Answer: compute the net income
Explanation:
say the government places a regulation on a natural monopolist so that for its product it can only set its price so high, e.g. a price ceiling. what is this type of regulation called?
In most instances of natural monopolies that the government permits, there are regulatory bodies in each area to act as the general public's watchdog.
Usually, government commissions or state-run departments of public utilities are in charge of regulating utilities. Because natural monopolies lack the advantages enjoyed by other monopolies, their performances are not necessarily consistent with the long-run regulatory equilibrium position of a monopoly. This is because natural monopolies do not always generate economic profit over the long term. Because it offers little incentive to cut expenses and improve efficiency, rate of return regulation is frequently criticised. Customers could therefore still be charged greater prices.
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Vansel Inc. retains most of its earnings. The company currently has earnings per share of $11. Vansel expects its earnings to grow at a constant rate of 2 percent per year. Furthermore, the average PE ratio of all other firms in Vansel's industry is 12. Vansel is expected to pay dividends per share of $3.50 during each of the next three years. If investors require a 10 percent rate of return on Vansel stock, a fair price for Vansel stock today is $____.
If investors require a 10 percent rate of return on Vansel stock, a fair price for Vansel stock today is $106.32.
The discounted present value of future dividends is used to determine the stock's price. We only have data on dividends for the following three years in this query. This can be avoided by computing the stock price at the conclusion of the fourth year using the PE ratio and earnings per share, and utilising that price (also known as the terminal value) to approximatively determine the discounted value of all future dividends.
It is given that earnings per share is $11 and growth rate is 2%. PE ratio is 12.
Earning per share after 4th year = earnings (1+g)ⁿ
where, g is the growth rate = 2% and n is no of years = 4 years
Thus,
Earning per share after 4th year = 11 (1+2%)⁴
= 11.91
Price per share = 11.91 * PE ratio = 11.91 × 12 = 142.92
It is also given that Dividend per share is $3.5 for 3 years and rate of return is 10%.
Thus, fair price = ∑(n=1 till 3) (Dividend per share÷ (1+r)ⁿ) + (142.92 ÷(1+r)⁴
= ∑(n=1 till 3) (3.5 ÷ (1+10%)ⁿ) + (142.92 ÷(1+10%)⁴
= 106.32
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when interest rates rise, what happens to the price of federal government bonds? what happens to the price of state and local government bonds?
The yield on a bond is calculated by dividing its coupon payments by its market price; as bond prices rise, bond yields decrease. decreasing interest rates.
When interest rates increase, what happens to government bonds?A fall in the price of a bond may result from an increase in interest rates. Federal taxes on municipal bond income are typically exempt, although state and local taxes as well as the federal alternative minimum tax (AMT) may apply.
Does purchasing bonds during an interest rate increase make sense?Even when interest rates may be rising, it makes sense to include bonds in your investment portfolio. Bonds' interest component, a crucial element of total return, can aid in preventing price drops brought on by rising interest rates.
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which analytics feature relies on machine learning for measuring conversions that can't be spotted through direct observation?
Modeling is the analytics feature relies on machine learning for measuring conversions that can't be spotted through direct observation.
What do analytics mean in everyday language?Analytics is a subfield of computer science that employs mathematics, statistics, and machine learning to find meaningful patterns in data. The process of sifting through massive data sets to discover, comprehend, and disseminate new information is known as analytics, also referred to as data analytics.
What is the definition of "analytics"?Data analytics is the process of examining data sets to spot trends and draw conclusions about the information they contain. More and more often, data analytics is done with specialized hardware and software.
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what is a health care system in which all citizens receive medical services paid for by tax revenue?
creating an active brand community is one of the goals of nutrisystem. which of the following is indicative of an active brand community? mass email blasts online banner advertising free shipping to customers. customer interaction through social media, blogs, and website content. complaning about the company's product
Creating an active brand community is one of the goals of Nutrisystem. which of the following is indicative of an active brand community complaining about the company's product.
The application can fee approximately $250 to $350 in step with month plus the fee of extra ingredients from the grocery store, inclusive of vegetables, fruit, and dairy products. Unhealthy processed ingredients: The prepackaged meals at the Nutrisystem weight loss program are closely processed.
The company's internet site claims that ladies can lose as much as thirteen kilos and seven inches withinside the first month and guys can lose as much as 18 kilos and eight inches withinside the first month on Nutrisystem for Men. After that, dieters can lose a mean of one to two kilos in step with week. Limited sodium.
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a debt-financed tax cut will saving in the traditional view and saving in the view of ricardian equivalence.
A debt-financed tax cut will decrease saving in the traditional view and not change saving in the view of Ricardian equivalence.
According to the economic principle known as Ricardian equivalence, paying government expenditures with current taxes or future taxes (as well as current deficits) will have similar impacts on the overall state of the economy.
Therefore, increased government expenditure that is financed by debt will not be able to stimulate the economy since investors and consumers are aware that the loan would eventually need to be repaid through future taxes. The hypothesis contends that consumers will save because they anticipate paying higher taxes in the future to decrease the debt, which will counteract the rise in aggregate demand brought on by higher government spending. This suggests that Keynesian fiscal policy will typically fail to increase economic growth and output.
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The complete question is:
A debt-financed tax cut will ______ saving in the traditional view and ______ saving in the view of Ricardian equivalence.
Robert and anne, a married couple filing jointly, have an adjusted gross income of $68,676. They claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. If the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income? a. $53,290 b. $53,026 c. $44,940 d. $61,640 please select the best answer from the choices provided a b c d.
If a married couple filing jointly claiming exemptions & deductions as per the federal law then their total taxable income will be $44940. Option C is correct.
What is total taxable income?The portion of gross adjusted income of an individual or jointly if married considered as "taxable income" which used to assess the tax liability for a certain tax year. It can be roughly defined as adjusted gross income (AGI) less permissible standard or itemized deductions.
This can be calculated by the following formula for married couples:
[tex]Total Taxable income (TTI) in case of married couple = Total income - Exclusions - Adjustments to income - Deductions - Exemptions[/tex]
TTI = $68676 (AGI) - $3752 - $3375 (exemptions) - $959 (Itemized Deduction) - $8350 - $3650 -$3650 (standard deduction & exemption as per law)
Therefore, the Total Taxable income of couple = $44940
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henry crouch's law office has traditionally ordered ink refills units at a time. the firm estimates that carrying cost is % of the $ unit cost and that annual demand is about units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? part 2 a) for what value of ordering cost would its action be optimal? its action would be optimal given an ordering cost of $ enter your response here per order (round your response to two decimal places). part 3 b) if the true ordering cost turns out to be much than your answer to part (a), what is the impact on the firm's ordering policy? a. the order quantity should be . b. the order quantity should not be changed. c. the order quantity should be .
Its action should be optimal by given an ordering cost of $28.32 per order.
a. Ordering cost
First step is to calculate the carrying cost
Carrying cost= 11x40%
Carrying cost=4.4
Second step is to calculate the ordering cost
Ordering cost=Order unit^2(Carrying cost)/2(Annual demand)
Ordering cost=55^2(4.4)/2(235)
Ordering cost=13,310/470
Ordering cost=$28.32
b. If the true ordering cost turns out to be much less than your answer to part (a). The impact on the firm's ordering policy is to reduce the order quantity.
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The Michigan Studies, discussed in the text, pinpoint two basic types of leader behavior. From what you saw in the video, which of the following is more likely to represent founder Reynolds's type of leadership?A.Employee-centered behaviorB.Achievement behaviorC.Consideration behaviorD.Job-centered behaviorE.Structure behavior
A. Employee-centered behavior is more likely to represent founder Reynolds's type of leadership.
Employee-centric CEOs put their people first on purpose and consistently. They encourage innovation, ideas, good communication, and creativity among their teams, which helps them retain their finest workers and foster the support needed to achieve organizational objectives.
People who earlier found tremendous security and comfort in receiving a biweekly income are increasingly going independent, selecting short-term initiatives that make them happy rather than getting indulged into destructive business cultures and office politics.
Many people who just lost their full-time jobs due to the pandemic are likewise applying to vacant positions more selectively and carefully choosing whether to work as freelancers, contractors, or full-time employees.
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If demand is ___, a higher price yields ____ total revenue. a. inelastic; higher b. inelastic; lower c. elastic; no change in d. elastic; higher
If demand is inelastic, a higher price yields higher total revenue. Option a. inelastic is correct.
"Inelastic" is a financial time period relating to the static amount of an awesome or carrier when its price changes. Inelastic demand manner that after the charge is going up, consumers' buying conduct stays about equal, and when the rate goes down, purchasers' shopping for conduct additionally remains unchanged. Inelastic merchandise is usually required without suitable substitutes.
The maximum common items with inelastic demand are utilities, prescribed drugs, and tobacco products. businesses presenting such products hold extra flexibility with prices because demand remains consistent even if charges increase or decrease. adjective. now not elastic; lacking flexibility or resilience; unyielding. Economics. extraordinarily unresponsive to changes, as called for when it fails to grow in share to a decrease in the fee.
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an approach that quantifies a misstatement based on its effects on the current year income statement only is called the:
An approach that quantifies a misstatement based on its effects on the current year income statement only is called the: Iron curtain approach.
The Soviet Union's attempts to keep itself and its satellite governments from having direct contact with the West and countries that are not under its control are symbolized by the Iron Curtain approach, which especially refers to the fake barrier between Soviet and Western influence in Europe.
The expression referred to the Soviet Union's attempts to keep itself and its satellite republics from having direct contact with Western nations and other regions that were not under Soviet rule. On the east side of the Iron Curtain were the countries that were allied with or affected by the Soviet Union.
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oil-refining technology was sold to firms in saudi arabia and other gulf states and now those western firms that sold the technology have to compete with these countries in the oil industry. this shows how a(n) blank strategy can be a disadvantage.
It has been demonstrated that a strong relationship with the partner, mutual trust, a minimal commitment from both parties, and clear objectives and strategy are the most important factors affecting alliance success.
When a company enters a market before its competitors, what does this mean?
A service or product that enters the market first gains a competitive advantage by being a first mover.Before competitors enter the market, being first typically enables a business to establish strong brand recognition and customer loyalty.
What kinds of intangible assets might be included in a licensing agreement?
Intellectual property can be licensed in the form of copyrights, trademarks, and patents.Mechanical devices and systems, healthcare products and services, electronic hardware, computer software, chemical compositions, and business practices, for instance, can all benefit from patent licenses.
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According to the text, the development of a strong relationship between salesperson and prospect begins:
A. with a follow-uo
B. when the salesperson analyzes the customers needs
C. when the order is first placed
D. when all objections have been handled
E. when the customer is presented with product benefits
According to the text, the development of a strong relationship between salesperson and prospect begins B. when the salesperson analyzes the customers needs.
Building relationships with clients and potential consumers is a priority when using the relationship selling strategy to close deals. The salesman emphasizes their connections with customers rather than just the pricing and other facts in order to sell a good or service.
When a salesperson builds a personal rapport with a customer, that customer is more likely to develop loyalty toward a product or service. Because they feel appreciated by the business, familiarity helps keep loyal consumers and attract new ones.
This sales strategy is effective when selling expensive goods or purchases that need a greater level of commitment because these clients typically need more time and consideration to make a decision.
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while internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the and associated with internally sourcing a product or service.
While internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the internal coordination and overhead costs associatee with internally sourcing a product or service.
External sourcing alternatives or outsourcing is a strategy chosen by a company to reduce its production costs through appointing external parties or subcontractors to do the job for them. A company outsources some of their non-core and less important works to subcontractors.
However despite many benefits from outsourcing, there are many disadvantages as well from this strategy especially in the financial aspects. Those disadvantages are known as the hidden costs of outsourcing. The hidden costs of outsourcing are consisted of:
Quality costsCosts of strategic supplier relationship managementInternal coordination costsCosts related to implementatiton of external sourcing modelCost of product/service design and developmentGovernmental and political expensesCosts related to supply chain risk managementQuality costs are costs associaated to preventative, appraisal, internal failure and external failure. When outsourcing a part of production processes to subcontractors, a company has to ensure that proper mechanisms are placed by those subcontractors. A company has to make sure t be able to detect any quality failures by an external source.
Not all external sourcing relationship are made equal. Outsourcing relationship involving commodity products may not require extensive relationship building and coordination. However the external sourcing of strategic products is the other hand of the spectrum. This kind of relationship require extensive relationship building and coordination activities.
While internal coordination costs are unique to external sourcing alternatives, they must be contrasted against the internal coordination and overhead costs associatee with internally sourcing a product or service. Outsouring might not directly eliminate any internal coordination costs related to the works outsourced.
Supplier search activity, evaluation and contracting, transfer of the physical assets, domestic and internal travel during startup, and training the new sources to ensure of smooth transition and seamless integration incurred when switching sources. These kinds of costs included in costs related to implementation of external sourcing model.
The costs of tightly coupled and integrated product designs required higher levels of coordination and make it unappropriate for external sourcing. A literature finds that the difficulty and cost with which knowledge is shared accross firms are high.
When a company is considering internationally outsourcing alternatives, a company has to clearly understand the costs involved to ensuring compliance with the local goverment laws, regulations, and local business customs. This kind of cost is not limited to legal expenses.
Outsourcing risks include beaching in intellectual property, provider shirking, and opportunistic renegotiation.
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under activity-based costing, nonmanufacturing costs blank . multiple choice question. may be allocated to products based on cause are never assigned to products are always treated as period costs are always assigned to products, regardless of cause
Costs that are not related to the production of a product are known as nonmanufacturing overhead costs.
These costs are not assigned to items when calculating the cost of terminating inventory or the cost of goods sold since they are not related to products. Selling, general, and administrative costs, as well as finance charges, are non-manufacturing overhead expenses. Nonmanufacturing overhead expenses should not be viewed as discretionary costs because they support essential business functions like sales and marketing. As an alternative, product price points should be set so that a company makes a profit once all of these expenses have been paid.
The pay for sales and marketing staff, rent and utilities for office space, loan and credit line interest, marketing expenses, liability insurance, and office supplies are a few examples of non-manufacturing overhead costs.
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when selecting an investment, which criteria relate to how quickly you can get back your invested funds if you want or need them?
When selecting an investment, liquidity relate to how quickly you can get back your invested funds if you want or need them.
Give a brief account on investment.An investment is anything that is bought with the hope of making money or appreciating in value. A rise in an asset's value over time is referred to as "appreciation." When a person buys a product as an investment, they don't intend to utilize it right away; instead, they plan to use it to make money later on.A typical investment is the use of a resource today—time, effort, money, or an asset—with the expectation of getting back more than what was initially invested. An investor, for instance, might purchase a financial asset today in the hopes that it will generate income down the road or be worth more when it is time to sell it.
Investments are made with the intention of making money and building value over time. Any process utilized to produce future income can be referred to as an investment. This includes, among other things, purchasing securities such as bonds, stocks, or real estate. Buying a property that can be utilized to manufacture things is another investment option.
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When using the indirect method, adding a decrease in prepaid insurance to net income eliminates the effect of recording insurance expense that ______.
Using the indirect method, each non-cash object is introduced returned to net earnings to produce cash from operations.
What is subtracted from internet income when the use of the oblique method?A gain increases net earnings however cash is not received so it ought to be subtracted out of net earnings when changing to a money groundwork from operating activities.
Does the oblique technique begin with net income?Understanding the Indirect Method
The indirect technique provides the statement of cash flows beginning with net profits or loss, with subsequent additions to or deductions from that quantity for non-cash income and price items, ensuing in cash drift from running activities.
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https://brainly.com/question/25530656#SPJ4an acquisition is a legal transaction in which two or more organizations combine operations through an exchange of stock and create a third entity.
An acquisition is a legal transaction in which two or more organizations combine operations through an exchange of stock and create a third entity. An acquisition is a business transaction that occurs when one company purchases and gains control over another company.
These transactions are a core part of mergers and acquisitions, a career path in corporate law or finance that focuses on buying, selling, and consolidation of companies. Acquisitions are often amicable, meaning both companies are on-board with and negotiate the terms of the transaction. Companies consolidate for a variety of reasons and in several ways, for eg. Horizontal acquisition, vertical acquisition, congeneric acquisition, and conglomerate acquisition.
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3. which sae automation levels are the focus of nhtsa's voluntary guidance for the development of autonomous vehicle technologies?
SAE automation levels are the focus of NHTSA's voluntary guidance for the development of autonomous vehicle technologies Voluntary Guidance focuses on vehicles that incorporate SAE Automation Levels 3 through 5 ADS.
NHTSA has issued a permanent general order requiring manufacturers and operators of vehicles equipped with autonomous driving systems and SAE Level 2 driver assistance systems to report accidents to the agency. Tesla's Autopilot is classified as Level 2 of his 6 SAE levels (0-5). of vehicle automation. At this level, the car can act autonomously, but the driver must always monitor the driving and remain in control at all times.
SAE stands for Society of Automotive Engineers. This form of measurement was used primarily on US-made cars. For this reason, you can almost always find SAE-size wrenches and sockets in the US. AE bushings are measured in inches and less than an inch.
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which managerial style encourages debate and deliberation in order to create an exchange of ideas?
The collegial management approach promotes discussion and consideration to foster an interchange of ideas. Here option A is the correct answer.
The principle of collegial management holds that some or all members of an organization should share authority and take part in decision-making. Employees and stakeholders are encouraged to voice their opinions, take part in discussions, and reach agreements based on common values.
According to the collegial model, employees will work harder to meet organizational needs if they are more aware of the overarching goal of their position. A better company culture and a sense of teamwork between management and employees will be created via cooperation and involvement from all of the members.
Complete question:
Which managerial style encouraged debate and deliberation in order to create an exchange of ideas?
A. Collegial
B. Competitive
C. Formalistic
D. Independent
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if a monopolist is able to increase the amount of product she sells from 400 to 425 units by lowering the price of that product from $40 to $30, her marginal revenue is:
By reducing the cost of her product from $40 to $30, a monopolist can increase the number of units she sells from 400 to 425, her marginal revenue is: $-130.
By definition, the monopolist will encounter the industry's downward-sloping demand curve. The American Tobacco Company, The Standard Oil Company, and Andrew Carnegie's Steel Company are three of the most well-known American monopolies to date. A monopoly is a type of imperfect competition in which a seller or manufacturer captures the majority of the market because there are no substitutes or competitors.
The following illustrates how the marginal revenue was calculated:
As we know that
Total revenue = Price × Quantity
For 400 units, the total revenue is
= 400 × $40
= $16,000
And for 420, the total revenue is
= 425 × $30
= $12,750
Now the marginal revenue is
= ($12,750 - $16,000) ÷ (425 units - 400 units)
= -$130
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question 1 imagine you are managing a project that hits a major milestone early, putting the team ahead of schedule. this alters the project plan’s original course of action. what is the name for this type of event?
Assume you are in charge of a project that goes above and beyond expectations by hitting a significant milestone earlier than expected. The initial course of action in the project plan is changed as a result. This type of event is deviation.
Project milestones designate particular locations along a project's schedule. They serve as checkpoints that show when a phrase or set of activities has ended or when a new one has begun.
A project milestone is often a significant occurrence that takes place over the course of the project. Here are a few typical project milestone examples: completing important project deliverables, such as the initial iteration of your software. The beginning or conclusion of a significant project phase, such as the "planning phase" or "designing phase."
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A(n) _____ is the generalized expectancy that reinforcing events are NOT under one's control and that one is not responsible for major outcomes in life.A. internal locus of controlB. pessimistic explanatory styleC. optimistic explanatory styleD. external locus of control
A internal locus of control is the generalized expectancy that reinforcing events are NOT under one's control and that one is not responsible for major outcomes in life.
Expectancy is the conviction that putting more effort into a work will provide the desired results. This may depend on the person's confidence level and how challenging they view their goal to be. Expectancy control is the conviction that your rewards will rise together with your work level. Expectancy is the conviction that one's reward may increase if one increases their effort. Expectancy is what drives a person to gather the necessary resources to complete the task.
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Novak Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $430000 and credit sales are $1720000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Novak Corp. make if the Allowance for Doubtful Accounts has a credit balance of $4300 before adjustment?
A Bad Debt Expense
12900
Accounts Receivable
12900
B Bad Debt Expense
8600
Allowance for Doubtful Accounts
8600
C Bad Debt Expense
25800
Allowance for Doubtful Accounts
25800
D Bad Debt Expense
17200
Allowance for Doubtful Accounts
17200
Option D is correct. The adjusting entry that Novak Corp. will make is Bad Debt Expense 17200, Allowance for Doubtful Accounts 17200.
The basic formula for figuring out the percentage of bad debt is pretty straightforward. Divide the entire accounts receivable for a period by the bad debt amount, then multiply the result by 100.
There are primarily two ways for businesses to determine their bad debts. The first approach, referred to as the direct write-off approach, uses the actual amount of the debt that is not collectible. The precise percentage of bad debt can be determined by taking this figure and dividing it by the total amount of accounts receivable for the period.
A corporation may be in jeopardy if the amount of bad debt as a percentage of sales is rising. As a result, tracking the percentage of bad debt over time can be valuable. This is the procedure.
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question 4 you are presenting to your stakeholders and want to convey confidence. how should your body language reflect your composure? select all that appl
Keep your body language poised when presenting if you want to come off as confident to your audience. You may also prevent disturbing your audience by standing upright, being motionless, and making eye contact.
It relates to a type of non-verbal communication in which a combination of physical cues may be used to send a message. Examples include gestures, which show a stronger expression of what is being said, and eye contact, which shows assurance.
In order to project confidence during a business presentation, it is crucial to employ body language, a type of communication that may transmit nonverbal messages. It is crucial for the speaker to recognize and match his body language to the expectations of his listeners in order to increase engagement and credibility for what is being conveyed.
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jewel's buyer client recently bought a house, and jewel can now be compensated for her work as a kansas buyer's agent. from whom will jewel receive her commission check?
Jewel's buyer client recently bought a house, and jewel can now be compensated for her work as a kansas real estate agent. Jewel will receive her commission check from her employing broker.
A real estate agent is a qualified individual who coordinates real estate transactions by connecting buyers and sellers and representing them in discussions. The ability to close a deal determines how much money a real estate agent makes because commissions, which are often a percentage of the property's purchase price, make up the majority of their compensation.
A real estate agent must, in virtually every state, work for or be associated with a real estate broker either an individual or a brokerage firm, who is more skilled and has a higher level of licensing. Typically, real estate brokers choose to focus on either commercial or residential properties.
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euro credits feature rollover pricing. multiple choice all of the options because of the rollover pricing feature, a euro credit may be viewed as a series of shorter-term loans, where at the end of each time period (generally three or six months), the loan is rolled over and the base lending rate is repriced to current libor over the next time interval of the loan. rollover pricing was created on euro credits so that euro banks do not end up paying more on euro currency time deposits than they earn from the loans. the lending rate on these euro credits is stated as libor x percent, where x is the lending margin charged depending upon the credit worthiness of the borrower. libor is reset according to a set schedule.
In order to prevent Euro banks from having to pay more for time deposits in Euros than they make from the loans, rollover pricing was implemented for Euro credits.
What does stock rollover mean?When you rollover, you open the identical new position in a contract further out in time after closing your old position close to its expiration date. Simply said, a rollover is the process of carrying over your position from one month to the next.
What are the various rollover types?Direct and indirect IRA rollovers are the two basic varieties, and it's critical to adhere to Internal Revenue Service (IRS) guidelines to prevent incurring taxes and penalties. The safest way to transfer assets from one retirement account to another is through a direct rollover because no money is handled by you during the transfer.
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which of the following is consistent with the idea that high money supply growth leads to high inflation? a. the quantity theory and data from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland. b. the quantity theory but not evidence from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland. c. evidence from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland but not the quantity theory. d. neither the quantity theory nor evidence from classic hyperinflations that occurred during the 1920s in austria, hungary, germany, and poland.
The quantity theory and evidence from 4 hyperinflations in the 1920s is consistent with the idea that high money supply growth leads to high inflation.
What is meant by the "quantity theory of money"?The quantity theory of money states that the relationship between an economy's money supply and price level is inverse. In proportion to changes in the money supply and vice versa, the price level fluctuates.
What causes hyperinflation to happen?Hyperinflation is caused by a country's money supply growing quickly, frequently as a result of a government creating more and more currency. As more cash is made available, the value of each unit decreases, driving up costs.
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to avoid sharing control with someone they do not know or like, it would be most effective for the shareholders of a close corporation to
To avoid sharing control with someone they do not know or like, shareholders of a close corporation should restrict the transferability of shares to outsiders.
What is the work of a Shareholders?
A shareholder (also known as a stockholder) of a corporation is an individual or legal entity (such as another corporation, a governmental body, a trust, or a partnership) who is registered by the corporation as the legal owner of shares of a public or private corporation's share capital. Members of a corporation may be referred to as shareholders. A person or legal entity becomes a shareholder in a corporation when their name and other details are entered in the corporation's register of shareholders or members, and the corporation is not required or permitted to inquire about the beneficial ownership of the shares unless required or permitted by law.
So, the correct answer is to restrict the transferability of shares to outside persons.
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