Ida as an employee in the firm s involved in her firm's
promotion
strategy.
What is promotion?
In the
marketing
sector, "promotion" refers to any marketing communication intended to inform target audiences of the relative merits of a certain good, service, concept, or brand. Usually persuasive in nature, promotional messages. Marketing professionals can make a lasting impression on their target audience by following both a cognitive and an emotive path. Promoting a brand aims to increase awareness of it, strengthen customer loyalty to it, or boost sales.
Promotion
is one of several elements that make up the promotional mix or plan. They also comprise word-of-mouth, advertising, sales promotion, and direct marketing publicity in addition to event marketing, exhibits, and trade shows. Promotion describes the marketing techniques a company uses to reach out to
customers
and tell them about its products.
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Several artists in Norfolk, Virginia, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Norfolk so tourists and art lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the sales clerk at the gallery. In terms of the marketing channel, the artist who is on duty in the gallery is acting as a(n) _________.
Several artists in Norfolk, Virginia, have created an arrangement to sell their paintings. They have set up an art gallery in downtown Norfolk so tourists and art lovers can look at their paintings and buy the ones they like. Each artist takes a turn acting as the sales clerk at the gallery. In terms of the marketing channel, the artist who is on duty in the gallery is acting as a(n) retailer.
Expressionism, way during which the creative person seeks to depict not objective reality however rather the subjective emotions and responses that objects and events arouse inside an individual.
The purpose of a channel intercessor is to maneuver product to shoppers, whether or not business or client. Some intermediaries take title, or possession, of the merchandise from the producer. This suggests that they will set the value and management the ultimate technique of sale as a retailer. this might be an example of a merchant.
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Which is NOT a primary function of Excel?
OA. Word processor
O C. Simple database
OB. Charting tool
OD. Spreadsheet
Answer:
word processor
Explanation:
Word processors are primarily about producing (formatted) documents generally inteded to be read such as books, articles, papers, etc.
Excel, and spreadsheets in general, are about displaying and calculating numeric results or other data organized as rows and columns (spreadsheets).
So, no, word processing is not a primary or even secondary function of Excel.
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one of the biggest financial benefits of starting early to save for your retirement fund is related to:increased cost of living.compound interest.lower tax deductionsinflation.reduced expenses.
One of the biggest financial benefits of starting early to save for your retirement fund is related to Compound interest.
Compound interest can be defined as "interest on the principal of a loan or deposit". Simply put, compound interest is interest added to the principal so that interest is earned during the next compounding period.
Compound interest is adding interest to the principal of a loan or deposit, i.e. principal plus interest.
The more money you invest and the earlier you start investing in your retirement savings, the more likely your retirement savings will grow and double.
This type of funding is related to compound interest.
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attestation standards apply to engagements in which practitioners are engaged to issue or do issue an examination, a review, or an agreed-upon procedures report on subject matter or an assertion about subject matter that is the responsibility of another party.
Attestation standards presented in the Codification of the Statements on Standards for Attestation Engagements apply to engagements where practitioners are engaged to issue or do issue an examination.
The aim of attestation standards is to deliver guidance, make boundaries around a growing service line, explain a measure of quality, and highlight the objectives that should be reached when performing attestation engagements. There are three kinds of attestation services: compilation, review, and audit.
Attestation standards further add assurance to details other than historical financial statements. For instance, an attestation can be a signature on the bottom of a legal papers from a notary public showing that he or she saw the author write out and sign the document
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Which of the following is consistent with goods and services being distinct for purposes identifying separate performance obligations? The seller regularly sells the good service separately The buyer could use the good or service on its own. The buyer could use the good or service in combination with goods or services the buyer could obtain elsewhere. All of the above
The following is consistent with goods and services being distinct for purposes identifying separate performance obligations as the seller regularly sells the good service separately.
Goods are matters that fulfil human wishes and feature software in economics. It is regular preparation to differentiate among transferable merchandise and non-transferable services. A suitable is called a "financial suitable" if its call for outweighs its deliver and it calls for human attempt to achieve.
Free matters, however, like air, are constantly to be had and do not require any intentional attempt to obtain. Private items are gadgets that human beings own and use on a each day foundation which can be unrelated to food, inclusive of televisions, couches, wallets, mobileular phones, and almost some thing else.
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Your final behavioral interview question involves using metrics to answer business questions. Your interviewer hands you a copy of PatelEventsData.
Then, she asks:
Recently, Patel Events Plus purchased a new venue for our events. If we asked you to calculate the return on investment of this purchase, which metrics would you use?
O Purchase date
O 2019 events held at new venue (column D)
O Net profit in 2019 (column F)
O Purchase price (column C)
Net profit in 2019 is the metric to use (column F).
What is Net profit?The amount you make after deducting all legal business expenses is known as your net profit. You track net profit over a specified time frame. For instance, you could locate the first quarter's net profit.Finding and monitoring net profit can be straightforward, especially if you use simple accounting software. You input your financial transactions into the software. The computer program then computes totals for you. Net income, in both business and accounting, is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a given accounting period. Net profit is the amount of money your company makes over a specific time period after subtracting all operating, interest, and tax costs.To learn more about financial transactions refer to:
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TRUE/FALSE. after learning about behavioral economics, it is clear that: traditional theory would stay but take a second place behind behavioral economics. traditional theory does not explain all consumer decisions, but it sheds light on many of them. including behavioral economics in an economic model would add unnecessary complexity. we should dispense with the traditional economic theory.
The above case of behavioral economics is True.
The central tenet of behaviorism is that all actions are acquired through interactions with the environment. According to this learning theory, environmental circumstances have a much greater impact on behavior than innate or inherited traits.Teachers rewarding their class or particular pupils with a party or special gift at the end of the week for excellent behavior throughout the week is an example of behaviorism. Punishments utilize the same idea. If the student misbehaves, the teacher has the authority to revoke some rights.To know more about Behavior here
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The trend towards worldwide markets makes it easier to predict where competitors will
spring up.
The move toward global marketplaces makes it easier to foresee where rivals may emerge. With the advent of globalization, and hence the rise of market capitalism across the world, rivals may now come from almost anywhere.
What is the primary goal of globalization?Globalization, sometimes known as globalization, is the process of contact and integration among people, businesses, and governments all over the world. The term globalization initially arose in the early twentieth century, evolved into its modern meaning somewhere in the second half of the twentieth century, and became popular in the 1990s to characterize the post-Cold War world's unparalleled worldwide connection. Its beginnings may be traced back to the 18th and 19th centuries when transportation and communication technologies advanced.
Globalization changes the interactions between governments, companies, and individuals. It explicitly modifies the nature of economic activity between nations by boosting commerce, developing global supply chains, and facilitating access to natural resources and labor markets.
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Consider a 8.4 percent coupon bond with eleven years to maturity and a current price of $1,041.40. Suppose the yield on the bond suddenly increases by 2 percent.
a. Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $
b. Calculate the new bond price. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price $
a. The new price of the Bond will be: $883.32
b. The new price of the Bond is B0: $882.21
How do coupon bonds function?A coupon bond is a form of bond that has attached coupons and pays periodic (usually annual or semi-annual) interest payments as well as its par value upon maturity. These bonds have a coupon rate, which is the bond's yield at the time of issuance.
a. Yr F.I PVF 8.4% PV of Inflow Yr × PV of inflow
1 84 0.9225 77.491 77.49
2 84 0.8510 71.486 142.97
3 84 0.7851 65.946 197.84
4 84 0.7242 60.836 243.34
5 84 0.6681 56.122 280.61
6 84 0.6163 51.773 310.64
7 84 0.5686 47.761 334.33
8 84 0.5245 44.060 352.48
9 84 0.4839 40.646 365.81
10 84 0.4464 37.496 374.96
11 1084 0.4118 446.391 4910.30
Total 1000.00 7590.78
Bond Duration: 7590.78/1000 7.591
Change in Price = -1*Bond Duration*Change in YTM
Change in Price = -1*7.591*2%
Change in Price = -15.18%
Bond Price = 1041.40
Change in Bond Price = 1041.40 + (1041.40*-15.18%)
Bond Price = $883.32
b. Bond Price B0= (Annual Interest*(PVIFA 11%, 10 years)+(Maturity Value*(PVIF 11%,10 years)
Face Value= 1000
Interest Rate= 8.4%
Annual Interest= 84
YTM 8.4+2= 10.4%
Years to maturity= 11
Bond Price B0= (Annual Interest*(PVIFA 10.4%, 11years) + (Maturity Value*(PVIF 10.4%,11 years)
Bond Price B0= (84*(PVIFA 10.4%, 11years) + (1000*(PVIF 10.4%,11 years)
Bond Price B0= (90* 5.8892) + (1000*0.3522)
Bond Price B0= 530.028+352.1845
Bond Price B0= 882.21
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Here is a chart from the ILBE function displaying U.S. 10-year inflation expectations as of early 2019. At the point in time shown, where is the country's 10-year inflation expectation in relation to the Central Bank's inflation target?
O 0.0239% above
O 0439% below O 0.9561% below O 1.9561% above
B) the lower target for inflation set by the Central Bank. People are more likely to demand wage increases and put off making purchases as a result of rising inflation.
How are inflation expectations calculated?
The 10-year breakeven inflation rate is one widely used indicator of market-based inflation expectations. By comparing yields on 10-year Treasury Inflation Protection Securities (TIPS), whose yield is linked to changes in the CPI, and 10-year nominal Treasury yields, the breakeven rate can be calculated.
What is the forward inflation expectation rate for the next five years?
The 5-Year, 5-Year Forward Inflation Expectation Rate is 2.17 percent, up from 2.21 percent the day before and 2.07 percent last year. This is lower than the 2.25 percent average over the long run.
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TRUE/FALSE. when a competitive firm maximizes profit, it will hire workers up to the point where the question 12 options: marginal product of labor is equal to the product price. marginal product of labor is equal to the wage. value of the marginal product of labor is equal to the product price. value of the marginal product of labor is equal to the wage.
This option is true, the fee of the marginal product of labor is equal to the wage.
A competitive, profit-maximizing association hires employees up to the point where the price of the marginal product of labor is equal to the wage.
What is marginal product with example?A right example of the marginal product of labor is a kitchen in a restaurant. With no cooks, the restaurant's production will be zero When one cook is hired, the restaurant's manufacturing can also extend to 10 meals, yielding a fine MPL of 10.
What is marginal profit formula?Marginal profit (MP) = Marginal income (MR) - marginal value (MCMC) In current microeconomics, companies in competition with every other will tend to produce units till marginal fee equals marginal income (MCMC=MR), leaving successfully zero marginal profit for the producer.
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https://brainly.com/question/29051154#SPJ4Chin is extremely risk averse. This means that his utility function will have a ____ slope that ____ becomes more horizontal as his wealth rises. negative; slowly negative; rapidly positive; slowly positive; rapidly
Option (c), Chin has a very low risk tolerance. Thus, as his wealth increases, his utility function will gradually become more horizontal and have a positive slope.
What is shown by the law of declining marginal utility.The concept of declining marginal utility shows how an increase in subjective value increases ever more slowly with each additional unit of benefit. For instance, three sweet bites instead of two are desirable, but the experience does not considerably improve beyond the nineteenth bite (and could even make it worse).
What various utility functions exist?Form, time, place, and possession are the four different types of economic utility. By studying and identifying areas in which their marketing efforts fall short, businesses can examine consumer purchase decisions and discover the elements driving those decisions, which will enhance sales and profits.
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which of the following scenarios would serve to decrease the demand for unskilled labor in our country? question 24 options: increased productivity gains among the unskilled laborers increased demand for goods produced by unskilled labor increased international trade with countries where unskilled labor is more plentiful increased supply of migrant workers
Increased international trade with countries where unskilled labor is more plentiful could decrease the demand for unskilled labor in the country, as companies may be able to import goods produced by unskilled labor from these countries at a lower cost than they could produce the goods domestically.
What is unskilled labor?Unskilled labor refers to work that does not require specialized training or education. Unskilled labor is typically associated with manual or physical labor and may involve tasks such as cleaning, construction, or assembly line work. Unskilled labor is typically paid at a lower rate than skilled labor, as it does not require the same level of expertise or education.
What are some factors that can affect the demand for unskilled labor?Economic conditions: During economic downturns, demand for unskilled labor may decrease as businesses reduce their operations or lay off workers.
Technological advances: The adoption of technology that can automate or replace unskilled labor can lead to a decrease in the demand for unskilled labor.
Changes in the price of goods or services produced by unskilled labor: An increase in the price of goods or services produced by unskilled labor may lead to a decrease in the demand for these goods or services, which could in turn lead to a decrease in the demand for unskilled labor.
Changes in immigration policies: Changes in immigration policies that affect the availability of migrant workers may also affect the demand for unskilled labor.
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In the presence of heteroskedasticity, and assuming that the usual least squares assumptions hold, the OLS estimator is a. efficient b. BLUE c. unbiased but not consistent d. unbiased and consistent
In the presence of heteroskedasticity, and assuming that the usual least squares assumptions hold, the OLS estimator is unbiased and consistent. Option (d) is correct.
What do you mean by Consistent?Consistent behavior refers to doing something consistently throughout time, particularly in order to be truthful or accurate.
If every random variable in a series (or vector) has the same finite variance, the sequence or vector is said to be homoscedastic in statistics. Another name for this is homogeneity of variance. Heteroscedasticity is the equivalent concept. Additionally frequently used spellings include homoskedasticity and heteroskedasticity.
When a variable is heteroscedastic when it is actually homoscedastic, the erroneous assumption that it is homoscedastic leads to unbiased but ineffective point estimates, biased estimates of standard errors, and may overestimate the goodness of fit as determined by the Pearson coefficient.
Therefore, Option (d) is correct. In the presence of heteroskedasticity, and assuming that the usual least squares assumptions hold, the OLS estimator is unbiased and consistent.
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Preston performs professional services similar to those of a management accountant while working for the city of Portland. Preston can best be described as a ____.
Preston performs professional services similar to those of a management accountant while working for the city of Portland. Preston can best be described as a government accountant.
Who is known as an accountant?Account analysis, audits, and financial statement analysis are just a few of the activities that an accountant performs while working in the accounting industry. Accountants can start their own business or work for a big company with just an internal finance department or an accounting firm.
Do accountants earn a good living?In conclusion, accounting profession wages can range from $40,000 to $120,000 per year based on education, certifications, firm location, and notably years of experience. The average accounting career salary is $70,000 to $130,000 per year, with a 6% job growth rate by the year 2030.
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a manufacturer is considering eliminating a segment because it shows the following $6,100 loss. all $20,200 of its variable costs are avoidable, and $36,500 of its fixed costs are avoidable.
The income increase or decrease from eliminating this segment is a loss of $ 10, 500.
How to find the income increase o decrease ?If the segment was continued by the manufacturer, the loss would be $ 6, 100 as shown in the question.
If the segment is eliminated, the loss would be:
= Income if the segment continues - Income if the segment is eliminated
= - 6, 100 + 10, 000
= - $ 3, 900
In conclusion, the income decrease would be a loss of $ 10, 500.
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Rest of the question is:
Compute the income increase or decrease from eliminating this segment.
the project will require an initial investment of $300,000 in net working capital. from year 1 onwards, the project requires net working capital level to equal to 10 percent of that year's projected sales. (note: since there is an initial investment in working capital, you only need to determine the net change from year to year. assume that you can recover your working capital investment at the end of the project.
The net working capital required for the project will be $600,000.
What is a working capital?Working capital (WC) is a financial metric that measures the operating liquidity that a company, organization, or other body, including a government institution, has available. Working capital is included in operational capital together with fixed assets like plant and equipment. Current liabilities less Current Assets equals Working Capital. Even if a business may be profitable and endowed with assets, it may lack liquidity if its assets cannot be quickly transformed into cash. To ensure that a company can continue operating and has enough money to pay both maturing short-term debt and impending operational expenses, it has to have positive working capital. Inventory, accounts receivable and payable, and the cash management are all a part of working capital management.
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On the statement of activities for a private, not-for-profit literary society, expenses decrease which of the following classes of net assets?
I. temporarily restricted net assets
II. unrestricted net assets
A. I only
B. II only
C. Either I or II
D. Neither I nor II
Unrestricted net assets are reduced by expenses on the statement of activities for a private literary society that is not for profit.
What Kind of Net Assets Are Unrestricted?
Donations to unrestricted nonprofit organizations constitute unrestricted net assets. That is, the organization can use the assets for any legitimate expense or general expenses.
What are the three kinds of restrictions on net assets?
Thus, unrestricted, temporarily restricted, and permanently restricted are the three categories of net assets.
What kinds of unrestricted net assets are there?
Therefore, the term "unrestricted net assets" refers to any kind of asset donated to a nonprofit organization by donors—whether it be cash or an asset—that can be used for any purpose at any time.
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Suppose that two firms, Lucky Bird and Full Coop, are the only sellers of seitan buffalo wings in some hypothetical market. The following payoff matrix gives the profit (in millions of dollars) earned by each company depending on whether or not it chooses to advertise: For example, the lower left cell of the matrix shows that if Full Coop advertises and Lucky Bird does not advertise, Full Coop will make a profit of 18 million, and Lucky Bird will make a profit of
$2
million. Assume this is a simultaneous game and that Lucky Bird and Full Coop are both maximizing firms. If Lucky Bird chooses to advertise, it will earn a profit of million if Full Coop advertises and a prof advertise. If Lucky Bird chooses not to advertise, it will earn a profit of million if Full Coop advertises and a prof not advertise. If Full Coop advertises, Lucky Bird makes a higher profit if it chooses If Full Coop doesn't advertise, Lucky Bird makes a higher profit if it chooses Suppose that both firms start off by deciding not to advertise. If the firms act independently, what strategies will they end up choosing? Both firms will choose to advertise. Lucky Bird will choose not to advertise and Full Coop will choose to advertise. Both firms will choose not to advertise. Lucky Bird will choose to advertise and Full Coop will choose not to advertise. Again, suppose that both firms start off not advertising. If the firms decide to collude, what strategies will they end up choosing? Lucky Bird will choose to advertise and Full Coop will choose not to advertise. Both firms will choose not to advertise. Both firms will choose to advertise. Lucky Bird will choose not to advertise and Full Coop will choose to advertise.
Suppose that both firms start off by deciding not to advertise. If the firms act independently, Both firms will choose to advertise.
Again, suppose that both firms start off not advertising. If the firms decide to collude Both firms will choose not to advertise
What is game theory?A classic theory that has applications in almost every field is game theory. The development of competing alternative strategies is a key aspect of game theory, and in this regard, it serves as a crucial tool in the decision-making process when the pertinent content changes.
Let's say neither company decides to advertise at first. Independently, both businesses will decide to advertise. Once more that neither company advertises at first. If the businesses decide to cooperate Both businesses will decide against advertising.
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which of the following describes the coordination of all supply chain activities, starting with raw materials and ending with a satisfied customer?
group of answer choices O keiretsu company coalition.
O total quality management (tqm) O six-sigma quality standard. O supply chain management
Option (d), The management of the entire supply chain, from the raw materials to the delighted client, is referred to as supply chain coordination.
What is meant by raw materials in supply chain management?The first phases of creating or making things involve the usage of raw materials, which are elements or substances. Raw resources are traded as commodities on commodity exchanges all around the world. Raw materials are traded on the factor market by firms since they are production factors.
What do you mean by supply chain management? How are quality and service managed in retail?Some of these responsibilities include the creation of new products, marketing, operations, distribution, financing, and customer service. Supply chain management is the process of organizing the flow of tangible goods and associated data from the assembly line of low-level component suppliers to the ultimate consumer (SCM).
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japan and the united states are trading partners with flexible exchange rates. the currency of the united states is the dollar, and the currency of japan is the yen. which of the following changes in the united states will most likely increase aggregate demand in japan?
Changes in exchange rate of dollars in the United States will most likely increase aggregate demand in Japan.
What is aggregate demand and an illustration?On the other hand, aggregate demand calculates the total market value of every good and service an economy generates and expresses it as a sum in dollars. A nation might, for instance, have a $1 billion annual aggregate demand for products and services.
Why is it significant?In any economy, aggregate demand is a way to examine all of the demand for products and services. It is a macroeconomics instrument that can be used to estimate or forecast a country's total economic strength for a specific time period, usually a year.
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Assume the expected inflation rate in a country is 3%, the current unemployment rate is 4%, and the natural rate of unemployment is 5%. (a) Draw a correctly labeled graph of the short-run and long-run Phillips curves. Label the current short-run equilibrium as point X and plot the numerical values above on the graph. (b) Is the actual inflation rate greater than, less than, or equal to the expected inflation rate of 3%? (c) Assume loans were made taking into account the expected inflation rate of 3%. Will borrowers be better off or worse off after they realize the actual inflation rate identified in part (b)? Explain. (d) Suppose there is a worldwide increase in demand for the goods produced in this economy, as a result, what is the impact of this change on SRPC, mark the point Y on the graph to show the impact.
(b) The actual inflation will be greater than the expected inflation rate of 3%.
(c) The borrowers be better off after they realize the actual inflation rate identified in part (b)
What is Inflation?The inflation is a persistent rise in prices of commodities and services. Inflation leads to decline of purchasing power of the people over time.
Inflation is mostly classified into three types: demand-pull inflation, cost-push inflation, and built-in inflation. The most commonly used inflation indexes are the Consumer Price Index and the Wholesale Price Index.
The inflation impact in a different way in different sections of the economy. Like it is benefiting the debtors but consumers are negatively impact due to price rise of commodities.
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A master production schedule is used to develop detailedA) timetables of daily production and determine raw material needs.B) reports on daily production and material usage.C) daily reports on direct labor needs.D) inventory charts.
A master production schedule is used to develop detailed A) timetables of daily production and determine raw material needs.
The Master Production Schedule (MPS), a component of production planning, specifies which goods must be produced when and in what quantities.
The materials to be utilized in production, the people who will be assigned to each task, and other specifics are typically not covered in a master production schedule.
Instead, it functions more like a contract between the sales and manufacturing departments, balancing supply and demand by specifying the amounts to be produced and the timelines for doing so.
In situations of Make-to-Stock manufacturing, where demand forecasts guide production planning, the Master Production Schedule is an essential instrument.
An MPS must be accurate and practical because it is frequently employed as the primary driver of production activity for it to have a favorable impact on the profitability of a business.
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ney Edison has saved $30 per week to buy a new Blu-Ray player. He compares two difterent models a Panaview thas priced a $130 and a Zony mode that is priced at $140. Edison decides to purchase the Zony Blu-Ray player for $140. Identify what role money plays in each of the following parts of the story Hint: Select each role only once. Role of Money Edison can easily determine that the Panaview model has a lower model Edison seved $30 per week. Edison pays S140 for th, ?
The Panaview model is less expensive than the Zony type, as Edison can easily ascertain.
What role money plays in each of the following parts?Every week, Edison sets aside $30. His funds will retain their value over time as a store of value. The Blu-ray player costs $140, which Edison pays. Since he acquired the player in return for cash, a medium of trade.
Liquidity is the ease and speed with which assets can be turned into cash. $10 bills are the most liquid, followed by money market accounts.
Shares are in third place since selling a share requires a transaction and a cost. Boat is the least liquid asset because it takes time to sell and turn into cash. Cigarettes have intrinsic value, albeit not monetary value. commodity currency.
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the marketing concept states that you almost never need to consider the needs and wants of the customers when developing a marketing mix.
The marketing concept is based on the idea that a company should focus on the needs and wants of customers when creating the marketing mix. This means that businesses should put customers first to create value for them and ensure that the company is profitable.
Customer requirements should be considered when designing products, services and prices. Companies should also consider customer feedback and preferences when determining how to market and promote their offerings. The marketing concept is therefore incorrect in its claim that a company should never consider the needs and wishes of its customers when creating a marketing mix.
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property will provide $10,000 a year forever. if its value is $125,000, what must be the discount rate? note: enter your answer as a whole percent.
The discount rate of the property that provide $10,000 a year and the value is $125,000 must be 8%.
What does the discount rate mean?The interest rate used to determine the present value of future cash flows in a discounted cash flow, DCF analysis is referred to as the discount rate. This aids in determining if the present-day capital outlay required to fund a project or investment will be greater than the value of the projected future cash flows from that project or investment. Thus a positive NPV indicates that the venture is viable; otherwise, it is not. A company can select the best discount rate from a range of options.
Discount rate from the PV perpetuity = cash payment / interest rate
Hence,
The Interest Rate = cash payment / PV perpetuity
Given:
r = 10000/125000
= .08 or 8%
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Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has identified two attractive alternatives. One involves purchasing a machine that would enable Mr. Fitch to offer frozen yogurt to customers. The machine would cost $16,200 and has an expected useful life of three years with no salvage value. Additional annual cash revenues and cash operating expenses associated with selling yogurt are expected to be $12,400 and $1,800, respectively.
Alternatively, Mr. Fitch could purchase for $20,160 the equipment necessary to serve cappuccino. That equipment has an expected useful life of four years and no salvage value. Additional annual cash revenues and cash operating expenses associated with selling cappuccino are expected to be $17,000 and $4,860, respectively.
Income before taxes earned by the ice cream parlor is taxed at an effective rate of 20 percent.
Required
Determine the payback period and unadjusted rate of return (use average investment) for each alternative. (Round your answers to 2 decimal places.)
Alternative 1 Alternative 2
Payback period years years
Unadjusted rate of return % %
The payback period for alternative 1 is 1.69 years and alternative 2 is 1.88 years. The unadjusted rate of return is 51.36 for alternative 1 and 56.35 for alternative 2.
Give a brief account on payback period.The payback period is the amount of time required to recover an investment's cost. It is simply the amount of time it takes for an investment to make a profit. Because people and businesses invest money largely in order to be compensated, the payback period is important. The faster an investment pays out, the more tempting it becomes in theory. Calculating the payback period by dividing the original investment by the typical cash flows is useful for everyone. Investors, financial experts, and businesses frequently compute investment returns using the payback time. It aids in estimating the length of time needed to recoup an investment's initial costs.
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Caroline was found liable in an accident. This was probably not due to negligence on her part.
Caroline was found liable in an accident. This was probably not due to negligence on her part. FALSE Usually, liability is because of negligence.
If the motorist is determined to be at blame for the incident, they are entirely responsible for the accident, the injuries, and the damages. To receive payment for the losses you suffered, you must file an accident liability claim. You need to identify the responsible party after an accident. The person who caused the accident is the one who is accountable. There may be several responsible parties. However, a third person, such as an employer, who was unrelated to the collision may also be held accountable for the harm.To know more about Liability here
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Which of the following funds use the accrual basis of accounting?I. Enterprise fundII. Agency fundIII. Internal service fundA.I onlyB.II onlyC.I and III onlyD.I, II, and III
D. I, II, and III. All three types of funds use the accrual basis of accounting, which requires revenue to be recognized when it is earned and expenses to be recognized when they are incurred, regardless of when cash is received or paid out.
What is revenue?Revenue is the total amount of money that a business or organization takes in during a given period of time. It is the money generated from selling goods or services, as well as from other activities such as interest and investments. Revenue is the top line or gross income figure from which costs and expenses are subtracted to determine net income or profit. Revenue is also known as turnover or sales and is one of the core components of a company’s financial statement. Revenue is important to businesses because it indicates whether or not the business is generating enough income to cover costs, generate profits, and grow.
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Which of the following terms is used to refer to a focal firm's partial ownership of an existing firm?
A) turnkey operation
B) greenfield investment
C) direct investment
D) equity participation
The correct answer is equity participation. Equity participation refers to the possession of shares in a very company or property. Equity participation might involve the acquisition of shares through choices or by permitting partial possession in exchange for finance.
The larger the equity participation rate, the upper the share of shares owned by stakeholders. The term “equity participation” refers to fairness and justice and is distinguished from equality: Whereas equality means that providing a similar to any or all, equity means that recognizing that we tend to don't all begin from a similar place and should acknowledge and build changes to imbalances.
In finance, "participation" is possession interest during a mortgage or alternative loan. Especially, participation loan may be a cooperation of multiple lenders to issue a loan (known as participation loan) to 1 receiver. This can be sometimes wiped out order to scale back individual risks of the lenders.
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