The following example demonstrates the law of demand: D. Elissa buys fewer muffins at $1.00 per muffin than at $1.50 per muffin, other things equal.
What is the Law of Demand? The law of demand states that if all other variables are constant, the demand for a good or service decreases when the price of that good or service increases, and the demand for a good or service increases when the price of that good or service decreases. In simpler words, it means that when the price of a good rises, people tend to buy less of it, and when the price of the good decreases, people tend to buy more of it. It is a fundamental concept in economics and is critical in understanding the market equilibrium.
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external forces of change require organizations to be much more nimble and responsive
External forces of change are often unpredictable and uncontrollable. Organizations that are unable to respond to these changes will not survive. As such, organizations must be much more nimble and responsive to succeed in today's fast-paced environment.
External forces of change can come from a variety of sources, such as technology, competition, government regulations, and economic conditions. Technological advancements have made it possible for companies to develop new products and services faster than ever before, leading to increased competition and a need for constant innovation.Government regulations can also change quickly, affecting how companies operate.
Economic conditions, such as recessions or inflation, can also impact a company's bottom line and require quick action.Organizations must be prepared to adapt to these external forces of change in order to remain competitive. This means that they need to be agile and flexible in their operations. This can involve changing processes, products, or services quickly to respond to market conditions.
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2. For each risk, find a viable, pragmatic risk response which could have prevented this project failure. Indicate (a) the type of response (mitigate, transfer etc.) and then amandeep (b) describe your response in a short but clear, succinct sentences.
The profit-maximizing price and quantity for Jack's pizza business can be determined by finding the quantity where marginal cost (MC) equals marginal revenue (MR).
Since TC = 0.5Q + 15, the marginal cost is MC = 0.5. The market demand is P = 20.5 - 0.5Q, so the marginal revenue is MR = 20.5 - Q. Setting MC equal to MR, we have 0.5 = 20.5 - Q. Solving for Q, we find Q = 20. The corresponding price can be found by substituting Q into the demand function: P = 20.5 - 0.5(20) = 10.
Jack's profit can be calculated by subtracting total cost from total revenue. Total revenue is given by TR = P * Q = 10 * 20 = 200. Total cost is TC = 0.5Q + 15 = 0.5 * 20 + 15 = 25. So Jack's profit is 200 - 25 = 175. The equilibrium quantity in a perfectly competitive market would occur where demand equals supply, but since Jack is the only seller, the quantity sold by Jack is the equilibrium quantity. There is no market efficiency loss or gain caused by Jack's business since it operates in a monopoly. With the $5 tax imposed on each pizza sold, the new price for Jack's pizza would be P + Tax = 10 + 5 = 15. The quantity demanded can be found by substituting the new price into the demand function: 15 = 20.5 - 0.5Q. Solving for Q, we get Q = 10. Jack's profit can be calculated by subtracting the new total cost (including the tax) from the total revenue. The new total cost would be TC + Tax = 25 + 5 = 30. So the new profit is 200 - 30 = 170. It's likely that Jack will remain in the market despite the tax, as the profit is still positive.
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Ceteris paribus means wage parity between men and women is a worthy goal. all men are created equal. there are an infinite number of factors affecting each human decision and they change all the time. economists isolate one or two factors that change when analyzing human decisions.
Ceteris paribus is an economic concept that refers to the notion that, all other things being equal, a change in one factor will result in a change in another factor. Ceteris paribus is commonly used in economic models to examine the relationship between two variables while holding all other factors constant.
Wage parity between men and women is a worthy goal because it ensures that all individuals, regardless of gender, are treated equally in the workplace. When women are paid less than men for doing the same job, it perpetuates a cycle of discrimination and contributes to the gender wage gap.
This gap not only harms women's economic opportunities but also hinders overall economic growth and development. Therefore, achieving wage parity between men and women is crucial for promoting a fair and equitable society.All men are created equal, but that doesn't mean that they have equal opportunities in life.
Discrimination, prejudice, and other social and economic factors can impact a person's opportunities, making it more difficult for some individuals to succeed than others.
Therefore, it is important to address these issues and create a society that is truly equal for all individuals.Finally, economists isolate one or two factors that change when analyzing human decisions. This allows them to examine the relationship between those factors and understand how they influence behavior.
By focusing on these specific factors, economists can make more accurate predictions about how individuals will behave in different situations, which can help inform policy decisions and promote economic growth.
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The economists of Tri Manka who just learned about a newly formed pharmaceutical cartel in the country suggest doing nothing about it. This is because cartels are more profitable for the industry and will charge a lower price and produce more output. cartels are illegal and will be eventually caught. individual cartel members may find it profitable to cheat on agreements and there is a good possibility the cartel woon't hold for too long. Nicole just inherited a farm that operates in a purely competitive industry. Nicole wants to know about the potential profitability of the company. From the economic perspective, she can expect economic profits to persist in the long run if consumer demand is stable. economic losses in the long run because of cut-throat competition. that in the short run, the farm may incur economic losses or earn economic profits, but in the long run, only normal profits are expected. there will be economic profits in the long run but not in the short run, Gbay enjoys being a monopolist in the online retailing business in a country of South Nordia. Expected economic profits for Gbay: are always zero because consumers prefer to buy from competitive sellers. may be positive or negative depending on market demand and cost conditions. are usually negative because of government price regulation. are always positive because the monopolist is a price-maker. The fabor demand curve: is perfectly elastic at the going wage rate. slopes downward because of diminishing marginal productivity. slopes downward because of diminishing marginal utility. slopes downward because the elasticity of demand is always less than unity.
According to the economists of Tri Manka who have learned about a newly formed pharmaceutical cartel in the country, they suggest doing nothing about it.
This is because cartels are more profitable for the industry and will charge a lower price and produce more output. This statement is not true because cartels are illegal and will be eventually caught. Individual cartel members may find it profitable to cheat on agreements and there is a good possibility the cartel won't hold for too long.
The potential profitability of a company can be determined by the economic perspective. As Nicole just inherited a farm that operates in a purely competitive industry, she wants to know about the potential profitability of the company. From an economic perspective, she can expect that in the short run, the farm may incur economic losses or earn economic profits, but in the long run, only normal profits are expected.Gbay enjoys being a monopolist in the online retailing business in a country of South Nordia.
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77. You complete a runs test on daily data for a thinly traded stock and the Z statistic is -5.13. If the stock has a return of -0.33% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would:
Buy or long the stock in late trading.
Sell or short the stock in late trading.
Wait an additional day to buy the stock.
Wait an additional day to short the stock.
Take neither a long or short position in the stock.
None of the above answers is correct.
A runs test is a statistical tool that compares the sequence of data against the presumed random distribution of the data. If the number of runs is too high or too low, it indicates that the data is not distributed randomly, which could mean that the data is biased or nonrandom.
The runs test can be used to determine if a thinly traded stock has an uneven or random distribution of trades, or if the trading pattern is biased or nonrandom. Z statistics measures the number of standard deviations a data point is from the mean. When the Z statistic is negative, it indicates that the data point is below the mean.
When the Z statistic is positive, it indicates that the data point is above the mean. In the question above, the Z statistic is -5.13, which indicates that the data point is 5.13 standard deviations below the mean.
If the stock has a return of -0.33% late in the trading day, an investor who is convinced that other investors are not aware of the results would buy or long the stock in late trading. The investor would do so because the runs test results show that the stock has an uneven or nonrandom distribution of trades, which could mean that the stock is undervalued.
Buying or going long on the stock in late trading could provide an opportunity for the investor to profit from the undervalued stock. Therefore, the correct answer is to buy or long the stock in late trading.
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t: On the theory that all land is urique, the courts in the past have been willing to award Whenever the parties to the purchase of land breached their contract: damages equitable femedies quantuns merua specific performance an injunctica
The theory that all land is unique has been the guiding principle of land law. As a result, the courts have been willing to award equitable remedies in the event of a breach of contract between the parties. Equitable remedies are remedies that are granted at the discretion of the court and are based on fairness and justice rather than legal rules.
Damages, specific performance, and an injunction are examples of equitable remedies that are commonly granted in land law cases. Damages are monetary compensation awarded to the injured party to compensate them for their loss. Specific performance is an order of the court requiring the party in breach to perform the specific terms of the contract. An injunction is an order of the court restraining the party in breach from doing something that they have agreed not to do.
The award of equitable remedies depends on the nature of the breach of contract. For example, if the breach is minor, the court may award damages. However, if the breach is serious, the court may order specific performance or an injunction. The court may also award equitable remedies in cases where there is a significant difference between the market value of the land and the agreed price.
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A company has a beta of 4.5. If the market return is expected to be 14 percent and the risk-free rate is 7 percent, what is the company's risk premium?
Multiple Choice
7.0 percent
25.5 percent
31.5 percent
38.5 percentq
The company's risk premium can be calculated by subtracting the risk-free rate from the expected market return and then multiplying it by the company's beta. In this case, the risk-free rate is 7 percent, and the expected market return is 14 percent. The company's beta is given as 4.5.
To calculate the risk premium, we first subtract the risk-free rate (7%) from the expected market return (14%) to obtain the market risk premium, which is 7% (14% - 7% = 7%).
Next, we multiply the market risk premium by the company's beta (4.5) to determine the company's specific risk premium.
Risk Premium = Market Risk Premium * Beta
Risk Premium = 7% * 4.5
Risk Premium = 31.5%
Therefore, the company's risk premium is 31.5 percent, which is the amount of return expected above the risk-free rate based on the company's level of systematic risk (as measured by beta) in relation to the overall market.
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The company's risk premium can be calculated by subtracting the risk-free rate from the expected market return and then multiplying it by the company's beta. In this case, the risk-free rate is 7 percent, and the expected market return is 14 percent. The company's beta is given as 4.5.
To calculate the risk premium, we first subtract the risk-free rate (7%) from the expected market return (14%) to obtain the market risk premium, which is 7% (14% - 7% = 7%).
Next, we multiply the market risk premium by the company's beta (4.5) to determine the company's specific risk premium.
Risk Premium = Market Risk Premium * Beta
Risk Premium = 7% * 4.5
Risk Premium = 31.5%
Therefore, the company's risk premium is 31.5 percent, which is the amount of return expected above the risk-free rate based on the company's level of systematic risk (as measured by beta) in relation to the overall market.
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From a customer service perspective, global markets and strategy have four important characteristics.
Companies want to standardize to reduce complexity, but they recognize that global markets need some customization.
Global competition reduces the product life cycle since products can be copied or re-engineered quickly by competitors.
Traditional organizational structures and related business models frequently change since companies get more involved in outsourcing manufacturing and some logistical activities such as transportation, warehousing, and order fulfillment.
Globalization introduces more volatility (weather, terrorism, strikes, coronavirus, etc).
Select one of the above perspectives to discuss and provide an example. Please identify your selection by showing the perspective #. You are not required to retype the entire statement.
Global competition reduces the product life cycle since products can be copied or re-engineered quickly by competitors.
This is the second important characteristic of global markets and strategy from a customer service perspective. This perspective indicates that global competition reduces the product life cycle since products can be copied or re-engineered quickly by competitors.
The market of each country is different, so every company wants to provide its product according to the need of that country's people.
Due to the global competition in the market, the company has to launch a new product to sustain in the market. Companies need to create innovative products that can overcome the competitors' product.
This perspective is important because global competition has forced companies to develop new products faster and stay ahead of the competition.
The invention of new and innovative products is good for customers, which allows them to choose from a wider range of products and options. By introducing new products faster, companies can also keep their customers happy and satisfied with their services.
An example of this perspective can be seen in the smartphone industry. Companies like Apple, Samsung, and Huawei introduce new models of smartphones every year with updated technology and innovative features to stay ahead of their competitors.
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For each of the following accounts, state its appropriate Income Statement section (Sales Revenue, Cost of Goods Sold, Operating Expenses, or Other Income and Expenses). Question 36 Net Sales Question 37 Sales Returns Question 38 Depreciation Question 39 Income Taxes A.
Question 36: Net Sales is included in Sales Revenue section of Income Statement. Net Sales is the gross amount of revenue that a company earns from sales, minus the deductions such as refunds, discounts, and returns.
Question 37: Sales Returns is included in Cost of Goods Sold section of Income Statement. Sales Returns is the amount of goods returned by customers which are unsatisfactory or damaged. This reduces the amount of revenue, but it is also counted as a cost incurred by the business in order to produce the original product.
Question 38: Depreciation is included in Operating Expenses section of Income Statement. Depreciation is a non-cash expense that reflects the decrease in the value of a company's assets over time.
Question 39: Income Taxes are included in Other Income and Expenses section of Income Statement. Income Taxes are taxes imposed on a company's earnings by the government.
It is recorded as an expense in the Income Statement, as it reduces the net income of the company.
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Johnson, Inc., a U.S.-based MNC, will need 10 million Thai baht on August 1. It is now May 1. Johnson has negotiated a non-deliverable forward contract with its bank. The reference rate is the baht’s closing exchange rate (in $) quoted by Thailand’s central bank in 90 days. The baht’s spot rate today is $.02. If the rate quoted by Thailand’s central bank on August 1 is $.022, Johnson will ________ $__________.
A) pay; 20,000
B) be paid; 20,000
C) pay; 2,000
D) be paid; 2,000
E) none of the above
If the rate quoted by Thailand’s central bank on August 1 is $.022, Johnson will pay $20,000.The correct answer is A) pay; 20,000.
A non-deliverable forward (NDF) contract is a financial agreement used to hedge foreign exchange risk. In this case, Johnson, Inc., a U.S.-based multinational corporation (MNC), needs 10 million Thai baht on August 1. To protect against potential exchange rate fluctuations, Johnson has negotiated an NDF contract with its bank.
The NDF contract's settlement will be based on the reference rate, which is the baht's closing exchange rate quoted by Thailand's central bank in 90 days. The spot rate, which is the current exchange rate, is given as $0.02.
If the rate quoted by Thailand's central bank on August 1 is $0.022, it means that the Thai baht has appreciated against the U.S. dollar. In this scenario, Johnson, Inc. will have to pay the bank the predetermined amount in U.S. dollars based on the agreed exchange rate.
Payment amount = Amount in baht × Exchange rate
Payment amount = 10,000,000 baht × $0.002 = $20,000
Hence, the correct answer is A) pay; $20,000.
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When preparing a statement of cash flows, very few companies choose the ___________ method because it requires more work
When preparing a statement of cash flows, very few companies choose the indirect method because it requires more work.
The indirect method of preparing the statement of cash flows involves adjusting net income by reconciling non-cash items and changes in working capital to arrive at the net cash provided or used by operating activities. It requires additional work as it involves analyzing the income statement, balance sheet, and changes in non-cash items. In contrast, the direct method presents actual cash inflows and outflows from operating activities, but it requires more detailed and specific information about cash transactions, which may not always be readily available or easily accessible for companies, leading to the preference for the indirect method.
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SP 23 Serial Problem Business Solutions (Algo) LO P3
Santana Rey sees that Business Solutions’s line of computer desks and chairs is popular, and she is finding it hard to keep up with demand. Santana only has 791 direct labor hours available. She must determine the best sales mix given her limited hours. Information about the desks and chairs follows.
Desks Chairs Selling price per unit $ 1,031.00 $ 362.00 Variable costs per unit 490.00 200.00 Contribution margin per unit $ 541.00 $ 162.00 Direct labor hours per unit 4 hours 3 hours
Maximum demand per quarter 173 desks 44 chairs
student submitted image, transcription available below
Required:
Determine the best sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.)
Santana Rey is having a hard time keeping up with the demand as the line of computer desks and chairs of Business Solutions is popular. Santana only has 791 direct labor hours available.
She must decide on the best sales mix that can be created using her limited hours. Information about the desks and chairs is given in the table below: Desks Chairs Selling price per unit
$ 1,031.00 $ 362.00 Variable costs per unit $ 490.00 $ 200.00
Contribution margin per unit $ 541.00 $ 162.00
Direct labor hours per unit 4 hours 3 hours Maximum demand per quarter 173 desks 44 chairs The best sales mix can be determined through linear programming. The contribution margin per unit can be calculated as follows :
Contribution Margin = Selling price per unit - Variable cost per unit
For desks: Contribution Margin per unit = $1,031 - $490 = $541
For chairs: Contribution Margin per unit = $362 - $200 = $162
Let's assume that the company sells x desks and y chairs. The total number of direct labor hours used can be expressed as follows:4x + 3y ≤ 791The maximum demand per quarter is given as follows
The corner points for the graph are:
(0, 0), (173, 0), and (106.75, 44)
By substituting each of these corner points in the objective function, we get:
Point (0, 0) → Z = $0Point (173, 0) → Z = $93,493Point (106.75, 44) → Z = $76,607
The best sales mix would be 106.75 desks and 44 chairs. At this sales mix, the contribution margin would be $76,607.
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Assuming a contribution margin of 60 percent, what sales would be necessary to break even (that is, maintain the current total contribution) on the 12 percent across-the-board price reduction? Refer to Financial Analysis of Marketing Tactics: Price Decrease in Appendix 3: Marketing by the Numbers to learn how to perform this analysis. 1-15. What absolute increase and percentage increase in sales does this represent?
To calculate the sales necessary to break even after a 12% across-the-board price reduction, we can use the contribution margin. Assuming a contribution margin of 60%, the break-even sales can be determined. Additionally, we can determine the absolute increase and percentage increase in sales resulting from this break-even point.
To maintain the current total contribution despite a 12% price reduction, the break-even sales volume needs to be calculated. The contribution margin is the ratio of contribution (revenue minus variable costs) to revenue. Assuming a contribution margin of 60%, the break-even sales can be determined by dividing the fixed costs by the contribution margin. This break-even sales volume represents the amount of sales needed to cover all costs and maintain the current total contribution.
To determine the absolute increase and percentage increase in sales resulting from the break-even point, we need to compare it to the initial sales level. The difference between the break-even sales and the initial sales represents the absolute increase, while the percentage increase can be calculated by dividing the absolute increase by the initial sales and multiplying it by 100.
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On August 31, 2021, Carla Vista Company had a cash balance per its books of $27,680. The bank statement on that date showed a balance of $17,110. A comparison of the bank statement with the Cash account revealed the following. 1. The August 31 deposit of $17,570 was not included on the August bank statement. 2. The bank statement shows that Carla Vista received EFT deposits from customers on account totalling $1,990 in August. Carla Vista has not recorded any of these amounts. 3. Cheque #673 for $1,030 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,330, and #712 for $2,340. 4. The bank statement showed on August 29 an NSF charge of $621 for a cheque issued by R. Dubai, a customer, in payment of their account. This amount included an $10 service charge by Carla Vista's bank. The company's policy is to pass on all NSF service charges to the customer. 5. Bank service charges of $24 were included on the August statement. 6. The bank recorded cheque #705 for $105 as $150. The cheque had been issued to pay for freight out on a sale. Carla Vista had correctly recorded the cheque. CARLA VISTA COMPANY Bank Reconciliation August 31, 2021 $17110 Prepare the necessary adjusting entries on August 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Which of the following is classified in the most persuasive evidence of government control?A.
Government has the power to establish or amend the policies that the organization uses to manage, such as those relating to accounting, personnel, compensation, collective bargaining or deployment of resources.B. Government has the power to approve the business plans or budgets for the organization and require amendments, either on a net or line-by-line basis.C. Government has the power to provide significant input into the appointment of members of the governing body of the organization by appointing a majority of those members from a list of nominees provided by others or being otherwise involved in the appointment or removal of a significant number of members.D.
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how will you help them to work together to fix the issues? focus on relationships-spend more time getting to know each employee. help them to see that both groups have important roles in meeting the company goals and bring them together to accomplish them. rely on my position power to make work assignments and then reward or punish the groups based on their results. focus on clarifying roles and task requirements and then provide rewards or punishments based on performance.
To help employees work together to fix issues and foster better relationships, it is important to focus on several key steps.Spend more time getting to know each employee: By investing time in building relationships with each individual, you can develop a better understanding of their strengths, weaknesses, and motivations.
This will enable you to create an environment that encourages collaboration and mutual respect. Help them see the importance of both groups' roles: It is essential to communicate the significance of each group's contributions towards meeting company goals. Emphasize that both groups have valuable skills and perspectives that, when combined, can lead to better outcomes. Encourage open dialogue and the sharing of ideas to foster a sense of unity.
Bring the groups together: Organize team-building activities or collaborative projects that involve members from both groups. This will allow them to work together towards a common goal, helping to break down barriers and build stronger relationships. Encourage open communication, active listening, and empathy during these activities.
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Explain why customers sometimes get a "good deal" on a product. Think about the behavioral aspects of consumption and/or your knowledge of supply and demand to answer the question.
Customers sometimes get a "good deal" on a product due to different reasons that can be explained based on behavioral aspects of consumption and/or knowledge of supply and demand. When it comes to supply and demand, it may result in lower prices if the supply of a product is high and the demand is low.
This makes it harder for suppliers to sell their products, and they will, therefore, reduce prices to attract customers. On the other hand, if the demand is high and the supply is low, suppliers will raise their prices since they know that customers will still be willing to pay for the product because it is in high demand. Thus, supply and demand play a significant role in determining product prices.
As for behavioral aspects, customers may get a good deal on a product for different reasons. For example, a company may launch a new product, and they want to introduce it to the market. They may offer discounts and promotions to attract customers and get them to try the new product. Another reason may be that the product is nearing its expiration date or season, and the company wants to get rid of its remaining stock. They may offer discounts or sales to encourage customers to buy the product before it goes off the shelf.
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The auditing firm of Samuels, Muir, Malcolm and Associates is recruiting persons to be a part of the audit team, to audit the books of several of its audit clients. Applications were received from qualified auditors and recent university graduates. The partners are concerned that the panel of interviewers must pay careful attention to the qualifications of applicants, and diligence must be carried out to ensure that short listed applicants are conforming to the Code of Ethics for Auditors.
During the process of interviewing the applicants, the panel discovered that Nardia Sinclair, a qualified auditor, was a recent employee of one the firm’s audit client and that she was employed by the client as its Chief Financial Officer. It was also discovered that Dexanne McDonald, a recent university graduate, had a 25% shareholding in a company that the auditing firm, of Samuels, Muir, Malcolm and Associates will be auditing. The members of the panel were impressed with these two candidates and would want to offer them employment but are concerned about the prevailing issues.
Assuming that you were one of the panalists conducting the interview, provide plausible reasons why you would advise the entire panel of interviewers to eith make or not to make a job offer to Nordia Sinclair and Dexanne McDonald.
If I were one of the panelists conducting the interview, I would advise the entire panel of interviewers not to make a job offer to Nardia Sinclair and Dexanne McDonald. The reason for this is that both candidates have issues that may lead to a conflict of interest and possibly result in ethical breaches.
Nardia Sinclair was a Chief Financial Officer of one of the audit client's firm. She may have access to sensitive financial information that she could use to influence the audit in favor of her previous employer. This situation poses a significant threat to the auditor's independence, which is one of the fundamental principles of the code of ethics for auditors. The auditor must be independent and free from any influence from the client, whether it is financial or otherwise.
The panel should not make a job offer to Nardia Sinclair and Dexanne McDonald due to the potential ethical threats that they pose to the auditing firm. Instead, the firm should continue its recruitment process and consider other qualified candidates who do not pose any threats to the firm's independence or objectivity.
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Governments commonly uses price floors. One of the most classic examples of a price floor is a minimum wage policy in a labor market. Minimum wages laws date from 1894 in New Zealand, 1909 in the United Kingdom, and 1912 in Massachusetts. Minimum wage policies, however, often create unintended consequences. The original 1938 U.S. minimum wage law, for example, caused massive unemployment in Puerto Rico.
Suppose the following demand and supply curves describe the labor market in Puerto Rico before 1938:
Demand: P = 20 – Q
Supply: P = 2 + 0.5Q
where P is the wageper hour, and Q represents the number of workers hired, in thousands(e.g. Q = 1 means that 1,000 workers have been hired).
a) Calculate the equilibrium wage and the number of workershired before the 1938 minimum wage laws. Illustrate on a graph.
b) The 1938 U.S. minimum wage laws artificially required that all workers earned at least $10 per hour in Puerto Rico. So, how many workers would be employed under the minimum wagepolicy? Illustrate on a graph.
c) Using your graphs from (a), calculate the consumer surplus and producer surplus at theinitial equilibrium price and quantity from part (a).
d) Calculate the new consumer surplus and producer surplus with the minimum wage of$10 (part b).e) How does the total consumer and producer surplus in part (c) compare to the totalconsumer and producer surplus in part (d)? What explains the difference in these two
figures? Please explain intuitively.
a) Equilibrium wage: $8/hr, Workers hired: 12,000
b) Workers employed under minimum wage: 16,000
c) Initial consumer surplus and producer surplus depend on specific graph dimensions.
d) Consumer and producer surplus decrease due to fewer employed workers and higher wages.
e) Total surplus in (c) > (d) due to reduced welfare from fewer employed workers at higher wage.
a) To find the equilibrium wage and number of workers hired before the 1938 minimum wage laws, we set the demand equal to the supply:
20 - Q = 2 + 0.5Q
Rearranging the equation, we get:
1.5Q = 18
Q = 12
Substituting the value of Q back into the supply equation, we find:
P = 2 + 0.5(12) = 8
Therefore, the equilibrium wage is $8 per hour and the number of workers hired is 12,000.
b) With the minimum wage of $10 per hour, we set the new supply curve at a constant wage of $10:
P = 10
Substituting this into the supply equation, we find:
10 = 2 + 0.5Q
0.5Q = 8
Q = 16
Therefore, under the minimum wage policy, the number of workers employed would be 16,000.
c) At the initial equilibrium price and quantity from part (a), consumer surplus can be calculated as the area above the supply curve and below the equilibrium price. Producer surplus can be calculated as the area below the demand curve and above the equilibrium price. The exact values will depend on the specific dimensions of the graph.
d) With the minimum wage of $10, consumer surplus will decrease as fewer workers are employed. The new consumer surplus will be smaller than in part (c) because some workers who were willing to work for a lower wage will now be unemployed. Producer surplus will also decrease as the wage increases, as employers will have to pay higher wages to the remaining workers.
e) The total consumer and producer surplus in part (c) will be higher than in part (d) because the minimum wage policy reduces the overall welfare in the labor market. The decrease in consumer surplus and producer surplus results from the reduction in the number of workers hired, as some workers who would have been employed at a lower wage are now unable to find employment at the higher minimum wage. This creates a loss of overall economic efficiency and welfare.
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Suppose that, the next day, the Apex Company finds striking
employees of the DYNO Company picketing the Apex Company plant
because it is a supplier of DYNO Company. What are the rights of
Apex Company
If the Apex Company finds striking employees of the DYNO Company picketing the Apex Company plant because it is a supplier of DYNO Company, its rights are as follows:
The rights of Apex Company would be that it cannot be legally liable for the disputes that are between the DYNO company and its employees. DYNO Company does not have the legal right to engage in the secondary boycotts.
The picketing of Apex Company is a way of forcing them to stop doing business with the DYNO Company. However, Apex Company has the legal right to refuse to end business relations with DYNO Company.
They are under no legal obligation to comply with the request that DYNO Company made through its employees.The DYNO Company’s employees are within their legal right to strike against their employer.
Nonetheless, they are breaking the law if they engage in activities such as trying to induce Apex Company to stop doing business with their employer. This is an illegal secondary boycott.
The Apex Company has the legal right to contact the law enforcement agencies to take action against the DYNO Company’s employees.
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an amortized discount is computed annually when a bond is issued for other than its face value. for a bond issued at a discount, how will this component change under the effective interest method as the bond approaches maturity?
Under the effective interest method, the amortized discount component of a bond issued at a discount will decrease as the bond approaches maturity.
When a bond is issued at a discount, it means that its initial selling price is lower than its face value. The discount represents the difference between the face value of the bond and its selling price. Under the effective interest method, the discount is amortized or spread out over the life of the bond. This means that each year, a portion of the discount is gradually reduced and added to the interest expense on the income statement.
As the bond approaches maturity, the remaining discount gradually decreases because it is being amortized over a shorter period of time. This reduction in the amortized discount is reflected in the interest expense, which decreases over time.To summarize, the amortized discount component of a bond issued at a discount decreases under the effective interest method as the bond approaches maturity.
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1. What can companies do to create more of a focus on TSI?
2. How can companies achieve higher margins and higher
valuations through implementing TSI?
To create more focus on Total Shareholder Impact (TSI), companies can develop a comprehensive TSI strategy, measure and report TSI performance, engage stakeholders, embed TSI in decision-making, and foster a culture of TSI.
1. To create more focus on Total Shareholder Impact (TSI), companies can take the following actions:
a) Develop a comprehensive TSI strategy: Companies need to integrate TSI considerations into their overall strategic planning process. This involves identifying key stakeholders, understanding their interests, and aligning business objectives with TSI goals.
b) Measure and report TSI performance: Companies should establish metrics and measurement frameworks to track and assess their impact on various dimensions of TSI. This includes financial, social, and environmental performance indicators. Regular reporting and transparency can help create accountability and demonstrate commitment to TSI.
c) Engage stakeholders: Actively engaging with stakeholders, including customers, employees, investors, communities, and regulators, is crucial. Companies should seek feedback, address concerns, and involve stakeholders in decision-making processes related to TSI.
d) Embed TSI in decision-making: TSI considerations should be integrated into decision-making processes across the organization. This involves assessing the potential TSI impacts of various options and selecting alternatives that optimize TSI outcomes.
e) Foster a culture of TSI: Companies can promote a culture that values and prioritizes TSI by incorporating it into their mission, vision, and values. Leadership commitment, employee training, and incentives aligned with TSI goals can help drive the desired culture.
2. Companies can achieve higher margins and higher valuations through implementing TSI by:
a) Improving operational efficiency: By optimizing resource utilization, reducing waste, and increasing productivity, companies can lower costs and improve profit margins. This includes energy efficiency initiatives, waste reduction programs, and process optimization to minimize environmental impact while enhancing financial performance.
b) Enhancing brand reputation and customer loyalty: Companies that prioritize TSI can build a strong brand reputation by demonstrating responsible business practices, ethical behavior, and commitment to environmental and social considerations. This can attract customers who value sustainability and generate customer loyalty, leading to higher sales and margins.
c) Accessing new markets and revenue streams: Implementing TSI strategies can open doors to new markets and business opportunities. For example, companies that develop environmentally friendly products or services can tap into the growing demand for sustainable solutions, attracting environmentally conscious consumers and creating revenue growth potential.
d) Mitigating risks and improving long-term resilience: By proactively addressing environmental and social risks, companies can reduce the potential for costly regulatory fines, legal liabilities, or reputational damage. Moreover, embedding TSI practices can enhance long-term business resilience by adapting to changing market dynamics and stakeholder expectations.
e) Attracting investors: Investors increasingly consider TSI factors when evaluating companies. By effectively implementing TSI strategies and demonstrating strong performance across financial, social, and environmental dimensions, companies can attract investors who seek sustainable and responsible investment opportunities. This can result in higher valuations and access to capital.
Overall, companies that prioritize TSI can create a competitive advantage, achieve sustainable growth, and drive both financial and non-financial value creation.
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True or False Questions 1. Management decisions involving product pricing, product mix, and cost control depend on accurate product cost information (The or False) 2. A manufacturer uses machine hours to allocate overhead cost to products. Budgeted information for the current year follows. Budgeted overhead costs \$108,800 Budgeted machine haurs 1,280MH Overhead cost of $21.25 is allocated to a job thatuses 4 machine hours (The or False) 3. The usefuelness of a single plantwide overhead rate depences on two assumptions 1. overhead costs change with the allocation base and 2. ell products use sverhead cost in the Same proportion (Tur F) 4 A company sells headphones for $45 per unit Fxed costs tofal \$162,000 and variable costs are $18 per unit. The company's break even point in dollars is $270,000 (Twe or False)
1. Product pricing, product mix, and price control decisions require correct product cost information: True.
2. A manufacturer allocates overhead costs to items using machine hours. The following is budgeted facts for the current fiscal year. Overhead costs are budgeted at $108,800. The budgeted machine runs for 1,280 minutes. A $21.25 overhead cost is assigned to a job that requires 4 machine hours: false
3. The efficiency of a single plantwide overhead rate is determined by two assumptions. 1. overhead costs vary with the allocation base, and 2. all goods use the same share of overhead expenses: True
4 A firm charges $45 per unit for headphones. The fixed expenses are $162,000, while the variable costs equal $18 per unit. In terms of dollars, the company's break even point is $270,000: False
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alculate the price earnings ratio, PEG ratio, dividend rate, and dividend payout ratio for each of the Ilowing companies. Will each ratio consistently rank the companies from "best" to "worst" perform
We would want precise financial data for each company in order to rate them from "best" to "worst" performance based on numerous ratios. I can, however, describe each ratio's calculation and broad meaning.
1. The price-to-earnings ratio (P/E ratio) is determined by dividing the market price per share by the earnings per share (EPS). It shows how highly the market values a company in relation to its earnings. If all else is equal, a lower P/E ratio typically indicates a better value investment. However, since different industries can have different average ratios, it's crucial to compare P/E ratios within the same industry. 2. PEG Ratio: This valuation metric combines the P/E ratio and expected earnings growth rate of a company. By dividing the P/E ratio by the earnings growth rate, it is computed. A stock's PEG ratio can be used to determine if it is overvalued or undervalued in light of its growth potential. Generally speaking, a lower PEG ratio is better because it indicates better value in relation to growth potential. 3. Dividend Rate: The dividend rate is calculated by dividing the annual dividend payment per share by the share's market price. Dividends are used to indicate the return on investment. Income-seeking investors may find a higher dividend rate to be appealing because it often denotes a larger dividend return on investment. 4. Dividend Payout Ratio: To determine the dividend payout ratio, divide the earnings per share by the annual dividends per share. It exhibits percentage of earnings distributed as dividends. A higher payout ratio denotes a greater distribution of earnings to shareholders, whereas a lower ratio signals a corporation maintains more money for expansion or other objectives. You would need to analyse these ratios for each company in order to rate them, taking into account their unique circumstances, industry standards, and investor preferences. In general, favourable performance can be indicated by reduced P/E and PEG ratios, greater dividend rates, and a suitable dividend payment ratio, but a thorough study would require individual financial data for each company.
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In the systems perspective, _____ emphasizes the importance of working together in a cooperative and coordinated fashion.
A) synergy
B) entropy
C) contingency
D) diversity
E) uniformity
In the systems perspective, correct option is A) synergy emphasizes the importance of working together in a cooperative and coordinated fashion.
Systems thinking encourages the consideration of the big picture and recognizes the interdependence of its components. It emphasizes the importance of collaboration and working together in a cooperative and coordinated fashion. The concept of synergy, which refers to the cooperation between different elements to produce a result that is greater than the sum of their individual efforts, highlights this principle.
Systems thinking can help identify patterns, relationships, and interconnections that would otherwise go unnoticed and lead to a more comprehensive understanding of the system. It can be applied to a variety of fields, from biology to economics, to analyze and address complex issues. By adopting a systems thinking approach, individuals and organizations can make more informed decisions and achieve better outcomes.
A system is a collection of parts or elements that work together in a coordinated manner to accomplish a common goal. The synergy of the components refers to the idea that they work better together than they would on their own. The concept of synergy emphasizes the importance of working together in a cooperative and coordinated manner in the systems perspective. Therefore, option A, synergy is correct.
Synergy is a term that refers to the cooperation between different elements to produce a result that is greater than the sum of their individual efforts.
In conclusion that systems thinking is a holistic approach to understanding the complexities of a system.
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Assets on 12/31/21 balance sheet= 3000 million
Sales on 12/31/21 income statemnt = 4000 million
Net income in 12/31/21 income statement= 50 million
$Dividends in 2021= 15 million
Account payable= 20 M on 12/31/21 balance sheet
Accruals= 10 million on 12/31/21 balance sheet
what is the self-supporting growth rate in 2022?
Self-supporting growth rate is also known as sustainable growth rate (SGR).
It represents the maximum growth rate that a company can accomplish without raising additional external equity or debt.
To calculate the self-supporting growth rate in 2022,
the following information will be used:
Assets on 12/31/21 balance sheet = $3000 million
Sales on 12/31/21 income statement = $4000 million
Net income in 12/31/21 income statement = $50 million
Dividends in 2021 = $15 million
Account payable = $20 million on 12/31/21 balance sheet
Accruals = $10 million on 12/31/21 balance sheet
The formula for the self-supporting growth rate is:
Sustainable Growth Rate (SGR) = (Net Income / Equity) * (1 – Dividend Payout Ratio)
The dividend payout ratio can be calculated by dividing dividends by net income.
DPR = Dividends / Net Income
DPR = 15/50DPR = 0.3
Substitute the values in the SGR formula.
SGR = (50/2980) * (1 - 0.3)
SGR = (0.01678) * (0.7)
SGR = 0.011746 or 1.17%
The self-supporting growth rate in 2022 is 1.17%.
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When the Fed tightens U.S. monetary policy, domestic interest rates ______, making U.S. assets relatively more attractive to foreign investors, and ______ the equilibrium exchange rate.
When the Fed tightens U.S. monetary policy, domestic interest rates rise making U.S. assets relatively more attractive to foreign investors and increasing the equilibrium exchange rate.
How does the tightening of U.S. monetary policy affect the econoomy?When the Federal Reserve (the Fed) tightens U.S. monetary policy, it typically takes actions to reduce the money supply and increase interest rates. This tightening is achieved through measures such as increasing the target federal funds rate or reducing the amount of money in circulation through the sale of Treasury securities.
As a result of these actions, domestic interest rates rise. When interest rates increase, it becomes more expensive for businesses and individuals to borrow money which can have a dampening effect on economic activity.
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An automobile manufacturing plant produced 34 vehicles today: 15 were vans, 7 were motorcycles, and 12 were trucks. (Each vehicle falls into only one of these categories.) Plant managers are going to select two of these vehicles for a thorough inspection. The first vehicle will be selected at random, and then the second vehicle will be selected at random from the remaining vehicles. What is the probability that two motorcycles will be selected?
Do not round your intermediate computations. Round your final answer to three decimal places.
(If necessary, consult a list of formulas.)
x
The probability of selecting two motorcycles is approximately 0.035.
To calculate the probability, we divide the number of favorable outcomes (selecting two motorcycles) by the total number of possible outcomes.
In this case, there are 7 motorcycles out of 34 vehicles. When selecting the first vehicle, the probability of choosing a motorcycle is 7/34. After selecting the first motorcycle, there are 6 motorcycles left out of the remaining 33 vehicles. The probability of selecting a motorcycle as the second vehicle, given that the first vehicle was a motorcycle, is 6/33.
To find the probability of both events occurring, we multiply the probabilities together:
P(Two motorcycles) = (7/34) * (6/33) ≈ 0.035
Therefore, the probability of selecting two motorcycles is approximately 0.035.
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What challenges posed by it being a member of BRICS and what
possible challenges will it pose to South African economy if SA
exit BRICS?
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. These countries were established as emerging economies with large markets and significant growth potential.
South Africa joined BRICS in 2011, becoming the organization's newest member. Challenges posed by it being a member of BRICS: Although being a member of BRICS has various benefits, such as trade and investment, it has also posed several challenges for South Africa. One such issue is the slow pace of reforms.
South Africa faces significant structural issues such as low growth, high unemployment, and inequality, which are exacerbated by a shortage of appropriate skills. As a result, South Africa has been accused of being the group's weakest link due to its comparatively smaller economy, insufficient infrastructure, and inadequate skill levels compared to the other members.
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Development status and tasks. b. Challenges and risks. c. Projected development costs. d. Proprietary issues (patents, trademarks, copyrights, licenses, brand names). a. Incorporating the venture. b. Completion of prototypes. c. Rental of facilities. d. Obtaining critical financing. e. Starting production. f. Obtaining the first sale.
Risk management strategies should be put in place to identify, mitigate, and avoid these risks.
Development status and tasks:
The development status and tasks include the progress of the project and the steps needed to be taken to complete it. These steps may involve the creation of a prototype, obtaining financing, and starting production.
Challenges and risks: This refers to the potential difficulties that the project may encounter. These may include economic, legal, or technical challenges.
Projected development costs: These are the expected costs that will be incurred during the project's development. This includes costs such as research and development, personnel, and facility expenses.
Proprietary issues: These are legal matters that need to be addressed. This may include obtaining patents, trademarks, or copyrights. This is to ensure that the venture is protected from legal issues and intellectual property theft.
Incorporating the venture: This is the process of legally forming a company. This includes registering the business name and obtaining all the necessary legal documents.
Completion of prototypes: This is the stage where the final product is being tested to ensure that it meets all the required specifications.
Rental of facilities: This includes renting space for the production process and other necessary facilities.
Obtaining critical financing: This is a vital part of the venture's development. The entrepreneur needs to ensure that they have adequate funding to get the venture off the ground.
Starting production: This is the final stage of the project, where the product is being produced and prepared for sale.
Obtaining the first sale: This is the goal of every venture. Once the product is ready, it needs to be marketed and sold to the target market.
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(a) Provide some examples of everyday practical application of a key microeconomics principle from Econ1001 that you've learned about in class (Concepts include opportunity cost, elasticity, marginal costs / benefits) (b) How does the gift economy differ from the exchange economy?
a) key microeconomic principles from Econ1001 are pointed.
b) gift economy and exchange economy are explained.
(a) Some of the everyday practical applications of key microeconomic principles from Econ1001 that you can find around you are as follows:
Opportunity cost: Every day when you decide to do something or buy something, you need to give up something else as a result. This is called the opportunity cost. For example, if you choose to go to a movie, the opportunity cost might be that you cannot play a game.Elasticity: Elasticity is a principle that shows how sensitive one variable is to changes in another. For example, if the price of a product increases, then the demand for that product might decrease as people might choose to buy a cheaper substitute product. Marginal cost/benefit: Marginal cost is the cost of producing one more unit of a product, and marginal benefit is the benefit derived from consuming one more unit of a product. This principle is used by businesses to make decisions about whether or not to produce more of a product.(b) The gift economy is different from the exchange economy in the following ways:
Gift economy: In the gift economy, goods and services are given away for free, and there is no expectation of receiving something in return. This type of economy is often based on social relationships and can be seen in small, tight-knit communities.Exchange economy: In the exchange economy, goods and services are traded for money or other goods and services. This type of economy is based on market transactions and is typically used in modern societies.Know more about the microeconomic principles
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