Goodwill An intangible asset made up of a person's or an organization's goodwill or reputation is an invaluable property made up of a person's or an organization's goodwill or character.
what is Goodwill?
An intangible asset called goodwill is connected to the acquisition of one business by another. It represents value that could give the company making the purchase a competitive advantage. The percentage of the appraised value that exceeds the total of a net recoverable amount of all the assets acquired in the purchase and the liabilities taken on during the process is referred to as goodwill.
The worth of a trademark, brand awareness, loyal clients, outstanding customer service, good staff relations, & proprietary technology are examples of goodwill. Due to its value, a firm may be willing to pay more for another. Usually, a company's goodwill value is discovered during a purchase. The valuation of the target's goodwill is often represented by the sum that the obtaining company has to pay for the target business in addition to the target's cash holdings at fair value.
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ata used in budgeting: fixed element per month variable element per tenant-day revenue 0 $ 35.10 wages and salaries $ 3,100 $ 8.10 food and supplies 2,100 14.60 facility expenses 8,600 3.60 administrative expenses 7,100 0.60 total expenses $ 20,900 $ 26.90 actual results for march: revenue $ 136,130 wages and salaries $ 28,610 food and supplies $ 64,325 facility expenses $ 23,250 administrative expenses $ 7,101
Therefore the revenue variance is $8,717 which is unfavorable
What are administrative expenses?The expenditures of paying wages and salaries as well as perks to non-sales staff are referred to as administration expenses. Operating expenses are one of three categories of costs that make up a business. Selling and miscellaneous expenses round out the list.
On a company's income statement, administrative costs are shown as indirect expenses because they don't directly support the production of goods or the provision of services. Administration costs are referred to as fixed costs since they often remain constant even when output volumes alter (as opposed to variable costs or semi-variable).
What are the examples of administrative expenses?Salaries for senior management and prices for general services or supplies, such as legal, accounting, secretarial labour, and information technology, are examples of administrative expenses. These expenses are typically not included in gross margin calculations because they are typically not directly tied to the creation of a company's products or services. Administrative costs are listed on the income statement underneath cost of goods sold (COGS) and may be combined with other costs like general or selling costs. Some administrative costs are recurring since they are a necessary component of running a firm.
Briefing:The computation of the revenue variance is shown below:
Revenue variance = Revenue at Flexible budget - Actual revenue
where,
Revenue at flexible budget is
= 3,630 × $35.10
= $127413
And, the actual revenue is $136,130
So, the revenue variance is
= $136130 - $127413
= $8,717 unfavorable
We simply deduct the actual revenue from the flexible budget revenue so that the revenue variance could come
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nike was looking for more than just star athletes to sponsor, what other quality did they think would resonate with customers?
For a company like Nike, which is all about sports and fitness, they discovered an opportunity with non-athlete movie stars.
Nike ads are displayed more credible to consumers due to a seemingly endless stream of influencer marketing, as people tend to listen to testimonials from superstars like Michael Jordan, LeBron James, and Tiger Woods more than those from unknown actors. Actually supporting Nike products and wearing Nike clothing contributes to elevating the brand's image.
Nike, in moreover to paid advertising and sponsorships, supports local organizations in order to personalize the marketing strategy. Although the company does not sponsor independent sports teams, it does contribute products to non-profit and organisations all over the world. This enables them to make an impact in affected residents while also building strong customer relationships, thereby increasing the probability that they will choose Nike the next time they make a purchasing decision.
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The CFO would like you to prepare some data visualizations that depict trends in sales, net income, and cash collections. Accordingly, use Charts to do the following: a. Go to the "Sales Budget" tab and create a line chart that provides a monthly sales trend analysis. b. Go to the "Sales Budget" tab and create a line chart that includes the monthly sales trend analysis from requirement 7a plus another trend line pertaining to the monthly cash collections from customers. c. Go to the "Budgeted Income Statements" tab and create a line chart that includes the monthly sales trend analysis from requirement 7a plus another trend line pertaining to monthly net income. d. What insights are revealed by the charts in requirements 7a, 7b, and 7c?
You must create some data visualisations that show trends in sales, net income, and cash receipts for the CFO. Consequently, carry out the following using charts. Create a line chart under the "Sales Budget" tab that displays a monthly sales trend analysis.
A sales budget is a financial strategy that projects an organization's overall sales for a given time frame. He concentrates on two factors in order to forecast a company's performance: the quantity of products sold and the selling price.
Estimated sales for the first quarter are $5,000, the second quarter are $6,000, the third quarter are $7,000, and the fourth quarter are $8,000
We're quoting $6 for the third quarter, and our manager is quoting us $7 for the fourth.
The revenue resulting from sales activity for the following period is then determined by the sales budget. How many products a firm should manufacture during that time period is determined by a production budget using information from a sales budget.
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daffy duct, inc. issued 10,000 shares of $1 par value common stock at $5 per share. the effect of this transaction on the accounting equation includes a:
-An increase of $50,000 in total stockholder equity and gain of $50,000 in total assets, when daffy duct, inc. issued 10,000 shares of$1.
What exactly do you mean by "share"?A share is a unit of equity ownership in a corporation. Dividends are paid to shareholders from any profits earned by the company. They also bear the brunt of any losses that the company may incur. The ownership of a firm or enterprise by two or more individuals is referred to as shared capital. This arrangement is common in family enterprises where siblings or other relatives possess stock. Share capital is the portion of a company's total capital owned by its shareholders. A share entitles the shareholder to an equal claim on the company's profits and losses.
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if the government faced a balanced budget rule, it would be forced to raise taxes or decrease spending during a recession. a. true b. false
If the government faced a balanced budget rule, it would be forced to raise taxes or decrease spending during a recession is a True statement.
The amendment would mandate that the US government cannot borrow more money than it can afford to spend on taxes and other revenues. A balanced budget, according to some economists, is essential to safeguard future generations and maintain low interest rates. It also maintains economic expansion.
However, detractors claim that doing so would result in higher taxation. Taxes are reduced, resulting in an increase in disposable income, which boosts spending and raises aggregate demand. Tax revenue for the government automatically decreases when the economy experiences a downturn.
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The manufacturer of Two-In-One, a combination shampoo and conditioner, shrink wraps a4- ounce foil packet of a smoothing hair pomade to its combo product. Which of the followingpromotion tools is being used in this case?A) rebatesB)samplesC) couponsD) advertising specialties
The promotion tools that is being used is samples.
A sample of a substance or product is a tiny amount that serves as an example of the product's overall composition or a specific unit of the product that may be purchased (rather than individually).A product sample is a free sample of a consumer good that is sent to the customer so they may test it out before making a purchase. Sampling in market research refers to gathering opinions from a select group of people in order to learn more about the entire population.Customers can sample your goods to get a taste (or feel, smell, etc.). Nothing works better than product sample if your objective is to aid customers in understanding your offering.Thus the correct option is B.
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a mechanism that sorts large amounts of information about many consumers' previous purchases that may be related and help predict consumer preferences is called
A mechanism that sorts large amounts of information about many consumers' previous purchases that may be related and help predict consumer preferences is called collaborative filtering.
A consumer's preference can be referred to or considered as the choice of a consumer in purchasing a product over the other in order to make an economic decision as a part of his or her rational behavior compared to other consumers in a market structure, as such. It can be determined with the help of his or her previous purchases, and changing behaviors.
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choose all of the following that, according to mintzberg, are ways that an organization can strategically differentiate: (choose all that apply.)
According to mintzberg, Strategy is a design - some sort of consciously meant route of action, a guideline (or set of guidelines) to deal with a situation.
By this definition strategies have two indispensable characteristics: they are made in enhance of the actions to which they apply, and they are developed consciously and purposefully.
What are the 5 kinds of strategic management?The 5 types of strategic administration enumerated from most simplistic to most complicated are linear, adaptive, interpretive, expressive, and transcendent. These 5 kinds of strategic administration characterize a continuum of organizational center of attention and action.
Within the area of well-defined strategy, there are uniquely exceptional strategy types, right here are three: Business strategy. Operational strategy. Transformational strategy.
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https://brainly.com/question/15864039#SPJ4country alpha takes 4 hours to produce a unit of jet fuel and 2 hours to produce a unit of butter. country omega takes 9 hours to produce a unit of jet fuel and 3 hours to produce a unit of butter. based on this, what range of butter for every 100 units of jet fuel would be mutually beneficial? (3 points)
Due to the 150 – 250 unit manufacturing constraint, the range of butter would profit from comparative advantage from possible the opportunity benefit theory for every 100 units of jet fuel. E is the ideal choice.
What is Comparative Advantage?Comparative advantage is the potential of an economy to manufacture a particular good or service for a lower opportunity cost than its trading opponents. The notion of competitive advantages explains why trade may benefit people, countries, or businesses.
If Country A produces a unit of jet fuel in 4 hours while producing a unit of butter in 2 hours, while Country O produces a unit of jet fuel in 9 hours while producing a unit of butter in 3 hours.
Fuel and butter both face an opportunity cost crisis, thus by utilizing their respective comparative advantages, both nations can benefit by generating 200 to 300 units of butter and jet fuel, respectively.
Hence Option E is correct.
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an individual is working on a new project for their team. in trying to create a new project document, he came across a hurdle and wasn't sure how to proceed. what would be the best course of action for the individual?
Generating ideas for possible actions would be the best course of action for the individual.
In the section on risk that follows, we will look at the "cons" in greater detail. However, we'll look to generate several potential courses of action here and then analyze them. We now engage in some brainstorming because we need a variety of choices to consider and contrast. By taking a lateral approach to the problems, we might find innovative and effective solutions to accomplish our goal. Having backup plans can be very helpful to our overall strategy. I like to start this process by doing some independent thinking. Any team should begin by working individually, even if it's only for a short while. This shows that everyone is actively participating in the process in Generating ideas .
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Investment Proposal A B C D Investment required $ (290,000) $ (140,000) $ (60,000) $ (1,300,000) Present value of cash inflows 421,200 196,500 94,300 1,734,600 Net present value $ 131,200 $ 56,500 $ 34,300 $ 434,600 Life of the project 5 years 7 years 6 years 6 years
Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.
Proposal Profitability index Rank
A 0.45 Second
B 0.40 Third
C 0.58 First
D 0.33
Profitability index, also called as gain investment ratio and cost investment ratio, is the ratio of payoff to investment of a proposed project. Profitability index is used to rank projects because it lets you to quantify the number of value produce per unit of investment.
To determine the profitability index we can use this formula:
Profitability index = Net present value ÷ investment required
Proposal A, it would be
= $131,200 ÷ $290,000
= 0.45
For Proposal B, it would be
= $56,500 ÷ $140,000
= 0.40
For Proposal C, it would be
= $34,300 ÷ $60,000
= 0.58
For Proposal D, it would be
= $434,600 ÷ $1,300,000
= 0.33
The proposals can be seen below:
Proposal Profitability index Rank
A 0.45 Second
B 0.40 Third
C 0.58 First
D 0.33 fourth
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ACME Company is considering starting a retirement plan for its employees. One option ACME is considering is a profit-sharing plan. All of the following are advantages of this type of retirement plan EXCEPT
A) The employer's cost is not affected by the age and the number of employees.
B) Profit sharing plans provide an incentive for employees to work harder and more efficiently.
C) The 10 percent penalty tax does not apply to distributions prior to age 59.5.
D) ACME enjoys greater flexibility in employer contributions.
Except The 10 percent penalty tax does not apply to distributions prior to age 59.5 all of the following are advantages of this type of retirement plan.
10% of the tax due pursuant to section 115BBE. If it is determined, during any proceedings under the Act, that the assessee has made a false entry in the books of accounts maintained by the assessee, there would be a penalty tax. To avoid paying taxes, every entry necessary for calculating the person's total income has been deleted. A penalty is a type of punishment meted out for breaking the law. When it comes to income tax, breaking any of the guidelines outlined in the Income Tax Act of 1961 will result in penalties. The fine may be a fixed sum or a percentage of a sum of money. An individual who violates the law, whether it be a contract, a rule, or a regulation, will be punished with a penalty.
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in imperfect competition, if firms make an economic profit in the short run, what happens in the long run?
Monetary benefits in the short run will draw in contender firms and costs will unavoidably fall. Additionally, monetary misfortunes will make firms leave the market and costs will rise. These peculiarities will go on until long run harmony is reached.
What ends up shorting run monetary benefit over the long haul?
On the off chance that a few firms are procuring positive monetary benefits in the short‐run, in the long‐run new firms will enter the market and the expanded contest will decrease all organizations' financial benefits to nothing.
What occurs over the long haul in amazing contest?
Firms in a completely serious world procure no benefit over the long haul. While firms can procure bookkeeping benefits over the long haul, they can't acquire financial benefits.
How does a market go from short hurry to long run?
The total inventory moves from short-race to long-run when enough time elapses with the end goal that no elements are fixed. That condition of harmony is then contrasted with the new short-run and long-run balance state on the off chance that there is a change that upsets harmony.
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TRUE/FALSE when a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases.
True. A situation when producers create a lot of the things for a lower cost of manufacturing is called an economy of scale.
How can economies of scale impact a firm's long-term average total costs?Economies of scale, sometimes referred to as growing returns to scale, occur when a company's long-run average total cost decreases as output increases. To increase their profit margins on the output they produce, businesses use economies of scale.
Why does average overall cost fall over time?In the long run, businesses will have the choice of production technology, making all costs variable. Economies of scale describe a circumstance in which the average cost falls as the volume of output rises.
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The given statement is True. Economies of scale is the situation where the producers produce a large amount of the goods with a reduced cost of production. The LRAC curve is a flatter U-shaped curve'
What is economies of scale in the Lratc?During the economies of scale at the beginning of the curve, costs are reduced as the company grows more efficient and its production costs diminish. The first iterations of product development and assembly carry costs that will largely be greater at the onset.
Is it true that economies of scale help in spreading cost to volumes of production?Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods.
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what do you believe is the most important account (for example, cash, loans, etc) on pnc's balance sheet? why?
Yes, cash is the first line item on a company's balance sheet and is a current asset.Cash is the asset with the greatest liquidity and is simple to purchase.The ease with which an asset can be exchanged for cash is known as liquidity.The universal standard for determining liquidity is cash.
What role does the balance sheet play?
In addition to displaying what the company owns and owes, a balance sheet's purpose is to inform interested parties about the company's financial situation.Understanding how to use, analyze, and read a balance sheet is essential for all investors.A stock's balance sheet may provide insight or justification for an investment.
Why is the cash account the most important?
A company's lifeblood is cash, and it must generate sufficient cash from its operations to cover its costs and have enough left over to repay investors and expand.While a company's earnings can be manipulated, its cash flow reveals its true health.
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The major understandings and assumptions for an organization, which are often neither stated nor documented as goals or formal policies, are known as _____.
The major understandings and assumptions for an organization , which are often neither stated nor documented as goals or formal policies , are known as Organization culture .
What is organizational culture ?Organizational culture refers to the assumptions in an organization that enable the people in the organization to be engage in their work such that they fulfil organizational goals .
These assumptions and understandings will often be undocumented as they would simply be the norm . However , the formal policies of the company can still influence the organization culture .
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hydro systems has 15-year bonds outstanding with a coupon rate of 5 percent. interest is paid annually. the face amount of each bond is $1,000. what is the company's pretax cost of debt if the bonds currently sell for $1,100?
the company's pretax cost of debt if the bonds currently sell for $1,100 The fee of debt can refer to the before-tax cost of debt, which is the company's fee of debt before taking taxes into account, or the after-tax value of debt.
The key difference in the fee of debt earlier than and after taxes lies in the truth that interest fees are tax-deductible.
How is pretax price calculated?To discern the pre-tax value of debt for your business, start by including your total pastime expenses for the year. Then, divide that discern by your total range of commercial enterprise debts.
Is pre-tax or after-tax cost of debt greater relevant?
The right reply is B. The after-tax cost of debt is extra relevant due to the fact it is the proper value of debt to the company.
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https://brainly.com/question/16094305#SPJ4the new toyota awesomecar is available in only 4 configurations that are manufactured according to a demand forecast. which production model best describes the way awesomecars are made? question
The production model describes how a fantastic car is created through mass customization.
The production model is a collection of resources used to describe a product as a collection of components and the processes that go with those components. The resource hierarchy provides a modular and layered approach to specifying and manufacturing a variable family of products.
A production factor is required for production because without it, no production is possible. It is common practice to attribute the production process to three factors: land, labor, and capital, to which we add organization.
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buy-one-get-one free strategies, used to encourage consumers to shop at a certain store, are known as , a type of sales promotion. (enter one word in the blank.)
Buy-one-get-one free strategies, used to encourage consumers to shop at a certain store, are known as deals
What is deals ?
A mutual agreement or communication between two or more parties who want to conduct business is referred to as a business deal. The transaction is typically carried out between a seller and a buyer to exchange valuable assets like money, goods, services, and information. If two or more parties agree on the deal's terms and conditions, it is regarded as finished or finalized.
The terms and conditions of the agreement must be agreed upon by both parties in order to protect their respective rights and interests. They then complete the transaction, which may involve both parties signing documents outlining the specifics of their business agreement.
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in current services budgeting, an assumption is made that the agency is not obligated to continue its existing programs. t/f
In current services budgeting, an assumption is made that the agency is not obligated to continue its existing programs. Thus, option (a) is correct.
What is budgeting?Budgeting is the practice of planning how you will spend your money. A budget is a spending plan. It's a proactive approach to budgeting. A business budget is a spending plan for your company based on your income and expenses.
Currently, Available Services Budgeting is one sort of guidance that assumes little change in programs. The present budget of a division is regarded its base, and any additions should only be asked to meet additional operating expenditures, such as higher costs for people, supplies, and so on. The administration is assumed to be committed to or compelled to continue current systems.
As a result, the current services budgeting, an assumption is made that the agency is not obligated to continue its existing programs. Therefore, option (a) is correct.
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in an exploration of the idea for rent the runway, which offers rentals of designer dresses, what part of the basic storyboarding framework would highlight the fact that the rental model gives many more women the opportunity to wear designer dresses, which they could have never afforded before?
Benefit part of the basic storyboarding framework would highlight the fact that the rental model gives many more women the opportunity to wear designer dresses, which they could have never afforded before.
The shot-by-shot progression of your video is depicted graphically in a storyboard. It consists of a number of squares with images or graphics depicting each shot, along with comments on what's happening in the scene and what is being spoken in the screenplay at that point in the shot.
The topic, background, camera shot, and camera movement are all important components that are captured in each shot of a storyboard. The subject, the main person or thing in the frame, as well as the shot's foreground and background, are all contained within a shot.
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hy do creditors usually accept a plan for financial rehabilitation rather than demand liquidation of the business?
Creditors usually accept a plan for financial rehabilitation rather than demand liquidation of the business because the creditor will be able to recover larger amount of money in process of financial rehabilitation as compared to liquidation because in liquidation the firm closes the business and payback the amount as much.
Creditors are creditors of a organization and they're commonly interested by the monetary statements to get an concept approximately the credit-worthiness and monetary status of the organization. This facts enables them make an knowledgeable choice approximately whether or not they want to lend cash to a selected organization.
A liquidated declare is a declare for a particular amount of cash that has been agreed upon through the debtor and creditors declare, through regulation or upon a legally enforceable settlement for a hard and fast amount of cash. It is usually for much less than the real debt.
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j.b. hunt moving service agrees to deliver a sofa to saweetie. saweetie agrees to compensate j.b. hunt for its work. if j.b. hunt does not perform, it may be required to a. make another promise. b. do nothing. c. pay money damages. d. perform a different service.
The J.B. Hunt relocation business consents to give Saweetie a sofa. Saweetie will compensate J.B. Hunt for its services. If it fails to perform, J.B. Hunt may be required to pay financial damages.
Compensation for losses, harms, or other losses is given to a party who has been harmed in the form of compensatory damages. Compensation damages are awarded in civil court cases where a loss occurred as a result of another party's negligence or illegal behaviour.
To receive compensatory damages, the plaintiff must show that a loss happened and that it was the defendant's fault. The plaintiff also needs to be able to prove to the jury or judge how much they have lost.
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If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date.
false
If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date. FALSE
A corporation is an business enterprise—normally a set of people or a organisation—authorized through the country to behave as a single entity and recognized as such in law for certain purposes. Early included entities had been set up by way of constitution. most jurisdictions now permit the creation of latest organizations thru registration.
Below the law, businesses possess a few of the identical rights and responsibilities as people. they are able to enter contracts, mortgage and borrow money, sue and be sued, hire personnel, very own belongings, and pay taxes.
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A company that manufactures flash drives knows that the number of drives x it can sell each week is related to the price p , in dollars, of each drive by the equation x = 1000− 100p . a. Find the price p that will bring in the maximum revenue. Remember, revenue (R) is the product of price (p) and items sold (x) , in other words, R = xp .
To find the price p that will bring in the maximum revenue, we need to find the value of p that maximizes the function R = xp. Since x = 1000 - 100p, we can rewrite the function as R = p(1000 - 100p). To maximize this function, we can take the derivative of R with respect to p, set it equal to zero, and solve for p.
The derivative of R with respect to p is given by:
dR/dp = (1000 - 100p) + (-100 * p) = 1000 - 200p
To find the value of p that maximizes R, we need to set this derivative equal to zero and solve for p:
0 = 1000 - 200p
200p = 1000
p = 1000 / 200 = 5
Therefore, the price p = $5 will bring in the maximum revenue.
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pete is a valuable veteran of 21 years at joe's garage working with 24 people and filling in for joe when he is not in. joe wants to insure pete to offset any losses and the costs of trying to find, recruit and train a replacement, should pete become disabled. what type of policy should joe purchase?
Joe should buy the Key Employee Insurance kind of policy. Insurance that protects a company from the financial losses caused on by the passing of a top executive or other employee.
How does "key person insurance" work?An insurance plan on a prominent executive's life that the business purchases. The company, which also pays the insurance policy premiums, is the plan's beneficiary.
Do small firms need key person insurance?The owner, the company's founders, or even one or two key employees can be considered the key person in a small business. Whether the person's absence would result in significant financial harm to the business is the main criterion for qualification.
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in the spot market, 7.8 pesos can be exchanged for 1 u.s. dollar. a pair of headphones costs $15 in the united states. if purchasing power parity holds, what should be the price of the same headphones in mexico
Price of the same headphones in mexico is 117 pesos.
Purchasing Power Parities (PPPs) are the rates of currency conversion that aim to equalize the buying power of various currencies by removing the variations in price levels between nations.
The basket of commodities selected has a significant impact on the PPP exchange rate's value. Typically, products that closely adhere to the law of one price are chosen. Therefore, goods that can be traded simply and are widely available in both places. PPP exchange rates are calculated by organizations using various baskets of goods.
1 USD = 7.8 Mexican pesos.
Cost of headphones in United States is $15.
Price of the headphones in mexico will be = 15 x 7.8
= 117 pesos
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an assignment is valid group of answer choices three business days from declaring the assignment. when the obligor notifies the obligee. when the assignor notifies the obligor. from the moment it is made.
An assignment is considered to be valid from the moment it is made.
When is an assignment valid?Legally, an assignment is said to be valid from the moment that it is made, if it is made according to the laws of the state that it is made in. Generally, an assignment is legal when there are things like intent included.
The assignee must have given some allowances and considerations to the person that assigned it to them, or the assigneor. The rights in the assignment must be such that they can be enforced legally.
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which of the following statements is consistent with findings of studies investigating ownership of medical businesses among physicians?
The correct statements are consistent with the findings of studies investigating ownership of medical businesses among physicians:
b. Physician-owned facilities tend to do more procedures per patient and charge higher fees.
c. Physician referral to facilities in which they have a financial interest is increasingly common.
A physician (American English), medical practitioner (Commonwealth English), medical doctor, or simply doctor, is a health professional who practices medicine, which is concerned with promoting, maintaining, or restoring health through the study, diagnosis, prognosis, and treatment of disease, injury, and other physical and mental impairments. Physicians may focus their practice on certain disease categories, types of patients, and methods of treatment—known as specialties—or they may assume responsibility for the provision of continuing and comprehensive medical care to individuals, families, and communities—known as a general practice.
Complete question:
Which of the following statements is/are consistent with findings of studies investigating ownership of medical businesses among physicians?
a. Physician ownership is rare due to conflict of interest.
b. Physician-owned facilities tend to do more procedures per patient and charge higher fees.
c. Physician referral to facilities in which they have a financial interest is increasingly common.
d. Both b and c are correct.
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What types of investments do banks use to make a profit? check all that apply. Opening checking accountsstarting new businessesbuying stocks and bondsbuying several propertiesissuing loans to all customersbuying the rights to loans.
The following are some examples of the investments that banks utilize to generate revenue:
Investing in bonds and equities.Purchasing many properties.Purchasing borrowing rights.How do banks make money?A bank is a sort of financial institution that offers clients and businesses basic financial goods, accepts deposits, offers checking account services, and gives out loans.
Banks can make money by lending money to customers and charging interest on those loans. Deposits from customers supply the bank with funding for loans. Banks can make money by charging customers for account upkeep.
What is the primary means of profit for a bank?Commercial banks make money by extending loans and collecting interest from those loans. Banks use consumer deposits as the source of money for these loans. Interest income from loans can make up to 65% of a bank's overall revenue model.
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