Bonds or preferred stock are two options available to corporate owners who desire to acquire additional funds through the issuance of new securities while still maintaining control over their business.
What distinguishes preferred stocks from bonds in the most fundamental ways?Bonds offer investors recurrent interest payments, but preferred stocks only pay fixed dividends. In response to changes in interest rates, the value of bonds and preferred stocks also varies. In the event that a business declares bankruptcy and is forced to close, bondholders are compensated before preferred shareholders.
What traits are common between bonds and preference shares?A bond is a financial instrument that simulates a loan from one party to another. Preference shares are equity shares of an organization that receive dividend payments. Preference shares don't have a maturity date, while bonds sometimes do.
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Think about the new jobs and opportunities available to people in cities.
Select the answer choice that best completes each sentence.
1. Service industry jobs included jobs in the banking, factory retail farming, and hotel industries.
2. Service industries contributed to a growing wealthy working middle class.
3. Women Men Children often worked at new service jobs before they got married.
The right response is option 2, which describes how the service sector aided the development of a rich working middle class.
What kind of work falls within the service sector?The service sector, often known as the tertiary sector, makes up the third tier of the three-sector economy.. This industry produces maintenance and repairs, retraining, or consultancy instead of products.Among the occupations in the service sector are teaching, medicine, housekeeping, and tours.
What are employees in the service sector?Businesses and individuals who market a variety of goods and services to consumers and business entities make up the service industry. Travel and hospitality professionals is in those with jobs in the service sector.
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Answer:
1. Retail 2 .Middle 3. Women
Explanation:
if considering international sourcing alternatives, it is important that the decision makers develop a complete understanding of the costs involved with .
It is important that the decision makers develop a complete understanding of the costs involved with ensuring compliance with governmental laws, regulations, and even local business customs.
They take sensible decisions after considering all of their options and the repercussions. Your capacity to choose wisely among several options is demonstrated by your decision-making abilities. Making wise selections as a worker can enable you to forward the objectives of your business. You can make wise selections once you apply these abilities to evaluate all the facts at your disposal and identify any prejudice. Making decisions is crucial since it allows you to select from a variety of possibilities.
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A shopkeeper sold his entire stock of shirts and ties in a sale for $10 000. The shirts were priced at 3 for $100 and the ties $20 each. If he had sold only half the shirts and two-thirds of the ties he would have received $6000. How many of each did he sell in the sale?.
300 shirts and 120 ties shopkeepers sell in the sale.
What is a whole stock?A single unit of a company's stock, a mutual fund, or another investment is referred to as a whole share. Shareholders may vote on significant business issues, receive dividends, and sell their shares for a profit. However, whole shares can be extremely expensive, costing hundreds or even thousands of dollars, making them unaffordable for many investors.
Given
Total Stock = $10,000
Shirts price = $100 for 3 shirts
Ties = $20 each
Selling Quantity half shirt and 2 / 3 ties for $6000
Required to find Quantity for Shirts and ties =?
Let the shirt be a and the ties are b.
33.33a + 20 b = 10000 equation 1
50a /3 + 40 b / 3 = 6000 equation 2
From equations 1 and 2 we get a = 300 and b = 120
Thus, the shopkeeper sells 300 shirts and 120 ties.
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Balance: $0 date open: 12/01/2010 account type: installment high balance: $2500 terms: $115 for 24 months pay status: paid as agreed date closed: 12/2013 this information is from a credit report. How much did leonard borrow at furniture city? responses
The amount that Leonard borrowed from Furniture city, based on the amount in the balance, was $ 2, 500 .
How much did Leonard borrow ?The amount that Leonard borrowed is the balance on the loan at the highest amount. This is because at this point, Leonard has yet to pay back anything towards the loan so this high balance seen is the total amount of the loan .
The high balance according to Leonard's Credit Report is $ 2, 500 . This means that Leonard borrowed an amount of $ 2, 500 from Furniture City .
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Dennis sells a motorcycle to Elton without disclosing that the odometer, which reads10,000 miles, was disconnected 100,000 miles ago. Dennis is most likely liable for○Puffery.○fraudulent misrepresentation.○none of the choices.○mistake.
Dennis is most likely liable for mistake. A unilateral error happens when only one party is misinformed about a crucial contract term.
A unilateral error happens when only one party is misinformed about a crucial contract term, whereas a mutual mistake happens when both parties are mistaken about the same term. These various errors can have a variety of effects on the contract, depending on the specifics of the situation.
When one or both parties to a contract misunderstand a phrase that is crucial to understanding the agreement, it is referred to as a mistake of fact in contract law. A contract that specifies that a shipment of "plates" is to be delivered would serve as an illustration of this. In this case, paper plates are referred to in the contract. However, it might be a factual error if one party thinks they are ceramic plates.
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the appropriate maintenance policy is developed by balancing preventive maintenance costs and breakdown maintenance costs. the problem is that infant mortality part 2 a. does not consider breakdown maintenance, which must be performed regardless of cost. b. does not consider preventive maintenance, which should be performed regardless of cost. c. is a high initial failure rate. d. detracts from preventive maintenance costs, which are very difficult to identify.
The appropriate maintenance policy is developed by balancing preventive maintenance costs and breakdown maintenance costs full breakdown costs are seldom considered.
Breakdown maintenance (also known as run-to-failure maintenance) occurs when a facility fails completely and repairs are required to resume operations. Outage maintenance is often the default maintenance strategy, especially in organizations that rely on reactive maintenance.
Incident maintenance is also known as run-to-failure maintenance. As the name suggests, maintenance tasks must be performed after an asset fails. Most commonly used when preventing failure is not possible or economically viable.
Breakdown maintenance is defined as a type of maintenance in which a machine is used until it fails completely and then is restored to normal function. This type of maintenance occurs, for example, when waiting for a machine to stop working before repairing it.
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entries for installment note transactions on january 1 of year 1, bryson company obtained a $147,750, four-year, 7% installment note from campbell bank. the note requires annual payments of $43,620, beginning on december 31 of year 1. question content area a. prepare a amortization table for this installment note, similar to the one presented in exhibit 4. round the computation of the interest expense to the nearest whole dollar. enter all amounts as positive numbers. (note: due to rounding, the year 4 interest expense is provided.) amortization of installment notes for the year ending dec. 31 january 1 carrying amount note payment (cash paid) interest expense (7% of january 1 note carrying amount) decrease in notes payable december 31 carrying amount year 1 $fill in the blank a2b0f3f65fdcfb4 1 $fill in the blank a2b0f3f65fdcfb4 2 $fill in the blank a2b0f3f65fdcfb4 3 $fill in the blank a2b0f3f65fdcfb4 4 $fill in the blank a2b0f3f65fdcfb4 5 year 2 fill in the blank a2b0f3f65fdcfb4 6 fill in the blank a2b0f3f65fdcfb4 7 fill in the blank a2b0f3f65fdcfb4 8 fill in the blank a2b0f3f65fdcfb4 9 fill in the blank a2b0f3f65fdcfb4 10 year 3 fill in the blank a2b0f3f65fdcfb4 11 fill in the blank a2b0f3f65fdcfb4 12 fill in the blank a2b0f3f65fdcfb4 13 fill in the blank a2b0f3f65fdcfb4 14 fill in the blank a2b0f3f65fdcfb4 15 year 4 fill in the blank a2b0f3f65fdcfb4 16 fill in the blank a2b0f3f65fdcfb4 17 2,853 fill in the blank a2b0f3f65fdcfb4 18 0 $fill in the blank a2b0f3f65fdcfb4 19 $fill in the blank a2b0f3f65fdcfb4 20 $fill in the blank a2b0f3f65fdcfb4 21 question content area b. journalize the entries for the issuance of the note and the four annual note payments. for a compound transaction, if an amount box does not require an entry, leave it blank. year 1 jan. 1 - select - - select - year 1 dec. 31 - select - - select - - select - - select - - select - - select - year 2 dec. 31 - select - - select - - select - - select - - select - - select - year 3 dec. 31 - select - - select - - select - - select - - select - - select - year 4 dec. 31 - select - - select - - select - - select - - select - - select - question content area c. how will the annual note payment be reported in the year 1 income statement? of $fill in the blank c0728c01afa4ff0 2 would be reported on the income statement.
The Interest expense 10,342.50.
What would be the Net Income?
The scenario dictates that the computation of the provided data be as follows:-
1) The following attachment shows the amortization schedule:
2). Journal Entry
1 Jan Cash A/c Dr. $147,750
To Notes payable A/c $147,750
(Being that the money received is documented)
31 Dec Interest expense A/c Dr. $10,342.50
Notes payable A/c $33,277.50
To Cash A/c $43,620
(Being recorded is the yearly installment payment with interest.)
31 Dec Interest expense A/c Dr. $8,013.08
Notes payable A/c $33,606.93
To Cash A/c $43,620
(Being recorded is the yearly installment payment with interest.)
31 Dec Interest expense A/c Dr. $5,520.59
Notes payable A/c $38,099.41
To Cash A/c $43,620
(Being the yearly installment payment with interest is recorded)
31 Dec Interest expense A/c Dr. $2,853.83
Notes payable A/c $40,766.17
To Cash A/c $43,620
(Being the yearly installment payment, which includes interest and offsetting obligations,)
3).
Bryson Company
Income Statement
Particular Amount ($)
Revenue -
Expenses
Less - Interest expense 10,342.50
Less - Other expenses -
Net Income - is attached in image.
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Which of the following statements is true of customer service?
A. The retail offerings of a company are not influenced by customer service.
B. It is relatively easy for a company to duplicate the services offered by a competitor.
C. It does not provide major strategic advantages for a company.
D. It increases the value customers receive from the merchandise they buy.
E. Customer service perceptions are developed mostly by interacting with top management
The true statement of customer service is:
D. It increases the value customers receive from the merchandise they buy.
What Is Customer Service?
The direct one-on-one connection between a customer making a purchase and a representative of the business selling it is known as customer service. The majority of retailers believe that this one-on-one contact is essential to ensuring customer satisfaction and promoting repeat business.
Even now, when a large portion of customer service is handled by automated self-service systems, the ability to speak with a live person is still regarded as essential by the majority of businesses. It's an important component of servant leadership.
experience with customer service
Most companies have workers who do behind-the-scenes labor and never deal directly with clients. Customer service representatives are the people who speak to customers most frequently. Customers' interactions with that person affect how they view the company.
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rahim is looking for ways to increase communication with customers through his company's website. which of the following would be most helpful?
Adding an instant messaging function would be most helpful.
Applications for IBM® Informix® can exchange data directly with WebSphere® MQ thanks to MQ messaging features.
The stack size for all MQ messaging routines is 64K. These MQ messaging functions should have an explicit or implicit transactional context and can be used within SQL statements.
The only servers that can be used to activate any MQ messaging functions or MQ messaging-based VTI tables are local (sub-ordinator) servers. On a remote server, using MQ messaging functions or MQ messaging-based VTI tables will result in an error. When Informix is taking part as a resource manager in an externally managed global XA transaction, MQ messaging services cannot be used.
The "Informix" is used by MQ messaging functions.
If the optional policy and service parameters are not used, the mqi* service and policy tables will supply default settings.
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Milton corporation gives the preferred stockholders an annual dividend of $5 per share. Each share of stock sells for $100 and selling costs of $3. What is the company's cost of preferred stock? (round the answer to two decimal places. ).
The Milton corporation's cost of preferred stock would be 5.2%.
What is the preferred stock?A component of share capital known as preferred stock is often regarded as a hybrid instrument since it might have any combination of characteristics that common stock does not, including characteristics of both an equity and a debt instrument.
Computation of cost of preferred stock:
According to the given information,
Annual dividend per share = $5
Selling price of preferred stock = $100
Flotation cost per share = $3
By using the concept of flotation cost, The Company's cost of preferred stock:
Cost of Preferred Stock = Dividend per share/(Selling price—Flotation cost per share)
Cost of Preferred Stock = $5/($100 – $3)
Cost of Preferred Stock = $5/$97
Cost of Preferred Stock = 0.052
Cost of Preferred Stock= 5.2%
The price of preferred shares will be $5 per $100, or 0.05 percent, if the cost of floating was not incurred during the present period.
Therefore, The cost of preferred shares for Milton Corporation would be 5.2%.
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preset costs for delivering a product or service under normal conditions are called: multiple choice fixed costs. variable costs. product costs. period costs. standard costs.
preset costs for delivering a product or service under normal conditions are called Standard Cost.
Standard CostingThe process of creating projected (i.e., standard) costs for certain or all operations inside a corporation is known as standard costing. The main rationale for utilizing standard costs is that it is too time-consuming to gather real costs in a lot of applications, thus standard costs are utilized as a near approximation to actual costs.
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For a certain firm, the marginal revenue product for the last unit of labor is $60, and the marginal revenue product for the last unit of capital is $100. Which of the following combinations of factor prices would be necessary for the firm to maximize profits?
Price of Labor Price of Capital
a) $2 $5
b) $3 $20
c) $10 $10
d) $2 $25
e) $60 $100
Option E is the correct answer. A combination of $60 and $100 will be used to maximize profits.
In the question, it is stated that the marginal revenue product of a firm for the last unit of labor is $60. Also, the marginal revenue product for the last unit of Capital is $100. Then a combination of the price of labor as $60 and the price of capital as $100 would be necessary prices to maximize profits.
Marginal Revenue can be described as the increase in revenue that results from the sale of one additional unit of output to the sales.
Hence, the correct answer is Option E.
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the effect on the accounting equation of declaring a cash dividend includes . (check all that apply.)multiple select question.an increase in assetsan increase in stockholders' equityan increase in liabilitiesa decrease in liabilitiesa decrease in assetsa decrease in stockholders' equity
The effect on the accounting equation of declaring a cash dividend includes an increase in liabilities and a decrease in stockholder's equity.
A corporation that pays its investors a cash dividend does so by making regular cash distributions to them (as opposed to in stock or any other form) Cash dividends are frequently given out on a regular basis, such as monthly or quarterly, but they can also be given out only once, such as following a settlement.
Cash dividends are viewed as assets since they raise owners' net worth by the dividend's amount. A company's stock will cost more when there is more demand for it. A company's capacity and willingness to consistently pay dividends over time serves as a strong indicator of its financial soundness and communicates a clear, powerful statement about its future prospects and performance.
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a covered entity creates a process that ensures that data it receives and transmits is correct and in the same state it was before the transaction. what kind of technical safeguard is this considered to be?
A covered entity that creates a process to ensure the fact that the data received and transmitted is correct and in the same state as before the transaction, it is regarded as an integrity control method of technical safeguard.
Integrity control can be referred to or considered as a security system, which is used to create a sense of confidence in maintenance of correctness of the data. This method or system also ensures that there is no change in the state of the data before and after the transmission of the data has been done.
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police power is the right of government to . a. make reasonable rules for the use of land b. assume ownership of property when taxes have not been paid c. take private property for public use d. assume ownership of property when the owner dies without a valid will and without heirs
Police brutality is the government's right to take ownership of property when taxes are not paid. Excessive police crackdowns on violence qualify as compensable expropriation of property.
What are police powers? :The inherent power of a government to exercise reasonable control over persons and property within its jurisdiction in the interest of public safety, health, security, morality and welfare, except where prohibited by law. Example: Police powers include arrest powers, search of persons and property, disturbances, orders to move, arrest of intoxicated persons, and seizure of goods.There are the four police powers: Think PETE, which stands for Police Power, Eminent Domain, Taxation, and Escheat.What is Police Violence in Local Government?Police power is the natural prerogative of a sovereign government. Make laws, make ordinances, and take measures to protect and preserve. Promote public health, safety and welfare.
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a decrease in the demand for money would result from a(n): group of answer choices increase in income. increase in real gdp. decrease in the price level. increase in nominal gdp.
The interest rate before accounting for inflation is known as the nominal interest rate. This is how the relationship between money demand and supply is used to calculate the nominal interest rates in an economy.
Relevant diagrams are also included with these explanations to further help highlight these economic interactions.On the other hand, the demand for money is a little bit more difficult. It helps to consider why households and institutions store money, or cash, in order to comprehend it.The money is primarily used by homes, corporations, and other entities to pay for products and services. Therefore, the more money that the participants in the economy desire to hold to spend on this output, the greater the nominal GDP, which is the dollar worth of aggregate output.
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before she calls potential clients for her accounting firm, joy is identifying key decision-makers at each company, contacting other clients for information about them, and identifying the needs of each company. this process is called .
pleasure is identifying the top decision-makers at each organization, contacting other clients to learn more about them, and figuring out what each organization requires. This method is known as pre-approach.
What exactly is the pre-approach phase?the initial step of the sales process, during which a salesperson searches for new customers, qualifies them, and gets ready to contact the client.
What is a pre-approach and what are its goals?The primary goal of a pre-approach is to assist the salesperson in gaining more understanding of the client's wants and attitudes such that he may choose the appropriate strategy for the particular prospect. The salesman will also benefit from being able to avoid making critical errors while giving his sales presentation.
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if it is possible for a perfectly competitive firm to do better financially by producing rather than shutting down, then it should produce the amount of output at which:
Even when a competitive firm has the option of continuing to operate rather than closing, it should do so at the output level where MR = MC.
How can you tell if a business is competitive?A firm inside a market that is competitive is one where there are many of buyers and sellers, lots of similar products being supplied by different vendors, and usually free entry and exit for firms. Figure 2 displays the expense curves for an average firm.
What distinguishes a company from its competitors?A comparative edge is something that gives a business an edge over rivals, enabling it to get more clients and expand its market share. There are three main ways to gain a competitive advantage: Cost advantage refers to manufacturing a good or offering a service for a lower price than rivals.
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The computer workstation furniture manufacturing that Santana Rey started for Business Solutions is progressing well. Santana uses a job order costing system to account for the production costs of this product line. Santana is wondering whether process costing might be a better method for her to keep track of and monitor her production costs. 1. What are the features that distinguish job order costing from process costing? 2. Should Santana continue to use job order costing or switch to process costing for her workstation furniture manufacturing? Explain.
The computer workstation furniture manufacturing that Santana Rey started for Business Solutions is progressing well. Santana uses a job order costing system to account for the production costs of this product line.
Production costs refer to the costs that a company incurs in producing a product or providing a revenue-generating service to the company. Production costs include various costs such as: B. Labor, raw materials, consumables for production, and general overhead.
All costs incurred in producing goods or services are called production costs. He consists of three main costs: raw material costs, direct labor costs, and indirect costs. These costs are either fixed (most overhead) or variable (raw materials and labor).
An example of production is the manufacture of automobiles. A car is made up of parts. For example, a metal body with rubber tires to create a seat before the car leaves the assembly line.
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Job Costs Using a Plantwide Overhead Rate
Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $385,000, and budgeted direct labor hours were 22,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow:
Job 39 Job 40 Job 41 Job 42
Beginning balance $23,300 $32,700 $15,000 $1,700
Materials requisitioned 18,600 20,800 10,500 15,800
Direct labor cost 9,700 17,900 5,150 6,700
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month.
Required:
1. Calculate the balance in Work in Process as of June 30.
$fill in the blank 1
2. Calculate the balance in Finished Goods as of June 30.
$fill in the blank 2
3. Calculate the cost of goods sold for June.
$fill in the blank 3
4. Calculate the price charged for Job 39. Round your answer to two decimal places.
$fill in the blank 4
5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?
Finished Goods would decrease
What would happen to the balance of Cost of Goods Sold?
Cost of Goods Sold would increase
A Begining Balance 15,000 1,700
B Material Requisitioned 10,500 15,800
C Direct labour cost 5,150 6,700
D= C x 50% Overhead Cost 2,575 3,350
Work in Progress cost 33,225 27,550
Total Work in Progress to be shown as on 30th June = 33,225 + 27,550 = 60,775.
Work or labor (or labour in British English) is intentional activity people perform to support the needs and wants of themselves, others, or a wider community.[1] In the context of economics, work can be viewed as the human activity that contributes (along with other factors of production) towards the goods and services within an economy.[2]
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often wages of workers with the same skill but employed in different jobs differ because the characteristics of the jobs differ. this is an example of: group of answer choices discrimination. market failure. a compensating wage differential. bad managerial practices.
Often, the wages of workers with the same skill but employed in different jobs differ because the characteristics of the jobs differ, this is an example of compensating wage. The Option C is correct.
What is a compensating wage?Also called a wage differential, in labour economics, is used to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job.
The difference in wage means the additional amount of income that a given worker must be offered in order to motivate them to accept a given undesirable job, relative to other jobs that worker could perform.
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TRUE/FALSE one argument in favor of activist monetary policy is that the economy does not always equilibrate quickly enough at natural real gdp.
The economy does not always equilibrate at Natural Real GDP rapidly enough, which is one reason in favor of activist monetary policy.
What distinguishes activist from non-activist rule-based monetary policy?Non-activist (rule-based) monetary policy is not flexible, in contrast to activist policy. those who make the case against the intentional use of discretionary fiscal and monetary measures. They support a long-term, dependable, and fiscally regulated structure.
Interest rates in the economy, such as those for mortgages, business loans, and savings accounts, are influenced by monetary policy. Interest rate changes have an impact on how people choose to invest or spend their money, which ultimately has an impact on inflation, economic growth, and employment.
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the project management institute (pmi) administers a globally recognized, examination-based professional certification program. how many levels are there?
A professional certification program with two levels is administered by the project management institute (PMI) and is widely recognized.
Managing a team's work to fulfil all project goals within the given constraints is the process of project management. These details are often described in the project documentation that is created at the beginning of the development process. Budget, time, and scope are the three basic constraints.
In other words, project management's mission is to efficiently organize and supervise a project such that its stated goals and deliverables are fulfilled. A project's purpose is the anticipated outcome of the endeavour. They are broad statements that give you a general idea of what the project will accomplish.
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the earned income tax credit, a government program that supplements the incomes of low-wage workers, is an example of a
The earned income tax credit, a government program that supplements the incomes of low-wage workers, is an example of a wage subsidy. An incentive provided by the government to people or organisations in the form of money, grants, or tax breaks.
In order to increase the supply of particular goods and services is known as a subsidy. Consumers can get cheaper goods and commodities thanks to subsidies tax. The Wage Subsidy Scheme offers subsidies to qualified employers to assist in income an employee's salaries during their initial few months of employment. Through work, the programme assists people with disabilities in developing their skills and expertise.
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in most states, the seller of a new house warrants that it is fit for habitation even if the deed does not include such a warranty. true false
If a vendor is aware of or ought to be aware of the exact justification a customer is buying a certain item, an implied the appropriateness for a particular application is guaranteed. The buyer is then certain that the item is appropriate for that specific application.
A general warranty deed is used to transfer title from the seller to the buyer.The level of ownership interest transferred to the buyer in the habendum is defined by the seller. Habendum is a crucial idea in property and real estate negotiations. It might also be used to other lease and deed-related transactions, such those in the energy industry. In a contract, a habendum clause deals with the rights, interests, and other aspects of ownership that are transferred to the other party. It outlines the type of right and its term in situations when rights are transferred, such as in connection to a coal mine.
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Suppose that the one-year forward price of euros in terms of dollars is equal to $1.113 per euro. Further, assume that the spot exchange rate is $1.05 per euro, and the interest rate on dollar deposits is 10 percent and on euro it is 4 percent. Under these assumptions
A) interest parity does not hold.
B) interest parity does hold.
C) it is hard to tell whether interest parity does or does not hold.
D) Not enough information is given to answer the question.
E) interest parity fluctuates.
According to the scenario, under these assumptions interest parity does hold. Thus, option 'B' is the correct option.
What is Interest rate parity?An equilibrium state where investors may benefit from the interest rates paid on bank deposits in two distinct countries is known as interest rate parity, which is a no-arbitrage condition. The prospect of covered interest arbitrage opportunities to produce risk-free returns arises because this criterion is not always true.
An equation called interest rate parity (IRP) is used to control the link between interest rates and currency exchange. Investors utilize it, and it is essential for tying together the spot exchange rate, the foreign exchange rate, and the interest rate on the foreign exchange markets.
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If the economy is experiencing less than full-employment, the keynesian model recommends that the government.
Answer:
!
Explanation:
government's efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of:
Government's efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of:
Business cycles that are closely synchronized to the political cycle.
A different theory known as the political business cycle proposes that after being elected, a government of whatever hue first employs a contractionary policy to reduce inflation and build a reputation for economic competence.
Political business cycle logical preference for short-term political issues over macroeconomic considerations when forming economic policy may also have an influence on general monetary and fiscal policy. Politicians will make an effort to raise the natural or equilibrium rate of employment. As a result, inflation and interest rates will be higher than required. Short-term results of expansionary monetary and fiscal policy include decreased unemployment, economic growth, and advantages from higher government expenditure on public services.
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A boat, costing $108,000 and uninsured, was wrecked the very first day it was used. This boat can either be disposed for $11,000 cash and be replaced with a similar boat costing $110,000, or rebuilt for $98,000 and be brand new as far as operating characteristics and looks are concerned. A relevant cost analysis of the decision to replace the boat shows:
A $21,000 cost advantage is associated with the decision to fix the old boat.
Relevant price is a managerial accounting time period that describes avoidable fees which might be incurred most effectively while making unique business selections. The concept of an application fee is used to remove pointless facts that would complicate the choice-making procedure.
A corporation comes to a decision to buy a loading equipment factory unit. This gadget can store the salary prices of 20 manual workers. these expenses are relevant due to the fact that those costs change in the future due to the buying selection.
Relevant charges are prices to be able to be tormented by a managerial choice. irrelevant charges are those as a way to now not trade in the future whilst you make one decision as opposed to some other. Examples of beside-the-point charges are sunk prices, dedicated fees, or overheads as these can't be prevented.
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A Turkish firm exchanges lira (Turkish currency) for dollars. It then uses these dollars to purchase computers from the U.S. These actions decrease U.S. net capital outflow and increase U.S. net exports.
False
These actions don't reduce net capital outflow from the US or boost net exports from the US.
What is net capital outflow ?
Net capital outflow is the difference between domestic residents' purchases of foreign assets and foreigners' purchases of domestic assets. A citizen of the United States purchases Ford Motor Company stock, while a citizen of Mexico purchases Toyota Corporation stock. The purchase of Telex stock by a U.S. citizen increases net capital outflow from the United States. A Japanese citizen's purchase of a U.S. government bond lowers the country's net capital outflow. Net capital outflow Influencing Factors. the true interest rates on foreign assets. the actual interest rates paid on homegrown assets. foreign asset ownership is thought to carry economic and political risks. government regulations that have an impact on foreign ownership of domestic assets.
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