increases, the rate of return from that investment can no longer increase beyond a certain point. According to the law of declining marginal returns, increasing the number of production factors leads to lesser increases in output. The addition of any more of a production element after a certain level of capacity utilization would unavoidably result in lower per-unit incremental returns.
Some of the world's first economists, such as Jacques Turgot, Johann Heinrich von Thünen, Thomas Robert Malthus, David Ricardo, and James Anderson, are associated with the concept of diminishing returns.
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match each type of bond with its description. secured secured drop zone empty. callable bonds callable bonds drop zone empty. convertible bonds convertible bonds drop zone empty. term term drop zone empty. serial bonds serial bonds drop zone empty. bond issue that matures on a single date bonds that can be exchanged for shares of stock in the issuing company bonds that mature in installments bonds are backed by collateral the issuing company can pay off the bonds at any time
Debentures - unsecured bonds, Callable bonds - the issuing company can pay off the bonds at any time, convertible bonds - bonds that can be exchanged for shares of stock in the issuing company, term - bond issue that matures on a single date and serial bonds - bonds that mature in installments.
By purchasing a bond, you are making a loan to the issuer, who agrees to repay the face value of the loan on a specific date and to pay you periodic interest payments along the way, usually twice a year.
In exchange for regular interest payments, a bond is a financial instrument in which an investor lends money to a business or the government for a predetermined amount of time.
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because of the harm caused to low-income nations from subsidized exports of food, high-income nations are looking at other ways to help. the preferred way is:
Because of the damage low-income countries have suffered from subsidized food exports, high-income countries are looking for other ways to help a preferred route is technical assistance to help poor countries increase their production.
Why do countries subsidize exports?Export subsidies are used when high tariffs increase the domestic price of goods, thereby expanding domestic production. If there are also programs to support domestic production, this production expansion could be larger and affect world prices by artificially increasing global supply.
What happens if exports are subsidized?Export subsidies raise domestic prices and, in the case of large countries, lower foreign prices. Export subsidies increase export volumes. Export subsidies drive a price wedge equal to the value of the subsidy between the foreign and domestic prices of the product.
How can a country compete with a country that supports its industry with subsidies?Under the Subsidies Agreement, countries can impose special import duties, called countervailing duties (CVDs), to offset the benefits of prohibited subsidies on imported products.
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describe some of the ways people use agency to respond to globalization including syncretism and participation in alternative markets.
Syncretism refers back to the combination of various beliefs—even the ones that are reputedly contradictory—into a brand new, harmonious complete. Serves as a response to globalization insofar as it mediates overlapping frameworks.
James C. Scott categorizes as a "weapon of the susceptible" - a concept relating to the methods wherein marginalized peoples can withstand with out directly hard their oppressors fair change" has emerged as a manner for socially-aware purchasers to support small farmers and artisans who have been stricken by those rules.
To be licensed as truthful trade, providers have to comply with a "truthful" rate, which will be adjusted upwards if the sector marketplace fee rises above the truthful alternate threshold.
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If the economy is experiencing less than full-employment, the keynesian model recommends that the government.
To boost aggregate demand, implement stimulative fiscal policy (raise public spending or lower taxes).
What exactly is an economy?A series of connected production and consuming activities that are frequently alluded to as an economy ultimately decide how resources are distributed within a society. The individuals who live nearby and do business there are satisfied by the production activities and consumption of items on a general level.
What do you call the current economic climate?Its American economy is diverse and has components of both capitalism and socialism. Such an economic system supports the independent market owing to the use of capital, but it also allows for government engagement for the collective good.
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Which departments within the organization should have access to the marketing plan?.
The CMO of business unit is likely to be responsible for creation of its marketing plan.
What is a marketing plan?A comprehensive business plan could include a marketing strategy. A well-written marketing plan must start with a strong marketing strategy in order to accomplish goals. While a marketing strategy includes a list of tasks, it is of little use to a business without a strong strategic base. A marketing plan is a thorough report or blueprint that describes the advertising and marketing strategies to be used in the upcoming calendar year. It covers the commercial operations involved in achieving particular marketing goals within a predetermined time frame. A marketing strategy also contains a discussion of the target market, a description of the target market, and a description of the marketing mix that will be used by the company to meet its marketing objectives.
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your firm is contemplating the purchase of a new $681,669 computer-based order entry system. the system will be depreciated straight-line to zero over its six-year life. it will be sold for $78,492 at the end of that time. you will save $192,664 before taxes per year in order processing costs, and you will be able to reduce working capital by $48,839 at the beginning of the project. working capital will revert back to normal at the end of the project. the tax rate is 37 percent. what is the npv of this project if the discount rate is 8.7 percent?
The npv of this project if the discount rate is 8.7 percent is $5,680.94.
beginning expenditure (year 0): -$681,669 (cost of
computing system) less $92,500 (a decrease in net working capital) equals a loss of $592,000.
Annual depreciation cost is $684,500.
5 = $136,900
Net after-tax cash value: ($66,600 x (1–21%) = $52,614)
Years 1-4's net cash flows equal [($203,750 -
$136,900) x 79% ] + $136,900 $189,711.50
Year 5's net cash flow was $189,711,50 plus $52,614
= $242,325.50
NPV = applying a 21% discount rate
-$16,622 15
Since the NPV is negative, the project cannot be approved since the annual cost savings are too low.
When NPV = 0, the business would be undecided on whether to accept or reject the project.
therefore, net cash flows must rise.
by 2.92595 (PV annuity factor, $15,622.15
(21% over 5 cycles) = $5,680.94
This amount is pretax but after tax.
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brief exercise 21.8 (static) matching decisions to all relevant costs or revenue (lo21-1, lo21-3, lo21-4) skip to question [the following information applies to the questions displayed below.] identify all relevant costs or revenue that are applicable to the decisions stated below: brief exercise 21.8 (static) part a a. reject a special order. (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.)
The correct options are:
The contribution margin of the product andInterference with other productionAssociated costs are costs incurred as a direct reaction to a particular decision. Similarly, related revenues are the same, but instead of costs, they generate revenues as a result of certain decisions. This is usually an administrative decision.
Associated costs are business accounting terms that describe avoidable costs that are incurred only when a specific business decision is made. The related cost concept is used to eliminate unnecessary data that can complicate the decision-making process. When deciding on alternatives only the income and expenses that differ for each alternative are relevant.
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explain why a firm's financial statements should be audited. what might happen if audits do not occur? discuss.
Failure to conduct an audit can have serious consequences. If auditors fail to detect inaccuracies in your financial reporting, the consequences can be disastrous, leading to a company's demise.
Unacknowledged liabilities can accumulate to the point where dealing with them becomes a serious issue, even if the company survives. A financial audit is performed to ensure that financial statements are presented accurately and in accordance with generally accepted company's accounting principles (GAAP), allowing business owners to make confident business decisions. An audit is important because it gives financial statements credibility and gives shareholders confidence that the figures are correct.
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question content area depreciation by two methods a storage tank acquired at the beginning of the fiscal year at a cost of $129,600 has an estimated residual value of $7,600 and an estimated useful life of 4 years. a. determine the amount of annual depreciation by the straight-line method.
The straight-line method results in an annual depreciation of $127700.
What does depreciation mean?Due to usage, deterioration, or obsolescence, an item loses value over time. Depreciation is the measurement for this decline. Depreciation, or the decline in value of an asset, can also result from other factors, such as unfavorable market conditions, etc.
Briefing :
Depreciation expense using the straight-line depreciation method ,
(Actual cost - Salvage Value) / Number of years
=($129600 -$7600) / 4
=$127700
Therefore the amount of annual depreciation is $127700 .
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in a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by
In a bailment, in some circumstances, the dollar amount of liability for any loss or damage to bailed goods can be limited by, The responsibility of the bailee is to return the goods barring demand on the accomplishment of the cause or the expiration of the time period.
In case of his failure to do so, he shall be in charge for the loss, destruction, deterioration, damages or destruction of goods even except negligence.
What are liabilities of Bailee?Indian Contract Act, 1872
154. Liability of bailee making unauthorized use of items bailed. If the bailee makes any use of the goods bailed which is not in accordance to the prerequisites of the bailment, he is dependable to make compensation to the bailor for any injury arising to the items from or for the duration of such use of them.
It is nicely established now that Bailee will be in charge for any loss or injury to the bailor which arises due to the negligence or lack of reasonable care of the items bailed.
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https://brainly.com/question/29507641#SPJ4Provide 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?.
The science of climate change is reverberating through economies and business, worldwide.
What does a business consist of?A business is an organization or enterprising body that engages in commercial, industrial, or professional activities. Businesses can be nonprofit organizations or for-profit enterprises. Among the various business structures are partnerships, corporations, limited liability companies, and sole proprietorships.
What are the fundamentals of business?Learning the basics is the first step you should take to succeed in business. By conducting market research and comprehending the needs and expectations of your customers, you can create a long-lasting business, but you must first develop the essential business skills.
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sabv corporation's break-even-point in sales is $940,000, and its variable expenses are 80% of sales. if the company lost $44,000 last year, sales must have amounted to:
1) Break Even Level = FE - CMR950,000 = X /.3950,000 * 3 = 285,000 2) Variable Expense Ratio = 1 -.7CMR =.302 (fixed expenses) Profit = (CM ratio Sales) - Fixed expenditures of 44,000 = (.3 * X) - 285,000 = 800,000.
What does an expense ratio of 1% entail?The expense ratio is a yearly charge that is expressed in terms of your investment, or, as the name suggests, the proportion of your investment which goes towards to the fund's expenses. For every $1,000 you invest, a fund manager with a 1% cost ratio will charge you $10 annually.
What ratio of savings to expenses is ideal?Although experts used to recommend a minimum savings rate of 10%, they now recommend a saving increase of approximately to 15%. Divide this amount into 10percentage points for retirement & 5% for immediate savings, such as a trip. Alternatively, the rule can be stated as a proportion of 100:1 or 85:15, where you consume the first number and save the second..
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In terms of the circular flow diagram, businesses obtain revenue through the _____ marketand make expenditures in the _____ market.A. product; resource B. resource; product C. capital: product D. product, financial
Option C is correct. The round glide mannequin illustrates how in an economic system profits should equal production. In other words, one person's expenditure is another entity's income.
For example, Ben is a mechanic. He sells his services to Sandra. Sandra's expenditure is Ben's income.
What are the flows of the round waft models?The circular flow model is an economic mannequin that suggests the waft of cash via the economy. The most common shape of this mannequin shows the circular glide of profits between the household sector and the enterprise sector. Between the two are the product market and the aid market.
Businesses trade the revenue earned in the market for items and services to buy land, labor and capital in the market for resources.
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https://brainly.com/question/29312401#SPJ4what are major analytical procedures for testing the overall reasonableness of inventory. for each test, explain the type of misstatement that could be identified..
Major analytical procedures for testing the overall reasonableness of inventory is to Compare gross margin percentage with that of previous years: overstatement/understatement of inventory and COGS.
Inventories refer to goods and materials that a business holds for the ultimate purpose of reselling, manufacturing, or using. Inventory management is a principle mainly concerned with specifying the form and location of goods to be stored. It is necessary at different locations within a facility or at multiple locations in the supply network to stay ahead of the schedule for regular, planned production and material stockpiling.
The concept of inventory, inventory, or work in progress has been extended from production systems to service businesses and projects, generalizing the definition as "all work in the production process". production - all work that was or is in progress prior to completion of production".
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the will company reported the following data for last year: decrease in the cash account$ 25,000 net cash provided by operating activities20,000 net cash provided by investing activities15,000 based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be:
Net cash provided by financing activities on the statement of cash flows of the will company would be $60000.
The net amount of cash flows used to fund a business is called cash flows from financing operations.
Here, On basis of the following data,
Net cash provided by financing activities would be, the sum of the decrease in the cash account, net cash by operating activities and net cash by investing activities.
I.e. 25000+20000+15000
=60000
The CFF of a company is an indicator of the company's financial health and management.
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The explosive growth in global trade means that large corporations are hiring Americans of mixed cultural backgrounds. For example, first-generation Americans of immigrant parents may speak two or more languages well. To deal with firms in other countries, large corporations benefit from a. employees from diverse backgrounds. b. employees with only the best credentials. c. outsourcing negotiations.
Large enterprises gain from employing just those with the best credentials to work with businesses in other nations.
What is explosive growth?A person who is compensated to work for a person or business is considered to be an employee. A person is not need to work full-time in order to be regarded as an employee. All that is required is for your company to pay you for the task. A professional who performs for an organization in exchange for pay or compensation is called an employee. Employees enter into a binding agreement with their employer after negotiating terms, typically by signing an offer letter or employment contract, and they then join the team.
A store clerk is an example of an employee. Employees must carry out specified duties, such as: B. An worker is deemed to be an employee if they wear name tags and greet clients in a particular way.
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1. an upstream monopolist produces an input to an downstream monopolist. the inverse demand curve for the downstream product is: p
The downstream marginal costs of extra inputs required by the downstream monopolist and the periphery companies, in that order, are represented by the letters w and v.
What is a monopoly?When there is "no competition" in a market, it creates a situation where one person or business is the only supplier of a given good or service. This contrasts with oligopoly and duopoly, which are examples of markets dominated by a small number of vendors, and monopsony, which refers to a single entity's ownership of a market to purchase an item or service. Therefore, the absence of economic rivalry to manufacture the commodity or service, the absence of effective substitutes, and the potential for a high monopoly price substantially above the seller's marginal cost that results in a high monopoly profit are the characteristics of monopolies. In terms of the law, a monopoly is a company that has a large amount of market power, or the ability to set excessively high prices.
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doreen uses search to reach customers as they search for products similar to hers. she'd like to create a display remarketing campaign to reconnect with users and increase sales. how might remarketing help her meet this marketing objective?
Doreen uses search to reach customers as they search for products similar to hers and create a display remarketing campaign to reconnect with users and increase sales. It will allow her to show ads to people who previously visited her website as they browse websites and use apps.
What do you mean by remarketing campaign?
Remarketing is the practise of engaging audiences who have previously interacted with your brand in order to persuade them to take a desired action, such as conversion. Because the customer journey is time-consuming, remarketing is an important component of digital marketing. Most customers do not discover a new brand, select some of its products, and make a purchase all in the same session. Customers may, for example, visit your website and add items to their shopping cart before leaving without making a purchase. Using the email addresses that customers have provided in their account, you can remarket to them by sending emails that remind them about those products, thereby preventing cart abandonment.
So, The required answer is that It will allow her to show ads to people who previously visited her website as they browse websites and use apps.
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When a profit-maximizing firm is earning profits, those profits can be identified by?.
Profits generated by a business that seeks to maximize its profits can be found by (P - ATC) x Q.
If a business that seeks to maximize profits is successful What could help you pinpoint those profits?Profit is the sum of total revenue less total cost at any given quantity. The amount at which total revenue exceeds total cost by the greatest margin can be used to determine the most profitable production quantity.
What occurs when a company is trying to maximize its profit?Profit maximization entails maximizing profits by employing a sound strategy that balances marginal revenue and marginal cost for business organizations. Numerous economic theories have this theory as their foundation. It exists in markets with perfect competition and monopolies.
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which of the following methods can be used to compare mutually exclusive repeatable projects with unequal lives if inflation in the costs and/or cash flows of the projects is expected when the projects are repeated? group of answer choices equivalent annual annuity replacement chain approach both a and b can be used none of the above
Replacement chain approach can be used to compare mutually exclusive repeatable projects with unequal lives if inflation in the costs and/or cash flows of the projects is expected when the projects are repeated.
Value chains assist businesses in being more efficient so they can provide the most value for the least amount of money. A value chain's ultimate objective is to give a business a competitive edge by boosting productivity and controlling costs. The value chain strategy aims to comprehend an industry's businesses, from input suppliers to end-user consumers, as well as the support markets that offer the sector's technical, commercial, and financial services and the overall business environment. The value chain strategy aims to comprehend an industry's businesses, from input suppliers to end-user consumers, as well as the support markets that offer the sector's technical, commercial, and financial services and the overall business environment. The many business operations and procedures involved in producing a good or providing a service are referred to as the value chain. Research and development, sales, and all other phases of a product or service's lifespan can be included in a value chain. Value chains assist businesses in becoming more efficient so they can provide the most value for the least amount of money. A value chain's ultimate objective is to give a business a competitive edge by boosting productivity and controlling costs.
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A ______ is a form that is sent with each payment, by the insurance carrier, to explain how the claim was processed.
The complete sentence is -"The Authorization to Release Information is a form that is sent with each payment, by the insurance carrier, to explain how the claim was processed."
Who processes the claims?Once accepted, the insurance provider investigates the claim for authenticity and pays out to the insured or requesting party (on behalf of the insured). The non-life insurance market is undergoing changes in policy administration and claims, the two basic activities of insurance.
In exchange for the insurer's pledge to repay the insured in the case of a covered loss, the policyholder assumes a guaranteed, known, and generally modest loss in the form of a payment to the insurer (a premium).
Therefore, The Authorization to Release Information is a document that the insurance provider sends with each payment to explain how the claim was handled.
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in evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity’s aging of receivables to support management’s financial statement assertion of
In evaluating adequacy of allowance for the doubtful accounts, an auditor most likely reviews entity’s aging of receivables to support the management’s financial statement assertion of valuation and allocation.
What is valuation?Calculating an asset's present value (PV) is the process known as valuation in the world of finance. In a corporate setting, it is frequently the speculative price that a third party would offer for a specific item. Assets and liabilities are both subject to valuation (e.g., bonds issued by a company). There are numerous situations when valuations are required, including investment analysis, capital planning, merger and acquisition transactions, financial reporting, and taxable events to calculate the correct tax responsibility. Market value, fair value, and intrinsic value are common phrases used to describe an asset's or liability's value. The International Valuation Standards provide definitions for typical bases of value and generally recognised best practises for evaluating assets of all kinds.
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bear claw industries has two departments. the molding department applies overhead based on machine hours, while the assembly department applies overhead based on direct labor hours. the company made the following estimates at the beginning of the current year:
bear claw industries has two departments. the molding department applies overhead based on machine hours, while the assembly department applies overhead based on direct labor hours. the company estimates at the beginning of the current year is:
$70. Molding department: Estimated overhead costs = $700,000. Estimated direct labor hours = 12,000. Estimated machine hours = 10,000.
What is the definition of industry?An industry in macroeconomics is a division of an economy that creates a cluster of closely related products, services, or raw materials. One could cite the wood business or the insurance industry as examples. Industry classifications often use a group or company's major source of revenue to categorize it inside a certain industry when assessing it. As an illustration, the International Standard Industrial Classification (ISIC), which is utilized directly or through derivations for the official statistics of the majority of countries worldwide, categorizes "statistical units" according to the "economic activity in which they primarily participate."
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what technology enables business oriented transactions and information to be communicated electronically between people and organization
Telecommunications, the electronic transmission of information over distances, and computers are now essentially inseparable:
What technology enables people and organizations to communicate electronically about business-related transactions and information?By using computer telecommunications networks to sell goods, services, and information, e-commerce refers to maintaining relationships and carrying out business transactions.
What kind of technology enables people and organizations to exchange information and do business through the internet?The exchange of electronic transaction documents from computer to computer, involving at least two trading partners, is known as electronic data interchange (EDI). Paper transactional documents like purchase orders and invoices are replaced with standardized electronic communications when using EDI.
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TRUE/FALSE. by selecting a longer waiting period, the purchaser of long-term care insurance can afford long-term coverage and still keep the premiums affordable.
The buyer of long-term care insurance can not afford long-term coverage and still keep the premiums low by choosing a longer waiting period. So statement is false.
What exactly does insurance mean?According to the official definition, insurance is a procedure or arrangement whereby a business or government body guarantees financial compensation for a certain loss, damage, illness, or death in exchange for the payment of a premium. In case of a potential occurrence, it offers defense. After a collision, we get automobile insurance for a much lesser cost known as a premium rather than shelling out a significant sum to repair our vehicles. Car insurance is defined as a contract that states the insurance provider will assist with the cost of repairing or replacing your car if you pay the payment.
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on a budget line graph, a decrease in income and/or an increase in the prices of both goods will shift the budget line to the ___
On a budget line graph, a decrease in income and/or an increase in the prices of both goods will shift the budget line to the inward left.
The budget line is a graphical representation of all possible combinations of the two commodities that can be purchased with the given income and cost so that the price of each of these combinations is equal to the customer's monetary earnings.
The slope of this line is equal to the price ratio of these goods. Because the prices of the two goods are constant, so is the slope of the budget line.
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a partnership’s income-sharing ratio applies to: a. partnership income after salaries and interest are deducted b. partnership income before salaries are deducted but after interest is deducted c. partnership income after salaries are deducted but before interest is deducted d. partnership income before both salaries and interest are deducted
A partnership’s income-sharing ratio applies to partnership income after the salaries and interest are deducted.
What is a partnership?A partnership is a contract wherein parties, also referred to as business partners, decide to work together to further their shared objectives. A partnership may have one or more individuals, corporations, nonprofits, educational institutions, governmental bodies, or other entities as partners. Organizations may collaborate to broaden their reach and improve the chances that each will succeed in reaching its goals. A partnership might issue and hold stock or it might just be bound by a contract. Every partnership, even one that has not been reduced to writing, must have a partnership agreement in order to be formed. Although it is not legally necessary in common law nations, partners may benefit from a written partnership agreement that spells out the key elements of their relationship.
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