Pent Glazing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal "A" are $50 000, and for proposal "B", $70 000.
The variable cost for "A" is $12.00, and for "B", $10.00. The revenue generated by each unit is $20.00.What is the break-even point in units for proposal "A"? The break-even point for proposal "A" can be calculated as follows: Let the break-even point (in units) be "x". Revenue generated by each unit is $20.00.Variable cost for proposal "A" is $12.00.Fixed costs for proposal "A" are $50 000Total Cost = Total Variable Cost + Total Fixed Cost (where Total Variable Cost = variable cost per unit * number of units)Total Cost = $12x + $50 000Revenue = Total Cost So, $20x = $12x + $50 000 $8x = $50 000x = 6 250
Therefore, the break-even point in units for proposal "A" is 6 250. What is the break-even point in units for proposal "B"? The break-even point for proposal "B" can be calculated as follows: Let the break-even point (in units) be "x". Revenue generated by each unit is $20.00. Variable cost for proposal "B" is $10.00. Fixed costs for proposal "B" are $70 000Total Cost = Total Variable Cost + Total Fixed Cost (where Total Variable Cost = variable cost per unit * number of units)Total Cost = $10x + $70 000Revenue = Total Cost So, $20x = $10x + $70 000 $10x = $70 000x = 7 000Therefore, the break-even point in units for proposal "B" is 7 000.
Hence, the break-even point in units for proposal "A" is 6 250, and the break-even point in units for proposal "B" is 7 000.
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Elaborate on five advantages of purchasing from a
distributor.
Purchasing from a distributor offers several advantages for businesses. Here are five key advantages:
Wide Product RangeEfficient Logistics and DeliveryCost SavingsExpert Product Knowledge and SupportRelationship BuildingA distributor is an entity or organization that plays a crucial role in the supply chain of goods or services. It acts as an intermediary between manufacturers or producers and the end customers. Distributors essentially bridge the gap between production and consumption by acquiring products from the manufacturer and delivering them to retailers, wholesalers, or directly to consumers.
Distributors typically have established networks and infrastructure in place to efficiently store, transport, and market the products they handle. They may operate warehouses, manage inventory, and employ sales teams to promote and sell the goods. Distributors may also provide additional services such as after-sales support, technical assistance, or product customization.
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Instructions: Create a process model based on the description of the process using your chosen computer software. If you are using anything other than PowerPoint, convert the model to .pdf format before submitting on Isidore. Then answer the question about the process you have modeled. Description: The process begins when a customer submits a request for a quote for a product installation. The request for quote is sent to a salesperson. The salesperson prepares the quote with standard terms and then submits the quote. This sends the quote to the customer who then responds to the quote. Their response is sent to the salesperson. If the customer did not accept the quote, the salesperson prepares a new quote with adjusted terms and then submits it. This is sent to the customer for response. If the customer does not accept the quote, the salesperson prepares a new quote with adjusted terms and this cycle can continue until the customer accepts a quote. Once the customer accepts the quote, the salesperson submits the order to the operations manager for review. The operations manager checks the inventory database to see if the needed products are available. If the items are not available, the operations manager rejects the order. The rejection is sent to the salesperson who prepares an order rejection response that is sent the customer. The customer processes the order response and the process is over. If the products are available, the operations manager updates the inventory database to reserve the products for that customer (this makes them unavailable to other orders). Then the operations manager approves the order. The approval is sent to the salesperson. The salesperson then requests credit approval. This request is sent to the credit manager. The credit manager checks the customer credit by following a set subprocess and returns the credit response. 1.80 If the Credit is not approved, the salesperson prepares an order rejection response that is sent to the customer. The customer processes the order response and the process is over. If the credit is approved, the salesperson follows the Accept Order subprocess, which results in sending the customer the approved order response. The customer processes the order response and the process is over. Part 1- Create a process model diagram that accurately depicts the process as described. Use the style and notation provided in class. Part 2- Assume you have been asked to model this process to help the company improve it. After discussing the process with the different actors involved in the process, you find out that inventory levels in the database are often inaccurate. Products that are available for sale are sometimes marked as reserved, leading to missed sales opportunities Review the process and identify how the process should be updated in order to solve the inaccurate inventory levels problem. Clearly describe why you think inventory levels may be incorrect and then describe how the process should be updated to fix this issue. Note: There is a very specific issue that would cause available inventory levels to become inaccurate over time. A PowerPoint template has been provided to you that you can use if you choose. ADD ACTOR HERE Dith ► 0.0 Label ADD ACTOR HERE ADD ACTOR HERE ADD ACTOR HERE
Part 1: The process model diagram that accurately depicts the process as described using the BPMN notation:
Part 2: The reason for the incorrect inventory levels is that after the operations manager approves the order, the items are marked as reserved and unavailable to other orders.
But if the order is canceled or rejected, the items remain reserved, and the inventory level remains inaccurate. This means that available products are sometimes marked as reserved, leading to missed sales opportunities. In order to solve the inaccurate inventory levels problem, the process should be updated as follows:
When the order is canceled or rejected, the salesperson will receive a notification. The salesperson will confirm whether the customer would like to keep the reserved items for a certain period of time or release them. If the customer would like to keep the items, they will be marked as reserved for the agreed period of time. If the customer chooses to release the items, they will be released immediately. If the salesperson does not receive a response from the customer within a certain period of time, the items will be automatically released. This will ensure that available products are not marked as reserved unnecessarily and that inventory levels are accurate.
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The initial investment for the project is $250,000, and the project will continue for seven years, and the following Cash flows will be generated. The cash flows are reported below. The firm also reported the following information. Assume that the company generates a revenue of $300,000 for the first year, and it is subject to grow at a rate of 5 percent for the investment period. The first-year expense is $200,000 and is subject to increase by 7 percent every year. This company uses straight- line depreciation, and the useful life for the Investment is eight years. The company is also subject to a 40% tax rate. YearsCash Flows
1 41,000
2 48,000
3 63,000
4 79,000
5 88,000
6 64,000
7 41,000
The option that matches the net cash flow for Year 1 is:
a. $100,000 (closest match to $103,750)
To calculate the net cash flows for each year, we need to consider the revenue, expenses, and depreciation. We can then apply the tax rate to calculate the after-tax cash flows. Here are the calculations:
Year 1:
Revenue: $300,000
Expenses: $200,000
Depreciation: $250,000 / 8 = $31,250
Taxable Income: Revenue - Expenses - Depreciation = $300,000 - $200,000 - $31,250 = $68,750
Tax Expense: $68,750 * 0.4 = $27,500
Net Cash Flow: Revenue - Expenses - Tax Expense + Depreciation = $300,000 - $200,000 - $27,500 + $31,250 = $103,750
Years 2-7:
Revenue: Growing at 5% annually from Year 1 revenue ($300,000)
Expenses: Growing at 7% annually from Year 1 expenses ($200,000)
Depreciation: $31,250
Taxable Income: Revenue - Expenses - Depreciation
Tax Expense: Taxable Income * 0.4
Net Cash Flow: Revenue - Expenses - Tax Expense + Depreciation
Using the provided cash flows for each year, we can calculate the net cash flows:
Year 1: $41,000
Year 2: $48,000
Year 3: $63,000
Year 4: $79,000
Year 5: $88,000
Year 6: $64,000
Year 7: $41,000
Therefore, the net cash flows for each year are as follows:
Year 1: $103,750
Year 2: $125,625
Year 3: $139,125
Year 4: $152,625
Year 5: $161,875
Year 6: $129,625
Year 7: $103,750
The option that matches the net cash flow for Year 1 is:
a. $100,000 (closest match to $103,750)
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Over the past several decades, the economies of the world have become more financially integrated. That is, investors in all nations have become more willing and able to take advantage of financial opportunities abroad. Consider how this devel- opment affects the ability of monetary policy to influence the economy. Illustrate the answers to the following questions using the open economy IS/LM diagram. (a) investors become more willing and able to substitute foreign and domestic assets, what happens to the slope of the CF function? 1 (b) If the CF function changes in this way, what happens to the slope of the IS curve? (c) How does this change in the IS curve affect the Fed's ability to control the interest rate? (d) How does this change in the IS curve affect the Fed's ability to control national income?
(a) When investors become more willing and able to substitute foreign and domestic assets, the slope of the CF (Capital Flows) function becomes steeper.
The CF (Capital Flows) function represents the relationship between the interest rate and net capital outflow. As investors become more willing and able to invest in foreign assets, the demand for domestic assets decreases, leading to an increase in net capital outflow at each interest rate. This shift in investor behavior causes the CF function to become steeper, indicating a higher sensitivity of capital flows to changes in interest rates.
(b) If the CF function changes in this way, the slope of the IS (Investment-Saving) curve becomes flatter.
The IS curve represents the equilibrium condition in the goods market, where total planned spending (Investment + Consumption + Government spending) equals total output. With a steeper CF function, the higher sensitivity of capital flows to interest rate changes leads to a higher level of net capital outflow for any given level of interest rates. This higher net capital outflow reduces the level of domestic investment, shifting the IS curve downward and making it flatter.
(c) This change in the IS curve reduces the Fed's ability to control the interest rate.
With a flatter IS curve, the effectiveness of monetary policy in controlling the interest rate diminishes. When the IS curve becomes flatter, the same level of interest rate changes results in smaller changes in national income or output. Therefore, the central bank's ability to influence the interest rate through monetary policy tools such as open market operations or changes in the reserve requirement becomes weaker.
(d) This change in the IS curve reduces the Fed's ability to control national income.
The flatter IS curve implies that changes in the interest rate have a smaller impact on national income. As a result, the central bank's ability to use monetary policy to control and stabilize the economy becomes limited. Even if the Fed tries to lower interest rates to stimulate investment and increase aggregate demand, the impact on national income will be relatively smaller due to the flatter IS curve. This reduced ability to control national income can make it more challenging for the Fed to achieve its macroeconomic objectives, such as promoting economic growth or managing inflation.
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The damage from war is one of the excluded perils from a typical
homeowners’ insurance policy.
TRUE
FALSE
The following statement, "The damage from war is one of the excluded perils from a typical homeowners’ insurance policy" is True.
What is the reason?War is considered a major peril in the world, with various devastating consequences, and that is why the damage from war is one of the excluded perils from a typical homeowners’ insurance policy.
This is because the damage inflicted by war is beyond what regular insurance policies would cover for residential areas. Homeowners' insurance policies usually provide coverage for a variety of perils like fire, theft, vandalism, and natural disasters like floods, earthquakes, and more.
However, war and other military actions, including acts of terrorism, are typically excluded from homeowners' insurance policies. Such catastrophic events are usually covered by special insurance policies that are specifically designed to address these risks.
Hence, its true.
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a/ b/ In the method of payment by collection with documents: Is Presenting Bank sure to get the money? Earning or not getting money depends on who?
In the method of payment by collection with documents, the Presenting Bank is not guaranteed to get the money.
This method involves the bank acting as an intermediary between the buyer and seller in the transaction. The seller ships the goods and sends the shipping documents to their bank (the Remitting Bank), who sends them to the buyer's bank (the Collecting Bank). The buyer must then pay for the goods before they can receive the documents and take possession of the goods. However, if the buyer fails to pay, the Presenting Bank cannot force them to do so and may not receive payment for their services. It is important for the bank to carefully assess the creditworthiness of the buyer and ensure that the terms of the sale are clearly defined and agreed upon before agreeing to act as the Presenting Bank.
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Explain how to find the optimum level of a public good. Use
graphs to show how individual demands have to be summed, what is
the criterion for the optimal level.
To find the optimum level of a public good, we need to consider the concept of social welfare and use the concept of marginal benefit and marginal cost.
Individual Demand for Public Goods:
In the case of public goods, each individual's demand is characterized by the principle of non-excludability and non-rivalry. This means that one individual's consumption of the public good does not diminish its availability for others. Consequently, individual demands for public goods are typically additive, meaning that the total benefit of the public good for society is the sum of each individual's marginal benefit.
Marginal Benefit and Marginal Cost:
The marginal benefit (MB) of a public good is the additional benefit derived from consuming one more unit of the good. The marginal cost (MC) of a public good is the additional cost incurred in providing one more unit of the good.
In a graph, the marginal benefit curve for a public good is downward sloping, reflecting the diminishing marginal benefit as more units of the public good are consumed. The marginal cost curve for providing the public good is upward sloping, representing the increasing cost associated with producing additional units of the public good.
Optimal Level of a Public Good:
The optimal level of a public good occurs where the marginal benefit equals the marginal cost. This point represents the level of public good provision that maximizes social welfare. At this level, the overall benefit to society is maximized because the additional benefit derived from consuming one more unit of the public good is equal to the additional cost incurred in providing it.
Graphically, the optimal level of the public good is where the marginal benefit curve intersects with the marginal cost curve. At this point, the sum of individual marginal benefits equals the marginal cost of providing the public good.
Criterion for Optimal Level: The criterion for the optimal level of a public good is achieving allocative efficiency. Allocative efficiency means that resources are allocated in a way that maximizes overall societal welfare. In the case of public goods, achieving allocative efficiency requires providing the level of the public good where the marginal benefit equals the marginal cost.
By summing the individual demands for the public good and equating it to the marginal cost of providing the public good, we can determine the optimum level that maximizes social welfare.
Note: The actual process of determining the optimum level of a public good may involve various complexities, including estimating individual demand curves, considering income distribution, and accounting for externalities. The graph provided is a simplified representation for illustrative purposes.
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a. Define elasticity of demand. (2 marks) b. Explain five areas in which the concept of elasticity becomes useful to businesses and governments. (10 marks) c. According to a report, MTN's own price el
a. Elasticity of demand is a measure of the sensitivity or responsiveness of the quantity demanded of a good or service to changes in its price. It quantifies the degree to which consumers adjust their demand in response to price fluctuations.
b. The concept of elasticity is crucial for businesses and governments in several areas:
Pricing decisions: Elasticity helps businesses understand how sensitive demand is to changes in price. With this knowledge, they can set prices to maximize revenue by considering the optimal balance between price and quantity demanded.
Revenue forecasting: By analyzing elasticity, businesses can predict the impact of price changes on total revenue. They can identify the price ranges that generate the highest revenue and make informed decisions about pricing strategies.
Market segmentation: Elasticity allows businesses to identify different customer segments based on their price sensitivities. This knowledge helps tailor marketing strategies, promotions, and pricing to effectively target each segment.
Taxation policies: Governments utilize elasticity to assess the impact of taxes on consumer behavior. Elastic goods tend to be more responsive to tax changes, while inelastic goods may have less significant shifts in demand due to taxes. This information assists in formulating tax policies that generate desired outcomes and revenue.
Public policy formulation: Elasticity plays a role in shaping public policies related to subsidies, regulations, and public goods provision. Understanding elasticity helps governments assess the effectiveness of policy interventions, predict the impact on demand, and make informed decisions that align with societal goals.
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The following data are available for an ADI
Salaries, wages and benefits 4,681,366
Interest from business loans 10,896,548
Fees and charges 1,320,678
Interest on savings and time deposits 7,359,760
Equipment and occupancy expense 1,552,850
Other non-interest revenue 443,136
Interest from consumer loans 8,112,592
Interest on CDs 1,008,780
Provision for doubtful debts 1,580,784
Miscellaneous expense 1,847,572
Interest on borrowed funds 2,665,170
Interest from trading securities 3,880,790
Based on the given data for an ADI (Authorised Deposit-taking Institution), we can categorize the revenue and expense items as follows:
Revenue:
Salaries, wages, and benefits: $4,681,366
Interest from business loans: $10,896,548
Fees and charges: $1,320,678
Interest on savings and time deposits: $7,359,760
Other non-interest revenue: $443,136
Interest from consumer loans: $8,112,592
Interest on CDs (Certificate of Deposit): $1,008,780
Interest from trading securities: $3,880,790
Expenses:
Equipment and occupancy expense: $1,552,850
Provision for doubtful debts: $1,580,784
Miscellaneous expense: $1,847,572
Interest on borrowed funds: $2,665,170
Please note that the information provided represents the revenue and expense items for the ADI, but further analysis and context are required to determine the overall financial performance or profitability of the institution.
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the contribution by profit center (cpu) expands the contribution margin income statement by distinguishing:
The contribution by profit center (CPU) expands the contribution margin income statement by distinguishing between the fixed and variable costs associated with generating revenue for each profit center (CPU).
The contribution by profit center (CPU) is the contribution of each profit center in a firm, while the contribution margin is the revenue generated by a business minus its variable costs. Variable costs are costs that fluctuate as revenue changes, while fixed costs are costs that do not fluctuate as revenue changes. The contribution margin income statement is a type of income statement that displays the contribution margin of a firm. The contribution margin income statement expands the traditional income statement by separating costs into fixed and variable categories, while also displaying the contribution margin of a firm. A profit center is a division of a business that is accountable for its own revenues, costs, and profits. The contribution by profit center (CPU) expands the contribution margin income statement by distinguishing between the fixed and variable costs associated with generating revenue for each profit center (CPU). The result is a better understanding of which profit centers are generating more revenue and which ones are generating less revenue.
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The manufacturer of Beanie Baby dolls used quarterly price data for 2005 - 2013 IV (t= 1, ..., 36) and the regression equation Pt= a + bt+ c ₁ D1 t + c 2 D2 t + c3 D3 t to forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1 t, D2 t, and D3 fare dummy variables for quarters I, II, and III, respectively. DEPENDENT VARIABLE: PT OBSERVATIONS. 36 P-VALUE ON F 0.0001 R-SQUARE 0.9078 PARAMETER ESTIMATE 24.0 F-RATIO 76.34 STANDARD ERROR 6.20 VARIABLE T-RATIO INTERCEPT 3.87 T 0.800 0.240 3.33 D1 -8.0 2.60 -3.08 1.80 -6.00 D2 -3.33 -4.0 D3 -6.67 0.60 What is the estimated intercept of the trend line in the 1st quarter? 32 O 24 O-8 16 Onone of the above O I == P-VALUE 0.0005 0.0022 0.0043 0.0022 0.0001 n DOX 78 Save Answer Activate Windows Go to Settings to activate Windows. 12:02 AM 31-May-22
Based on the given information, the estimated intercept of the trend line in the 1st quarter is 24. This means that in the 1st quarter, the regression equation predicts the doll prices to start at 24.
The intercept represents the starting point or baseline value of the dependent variable (doll prices in this case) when all the independent variables (time, dummy variables) are set to zero. In this context, it implies that in the absence of any specific quarter effects or trends, the estimated doll price at the beginning of the analysis period (1st quarter) is 24.
It's important to note that the intercept alone does not provide a complete understanding of the relationship between the independent variables and the dependent variable. The coefficients and t-ratios of the other variables (bt, c₁, c₂, c₃) also play a crucial role in determining the overall trend and quarter effects in forecasting the doll prices.
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2. Lisa, a commerce graduate, has been working in the field of
Finance for the last 3 years. She now decides to do her
post-graduation in management from a reputed college. As a part of
her documents,
2. Lisa, a commerce graduate, has been working in the field of Finance for the last 3 years. She now decides to do her post-graduation in management from a reputed college. As a part of her documents,
As a commerce graduate who has been working in the field of finance for three years, Lisa's decision to pursue post-graduation in management from a reputed college is a wise one. The additional degree will boost her career prospects and make her a more attractive candidate for higher-level positions in the finance sector.
A post-graduate degree in management can broaden one's career prospects and provide a variety of opportunities for professional growth. The course also aids in the development of managerial abilities and decision-making abilities. Lisa can select a course that best matches her interests and career objectives, whether it's finance, marketing, operations, or any other field. The degree is also widely recognized and valued by employers in India and around the world.
The following are some reasons why pursuing a post-graduation in management is beneficial:
Increased employability
Greater chances for upward movement in one's job
Enhanced organizational and managerial abilities
Improved understanding of organizational processes
As a commerce graduate who has been working in the field of finance for three years, Lisa's decision to pursue post-graduation in management from a reputed college is a wise one. The additional degree will boost her career prospects and make her a more attractive candidate for higher-level positions in the finance sector. In the highly competitive world of finance, it is essential to have a strong educational background in addition to professional experience.
A post-graduate degree in management can broaden one's career prospects and provide a variety of opportunities for professional growth. The course also aids in the development of managerial abilities and decision-making abilities. It is essential for Lisa to select a course that best matches her interests and career objectives, whether it's finance, marketing, operations, or any other field. Additionally, the degree is widely recognized and valued by employers in India and around the world.
Lisa's decision to pursue post-graduation in management from a reputed college is an excellent way to improve her employability, managerial and organizational skills. It can also give her greater chances for upward movement in her current job. She will be exposed to the latest management practices, techniques, and tools during the course, which can help her improve her performance in her job. Furthermore, the course will aid her in becoming a more effective and efficient leader in her field.
Pursuing a post-graduation in management is beneficial because it can broaden one's career prospects and provide a variety of opportunities for professional growth. It can also enhance one's organizational and managerial abilities, resulting in a better understanding of organizational processes and a more strategic approach to decision-making.
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From the given information cost of goods sold opening stock closing stock creditors at the beginning of the year creditors at the end of the year cash purchases Original cost of equipment sold Gain on the equipment sold Accumulated depreciation on the equipment 80 a. Total purchases, credit purchases and payment to creditors b. Define the term Net book value, Accumulated depreciation calculate the net book value and cash proceeds from sale of investment Amount in Lakhs 580 40 70 60 100 45 400 50
a. Credit purchases = Total purchases - 45, Payment to creditors = Credit purchases - 40. b. Cash proceeds from sale of investment = Net book value - 45.
a. To calculate the total purchases, credit purchases, and payment to creditors, we can use the following formulas:
Total purchases = Opening stock + Cash purchases + Credit purchases - Closing stock
Credit purchases = Total purchases - Cash purchases
Payment to creditors = Credit purchases - Increase in creditors + Decrease in creditors
Given information:
Cost of goods sold: 80 Lakhs
Opening stock: 580 Lakhs
Closing stock: 70 Lakhs
Creditors at the beginning of the year: 60 Lakhs
Creditors at the end of the year: 100 Lakhs
Cash purchases: 45 Lakhs
Using the formulas, we can calculate the values:
Total purchases = 580 + 45 + Credit purchases - 70
Credit purchases = Total purchases - 45
Payment to creditors = Credit purchases - (100 - 60)
Substituting the values, we have:
Total purchases = 580 + 45 + Credit purchases - 70
Credit purchases = Total purchases - 45
Payment to creditors = Credit purchases - 40
b. Net book value refers to the value of an asset after deducting its accumulated depreciation. Accumulated depreciation represents the total depreciation expense allocated to an asset over its useful life.
To calculate the net book value, we subtract the accumulated depreciation from the original cost of the equipment sold.
Net book value = Original cost of equipment sold - Accumulated depreciation on the equipment
Given information:
Original cost of equipment sold: 400 Lakhs
Accumulated depreciation on the equipment: 50 Lakhs
Substituting the values, we have:
Net book value = 400 - 50
To calculate the cash proceeds from the sale of investment, we subtract the gain on the equipment sold from the net book value.
Cash proceeds from sale of investment = Net book value - Gain on the equipment sold
Given information:
Gain on the equipment sold: 45 Lakhs
Substituting the values, we have:
Cash proceeds from sale of investment = Net book value - 45
Now, you can calculate the net book value and cash proceeds from the sale of investment using the given information.
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Acquisitions to increase market power require that the firm have a(n) a. dominant-business b.unrelated c. related d. single-business diversification strategy.
To increase market power, the acquiring company should have a single-business diversification strategy.
Acquisitions to increase market power require that the firm have a single-business diversification strategy. The process of acquiring another firm is a quick way to expand a company's market share, enter a new market or product, and reduce the level of competition. A single-business diversification strategy refers to the extension of the firm's current business line or an expansion of its current operations. It involves investing in the same industry where the company already operates but in a new or emerging market to gain a competitive advantage. In such a scenario, an acquisition allows the company to diversify its product lines or services while keeping its core business intact. A related diversification strategy is often applied when the company wants to leverage its current resources and capabilities to gain a competitive edge in other related industries. When the acquiring firm operates in a completely different industry, it follows the unrelated diversification strategy, where the company's operations are different and have no link to its core business line.
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purchase: Discounts Wages and salaries Advertising Insurance Transport on sales Interest on 13% Bonds Salesmen commission Rent and rates Electricity Directors' Remuneration Repairs and maintenance Int
Purchasing expenses encompass various costs incurred in acquiring goods or services for a business. Managing these expenses efficiently is crucial for maintaining profitability and optimizing the purchasing process.
Purchasing expenses refer to the costs incurred by a business in acquiring goods or services for its operations. The following are different types of purchasing expenses:
Discounts: These are reductions in the purchase price offered by suppliers as an incentive for early payment or bulk purchases. Taking advantage of discounts can help lower overall costs.
Wages and Salaries: These expenses represent the compensation paid to employees involved in the purchasing process, such as purchasing managers, buyers, and procurement staff.
Advertising: Advertising expenses are incurred to promote products or services to potential customers. These costs can include online and offline advertising campaigns, media placements, and creative production.
Insurance: Purchasing insurance coverage protects the business against potential losses related to purchased goods, such as damage or theft during transit or storage.
Transport on Sales: This expense includes the cost of transporting goods to customers or distribution centers. It encompasses freight charges, shipping fees, and other transportation-related costs.
Interest on 13% Bonds: If the business has issued bonds with an interest rate of 13%, the interest expense represents the cost of borrowing money through these bonds.
Salesmen Commission: This refers to the commission paid to sales personnel based on their performance in generating sales. It incentivizes salespeople and encourages them to drive revenue for the business.
Rent and Rates: These expenses cover the cost of leasing or renting office space, warehouses, or other facilities used for purchasing activities.
Electricity: Electricity expenses represent the cost of powering the facilities where purchasing operations are conducted, including offices, warehouses, and distribution centers.
Directors' Remuneration: This includes the salaries and benefits paid to the directors of the company who oversee and make strategic decisions related to purchasing activities.
Repairs and Maintenance: These expenses cover the costs of repairing and maintaining equipment and facilities used in purchasing operations, ensuring smooth functioning and preventing disruptions.
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Chapter 1 Homework 8 20 points Saved Check my work Dakota Company experienced the following events during Year 2: 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purch
During Year 2, Dakota Company recorded several events. They received $25,000 in cash from the issuance of common stock, paid $20,000 in cash to purchase inventory, and collected $40,000 in cash from customers.
The first event in Year 2 was the issuance of common stock, which resulted in an inflow of $25,000 in cash. This transaction increased the company's cash balance and contributed to its stockholders' equity.
The second event involved the purchase of inventory. Dakota Company paid $20,000 in cash to acquire inventory for its operations. This cash outflow reduced the company's available cash and increased its inventory assets.
The third event was the collection of cash from customers. Dakota Company received $40,000 in cash from its customers, representing sales revenue. This cash inflow increased the company's cash balance and reflected its successful collection efforts.
Lastly, Dakota Company incurred and paid $15,000 in operating expenses. These expenses include costs such as salaries, rent, utilities, and other day-to-day operational costs. The cash outflow for operating expenses reduces the company's available cash and represents the costs associated with running its business.
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According to ordinal utilitarianism, the perfect gift to give
someone would be a "cash". Would you agree or disagree with the
statement? Explain.
What are the shortcomings of randomized clinical t
Ordinal utilitarianism is a consequentialist ethical theory that focuses on maximizing overall happiness or well-being. According to this theory, the value of an action or gift is determined by its ability to promote the greatest amount of happiness for the greatest number of people.
In the context of gift-giving, the statement suggests that giving cash would be the perfect gift from an ordinal utilitarian perspective. This viewpoint is based on the assumption that cash allows the recipient to have the freedom to choose what they truly desire, leading to the greatest personal satisfaction and happiness.
There are several arguments that support the idea of cash being a preferred gift option from an ordinal utilitarian standpoint:
Individual Preferences: Cash allows individuals to fulfill their specific desires and preferences. It recognizes that different people have different needs and desires, and by giving cash, the recipient can use it to acquire what brings them the most satisfaction.
Utility Maximization: Cash provides flexibility and autonomy for the recipient to allocate the resources in a way that maximizes their overall well-being. It avoids the possibility of gifting something that may not be useful or valued by the recipient.
Avoiding Waste: Giving cash reduces the likelihood of wasting resources on unwanted or unnecessary gifts. It minimizes the chance of resources being spent on items that may be discarded or go unused, ultimately maximizing the overall utility or happiness generated.
However, it is essential to consider potential counterarguments or limitations:
Emotional Value: Some argue that the emotional value of a gift, such as the thoughtfulness and effort put into selecting a specific item, can contribute to the overall happiness and satisfaction of the recipient. Cash may be perceived as less personal or meaningful compared to a carefully chosen and personalized gift.
Context and Relationships: The appropriateness of giving cash as a gift can vary depending on the cultural, social, and interpersonal dynamics involved. In certain situations or relationships, it may be more socially expected or appreciated to give a physical or symbolic gift.
Potential Misuse: There is a possibility that the recipient might not use the cash in a way that aligns with their long-term well-being or happiness. In such cases, alternative gifts that directly promote well-being, such as experiences or items with specific benefits, may be preferred.
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Current Attempt in Progress
Demand has grown at Dairy May Farms, and it is considering expanding. One option is to expand by purchasing a very large farm that will be able to meet expected future demand. Another option is to expand the current facility by a small amount now and take a wait-and-see attitude, with the possibility of a larger expansion in two years.
Management has estimated the following chances for demand:
The likelihood of demand being high is 0.79.
The likelihood of demand being low is 0.21.
Profits for each alternative have been estimated as follows:
Large expansion has an estimated profitability of either $47,500 or $27,200, depending on whether demand turns out to be high or low.
Small expansion has a profitability of $16,300, assuming that demand is low.
Small expansion with an occurrence of high demand would require considering whether to expand further. If the company expands at that point, the profitability is expected to be $41,600. If it does not expand further, the profitability is expected to be $12,070.
(b) Calculate expected values for large and small expansions. What should Dairy May Farms do?
EV small expansion = $enter expected value for small expansions in dollars
EV large expansion = $enter expected value for large expansions in dollars
Company sould opt select an option
expansion.
The expected values are:-
EV small expansion = $36,387
EV large expansion = $43,237
Dairy May Farms should opt for the large expansion, as it has a higher expected value and therefore offers a greater potential for profitability.
Dairy May Farms is considering two expansion options: large expansion and small expansion. To determine the best option, we will calculate the expected values (EV) for both alternatives, based on the given probabilities and estimated profits.
EV small expansion = (probability of high demand * profitability of small expansion with high demand) + (probability of low demand * profitability of small expansion with low demand)
EV small expansion = (0.79 * $41,600) + (0.21 * $16,300)
EV small expansion = $32,964 + $3,423
EV small expansion = $36,387
EV large expansion = (probability of high demand * profitability of large expansion with high demand) + (probability of low demand * profitability of large expansion with low demand)
EV large expansion = (0.79 * $47,500) + (0.21 * $27,200)
EV large expansion = $37,525 + $5,712
EV large expansion = $43,237
Comparing the expected values:
EV small expansion = $36,387
EV large expansion = $43,237
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1. Explain the difference between valuing and managing diversity and provide examples from professional experiences for each. Your examples should be novel (do not use what is writte in the book). Show how communication affects this process. 2. Using a variety of concepts that were introduced in your chapter, identify, define and explain the one or two areas regarding understanding or managing diversit/ in which you are the strongest. Show how communication affects this process through specific examples. 3. Using a variety of concepts that were introduced in your chapter, identify, define and explain the one or two areas of understanding or managing diversity in which you need more improvement. Examine specific communication opportunities that could help you improve your intercultural communication competence.
1.unique qualities, 2. self-awareness, 3. conversations . These are the answers for given questions.
1. Valuing diversity refers to the recognition of the differences in people and acknowledging their unique qualities. In contrast, managing diversity refers to the active efforts that organizations make to leverage these differences and use them as a competitive advantage. Example of valuing diversity: It is valuing diversity when a company provides their employees with a prayer room and or a quiet space for their staff to perform their religious beliefs. Example of managing diversity: A company's culture provides an environment that embraces and celebrates the differences of their employees by conducting trainings and workshops on diversity. Communication affects this process by enabling people to share their different perspectives and experiences that can help others in understanding them better. For example, facilitating discussions among employees from different backgrounds allows them to learn from each other and foster respect for each other's beliefs.
2. One of the areas where I am the strongest is in self-awareness. This area refers to the ability to understand one's cultural beliefs, biases, and stereotypes. Communication affects this process by allowing individuals to reflect and understand their actions and behaviors, thus enabling them to communicate more effectively with people from diverse backgrounds. For example, I attended a workshop where I learned about my unconscious bias towards certain people. This helped me recognize and correct my behavior, such as making assumptions based on someone's background or ethnicity.
3. One area where I need more improvement is in cross-cultural communication. This area refers to the ability to effectively communicate with individuals from diverse backgrounds. One specific opportunity that can help me improve my intercultural communication competence is by engaging in more cross-cultural conversations with colleagues from different cultural backgrounds. For example, attending social events with diverse colleagues can enable me to develop relationships and learn about their cultures, thus improving my intercultural communication competence.
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Ginger and Allen lived together in New Mexico since 2011, but they were not married until July 2013. Allen purchased the home in 2008, prior to meeting Ginger. He did not add Ginger to the title after they were married; however, she contributed to the mortgage payments from 2011 until she started her business in 2013. In September 2013, Ginger inherited $55,000 from her father that she used to start a corporation, Fantastic Faces, a beauty consulting business Ginger worked full time for Fantastic Faces, while Allen continued with his job teaching at the university. Allen made no contributions to Fantastic Faces. Due to limited financial resources, Ginger did not earn any salary until 2015. In May 2013, Allen inherited 20 acres of farmland in Alabama from his grandfather. The land was leased to a local farmer. Allen visited the farm after the funeral in 2013 but did not return to Alabama. The rental income of $5,000 per year was deposited into the couple's joint account. Allen filed for divorce in New Mexico on November 10, 2015. Explain the how the court will determine the ownership of the house, farmland, and business based on New Mexico law. Determine how the court would decide if the couple resided in your state instead of New Mexico.
According to New Mexico law, the court will consider the duration of the marriage and the contributions of each party towards acquiring assets during the marriage to determine the ownership of the house, farmland, and business.
According to New Mexico law, the court will consider the duration of the marriage and the contributions of each party towards acquiring assets during the marriage to determine the ownership of the house, farmland, and business. In this case, Allen purchased the home before marriage and did not add Ginger to the title after they were married. Although Ginger contributed to mortgage payments from 2011, the fact that she started contributing towards the mortgage payments after the marriage will make it a marital asset. The house will be considered a marital asset, and the court will have to consider the contributions of both Allen and Ginger towards the acquisition of the property.
As for the farmland, it was inherited by Allen before the marriage and was kept separate from marital property. Therefore, the court will consider the farmland as Allen's separate property, but the income earned from the farmland will be considered as a marital asset.
The court will have to consider various factors to determine how the business will be divided. Since the business was started after the marriage, it will be considered as a marital asset. However, the court will consider Ginger's contribution towards the business before and after the marriage and decide how much of the business will be awarded to her.
If the couple resided in a state other than New Mexico, the court will consider the laws of that state. Some states follow the community property rule where all property acquired during the marriage is considered joint property, and each spouse has an equal share in it. Other states follow the equitable distribution rule, where property acquired during the marriage is divided based on the contribution of each spouse towards the acquisition of the property.
In conclusion, the court will consider various factors to determine the ownership of the house, farmland, and business based on New Mexico law. However, if the couple resided in a state other than New Mexico, the court will follow the laws of that state to determine the ownership of the property.
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Review Fortune magazine's "Most Admired" American companies for 1959, 1979, 1999, and the most current year. (The issue normally appears in August each year.) Which companies have remained on the top throughout this period? Which ones have disappeared? What do you think led to the survival or demise of these companies?
The Fortune magazine "Most Admired" American companies list provides a valuable insight into the changing landscape of business over time and highlights the importance of staying ahead of the curve in a competitive market.
The companies that have remained on the top throughout this period include names like General Electric, IBM, Johnson & Johnson, Coca-Cola, Procter & Gamble, and Walmart. These are all established companies with strong brand recognition, innovative products, and a proven track record of success.
On the other hand, there are also companies that have disappeared from the list, such as Enron and Lehman Brothers. These companies faced a variety of challenges, including financial mismanagement, ethical scandals, and a failure to adapt to changing market conditions.
In terms of what led to the survival or demise of these companies, it can be attributed to a combination of factors. The companies that have remained successful have consistently invested in innovation, built strong relationships with customers, and stayed ahead of industry trends. Conversely, companies that have disappeared have often failed to adapt to changes in the market, made poor strategic decisions, or faced internal issues such as fraud or corruption.
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Select which among the graphs show the feasible region of the three constraints below. x + y ≤ 5 2x + y ≤ 8 x + 2y ≤ 10 b. a. www C. d.
The correct graph showing the feasible region for the constraints x + y ≤ 5, 2x + y ≤ 8, and x + 2y ≤ 10 is graph b.
Let's solve the given linear inequalities one by one:
x + y ≤ 5:
To plot the graph of the first inequality, we start with the equation x + y = 5 and put (0,5) and (5,0) in the x-y coordinate plane. Then we draw a line through these two points and shaded the region below this line since we are looking for the values of x and y that satisfy x + y ≤ 5. This is shown in the figure below:
2x + y ≤ 8:
To plot the graph of the second inequality, we start with the equation 2x + y = 8 and put (0,8) and (4,0) in the x-y coordinate plane. Then we draw a line through these two points and shade the region below this line since we are looking for the values of x and y that satisfy 2x + y ≤ 8. This is shown in the figure below:
x + 2y ≤ 10:
To plot the graph of the third inequality, we start with the equation x + 2y = 10 and put (0,5) and (10,0) in the x-y coordinate plane. Then we draw a line through these two points and shade the region below this line since we are looking for the values of x and y that satisfy x + 2y ≤ 10. This is shown in the figure below:
The feasible region of the given system of inequalities is the region that is common to all three shaded regions. It is shown in the graph b (the one in the middle). Thus, the answer is b.
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some strategies for reducing employee turnover include all except:____
Some strategies for reducing employee turnover include competitive compensation packages, employee recognition and rewards programs, fostering a positive work culture, providing opportunities for growth and development, and offering work-life balance initiatives.
All of the mentioned strategies are effective in reducing employee turnover, so the correct answer is "none." Competitive compensation packages play a significant role in retaining employees by ensuring that they are fairly compensated for their work and skills. Offering competitive salaries, benefits, and incentives can make employees feel valued and less likely to seek opportunities elsewhere. Employee recognition and rewards programs also contribute to reducing turnover. Acknowledging and rewarding employees for their contributions and achievements can enhance job satisfaction and increase employee loyalty. It helps create a positive work environment and reinforces a sense of belonging and appreciation.
Fostering a positive work culture is another critical strategy. Creating a supportive and inclusive work environment where employees feel respected, heard, and engaged can lead to higher job satisfaction and lower turnover rates. Encouraging teamwork, open communication, and employee involvement in decision-making processes can contribute to a positive work culture. Providing opportunities for growth and development is crucial in retaining talented employees. Offering training programs, career advancement opportunities, and mentoring can demonstrate a commitment to employees' professional growth and help them feel invested in their long-term career prospects within the organization.
Lastly, implementing work-life balance initiatives, such as flexible work arrangements, wellness programs, and supportive policies, can improve employee satisfaction and retention. By recognizing the importance of work-life balance and supporting employees' personal well-being, organizations can reduce turnover by promoting a healthier work-life integration. In summary, the strategies for reducing employee turnover include competitive compensation packages, employee recognition and rewards programs, fostering a positive work culture, providing opportunities for growth and development, and offering work-life balance initiatives.
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Rell (DM2) Rece Prices (R) Don't Reduce Prices (DR) (RR) (R. DR) Bogers (3,3) (4,1) (DM1) (DR, R) (1,4) (DR, DR) (2,2) For this game, write the model in: a) Option form, b) Graph form, and c) Calculate Nash, General Metarational (GMR), Symmetric Metarational (SMR), Sequential (SEQ), and Simultaneous stability (+) for each state and decision maker. Indicate the equilibria and explain what they mean. Provide at least one representative Reduce Prices (R) Don't Reduce Prices (DR)
a) Option form: Rell (DM2) Rece Prices (R) Don't Reduce Prices (DR) (RR) (R. DR)Bogers (3,3) (4,1)(DM1) (DR, R) (1,4)(DR, DR) (2,2)b) Graph form:
c) Nash equilibrium: (DR, DR) for Bogers and (DR, R) for DM1.GMR equilibrium: (DR, DR) for Bogers and (DR, R) for DM1. Symmetric Metarational equilibrium: (DR, DR) for Bogers and (DR, R) for DM1.Sequential stability: DR for both DM1 and Bogers is a strongly stable state since neither player can earn more by deviating. Simultaneous stability: both (DR, DR) and (RR, RR) are simultaneous stable equilibria since none of the players can increase their payoff by changing their move.
At the Nash equilibrium, no player has an incentive to deviate since they are both optimally reacting to each other's strategies. At the GMR equilibrium, neither player can increase their payoff by making a different move given that they both think their opponent is a GMR player. Symmetric metarational equilibrium refers to a case where both players play the same strategy given their beliefs about the opponent. Here, both players choose DR given their beliefs about their opponents. Simultaneous stability refers to the stability of an equilibrium when both players play their strategy simultaneously. In this case, both (DR, DR) and (RR, RR) are simultaneously stable equilibria since no player can increase their payoff by changing their move while the other is playing the same strategy.
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Given that the financial price of a commodity is $150/unit, the CIF trade price is $165/unit, and the FOB trade price is $140/unit. Find the shadow price of this commodity.
Given that the minimum wage is 7,500 lira per month, unskilled worker productivity is 30 units per month, and the selling price of output is 200 lira per unit. Find the shadow wage rate for unskilled workers for the economic NPV, and the financial wage cost for unskilled workers for the financial NPV.
Given an electricity subsidy rate of 30%, and the shadow price of electricity is $0.267/KWhr, find the price of electricity per KWhr which should be used in the financial NPV.
Based on the country data provided below, derive the shadow exchange rate for this country.
Is the official exchange rate over-appreciated or over-depreciated?
Provide TWO advantages on the economy based on your answer to (5).
Provide TWO disadvantages on the economy based on your answer to (5).
Country Data
Exports $7.3 billion
Trade deficit $5.9 billion
Capital inflows $ 24.3 billion
Capital account surplus $2.8 billion
BOP deficit $3.1 billion
Inflation 8%
Unemployment 22%
Poverty 35%
GDP PPP per capita $27,543
Official Exchange Rate 18.67 lira per US$
Shadow exchange rate = (3.1+2.8) / 24.3 = 0.21As compared to the official exchange rate of 18.67, the shadow exchange rate is higher which indicates that the official exchange rate is over-appreciated.
Given the following data, the shadow exchange rate can be calculated for the country: Exports = $7.3 billion Trade deficit = $5.9 billion Capital inflows = $24.3 billion Capital account surplus = $2.8 billion BOP deficit = $3.1 billion Inflation = 8%Unemployment = 22%Poverty = 35%GDP PPP per capita = $27,543Official Exchange Rate = 18.67 lira per US$ For a country, the shadow exchange rate is the rate at which the national currency would trade in a competitive market. For example, the shadow exchange rate is the amount of a foreign currency that the country's currency can purchase in the black market.
The shadow exchange rate is calculated in order to determine whether the official exchange rate is appropriate. If the shadow exchange rate is higher than the official exchange rate, it indicates that the national currency is undervalued. If the shadow exchange rate is lower than the official exchange rate, it indicates that the national currency is overvalued. The shadow exchange rate can be calculated using the following formula: Shadow exchange rate = (BOP deficit + capital account surplus) / capital inflows
Therefore, shadow exchange rate = (3.1+2.8) / 24.3 = 0.21As compared to the official exchange rate of 18.67, the shadow exchange rate is higher which indicates that the official exchange rate is over-appreciated.
Advantages of over-appreciated exchange rate:1. Exports become more competitive in the global market.2. Inflation can be controlled.
Disadvantages of over-appreciated exchange rate:1. The cost of imports becomes lower, making it difficult for domestic producers to compete.2. The increase in exports can lead to job losses as the prices of exports fall, causing companies to reduce their workforce.
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This strategy talks about intermediaries and the number of
intermediaries to use.
The given statement describes the channel strategy, which talks about intermediaries and the number of intermediaries to use.
The channel strategy is a crucial aspect of marketing, and its main objective is to establish a channel between the producer and the consumer. It determines the mode of delivery of goods or services and includes decisions about product promotion and the use of intermediaries. A company can choose from several channels to distribute its products. The channel strategy specifies the number of intermediaries needed to deliver the product from the manufacturer to the end-user. It determines the number of levels in the distribution channel and the degree of directness between the producer and the consumer.
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1.
record entrys for close withdrawals account, close income summary
account, close expense account, close revenue account seperately
2. prepare the post closing trial balance (the account balance
wa
Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number Account Title. Debit Credit 101 Cash $ 18,000 126 Supplies 128 Prepaid insurance 14,400 2,000 23,000 167
To record the closing entries, we need to close the withdrawals account, income summary account, expense accounts, and revenue accounts separately.
After the closing entries are recorded, we can prepare the post-closing trial balance to ensure that all temporary accounts have been closed and the permanent accounts reflect their ending balances.
To close the withdrawals account:
Debit: Withdrawals
Credit: Owner's Capital
To close the income summary account:
Debit: Income Summary
Credit: Revenues (such as Sales, Service Revenue, etc.)
To close the expense accounts:
Debit: Expenses (such as Rent Expense, Utilities Expense, etc.)
Credit: Income Summary
To close the revenue accounts:
Debit: Income Summary
Credit: Revenues
After recording the closing entries, we can prepare the post-closing trial balance, which includes only permanent (or real) accounts. The post-closing trial balance should show the following accounts and their respective balances:
Cash: $18,000 (debit)
Supplies: $2,000 (debit)
Prepaid Insurance: $14,400 (debit)
All temporary accounts, such as revenues, expenses, income summary, and withdrawals, should have a balance of zero as they have been closed out. The post-closing trial balance is prepared to ensure that all necessary closing entries have been recorded correctly and the permanent accounts reflect their correct balances at the end of the accounting period.
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(1%) Which of the following statements are correct? i) The number of buyers who gain from the price ceiling is greater than the original number of buyers. ii) A price ceiling creates an excess demand. iii) A price ceiling generates winners as well as losers. iv) To have an effect, the price ceiling must be set at a lower level than the original market price. v) A price ceiling is an example of government intervention to assist the producer. A) i, ii, iii & v B) i, iii & v C) ii, iii & iv D) ii, iv & v E) i & iii
The correct answer is B) i, iii & v.A price ceiling generates winners as well as losers
i) The number of buyers who gain from the price ceiling is greater than the original number of buyers: This statement is correct because when a price ceiling is imposed, it limits the price that can be charged for a good or service, which can make it more affordable for some buyers who were previously unable to purchase it.
ii) A price ceiling creates an excess demand: This statement is not correct. A price ceiling sets a maximum price, which can lead to a shortage or excess demand if the market price would have been higher without the price ceiling.
iii) : This statement is correct. While some buyers may benefit from the lower price, producers and suppliers may lose out due to reduced profits.
iv) To have an effect, the price ceiling must be set at a lower level than the original market price: This statement is not included in the options.
v) A price ceiling is an example of government intervention to assist the producer: This statement is not correct. A price ceiling is typically implemented to protect consumers by limiting prices, not to assist producers.
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On January 1, 2017, Dobson company acquired a 25% interest in
Trichet co. through the purchase of 12,000 ordinary shares of
Trichet co. for $960,000. During 2017, Trichet paid $240,000 in
dividends an
Dobson Company's acquisition of a 25% interest in Trichet Co. for $960,000 in 2017 and the subsequent receipt of $60,000 in dividends demonstrate their investment in Trichet Co.'s ownership and the return they received in the form of dividend payments.
On January 1, 2017, Dobson Company acquired a 25% interest in Trichet Co. by purchasing 12,000 ordinary shares for $960,000. Throughout 2017, Trichet Co. paid dividends totaling $240,000.
This investment represents a significant ownership stake in Trichet Co., as Dobson Company acquired 25% of the ordinary shares. The purchase price of $960,000 indicates the valuation placed on this acquisition.
Additionally, the dividends paid by Trichet Co. amounting to $240,000 represent the portion of earnings distributed to shareholders during 2017. As Dobson Company holds a 25% interest, they would have received a dividend payment of $60,000 (25% of $240,000).
Overall, Dobson Company's acquisition of a 25% interest in Trichet Co. for $960,000 in 2017 and the subsequent receipt of $60,000 in dividends demonstrate their investment in Trichet Co.'s ownership and the return they received in the form of dividend payments.
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1. Give an example of substitute pair and an example of complement pair that you have encountered and how a change in prices affected your spending in each case. 2. Give an example of inferior good and an example of normal good that you have encountered and how has change in income affected your spending in each case,
An example of a substitute pair is coffee and tea.
When the price of coffee increased significantly, I found myself buying more tea instead. The change in prices influenced my spending as I switched from one substitute to another based on affordability and preference.
On the other hand, an example of a complement pair is smartphones and phone accessories. When the price of smartphones dropped, I observed that I ended up spending more on phone accessories such as cases, screen protectors, and chargers. The decrease in smartphone prices led to an increase in my spending on complementary products.
An example of an inferior good is generic brand products. When my income decreased, I started purchasing more generic brands of certain products, such as groceries or household items. The change in income influenced my spending as I opted for lower-cost alternatives instead of premium or branded products.
Conversely, an example of a normal good is dining out at restaurants. As my income increased, I found myself allocating a larger portion of my budget towards dining out and exploring various restaurants. The change in income positively impacted my spending on normal goods as I had more disposable income to indulge in dining experiences.
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