APR and Penalty fees are be the two main factors that are to be considered important to Delera.
Why are these two factors also very important to consider?APR, as the APR will decide how much interest she accrues each month as she intends to carry a balance. Penalty fees/rates, as she is financially strapped and may, in all likelihood, miss payments. What is Annual Percentage Rate (APR) and Penalty Rates?The phrase annual percentage rate of charge (APR) refers to the interest rate for the entire year (annualized), as opposed to only a monthly fee or rate, as applied on a loan, home loan, credit card, etc.
The penalty rate on a credit card is the rate that the credit card company charges you; it is higher than your standard APR. Not all credit cards carry a penalty APR, but if it does, then you can discover the figure in the small print of your card's terms and conditions. It is typically listed below the standard and cash-advance APRs in the rates table.
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To make sure that the federal funds rate does not fall much below the floor set by the interest rate on excess
reserves, the Federal Reserve has set up the ________ facility in which these nonbank lenders can lend to the
Fed and earn an interest rate that is close to the interest rate the Fed pays on excess reserves.
A)
Primary Dealer Credit
B)
reverse repo
C)
Term Securities Lending
D)
Term Auction
alternative B is right answer. To make positive that the federal funds fee does no longer fall a lot beneath the floor set with the aid of the hobby price on excess reserves, the Federal Reserve has set up the reverse repo facility in which these nonbank lenders can lend to the
Fed and earn an activity charge that is close to the interest rate the Fed can pay on excess reserves.
What is intended via reverse repo?Definition: Reverse repo price is the charge at which the central financial institution of a u . s . (Reserve Bank of India in case of India) borrows money from business banks within the country. It is a monetary policy instrument which can be used to control the money furnish in the country.
Why do banks reverse repo?The Overnight Reverse Repo Facility (ON RRP) helps furnish a ground beneath overnight interest costs by means of appearing as an alternative investment for a wide base of money market investors when rates fall under the activity on reserve balances (IORB) rate.
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https://brainly.in/question/6742421#SPJ4the administration of monetary policy in the united states differs in some ways from the administration of other economic policy. classify the descriptions of monetary policy as true of false.
The administration of monetary policy in the United States is unique. These descriptions of monetary policy are:
Monetary policy can be enacted more quickly than fiscal policy (True)The president cannot remove the chairman of the federal reserve if he/she disagrees with monetary policy decisions (False)Relative to other institutions, the federal reserve is subject to a high degree of accountability (False)Monetary policy is determined by congress (False)Monetary policy is determined by the president (False)Congress can remove the chairman of the federal reserve if they disagree with monetary policy decisions (False)Monetary policy in the United States is related to the Federal Reserve's actions and communications to promote maximum employment, stable prices, and moderate long-term interest rate. The congress's instruction regarding the economic goals are the Federal Reserve's target.
The president has limited power when it cocmes to the Federal Reserve and its monetary policy decision. The president's power over the Federal Reserve includes:
The president can appoint and fire the Federal Reserve's chairThe president does appoint the majority of voting officialsThe president is no the sole arbiter of how take those seats on votingThe president can voice his concerns and participate in the conversationHowever the congress has no power to fire the Fed's chair, neither the monetary policy decision. All monetary policy decisions are the Fed's solely right.
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Complete Question:
The administration of monetary policy in the United States differs in some ways from the administration of other economic policy. Classify the descriptions of monetary policy below as true or false:
Monetary policy can be enacted more quickly than fiscal policyThe president cannot remove the chairman of the federal reserve if he/she disagrees with monetary policy decisionsRelative to other institutions, the federal reserve is subject to a high degree of accountabilityMonetary policy is determined by congressMonetary policy is determined by the presidentCongress can remove the chairman of the federal reserve if they disagree with monetary policy decisionsaccording to the management grid developed by blake and mouton, which management style would be most effective for an ep who manages a team of trainers at a fitness facility?
According to the Management Grid developed by Blake and Mouton, Team or democratic management would be most effective for an EP who manages a team of trainers at a fitness facility.
What is managerial grid model?
The managerial grid model is a technique for self-evaluation that allows people and organizations to determine a manager's or leader's style. Robert R. Blake and Jane S. Mouton created the grid in the 1960s, and it has changed throughout the years.
A horizontal axis and vertical axis that intersect at a right angle form the Blake and Mouton Managerial Grid concept.
This instrument is used by organizations to evaluate individual managers and pinpoint their management approaches in an effort to support the development of leadership excellence.
The managerial grid, also known as the leadership grid, can assist managers in recognizing their management strengths and weaknesses, which enables them, their supervisors, and HR partners to determine what kind of support and training they need.
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An agent of a broker-dealer is currently doing business in one state and would like to conduct business in another state. When checking with the firm's compliance department, the agent would be told which of the following?
A)
If the agent is a partner, officer, or director and held that position at the time the broker-dealer was registered in that state, the individual need not register separately.
B)
Registration is required only if an offer is directed, accepted, and paid for in that state.
C)
No registration is necessary if no commission or other remuneration is paid or given directly or indirectly.
D)
No registration is necessary in the other state provided the agent's activities are limited exclusively to effecting transactions in certain exempted securities.
The broker-dealer's agent is currently operating in one state but would like to expand to another. When checking with the firm's compliance department is Only if an offer is made, accepted, and paid for in that state is registration necessary.
The broker-dealer is required to assess how much of the money it holds is either client money or money acquired via the use of customer securities on a regular basis. The broker-dealer is required to assess how much of the money it holds is either client money or money acquired via the use of customer securities on a regular basis. The most well-known broker-dealers include TD Ameritrade, E-Trade, and Charles-Schwab. While E-Trade and TD Ameritrade are essentially online brokerage firms, others of these, like Charles-Schwab, are comprehensive financial services companies.
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Visit a web site for a company that sells products online. Then go to that company's corporate web site. Compare the company's product sales site with its corporate site. Describe at least 3 differences between them. (1-3 sentences. 3. 0 points).
There are a number of variations between goods or services and business websites. The fact that "items/services push their products as the most prominent thing on the website, whereas the corporate website pushes their values and ethos as the most noticeable thing on their website," is one of the distinctions.
The following other differences have also been noted:The corporate website lacks areas or parts where customers can order or book things, whereas product or service websites do.
The product and service websites lack this feature, however corporate websites have a part or area where a team member's job description is explained.
Additionally, the corporate websites feature the business's ongoing projects, mission, and vision, whereas the websites for the company's products and services.
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fenton inc. purchased equipment for $5,000 with a $500 residual value and a five-year useful life. match the amount to the respective term/year using straight-line depreciation. $900 $900 drop zone empty. $1,800 $1,800 drop zone empty. $2,300 $2,300 drop zone empty. $500
There at end of Year 5, the total depreciation was $2,500 ($500 each year over the five years).
How does depreciation work?A tangible item's cost can be spread out over the period of its service life using the accounting approach of depreciation. The amount of an income statement has indeed been used is shown through depreciation. It helps business to purchase assets over a predetermined length of time and generate income from those assets.
What are the two distinct categories of depreciation?The four basic depreciation techniques are straight line, twofold decreasing, years' digits total, and production units. Each technique is used to various business and asset categories. Vehicles office structures.
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if the money market is initially in equilibrium at point e and the central bank lowers reserve requirements, then the interest rate will: a. move toward point h. b. remain at point e. c. shift leftward. d. move toward point l
If the money market is initially at point E and the central bank sells Treasury bills, the interest rate will move toward point H.
One aspect of the economy that offers short-term financing is the money market. Short-term loans of one year or less are the specialty of the money market.
Money market investing can be extremely beneficial, particularly if you require a short-term, relatively safe place to park cash. Low returns, a loss of purchasing power, and the fact that some money market investments are not FDIC insured are some disadvantages.
Hence, the correct answer is "A" option.
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Karen is buying a new laptop. She is looking for a light-weight computer. The laptop she purchases is a little heavier than she had originally hoped, but she was willing to accept the extra weight for a computer with a bigger, clearer screen. Karen made her purchase decision using a(n) ________.
Karen is buying a new laptop. She is looking for a light-weight computer. The laptop she purchases is a little heavier than she had originally hoped, but she was willing to accept the extra weight for a computer with a bigger, clearer screen.
Karen made her purchase decision using a compensatory decision rule.
In psychology, compensation is a approach whereby one covers up, consciously or unconsciously, weaknesses, frustrations, goals, or feelings of inadequacy or incompetence in a single life area thru the gratification or (drive toward) excellence in some other area. compensation can cowl up both real or imagined deficiencies and personal or bodily inferiority. fantastic compensations may additionally help one to conquer one's problems. then again, bad compensations do not, which ends up in a strengthened feeling of inferiority.
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shaylee corporation has $2.00 million to invest in new projects. the company’s managers have presented a number of possible options that the board must prioritize. information about the projects follows: project a project b project c project d initial investment $ 419,000 $ 234,000 $ 724,000 $ 949,000 present value of future cash flows 769,000 419,000 1,204,000 1,564,000
Shaylee Corporation is not able to invest in all these projects simultaneously.
How do companies decide on investments?Companies decide on the projects they are to invest in, using a number of ways such as the present value method. This method calls for investing in projects that have a positive present value.
Projects A, B, C, and D, all have positive present values and so they can invest in all of the projects.
However, Shaylee Corporation has a budget and they cannot exceed this budget. The total investment into the projects is:
= 419, 000 + 234, 000 + 724, 000 + 949, 000
= $ 2, 326, 000
This is more than the $ 2 million the company wants to invest so they cannot go into all the projects.
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Question is:
Is Shaylee able to invest in all of these projects simultaneously?
What aspect of today’s business environment is central to the need for robust transaction management processing systems?.
The need to handle financial calculations to monitor performance is the aspect of today’s business environment is central to the need for robust transaction management processing systems.
What is Business Environment?In marketing, the terms "market environment" and "business environment" are used to describe the forces at play and the circumstances that affect a company's ability to build and maintain enduring customer relationships. The term "business environment" refers to the entirety of all people, teams, and other organizations that function independently of business but have the capacity to affect its results.
In conclusion, a business environment enables organizations to evaluate the approaches and plans of their competitors. They can also create their own plans in line with this. In the telecom sector, almost all carriers provide equivalent services at comparable prices, according to a quick check.
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in the united states, the restriction on imports of products that violate domestic copyright or patent laws is an example of
In the united states, the restriction on imports of products that violate domestic copyright or patent laws is an example of an Intellectual Property (IP) law.
For, these are laws that protect the rights of the creators of original works. These laws may include:
Copyrights, patentsTrademarksTrade secretsOther forms of intellectual property.What is the importance of Intellectual Property (IP) law?Intellectual Property (IP) law helps protect the investments of inventors, businesses, and other creators by preventing others from using their ideas, inventions, or other creations without their permission.
This helps to promote innovation and creativity, as well as protecting the rights of creators to benefit from their hard work. IP law also helps to ensure that businesses can compete fairly on the market without being undercut by cheaper, infringing products.
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Which of the following measures the operating cash flow a project produces minus the necessary investment in operating capital, and is as valid for proposed new projects as it is for the firm's current operations?a. Free cash flowb. Operating cash flowc. Investment in operating capitald. Sunk cash flow
The net operating measures the operating cash flow a project produces minus the necessary investment in operating capital cash flow from the project, less any sunk costs and erosion costs, is used to calculate the cash flow from the project.
The amount of available cash left over at the end of the accounting period is referred to as cash flow.
It can be determined by deducting the beginning and ending cash balances of an period.By deducting all non-cash income from the overall project revenue, the cash flow from a project is calculated.Accounts receivable, interest income, and capital gains are included in non-cash income. It is a non-cash asset that cannot be used right away to pay for immediate short-term expenses, hence it is not taken into account when calculating cash flow.Incremental revenue minus incremental costs equals incremental operating cash flow.In this case, the working capital would be updated and the incremental revenue with negative capital investment would be subtracted in order to establish the cash flow.
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the dominant strategy for each firm is to pollute. the government wants to introduce a fine that will change the strategy choice of each firm from polluting to not polluting. consider the following fines and choose the fine that will accomplish the government's goal
Strategies to Reduce Air Pollution-Choose public transportation, as a substitute of the use of own/commercial vehicles. Maintain your automobile tires with suited inflation.
Turn the lights off when you are about to go away a room. Replace energy-hungry incandescent bulbs with some compact fluorescent bulbs or LEDs.
What techniques are used by using the government to minimize air pollution?These steps include: lowering toxic emissions from industrial sources; lowering emissions from automobiles and engines thru new stringent emission requirements and cleaner burning gasoline; and addressing indoor air air pollution even though voluntary programs. See similarly important points under about reductions from: Industrial sources.
Environmental education is the quality programme to deal with the environmental problems. It is most essential in our efforts to combat and manipulate pollution, over-population and misuse of herbal sources
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https://brainly.com/question/15708835#SPJ4what are your goals when communicating this message? check all that apply. promise rebates. be fair. maintain friendly relations. encourage further correspondence. project a professional image.
Project a Professional Image, A person's behavior at work and in other professional contexts is referred to as their "professional image."
What does a good professional image entail?Employ a confident body language.
displaying self-assurance. conversing while maintaining eye contact. shaking hands firmly. standing up straight and sitting down. displaying open body language by turning to face the speaker, squaring your shoulders, and not crossing your arms.
What does a professional image look like?However, a professional image extends beyond attire. It also involves how you conduct yourself and interact with coworkers, clients, and business acquaintances, such as how you shake hands politely, speak, and choose your words and voice in emails and phone calls.
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A Jeans Maker Is Designing A New Line Of Jeans Called Slims. The Jeans Will Sell For $375 Per Pair And Cost $262.50 Per Pair In Variable Costs To Make.
The contribution margin per pair is $112.5 and The contribution margin ratio is 30%.
The amount left over after deducting a product's variable costs is known as the contribution margin. Contribution margin is a term used in variable costing and refers to the sum needed to pay the business' fixed costs. Selling price divided by variable cost per unit equals contribution margin per unit. The ratio of contribution margin to sales is known as the contribution margin ratio.
It is given that
Selling price per pair = $375
Variable cost per pair = $262.50
Contribution margin per unit = Selling price per unit - Variable cost per unit
Thus, Contribution margin per pair = $375 - $262.5 = $112.5
Contribution margin ratio = (Contribution margin ÷Sales)×100
Contribution margin = $112.5 and sales = $375
Contribution margin ratio = ($112.5 ÷ 375)×100 = 30%.
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what is effective about the closing of this message? check all that apply. motivates action asks stimulating questions provides a deadline gains attention
Write a letter without being threatening, sarcastic, or angry.Although they probably did not cause the issue, the person reading it might be of great assistance in resolving it.
Include your phone number, address, and name.If you have a business account, include your account number.
What can you add to your sales message as an additional motivator?
Consider adding additional motivators to the conclusion of your message because readers frequently require an additional push.A gift, an incentive, a limited offer, a deadline, or a satisfaction guarantee are all potential motivators.
What is the significance of sales force motivation?
It is crucial to the development of a positive culture and environment.Additionally, it is the driving force behind your overall performance as part of your sales compensation plan.It is essential at all times to keep sales representatives engaged and motivated.It helps you reach your goals and helps you keep top sales reps.
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why do store designers attempt to design stores with maximum flexibility? multiple choice question. the space allocated for unplanned purchases remains static in most of the retail stores. the store designs used by retailers provide customers with details about demand forecasts for the forthcoming selling season. the store design does not take the sales associates into account while allocating space for retailers' demand/destination merchandise. the space allocated to merchandise categories and the layout of the store change along with the changes in the merchandise mix.
It is to be noted that store designers attempt to design stores with maximum flexibility because:" the space allocated to merchandise categories and the layout of the store change along with the changes in the merchandise mix." (Option D).
What is Merchandise Mix?The mixture of commodities that a firm selects to sell in order to generate earnings is referred to as the merchandising mix: The company has been tailoring its merchandise mix to maximize revenues.
Merchandising has four major components: buying, planning, managing, and controlling. Above all, these four components must result in a very desired goods combination for the store's clients. As the demands of the store's target market customers vary, this mix must be modified.
Here's a list of four fundamental types of items, along with explanations of each, to help you distinguish between them:
Convenience items. Convenience products are commodities that humans need for basic survival and health.Shopping merchandise. Specialty goods. Impulse purchases.Learn more about Merchandise Mix:
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a survey of 50 randomly selected homeowners finds that they spend a mean of $74 per month on home maintenance. construct a 90% confidence interval for the mean amount of money spent per month on home maintenance by all homeowners. assume that the population standard deviation is $11 per month. round to the nearest cent.
A survey of 50 randomly decided on homeowners unearths that they spend a mean of $74r according to month amount on domestic renovation. lower endpoint: | 71.74
Endpoints are bodily gadgets that connect with a community gadget which includes cellular devices, desktop computers, digital machines, embedded gadgets, and servers.
Top endpoint: 76.56
= sample (n) = 50
tmean (x) = $74
Repastatto (s) = $11
at 90% confidence level Zcritical value is
a = 1 - 0.90
= 0.10
= a/2 = 0.10/2
= 0.05
Z a/2 = Z 0.05
= 1.645
(71.44, 76.56 )
decrease endpoint: |71.44
upper endpoint: 76,56
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To deliberately initiate culture change at company is an uphill struggle. Most employees tend to return to familiar ways of doing business. To succeed, executives need to
a. model the desired change over a period of at least six months and replace any senior executive who is not fully committed.
b. create a sense of urgency, model the changes that they want, and show commitment to the new culture.
c. create a sense of urgency, model the desired change, and lay off all employees who aren’t enthusiastic about the change.
The executives need to create a sense of urgency, model the changes that they want, and show commitment to the new culture.
In public policy, the phrase "cultural shift" is used to indicate how society or an institution is evolving. A cultural change is one that is meant to result from a shift in the traditions that a society follows at any particular moment. These modifications could be beneficial or harmful to society. The executives must instill a sense of urgency, set an example for the changes they want to see, and show a commitment to the new culture if they are to successfully initiate deliberate culture change at their organization. When this occurs, society typically introduces new cultural features, behavior patterns, and social conventions.
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a customer wants to establish a joint account at a brokerage firm with an individual who is employed by the same firm. is this permitted?
Yes, with preapproval of the customer and the firm.
Explain in detail.
Two or more people can have a joint brokerage account. The majority of the time, spouses hold joint brokerage accounts, but they can also be opened by parents and children or by two people who have similar financial aspirations, such as business partners.Joint brokerage accounts function best when a close friend or family member can make a similar financial contribution and shares your goals, according to Dugan. Asset pooling can save costs, make it simpler to monitor group progress, and give management of the assets to the party with the best investment track record.To know more about Account here
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list, describe and explain each of the elements in the communications mix. what are the strengths and weaknesses of each
The "promotion" component of the communications mix can be seen as having a connection to the 4Ps of marketing. Typically, the communications mix is said to consist of five components: Advertising, direct marketing, personal selling, public relations, and sales promotion are the first five.
One of the most obvious instances of marketing communications is advertising, but it's crucial to understand that marketing and advertising are two distinct concepts. The set of methods and strategies used by a business to market its goods and services is referred to as marketing. According to Andrews and Shimp (2017), "advertising" expressly refers to paid content or materials. While traditionally associated with radio or television advertising, it is increasingly common for internet advertising to also include sponsored content and paid influencers. Advertising is often expensive, but it has the advantage that whoever is paying for it has complete control over the content and substantial control over the communication channel and the target audience.
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maxwell manufacturing issued $390,000, 10-year, 9% bonds at 107.25. what is the issue price of these bonds?
The issue price of these bonds is 712,500$ when they are issued at , 9% bonds at 107.25.
What does a bond actually mean in plain English?In essence, a bond is a loan made by an investor to a borrower, usually a company or the government. While the borrower utilizes the money to finance its operations, the investor receives interest on their investment. The market value of a bond may change over time.
Is it a good idea to invest in bonds?In general, bonds are thought to be safer than other financial assets like stocks because, barring an issuer defaulting on their debt, you can depend on the income. Bonds come in a variety of forms, each with a unique minimum investment requirement and payment schedule. Most bonds have predetermined coupon rates.
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on january 2, otto corp. entered into a purchase commitment to buy 1,000 units of raw materials for $25 per unit. on january 31, the company purchased 1,000 units when the market price was $24 per unit. otto should
Debit loss on purchase commitment $1,000; Debit inventory $24,000; Credit cash $25,000.
What does "market pricing" mean?Market pricing is a tactic used to set prices in accordance with what is currently being paid in the market for identical or comparable goods and services. Businesses are given the chance to establish higher pricing initially before lowering them to match market rates in order to remain competitive while still increasing return on investment.
What distinguishes the market price from the present price?the market price and the cost price. The cost price is the cost you paid to buy the stock, but the market price is the price it is now trading at. Typically, estimates of value are used to calculate the difference between cost price and market price.
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As the interest rate __________, the opportunity cost of holding money __________ and individuals choose to hold __________ money.
a. increases; increases; more
b. increases; decreases; more
c. increases; decreases; less
d. decreases; increases; more
e. decreases; decreases; more
Option (e), People choose to store more money as the interest rate declines because there is less opportunity cost to do so.
Given the low interest rates, why do people keep money in the bank?If and when interest rates do decrease, their bonds' value will rise. If interest rates are low, however, people expect them to rise. They want to keep hold of their cash balances and will sell bonds because of anxiety that the value of bonds may decrease in the event that interest rates rise in the future.
How does a decrease in interest rates affect the opportunity cost of retaining money in a savings account?As a result of declining interest rates, which lower the opportunity cost of holding onto money, more money is being needed.
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elderly aunt signed a contract for the sale of her home at well below market value. aunt had not read the contract before signing it because her niece, who is both her lawyer and caretaker, told her to sign the contract. aunt has a defense to the contract she signed based on her reasonable reliance on a fiduciary. a. true b. false
ANSWER: TRUE, aunt has a defense to the contract she signed based on her reasonable reliance on a fiduciary.
WHAT IS CONTRACT?A contract is a two or more party legally binding agreement that specifies, clarifies, and governs each party's rights and obligations. The majority of the time, a contract involves the transfer of goods, services, money, or a promise to transfer any of those at a later date. In the event of a contract breach, the injured party is entitled to legal remedies including damages or revocation. The notion that promises made in an agreement must be maintained is the basis of contract law, the branch of law that deals with obligations originating from contracts.
Similar to other areas of private law, contract law differs from nation to nation. The three primary categories into which the various systems of contract law can be grouped are common law, civil law, and mixed law jurisdictions—which combine elements of both common and civil law. Contrary to civil law states and the majority of states with a hybrid legal system, common law jurisdictions frequently only require agreement between the parties for a contract to be valid.
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you are considering three independent projects. the analysts have done their research and data analytics and have determined the npv of all 3 projects. project a's npv is 2.3 project b's npv is 1 project c's npv is -1
NVP or net present value or net present worth applies to a series of cash flows which is occurring at different intervals of time. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. It accounts for the time value of money.
So the higher the NVP or net present value the better the chances of the business flourishing.
With all that said the answer has to be project A which has an NVP of 2.3 as estimated by the analysts and should be the go to business for me to invest.
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a cooling-off period of how many years is required before a member of an issuer’s audit engagement team may begin working for the registrant in a key position?
One-year a cooling-off period of many years is required before a member of an issuer’s audit engagement team may begin working for the registrant in a key position.
The cooling-off period should be at least two years to provide protection against potential threats to self-assessment or objectivity arising from past decisions made by raters while acting as engagement partners .
Individuals served an EQCR for a total of 7 cumulative years in a role combination in which she served more than 4 years, so the individual has a grace period of 3 consecutive years before returning to her EQCR. must be completed. Allocation of examinations.
Pursuant to section 139, subsection (1) of the Act, the first auditor of a non-governmental legal entity shall be appointed by the Board within 30 days of her registration date .
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Provide an example of how a company could make modifications to their business operations to incorporate sustainable best practices. How could these modifications be measured in terms of triple bottom line?.
The science of climate change is reverberating through economies and business, worldwide.
What does a business consist of?A business is an organization or enterprising body that engages in commercial, industrial, or professional activities. Businesses can be nonprofit organizations or for-profit enterprises. Among the various business structures are partnerships, corporations, limited liability companies, and sole proprietorships.
What are the fundamentals of business?Learning the basics is the first step you should take to succeed in business. By conducting market research and comprehending the needs and expectations of your customers, you can create a long-lasting business, but you must first develop the essential business skills.
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suppose a perfectly competitive firm can increase its profits by increasing its output. then it must be true that the firm's price exceeds its marginal cost. explain the rationale for this statement ( what explains the statement?).
A market model known as perfect competition is predicated on the idea that many companies create the same commodities that are purchased by many consumers. The assumption made by the model of perfect competition is that it is simple for new businesses to enter the market and for existing ones to depart.
As long as it accepts the going market price, a perfectly competitive market is free to sell as much as it likes. Depending on the cost of the good and the number of units sold, total income will rise as the company sells more. The amount of income generated will rise if more units are sold at a given price. Total sales will rice if the product's price increases with every unit sold.
A complete total cost curve for every level of production cannot frequently be derived by firms because they lack the essential data. They haven't tested it, so they can't be sure what the total expenses would be if they, say, doubled production or cut production in half. Businesses experiment instead. They experiment with production levels that are marginally higher or lower and track how it affects earnings. This practical method to optimising profitability entails considering how production changes impact marginal cost and marginal revenue.
When marginal revenue and marginal cost are equal, or when MR = MC, a fully competitive firm will make the decision that will maximise its profits. As long as MR > MC, a profit-driven company should continue to increase production. However, the business should realise that it has reached the maximum level of economic profits at the output level when MR = MC.
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According to the principle of monetary neutrality, a decrease in the money supply will not change.
In other words, in accordance with the principle of money neutral, an increase (reduction) in the money supply will dictate an increase (decrease) with in price of goods sold, but not really the actual amount of
Why is money's objectivity important?Importance. According to the idea of money's neutrality, the equilibrium of an economy is not really affected by money because it is neutral. According to the notion, the availability of money can affect how much things cost, but it lacks the authority to fundamentally alter the structure of the economy.
Money: Is it morally neutral?It is your choice how you use money, not the money itself, which is morally neutral and neither good nor harmful. Through generosity, you can really make your money work for the better. Performing straightforward deeds of kindness, such as donating to a worthy cause or lending money to a friend in need, might
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