The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:Location Annual Fixed VariableAlpha Ave. $ 5,000 $ 200 per personBeta Blvd. $ 8,000 $ 150 per personIf it is estimated that 30 persons will be living in this new chapter house, which location should the Skulls select?Multiple ChoiceAlpha Ave.become a virtual organization.either Alpha Ave. or Beta Blvd.Beta Blvd.reject both Alpha Ave. and Beta Blvd.

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Answer 1

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, the location will skull selects is alpha ave.

-Multiply the variable cost by the volume, then add that product to the fixed cost

Numerous other company categories have historically been categorized as public utilities, and as a result, have been legally required to go through the ratemaking process in order to establish the permissible service costs for their sector. Public utilities are often considered to be a de facto monopoly (or "natural monopoly") for the services they offer within a certain jurisdiction, despite the fact that this categorization has varied throughout time. Railroads, the distribution of natural gas, telecommunications, and the generation and distribution of electricity are examples of well-known public utilities that are required to determine rates through ratemaking.

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cryon corp. has the following information: borrow from bank, $100,000; pay dividend $30,000; purchase building $50,000; collect from customers $50,000; and repay loan from bank $30,000. what is the net cash inflow from financing activities?

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100,000-30,000-50,000+50,000-30,000 = 40,000  

$40,000, Cash Flow, the entire amount of money coming into and going out of a company, particularly as it relates to liquidity.

What Are Financing Activities' Cash Flows?

A part of a company's cash flow statement called cash flow from financing activities (CFF) displays the net cash flows used to fund the business. Transactions involving debt, stock, and dividends are considered financing activities.

What is the formula for cash flow from financing activities?

Add your dividends paid to the repurchase of debt and stock, then deduct the amount from cash inflows from issuing equity or debt to compute your cash flow from financing activities. A cash flow statement includes them as well.

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great wall pizzeria issued 11-year bonds one year ago at a coupon rate of 6.8 percent. if the ytm on these bonds is 9 percent, what is the current bond price?

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The current bond price is $858.81.

Assuming face value to be $1,000

Coupon = 0.068 * 1000 = 68

Price = Coupon * [1 - 1 / (1 + r) n] / r + FV / (1 + r) n

Price = 68 * [1 - 1 / (1 + 0.09)10] / 0.09 + 1,000 / (1 + 0.09)10

Price = 68 * 6.417658 + 422.410807

Price = $858.81

Coverage started out in earnest in May 2021 whilst the 6-month 'inflation rate' of 1.77% became announced (that's 3.54% annualized!). Then, in November 2021 I bond costs doubled to 7.12% after which 9.62% in May 2022!

Inflation sucks, however there's one upside: It's nevertheless a splendid time to shop for a government sponsored I bond. Series I financial savings bonds are conservative, secure investments that upward thrust and fall with inflation, and they may be incomes a long way extra than the satisfactory high-yield financial savings account or certificates of deposit.

U.S. Savings Bonds mature after 20 or 30 years, relying at the form of bond: Series EE bonds mature after 20 years. They are offered at 1/2 of their face price and are really well worth their complete price at maturity. Series I bonds are offered at face price and mature after 30 years.

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If a consumer has a mortgage loan, a student loan, and a car loan in addition to a credit card account, he may score higher in which credit score category?.

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If a customer has a loan mortgage, a pupil mortgage, and a automobile mortgage similarly to a credit score card account, Most elegant forms of mortgages and car loans are considered secured credit score, because of the reality the loan holder can take ownership of your house or automobile in case you do now no longer pay as agreed.

On the unique hand, an unsecured mortgage or line of credit score does not require any collateral.

What determines your credit score?

How an extended manner behind you're on a bill payment, the variety of debts that show off overdue bills and whether or not you've got added the debts current are all factors. The better your wide variety of on-time bills, the better your score will be. Every time you leave out a payment, you negatively have an impact in your score.

Although ranges variety relying at the credit score scoring model, commonly credit score rankings from 580 to 669 are taken into consideration fair; 670 to 739 are considered good; 740 to 799 are taken into consideration very good; and 800 and up are taken into consideration excellent.

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FILL IN THE BLANK. A way to send transactions directly from one computer to another instead of using a paper check is through the use of ______. (Select all that apply)
Multiple select questions.
(A) Federal Reserve transfers
(B) debit cards
(C) electronic funds transfer (EFT)
(D) money orders

Answers

A way to send transactions directly from one computer to another instead of using a paper check is through the use of debit cards and electronic funds transfer (EFT).

How do EFT transfers work?

EFT stands for electronic funds transfer, which is the electronic movement of monies from one bank account to another, either inside a single financial institution or across numerous institutions, using computer-based systems and without the direct involvement of bank staff. It is described as "a funds transfer initiated through an electronic terminal, telephone, computer (including online banking), or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account" by the Electronic Fund Transfer Act of 1978 in the United States.

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The term​ ________ represents all the forms of money that are traded​ internationally, including bank​ deposits, checks, and electronic transfers.

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All types of money that also are traded internationally, such as cash deposits, checks, or electronic transfers, are collectively referred to as "foreign exchange."

By check, what do you mean?

A check is just a written, dated, & signed document than instructs the bank to pay the bearer a certain sum. The person or organization whom writes the check is known as the payor, and the recipient of the check is known as the payee.

What kinds of checks are there?

How Many Different Check Types Are There:

Bank drafts.Checks for wages.Electronic checks, or e-checks.Checks for travel.Individual checksCash Orders.Authenticated Checks.Payroll checks.

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the general attitude of consumers toward health information technology is positive. which items are perceived ehr benefits for the consumer?

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The general attitude of consumers toward health information technology is positive. The items are perceived the benefits for the consumer are:

a. Collaborative interaction between patients and providers

c. Timely access to personal health information

d. Online access to educational materials

e. Customize care through reminders

From a consumer perspective, an EHR system should provide the ability to customize care through appointment reminders, health risk assessments, and timely access to personal health information. The availability of online educational resources will improve understanding of treatment choices and offer more control over personal health outcomes. Consumers also benefit from EHR technology when there is collaborative interaction between patients and physicians. Although the EHR has the potential to address these items, security and privacy of personal information are perceived as major concerns and, therefore, are not a benefit to the consumer.

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in order to avoid bias while conducting subjective job evaluations of their subordinates, managers should avoid blank . multiple choice question. recording observations of their subordinates before conducting job evaluations attributing the performance of their subordinates to the working environment observing their subordinates' performance regularly evaluating many subordinates at one time

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In order to avoid bias while conducting subjective job evaluations of their subordinates, managers should avoid A) recording observations of their subordinates before conducting the job.

An effective way of reducing subjectivity is through making personnel aware of its life and instructing them on approaches to recognize it. Doing this near the appraisal season could be more helpful. Often times, the rankings that appraisers are presupposed to select from have subjective tones.

Affinity bias is the tendency to choose someone we have similarities. In performance reviews, this can lead managers to miss the achievements of one employee over some other. We may also experience a bias towards humans from a similar history to us, or who've comparable pastimes and pastimes.

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your clients is trying to decide whether to invest in or . they ask you, as an accouting exper, to make an analysis of the company for them

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Your clients are trying to decide whether to invest in or. they ask you, as an accounting expert, to make an analysis of the company for them Checking the Income Statement.

This file will encompass numerous monetary metrics that could assist making a decision whether or not to spend money on a enterprise. In particular, you want to test the boom of income and the boom of internet income. Checking those metrics permit you to decide if the enterprise is really growing.

Attracting commercial enterprise funding entails motivating non-public traders via way of means of focusing on the capability profitability of the commercial enterprise and the chance of appealing returns on an funding. Profitability is judged via way of means of its sustainability through the years and the chance of exponential boom withinside the enterprise's goal market.

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The four basic tools using which the Federal Reserve Board fine-tunes money growth are reserve requirements, discount rates, credit controls, and _____. commercial banks the exchange rates open market operations mutual savings banks credit unions

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The four basic tools using which the Federal Reserve Board fine-tunes money growth are reserve requirements, discount rates, credit controls, and open market operations.


The Federal Reserve's open market operations (OMOs)—the purchase and sale of securities in the open market by a central bank—are a key tool in the implementation of monetary policy. The Federal Open Market Committee establishes the short-term goal for open market operations (FOMC).

The Federal Reserve uses open market operations to move the federal funds rate and influence other interest rates. It does this to either stimulate or slow the economy. By purchasing Treasury securities, the Fed can increase the money supply and lower the fed funds rate.

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1. money can be created in the u.s. economy only by printing more paper money and minting more coins. true false

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Money can be created in the u.s.economy only by printing more paper money and minting more coins.

What is economy?

⇒ An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources. One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes. These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.

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question john and mary own shares of stock in a certain company. does john own more shares of the company’s stock than mary? (1) mary owns more than 500 shares of the company’s stock. (2) the number of shares of the company’s stock that john owns is 400 less than twice the number of shares of the company’s stock that mary owns.

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A minimum of one share must be held by each party. Therefore, if Mary purchases just two shares, John will end up owning 201 shares (2J-400=M). If M stood up, J would too. Always, John will own more shares than Mary.

shares, what do you mean?

Units of equity in a firm are called shares. For some businesses, shares are a form of financial property that guarantee an equitable dividend distribution of any declared residual earnings. A company that does not pay dividends does not distribute its income to its shareholders.

Why do individuals buy shares?

In order to obtain exposure to the health and growth of the global economy as well as a specific firm, people acquire and trade shares. Depending as to whether you interest is long- or short-term, you will decide whether to buy in shares or trade off their price.

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the following represents two yield curves. maturity pure discount treasury yields b-rated corporate bond yields (pure discount bonds) 1 year 3 percent 6 percent 2 year 6 percent 10 percent 20 year 12 percent 17 percent what is the implied probability of repayment on one-year b-rated debt?

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The implied probability of repayment on one-year b-rated debt maturity pure discount treasury yields b-rated corporate bond yields 1 year 3 percent 6 percent 2 year 6 percent 10 percent 20 year 12 percent 17 percent.

Implied Probability is the betting odds converted to a percentage. It expresses the expected probability of an outcome occurring, taking into account the bookmaker's margin.

Implicit probability indicates the probability of an outcome occurring. It is calculated by dividing 1 by the decimal odds. Thus, if he were given odds of 2.50 for Manchester United to win the match, his implied win probability would be 0.4 (40%).

Multiply the probability of losing by the amount you lose. Then take the win probability and multiply it by the winning amount. Subtract one from the other to get the expected rate of return.

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Stakeholders have been able to form international coalitions more successfully through use of:
a. Government regulation.
b. Community involvement.
c. Communications technology.
d. Unions

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Through the use of communications technology, stakeholders have been able to forge.

The correct option is c.

Information technology, often known as communications technology, refers to all the tools and software needed to handle and transmit data.

You may better grasp a client's or stakeholder's objectives and overarching goals through effective communication, which will allow you to analyse and modify the way you support the delivery of those goals.

Transparency, accuracy, and communication are essential when it comes to stakeholder communication standards. Stakeholders anticipate that you have finished and identified the important stakeholders for your project. Early stakeholder identification might help you keep your project on schedule.

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elisa graduated from college with a double major and was inducted into the phi beta kappa sorority. she was offered a job in new york where she worked 12 hours a day and produced excellent results. within two years she had over 100 employees working for her. elisa’s hard work was rewarded with a raise and a bonus. this form of promotion is based on the principle of:

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This form of promotion is based on the principle of meritocracy that Elisa has received for her 12 hours of work and excellent results everyday for two years.

What is promotion in an organization?

The progression of a staff to higher ranks is referred to as an employee promotion. It incorporates an enhancement in compensation, status, commitments, and benefits. Employees have been most motivated by this part of their work, which serves as the final reward for their devotion and dedication to the company. The advancement of a worker's rank or position within an organizational hierarchy is known as a promotion. An employee may receive a promotion as compensation for excellent work—that is, a favorable evaluation.

Why is it vital for employees to be promoted?

They increase employee loyalty: Promotions not only motivate staff to put in a lot of effort and accomplish their professional goals, but they also encourage staff to advance within the organization.

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FILL IN THE BLANK. ________ play an important role as intermediaries acting as a link in the distribution process to help move goods between producers and retailers.

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Wholesalers play an important role as intermediaries acting as a link in the distribution process to help move goods between producers and retailers.

What is intermediaries?

These middlemen, such as intermediaries (suppliers, merchants, agencies, and dealers), wholesalers, or finance companies, generally enter into relatively long obligations with the manufacturer and form the advertising strategy, or channel of distribution.

According to the supply chain, are the based on the different stages. But the wholesaler was the play an important role to link between the distribution. The intermediaries are the move of goods between producers, retailers, and the consumer.

As a result, the wholesalers play an important role as intermediaries.

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hr vice president at rockton co., evaluates responses from an employee survey at the company's annual benefits presentation. he concludes that many employees are confused about their options for health insurance, and they are often unhappy with the policy they choose. what should shinjiro do to resolve this situation?

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In this case Shinjiro should provide them with a software that helps them to select the best health insurance policy.

Health insurance policies are taken by people so that they can keep their future secure if anything happens to their health. There are many health insurance policies available in the market and to choose the best one of them is a hectic task. The same condition is happening with the employees at Rockton Co. The HR Shinjiro is the one who can help his employees in choosing the best health insurance policy. It is his job to help the employees whenever in need. He can provide to them various software that determine the policy having the best insurance coverage and benefits. This will help the employees to choose the best policy.

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if other firms see economic profits in the industry, they will enter it, and the demand curve for firms already in the industry will shift to the ; in the long run, this will result in economic profit and price .

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When an industry is monopolistically competitive and profitable, businesses will enter it. Demand will be shifted to the left as a result, decreasing market share and economic profit.

Like businesses in other market configurations, monopolistic competitors could make money in the near term, but it doesn't guarantee they can maintain it. Other businesses will be enticed to enter the market if one dominant rival makes good economic profits.

The perceived demand curve for each business will move to the left when entry happens in a monopolistically competitive market because a lower amount will be sought at any given price. Another approach to understanding this change in demand is to observe that a lower price will be applied for each amount sold.

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the market portfolio has an expected return of 18% and the risk-free rate is 6%. an investor borrows $100 at the risk-free rate and invests this and a further $100 of his own in the market portfolio. what is his expected return?

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His expected return from the market portfolio which has 18% expected return and the risk-free rate at 6% is 30%.

What is risk-free rate?

It is a theoretical rate of return on an investment with zero risk. As such, it is the benchmark to measure other investments that include an element of risk. Government bond yields are the example of risk-free rates for assets. In actual terms, the risk-free interest rate is assumed to be equal to the interest rate paid on a three-month government Treasury bill, which is considered as the safest investments that is possible to make.

How to calculate his expected return?
Amount invested in market portfolio from own fund = $100

Borrows $100 at risk free rate and invest that amount also in market portfolio = $200 invested in market portfolio

Weight of market portfolio = 200 / 100 = 2

Weight of risk free asset = -100 / 100 = -1

Expected return

= W market * ε (R market) + W risk free * ε (R risk free rate)
= 2 * 18 + (-1) * 6

= 30%

Therefore, his expected return should be 30%.

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the robinson-patman act of 1936 prohibits any firm from selling to two or more different buyers, within a reasonably short time, commodities of like grade and quality at different prices where the result would be to substantially lessen competition.

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The Robinson-Patman Act of 1936 forbids any company from selling goods (not services) of like grade and quality to two or more different buyers within a reasonable amount of time if the outcome would be to significantly lessen competition.

What is the purpose of the Robinson-Patman Act?

An antitrust law passed in the United States in 1936 called the Robinson-Patman Act (RPA) forbids large chains and franchises from discriminating against small businesses on the basis of price.

A federal law called the Robinson-Patman Act was created to stop price discrimination.Distributors are not allowed to charge various retailers different prices under the law.The act specifically exempts "cooperative associations" from its application and only covers interstate commerce.For a number of reasons, economists and legal experts have harshly criticized the act.

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hat are the different ways that companies use electronic technology in their commercial transactions for e-business? (select all that apply.)

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What are the different ways that companies use electronic technology in their commercial transactions for e-business?

General speaking, e-commerce assisting technologies can be divided into three categories: (1) Information display applied sciences which encompass Web, HTML, XML and Java technologies.

(2) Information transmission technologies which consist of EDI, TCP/IP, WAP, WLAN and Bluetooth technologies

What is industrial transactions performed electronically on the Internet?

E-commerce can be defined typically as the sale or purchase of goods or services, whether or not between businesses, households, persons or non-public organizations, through digital transactions performed through the web or different computer-mediated (online communication) networks.

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on what primary basis should producer lester determine the suitability of an annuity product he recommends to any of his clients?

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Primary basis should producer Lester determine the suitability of an annuity product he recommends to any of his clients the Commition he will take on product.

Annuity suitability guidelines require insurers, dealer sellers and sellers to gather records approximately your monetary scenario to decide if an annuity meets your needs. The National Association of Insurance Commissioners created a version law for annuity suitability that maximum states follow.

Typically, you have to bear in mind an annuity best after you've got maxed out different tax-advantaged retirement funding vehicles, including 401(k) plans and IRAs. If you've got got extra cash to set apart for retirement, an annuity's tax-loose increase may also make sense - particularly in case you are in a high-profits tax bracket today.

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harriet is the imc manager for a chain of regional income tax service providers. her short-term goals for her firm's imc efforts are likely to include

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harriet is the imc manager for a chain of regional income tax service providers. her short-term goals for her firm's imc efforts are likely to include increasing inquiries, awareness, and trial of her firm's service.

What is meant by income tax?

tax on personal income that is levied against both businesses and individuals (or family units). The basis for calculating individual income tax is received income. Because the burden presumably falls on the people who pay it, it is typically categorized as a direct tax. Net profits—the difference between receipts and allowable costs—are subject to corporate income tax.

The individual income tax was first used as a tool of national policy in Great Britain at the end of the 18th century. Since then, it has taken on various forms in various nations at various junctures.

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revenue per employee is a common measure of efficiency for a.automated assembly lines. b.service-oriented businesses. c.merchandisers. d.none of these choices are correct.

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Revenue per employee is a standard metric of service-oriented business efficiency. Thus, the correct choice is (b) service-oriented businesses.

What exactly does service-oriented business imply?

A service-oriented company delivers a service to its clients or consumers. Businesses and other businesses are often classed according to whether they offer commodities or services. Farms, mines, and manufacturing are examples of those that produce products.

A Service Oriented Organization is one that has embraced the notion of running IT like a business by implementing service management methods throughout a company's whole portfolio of IT services. You may apply incremental innovation to supplement your present service management techniques.

Airlines, banks, computer service bureaus, legal firms, plumbing repair companies, movie theaters, and management consulting organizations are examples of pure service enterprises.

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the principle of diminishing marginal utility says that each successive unit of a good or service consumed add less to total utility than the previous unit.
The basic idea behind the principle of diminishing marginal utility is that the additional satisfaction a consumer gets from one more unit of a good or service declines as the amount of that good or service consumed rises. Or to put it slightly differently, the more of a good or service you consume, the closer you are to being satiated-reaching the point at which an additional unit of the good adds nothing to your satisfaction. The principle of diminishing marginal utility isn't always true. But it is true in the great majority of cases, enough to serve as a foundation for our analysis of consumer behavior.

Answers

According to the law of declining marginal utility, the marginal utility obtained from every additional unit decreases as consumption rises.

What is consumed product?

Customer goods are products that the average consumer buys to consume. Consumer goods, commonly referred to it as finished products, are indeed the culmination of manufacturing and production. Examples of consumer items are food, clothing, and dishwashers.

What does consumed mean in a relationship?

Being obsessed by a relationship may indicate that your actions are motivated by uncertainty rather than assurance. Probably ask oneself what it is you fear the most. The majority of the time, the response will be related to how you feel regarding your sense of value or self-worth.

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which of these individuals is an example of a top manager? multiple choice question. roberto is the sales manager for three midwest states. bryan is the shift supervisor at a retail clothing store. aisha is the ceo of a furniture manufacturing facility. kelli oversees the marketing department for a restaurant chain.

Answers

The CEO of a company that produces furniture is Aisha. As a result, choice (C) is the best way to respond.

What is a top manager?

The term "Top Manager" refers to a Measured Entity employee who has ownership rights, sits on the Board, manages the day-to-day operations, is in charge of the overall financial management, and actively participates in creating and putting into practice the Measured Entity's overall strategy.

A person who works at the executive level and is known as a top-level manager is in charge of developing and carrying out organizational strategies and policies. They serve as the middleman in negotiations between upper- and lower-level managers.

Hence, option (C) is accurate.

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kathleen mcfadden's restaurant in boston has recorded the following data for eight recent customers: minutes from time customer number,i food ordered until food arrived (y) no. of trips to kitchen by waitress (x) 10.50 2 12.75 9.25 4 8.00 9.75 11.00 14.00 10.75

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Time customer number,i food ordered until food arrived (y) no. of trips to kitchen by waitress (x) 10.50 2 12.75 9.25 4 8.00 9.75 11.00 14.00 10.75.These marketing initiatives are an example of internal marketing, according to the scenario being stated in the question.

To raise employee excitement for focusing on their personal goals, this term refers to promoting a firm's aims, products, and services to various individuals inside the organisation or company itself.Social media measuring, also known as social media managing, is a management technique used by companies, brands, and other organisations to determine how effective their social media communications are tools to listen to millions of internet discussions allows users to find out what is being said about a certain brand, issue, person, or product as well as spot business prospects. We monitor the internet in this way.being both internally and externally accountable for the resources used and the results obtained; gaining knowledge from experiences to enhance practises and activities in the future, to make well-informed decisions.

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a quantity regulation is a: limit on the number of consumers allowed in a market. minimum or maximum quantity that can be sold. limit on how many firms can operate in a market. minimum or maximum price that can be charged.

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A quantity restriction is a limit on how much can be sold. Option B is correct

Regulated Quantity refers to the amount that is adequate to support an environmental law's obligation for cleaning, removal, remedial action, or the enforcement of penalties or fines. In its broadest sense, regulation is the imposition of rules by the government, supported by the imposition of penalties, with the goal of specifically altering the economic behaviour of people and businesses in the private sector.

Design control, Good Manufacturing Practices, and quality system management standards and requirements governing the facilities or controls to be used for the design, manufacture, processing, packaging, testing, or holding of medical devices to ensure their safety are referred to as "quality system regulation."

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During the current year, a donor gives $400,000 in cash to the school and stipulates that it must hold this money forever. However, any investment income earned on this money must be used for faculty salaries. During the current year, the investment earned $31,000 and, of that amount, the school has expended $22,000 appropriately to date. As the result of the event, what was the overall. change in each of the following for the current year? A. Unrestricted net assets B. Temporarily restricted net assets C. Permanently restricted net assets

Answers

A) In the issue Since the interest was appropriately spent, $22,000 has been reclassified as unconstrained net assets, and salary expense has been used to offset the change, there is no net change when looking at unrestricted net assets in the provided problem.

B) An investment worth $31,000 has been classed as a temporarily limited asset since it cannot be used to pay salaries. As a result, it has been lowered to $ 22,000 and is now an unrestricted asset that can be used to pay salaries.

C) The $400,000 that was donated to the school will be considered permanently restricted assets. Since the amount is kept for a longer length of time, it might be considered an investment that can be utilized to pay faculty salaries.

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mae would love to get her company’s line of wall paints into lowe’s for sale. she believes that if lowe’s sells the products, other retailers will also want to. which type of power does mae hope to achieve?

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"Referent Power"  type of power mae hope to achieve. Mae hopes to achieve the power known as "Referent Power." Mae would love to get her company’s line of wall paints into Lowe’s for sale.

Being admired, respected, or loved by others confers a sort of influence known as referent power.

Mae, for example, thinks that other retailers will want to carry her company's line of wall paints if Lowe's, a significant retailer, decides to do so. Because Lowe's is a renowned and significant participant in the market, other shops may look up to them and adopt their strategies.

Therefore, such a type of power is called Referent Power.

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bill created a new software program he is willing to sell for $200. he sells his first copy and enjoys a producer surplus of $150. what is the price paid for the software?

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Bill created a new software program he is willing to sell for $200. He sells his first copy and enjoys a producer surplus of $150. $350 is the price paid for the software.

Producer surplus is the difference between the price a person would accept for a certain quantity of a good and the price they could get for the good if they sold it at market value. The producer benefits from market sales of the good by receiving the difference or surplus amount.

Profit and producer surplus are similar concepts. The producer earns a producer surplus when the competitive market value for a good or service is higher than the lowest price the producer is willing to sell it for.

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