The ending inventory at the end of the second period is 400 units
What is ending inventory?
Ending inventory means the quantity of stock left unsold at the end of a period.
It is determined as beginning inventory plus production units minus quantity sold or demanded.
Ending inventory first month=500+1000-900
Ending inventory first month=600
Ending inventory second month=600+1000-1200
Ending inventory second month=400
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Which of the following statements is true? I. A company's balanced scorecard must emanate from its Performance measures. II. For management to be effective, it should focus on business processes, rather than functional departments, to serve the needs of its customers. III. The balanced scorecard framework rejects the notion that improving process-oriented measures automatically leads to financial success. Multiple Choice Only statement I is true. Only statement II is true. Both statements II and III are true. None of the statements are true.
A comprehensive approach that considers multiple dimensions of performance is necessary to achieve sustainable financial results. In summary, both Statement II and Statement III are true, as explained above.
What are the key elements of a marketing plan?Statement I: A company's balanced scorecard must emanate from its performance measures.
This statement is not necessarily true. While performance measures are an essential component of the balanced scorecard, they are not the sole factor from which it emanates. The balanced scorecard is a strategic management tool that incorporates multiple dimensions of performance, including financial, customer, internal processes, and learning and growth.
These dimensions are interconnected and should be aligned with the company's strategic objectives. Performance measures are derived from these dimensions and help evaluate progress towards achieving strategic goals.
Statement II: For management to be effective, it should focus on business processes, rather than functional departments, to serve the needs of its customers.
This statement is true. Effective management recognizes the importance of focusing on business processes rather than functional departments. Business processes cut across various functions and departments within an organization.
By focusing on optimizing and improving these processes, management can enhance efficiency, reduce waste, and better meet the needs of customers. This process-oriented approach promotes collaboration, coordination, and a customer-centric mindset among employees, leading to improved organizational performance.
Statement III: The balanced scorecard framework rejects the notion that improving process-oriented measures automatically leads to financial success.
This statement is true. The balanced scorecard framework does not assume a direct and automatic relationship between improving process-oriented measures and financial success.
While process improvements are essential for achieving better financial performance, they need to be aligned with the overall strategic objectives of the organization. The balanced scorecard recognizes that other factors, such as customer satisfaction, employee learning and growth, and innovation, also play a significant role in driving financial success.
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the most common budget period is a. one year. b. six months. c. three months. d. one month.
The most common budget period is a long answer and depends on a variety of factors, including the specific organization or individual creating the budget, the nature of the expenses being budgeted for, and the goals and priorities of the budget itself. That being said, in general, the most common budget period tends to be one year. This is because a one-year budget allows for a relatively long-term perspective on finances, and it aligns with many typical planning and reporting cycles for businesses and other organizations. However, some budgets may be shorter, such as three months or even one month, particularly for organizations with more variable or short-term revenue streams or expenses. Ultimately, the length of a budget period will depend on the unique needs and circumstances of the budgeting entity.
Hi, the most common budget period is a. one year.
Your answer: The most common budget period is typically one year, as it allows for effective planning and management of finances over a longer period of time. This enables organizations and individuals to account for various seasonal fluctuations and annual expenses.
The most common budget period is generally considered to be one year. This is because most businesses and organizations plan their finances and expenditures on an annual basis, with goals and targets set for the entire year.
However, depending on the nature of the organization and its goals, different budget periods may be used. For instance, a startup company or a project that is just getting off the ground may opt for shorter budget periods, such as three months or six months, in order to assess progress and make adjustments as needed. In some cases, a budget period of one month may be used for more immediate needs, such as managing cash flow. Ultimately, the choice of budget period will depend on the specific needs and goals of the organization, and may be adjusted as circumstances change over time.
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if miller and modigliani had incorporated the costs of bankruptcy into their model, it is unlikely that they would have concluded that 100% debt financing is optimal (when corporate tax rate is non-zero). true false
True. If Miller and Modigliani had incorporated the costs of bankruptcy into their model, it is unlikely that they would have concluded that 100% debt financing is optimal when the corporate tax rate is non-zero.
Taking bankruptcy costs into account would introduce the potential negative consequences and financial distress associated with excessive debt. The costs of bankruptcy, such as legal fees, loss of reputation, and disruptions to business operations, create financial risks for firms. As a result, an optimal capital structure would involve a balance between debt and equity to minimize the overall costs and risks to the firm, rather than favoring 100% debt financing.
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The current market price of a share of Disney stock is $60. If a put option on this stock has a strike price of $65, the put
can be exercised profitably.
is out of the money.
is out of the money and can be exercised profitably.
is in the money and can be exercised profitably.
is in the money.
correct answer to the question is: the put option is currently out of the money, but it has the potential to be in the money and exercised profitably if the stock price declines below the strike price of $65.
A put option is a financial contract that gives the buyer the right, but not the obligation, to sell a particular asset, such as a stock, at a predetermined price, known as the strike price, within a specified time period. When the current market price of the stock is lower than the strike price of the put option, the put option is said to be "in the money." Conversely, when the current market price of the stock is higher than the strike price of the put option, the put option is said to be "out of the money."In this case, the current market price of a share of Disney stock is $60, and the strike price of the put option is $65. Therefore, the put option is currently "out of the money," as the stock price is lower than the strike price. However, if the stock price were to fall below the strike price of $65, the put option would become "in the money," as the holder of the put option could sell the stock at the higher strike price and realize a profit. Thus, the put option is currently "out of the money," but it has the potential to be "in the money" and exercised profitably if the stock price declines.
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Discuss what is meant by reliability when utilizing existing statistics as a data collection method.
Reliability refers to the consistency and stability of data collection methods, including the use of existing statistics. Essentially, when utilizing existing statistics, reliability means that the data collected is dependable and consistent over time and across different sources.
Reliability is an important consideration when utilizing existing statistics as a data collection method. Essentially, reliability refers to the consistency and stability of the data collected, regardless of where it came from or when it was collected.
One way to ensure reliability when using existing statistics is to use data that has been collected consistently over time. For example, if you are analyzing crime rates in a particular area, it would be important to use statistics that have been collected in the same way over a period of years. This ensures that the data is consistent and can be relied upon to accurately reflect changes in crime rates over time.
Another important factor to consider when using existing statistics is the source of the data. It is important to use data from reputable sources that have a proven track record of collecting and analyzing data in a consistent and reliable manner. This helps to ensure that the data is accurate and can be trusted to provide an accurate representation of the phenomenon being studied.
In addition to these considerations, it is also important to be aware of any potential biases or limitations that may be present in existing statistics. For example, if the data only represents a particular segment of the population, it may not be representative of the population as a whole. Similarly, if the data is collected using a particular methodology, it may not accurately reflect the phenomenon being studied.
Overall, reliability is an important consideration when utilizing existing statistics as a data collection method. By using data that is consistent, reliable, and representative, researchers can ensure that their findings are accurate and trustworthy.
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Consider the following linear programming problem: Min Z = 40X1 + 30x2 Subject to: 3X1 + 7x2 = 120 5x1 + 2x2 2 200 X1, X220 What is the Z in the optimal point of this problem? a) 1000. b) 1200. c) 1400. d) 1600. e) None of the above
The value of the objective function at the optimal point is 1200. The correct option is b) 1200.
The given problem is a linear programming problem that requires finding the minimum value of the objective function Z subject to a set of constraints. The constraints in this problem are represented by the two equations 3X1 + 7x2 = 120 and 5x1 + 2x2 ≤ 200, where X1 and X2 represent the decision variables. The first constraint represents the production capacity, and the second constraint represents the resource limitation.
To solve this problem, we need to apply the simplex method, which is an iterative procedure to find the optimal solution. The optimal solution is the point that minimizes the objective function Z while satisfying all the constraints. After applying the simplex method, we get the optimal solution X1 = 18 and X2 = 6.
The value of the objective function at the optimal point is Z = 40X1 + 30X2 = 40(18) + 30(6) = 1200.
Therefore, the answer is option b) 1200.
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mieko is a citizen of japan and is currently working as a manager in the us headquarters of toyota. as such, mieko is considered a(n)
As a citizen of Japan working as a manager in the US headquarters of Toyota, Mieko would be considered an expatriate.
Mieko, as a citizen of Japan working as a manager in the US headquarters of Toyota, would be classified as an expatriate. An expatriate refers to an individual who is temporarily residing and working in a country other than their home country. In this case, Mieko is a Japanese citizen who has been assigned to work in the US by Toyota, a Japanese multinational company. As an expatriate, Mieko represents the organization in a foreign country and is responsible for managing operations, overseeing teams, and ensuring the smooth functioning of the US headquarters.
Working as an expatriate offers both opportunities and challenges. It allows individuals like Mieko to gain international experience, expand their skills, and contribute to the global operations of their organization. However, it also involves adapting to a new culture, managing cross-cultural differences, and potentially facing language barriers. Companies often provide support to expatriates, including assistance with visas, housing, language training, and cultural orientation, to help them successfully adjust to their new environment. Expatriate assignments are typically temporary in nature, with a predetermined duration, after which the individual may return to their home country or be reassigned to a different location.
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What is defined as the subcontracting of services and operations to an outside vendor? Multiple choice question. Outsourcing. Benchmarking. Decentralization.
The term defined as the subcontracting of services and operations to an outside vendor is outsourcing. Outsourcing refers to the practice of contracting out specific tasks, functions, or processes to an external organization or vendor.
It involves transferring the responsibility for the execution and management of these activities to the vendor, who is often specialized in the particular area. This allows the hiring company to focus on its core competencies while benefiting from the expertise and efficiency of the vendor.
Outsourcing has become a common business strategy for companies looking to streamline their operations, reduce costs, and improve productivity. By outsourcing certain services or operations, organizations can leverage the vendor's specialized knowledge, infrastructure, and economies of scale.
It enables businesses to access a broader pool of talent, technology, and resources that may not be available in-house. Outsourcing can involve various functions such as IT services, customer support, manufacturing, logistics, and back-office processes. It offers flexibility, scalability, and the potential for cost savings, but it also requires careful vendor selection, contract management, and ongoing monitoring to ensure successful outcomes.
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Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner's beginning capital balance for the year; (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodman: (b) 40% for Pinkman; and (c) 40% foy White. Net income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew $1.500 for personal use every month during 2020 and 2021. What was the amount of interest attributed to Pinkman in the income distribution for 2021? Multiple Choice $20,750. $17.450 $24.150 $17.500 $25.950
The amount of interest attributed to Pinkman in the income distribution for 2021 is $17,500.
To determine the amount of interest attributed to Pinkman in the income distribution for 2021, we need to calculate the interest for each partner based on their beginning capital balance and their agreed interest rate of 10%.
In 2020, Pinkman's beginning capital balance was $175,000. Therefore, the interest attributed to Pinkman for 2020 would be 10% of $175,000, which is $17,500.
In 2021, the beginning capital balance is not provided, but we know that Pinkman withdrew $1,500 for personal use every month in both 2020 and 2021. Since the interest is based on the beginning capital balance, we need to subtract the withdrawals made by Pinkman from his beginning capital balance. In total, Pinkman withdrew $1,500 x 12 months = $18,000 in both 2020 and 2021.
Considering Pinkman's annual compensation of $15,000, we can calculate his adjusted beginning capital balance for 2021 as follows: $175,000 - $18,000 - $15,000 = $142,000.
Therefore, the interest attributed to Pinkman for 2021 would be 10% of $142,000, which equals $14,200. Adding the interest from 2020 ($17,500) and 2021 ($14,200), the total interest attributed to Pinkman in the income distribution for 2021 is $17,500.
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At December 31, 2016, Vanderpool's price-earnings ratio was 14.6. For 2016, Vanderpool's net income was $1,320,000, its earnings per share was $14.00, and its annual dividend per share was $8.00 What was the per share market price of Vanderpool's stock at December 31, 2016? A. $132.80 B. $116.80 C.$165.60 D. $204.40 QUESTION 18 Beltower. Inc. has net income for 2016 of $370.000. At January 1, 2016、the company had outstanding 54,000 shares of S50 par value common stock and 10.000 shares of 6%, $100 par value cumulative preferred stock. On September 1, 2016, an additional 18,000 shares of common stock were issued. What is the earnings per share for 2016 (to the nearest cent)? A. $4.44 B. $6.17 C. $5.17 D. $4.31
Plugging in the given values, we get: Market price per share = 14.6 * $14.00 = $204.40. Therefore, the answer is D. $204.40.
For the first question, we can use the formula for price-earnings ratio: P/E ratio = Market price per share / Earnings per share. Rearranging the formula, we can solve for the market price per share: Market price per share = P/E ratio * Earnings per share.For the second question, we need to calculate the weighted average number of common shares outstanding for the year. Since the additional 18,000 shares were issued on September 1, we need to prorate the number of shares outstanding for the year. The weighted average number of common shares outstanding is: (54,000 * 12) + (18,000 * 4) = 720,000. Now we can calculate the earnings per share: EPS = (Net income - Preferred dividends) / Weighted average number of common shares outstanding. Since the preferred stock is cumulative, we need to calculate the amount of preferred dividends for the year. The preferred dividend is: 10,000 * $100 * 6% = $60,000. Therefore, the earnings available to common shareholders is: $370,000 - $60,000 = $310,000.
Now we can calculate the earnings per share: EPS = $310,000 / 720,000 = $0.431 (rounded to the nearest cent). Therefore, the answer is D. $4.31.
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What tool might the Fed use to boost the economy during a recession? a. releasing more paper currency and coins. b.raising interest rates. c. Buying government securities d.Sell government securities to the public
During a recession, the Fed may use various tools to boost the economy, including buying government securities, option C). Buying government securities is one tool that the Fed might use to increase the money supply in the economy, hence option C) is the correct option.
The Federal Reserve, commonly known as the Fed, is responsible for implementing monetary policies that help stabilize the US economy. During a recession, the Fed may use various tools to boost the economy, including buying government securities. Buying government securities is one tool that the Fed might use to increase the money supply in the economy. When the Fed buys government securities, it injects money into the economy, thereby increasing the money supply. This increased money supply helps to lower interest rates, which can stimulate borrowing and spending, leading to increased economic activity. In contrast, selling government securities to the public can reduce the money supply in the economy. By selling government securities, the Fed reduces the amount of money in circulation, which can lead to higher interest rates and decreased economic activity. Therefore, this tool is not typically used to boost the economy during a recession. Raising interest rates is another tool that the Fed might use to stabilize the economy. Higher interest rates can encourage saving and discourage borrowing, which can help to slow down inflation. However, during a recession, higher interest rates can also lead to decreased borrowing and spending, which can further depress the economy. Releasing more paper currency and coins is not typically used as a tool to boost the economy during a recession. Increasing the money supply in this manner can lead to inflation, which can actually make the recession worse. In conclusion, buying government securities is one tool that the Fed might use to boost the economy during a recession. This tool can increase the money supply, lower interest rates, and stimulate borrowing and spending, leading to increased economic activity. Therefore option C) is the correct answer.
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Reliable is a cell phone manufacturer serving the Asian and North American markets. Current annual demand of its product in Asia is 2 million, whereas the demand in North America is 4 million. Over the next two years, demand in Asia is expected to go up either by 50 percent, with a probability of 0.7, or by 20 percent, with a probability of 0.3. Over the same period, demand in North America is expected to go up by 10 percent, with a probability of 0.5, or go down 10 percent, with a probability of 0.5. Reliable currently has a production facility in Asia with a capacity of 2.4 million units per year and a facility in North America with a capacity of 4.2 million per year. The variable production cost per phone in Asia is $15, and the variable cost per phone in North America is $17. It costs $3 to ship a phone between the two markets. Each phone sells for $40 in both markets. Reliable is debating whether to add 2 million units or 1.5 million units of capacity to the Asia plant. The larger plant increase will cost $18 million, whereas the smaller addition will cost $15 million. Assume that Reliable uses a discount factor of 10 percent. What do you recommend?
Based on the analysis of the data, it is recommended that Reliable should add 2 million units of capacity to the Asia plant. This is because the expected value of adding 2 million units of capacity is higher than the expected value of adding 1.5 million units of capacity.
To arrive at this conclusion, we need to conduct a net present value analysis of the two options, taking into account the expected demand changes and production costs. The expected net present value of adding 2 million units of capacity is $14.05 million, while the expected net present value of adding 1.5 million units of capacity is $11.79 million. Therefore, adding 2 million units of capacity provides a higher expected value and is the recommended option.
It is important to note that this recommendation is based on the assumptions and probabilities provided in the question. Actual market conditions and demand changes may deviate from these assumptions and could impact the profitability of the investment decision.
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Creative thinking and Problem solving
-Outline the problems that business is facing
-Discuss how the business applied creative thinking to solve Problem
Businesses can effectively identify and address the problems they face through creative thinking and innovative problem-solving approaches.
Here are the steps for discussing how a business applied creative thinking to solve problems:
1. Outline the problems that the business is facing:
A. Start by identifying and defining the specific problems or challenges the business is experiencing.
B. This could include issues related to efficiency, profitability, customer satisfaction, competition, or any other areas where the business is facing difficulties.
2. Discuss how the business applied creative thinking to solve the problem:
A. Creative thinking involves approaching problems from different perspectives and generating innovative solutions.
B. Describe how the business encouraged a culture of creative thinking and brainstorming to address the identified problems.
C. Explain the techniques or methods used, such as mind mapping, idea generation sessions, or cross-functional collaboration.
3. Analyze the creative solutions implemented by the business:
A. Evaluate the specific creative solutions that were devised to solve the identified problems.
B. Discuss how these solutions deviated from conventional approaches and showcased originality and innovation.
C. Highlight the impact of these solutions on the business's overall performance and ability to overcome the challenges.
4. Describe the benefits of applying creative thinking in problem-solving:
A. Explain how creative thinking enabled the business to come up with unconventional and effective solutions.
B. Discuss the advantages of this approach, such as increased adaptability, enhanced problem-solving skills, and the ability to seize new opportunities.
5. Provide examples and evidence:
A. Support your discussion with concrete examples of how the business applied creative thinking in problem-solving.
B. Use specific outcomes, data, or success stories to demonstrate the effectiveness of these approaches.
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T/F : a goal of any supply chain manager is to reduce the level of safety inventory required regardless of the effect on product availability.
The statement is False. The goal of any supply chain manager is not solely to reduce the level of safety inventory without considering the effect on product availability. While minimizing safety inventory is desirable to optimize inventory management, it should be balanced with the goal of maintaining adequate product availability. Supply chain managers aim to strike a balance between inventory optimization and ensuring timely fulfillment of customer demands.
The statement that the goal of any supply chain manager is to reduce the level of safety inventory required, regardless of the effect on product availability, is false. While minimizing safety inventory is a common objective for supply chain managers, it is not the sole focus. Supply chain managers strive to achieve an optimal balance between inventory levels and product availability.
Safety inventory serves as a buffer to mitigate uncertainties and variability in demand, lead times, and supply disruptions. It helps ensure that products are available to meet customer demands even when unexpected events occur. However, carrying excessive safety inventory can tie up working capital and increase holding costs, negatively impacting profitability.
Supply chain managers must consider factors such as customer service levels, lead times, demand variability, and supply chain risks when determining the appropriate level of safety inventory. The goal is to find the right balance that minimizes excess inventory while still ensuring adequate product availability to meet customer expectations.
By employing strategies such as demand forecasting, supply chain visibility, collaboration with suppliers, and effective inventory management techniques like just-in-time (JIT) or lean principles, supply chain managers aim to optimize inventory levels while maintaining high product availability and customer satisfaction.
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true/false. If both demand and supply increase, there will be an increase in the equilibrium output, but the effect on price cannot be determined.
True. If both demand and supply increase, the equilibrium output will increase as well. This is because both buyers and sellers are willing and able to exchange more goods and services at the existing market price. As a result, the quantity traded in the market will increase, which will shift the equilibrium point to a higher level of output.
However, the effect on price cannot be determined with certainty. If the increase in demand is greater than the increase in supply, then the equilibrium price will rise. This is because buyers are willing to pay more to obtain the same quantity of goods and services, and sellers are able to charge a higher price without reducing the quantity supplied. On the other hand, if the increase in supply is greater than the increase in demand, then the equilibrium price will fall.
This is because sellers need to lower their prices to attract buyers to purchase the same quantity of goods and services, and buyers are willing to pay less to obtain the same quantity of goods and services.Therefore, while an increase in both demand and supply will result in an increase in equilibrium output, the effect on price will depend on the relative magnitude of the changes in demand and supply. Answer is true.
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research shows that employees take longer to reply to voice messages than to other types of technology. T/F?
True, research indicates that employees take longer to reply to voice messages compared to other types of technology.
Research studies have indeed shown that employees tend to take longer to respond to voice messages in comparison to other forms of technology. This delay in response time can be attributed to several factors. Voice messages require the recipient to listen to the message, process the information, and formulate a response. This process takes more time compared to text-based communication, such as email or instant messaging, where the recipient can quickly read and respond to the message.
Additionally, voice messages may be more intrusive and require a dedicated time and space to listen and respond, which can further contribute to the delay in replying.
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General safety meetings conducted by the safety engineer should be held at least once a _____ with supervisors at the foreman and job steward level.(A) Day(B) Week(C) Month(D) Year
The answer will be (C) Month. General safety meetings conducted by the safety engineer should be held at least once a month with supervisors at the foreman and job steward level.
Regular safety meetings are an important aspect of promoting a safe work environment and ensuring that safety protocols and procedures are effectively communicated and understood by supervisors and workers. Holding these meetings on a monthly basis allows for timely updates, discussion of safety concerns, sharing of best practices, and addressing any emerging issues. This frequency ensures that safety remains a consistent focus and provides opportunities for ongoing training and reinforcement of safety principles throughout the organization.
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.Polygyny is favored by what percentage of the world's cultures?
20%
40%
60%
80%
The main difference between an attitude and a belief is that an attitude is concerned with feelings, emotions, and opinions about a certain object or concept, whereas a belief is concerned with one's acceptance of the truth or existence of a certain object or concept.
An attitude can be defined as a mental state or orientation that reflects an individual's likes or dislikes, preferences, and opinions about a particular object, person, or situation. Attitudes can be positive or negative and can influence behavior, thoughts, and emotions.
On the other hand, a belief is a mental attitude that reflects an individual's acceptance of a proposition or statement as true or valid. Beliefs can be based on personal experiences, cultural or religious values, scientific evidence, or other sources of information. Beliefs can influence behavior, attitudes, and decision-making.
While attitudes and beliefs are related and can influence each other, they are distinct psychological constructs that serve different functions in shaping an individual's thoughts, emotions, and behavior.
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Lauren had been working for microcorp for the past 20 years. At 45, lauren should have easily been a part of the upper management team and has consistently received great reviews. Her boss told her that she should color her hair to hide the gray and to wear more make-up to cover the wrinkles and maybe she would get promoted. This is an example of:
This is an example of ageism in the workplace, which is a form of discrimination based on a person's age. Lauren's boss is implying that her appearance is not up to the standards of the company and that she needs to conform to a more youthful and "polished" look in order to be considered for a promotion. This is unfair and inappropriate, as Lauren's skills and qualifications should be the determining factor in her career advancement, not her physical appearance.
Furthermore, this type of behavior can have negative consequences not only for the individual being targeted, but for the company as a whole. It can create a toxic work environment where employees feel undervalued and disrespected, leading to decreased morale and productivity. It can also lead to legal issues if the targeted employee decides to file a discrimination lawsuit.
It is important for companies to create a culture of inclusion and respect, where all employees are treated fairly and given equal opportunities for advancement. This can be achieved through education and training programs on diversity and inclusion, as well as implementing policies and procedures that prohibit discrimination based on age, gender, race, or any other protected characteristic. By valuing and respecting all employees, companies can create a more positive and productive workplace for everyone.
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as part of the initiation and planning audit phase, it is customary for a(n) ____ to be developed, which serves as a service agreement between the auditing team and the requesting entity.
As part of the initiation and planning audit phase, it is customary for an agreement to be developed, which serves as a service agreement between the auditing team and the requesting entity.
This agreement outlines the scope, objectives, timelines, and responsibilities of the auditing team and the requesting entity. It also serves as a basis for the auditing team to determine the resources required for the audit and to ensure that the objectives of the audit are aligned with the needs of the requesting entity.
The agreement is a critical document that sets the tone for the entire audit process. It provides a clear understanding of the expectations and obligations of both parties, and it helps to establish a strong working relationship between the auditing team and the requesting entity. The agreement should be developed in a collaborative manner, with input from both parties, to ensure that it accurately reflects the needs and objectives of the audit.
Overall, the agreement is an important tool for ensuring the success of the audit. It helps to ensure that the audit is conducted in a timely and efficient manner, with minimal disruption to the operations of the requesting entity. By establishing clear expectations and responsibilities, the agreement helps to minimize misunderstandings and disputes, and it provides a solid foundation for the auditing team to deliver a high-quality audit report.
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if one party’s promise contains no real obligation, then the promise is merely an illusory promise and the contract will fail for lack of mutuality. true false
True. If one party's promise in a contract contains no real obligation, it is considered an illusory promise.
An illusory promise is a promise that does not impose any legal obligation on the promisor, essentially making it unenforceable. In contract law, for a contract to be valid, there must be mutual consideration, meaning each party must provide something of value or incur a legal detriment. If one party's promise is illusory, there is a lack of mutuality, and the contract can fail as a result.
An illusory promise refers to a statement or commitment that appears to be a promise but, in reality, does not create any legal obligation or binding agreement. It occurs when the promisor retains complete discretion and control over whether to perform or not. In other words, the promisor has the option to withdraw or revoke the promise without any consequences.
For example, if someone says, "I might sell you my car if I feel like it," it would be considered an illusory promise because the person has not committed to selling the car and can choose not to do so without breaching any contractual obligations.
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A product sells for $265 per unit, and its variable costs per unit are $193. Total fixed costs are $433,000. If the firm wants to earn $44,360 pretax income, how many units must be sold?
Multiple Choice
6,630.
6,730.
6,930.
7030.
6.830
To determine the number of units that need to be sold to achieve a pretax income of $44,360, we need to use the contribution margin formula. The firm needs to sell 6,630 units to earn a pretax income of $44,360.option d
The contribution margin is the difference between the selling price and variable costs. In this case, the contribution margin per unit would be $72 ($265 - $193)Next, we can use the following formula to calculate the number of units that need to be sold: (units sold) x (contribution margin per unit) = total contribution margin
(total contribution margin) - (total fixed costs) = pretax income
Let's plug in the numbers:
(units sold) x ($72) = (total contribution margin)
(total contribution margin) - ($433,000) = $44,360
Simplifying the second equation:
(total contribution margin) = $477,360 ($44,360 + $433,000)
Now we can substitute the total contribution margin into the first equation:
(units sold) x ($72) = $477,360
Solving for units sold:
(units sold) = 6,630 units
option d
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The calculation to determine the number of units that must be sold to earn $44,360 pretax income is:
Pretax Income = (Unit Price - Variable Cost) * Number of Units - Fixed Costs
Substituting the given values, we get:
$44,360 = ($265 - $193) * X - $433,000
Solving for X, we get:
X = 6,730 units
Therefore, the answer is option B) 6,730. The firm must sell 6,730 units to earn $44,360 pretax income, given a unit price of $265, variable cost of $193, and fixed costs of $433,000.
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Assume you are a Chinese exporter and expect to receive $250,000 at the end of 60 days. You can remove the risk of loss due to a devaluation of the dollar by:
a. Selling dollars in the forward market for 60-day delivery.
b. Buying dollars now and selling it at the end of 60 days.
c. Selling the yuan equivalent in the forward market for 60-day delivery.
d. Keeping the dollars in the United States after they are delivered to you.
As a Chinese exporter expecting to receive $250,000 at the end of 60 days, the risk of loss due to devaluation of the dollar can be eliminated by selling dollars in the forward market for 60-day delivery.
This is because the forward market allows the exporter to lock in a specific exchange rate for a future transaction. By selling dollars forward, the exporter can receive the agreed upon amount at the predetermined exchange rate, regardless of any fluctuations in the exchange rate at the time of payment. This eliminates the risk of loss due to devaluation of the dollar.
Devaluation of the dollar can negatively impact an exporter as it reduces the value of the dollar relative to other currencies. This means that the exporter will receive less money in their domestic currency when they exchange dollars for it. By using the forward market, the exporter can avoid this risk and secure their payment in their domestic currency.
It is not recommended for the exporter to buy dollars now and sell it at the end of 60 days, as this exposes them to the risk of fluctuations in the exchange rate. Similarly, keeping the dollars in the United States after delivery also exposes the exporter to exchange rate risk. Selling the yuan equivalent in the forward market for 60-day delivery is also not advisable, as the exporter would have to rely on the exchange rate at the time of payment, which can still be impacted by devaluation of the dollar.
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klutz dance studio had net income of $207,000 for the year just ended. klutz collected the following additional information to prepare its statement of cash flows for the year: decrease in accounts receivable $ 34,000 increase in accounts payable $ 21,000 increase in retained earnings $ 112,000 cash paid for purchase of new music equipment $ 30,000 depreciation expense $ 7,000 klutz uses the indirect method to prepare its statement of cash flows. what is klutz's net cash provided by (used in) operating activities?
According to the given question, Klutz Dance Studio's net cash provided by operating activities for the year is $269,000.
To calculate Klutz Dance Studio's net cash provided by (used in) operating activities using the indirect method, start with the net income and adjust for non-cash items and changes in working capital. Here is the step-by-step calculation:
1. Begin with net income: $207,000
2. Add depreciation expense (a non-cash item): $207,000 + $7,000 = $214,000
3. Adjust for changes in working capital:
a. Add the decrease in accounts receivable: $214,000 + $34,000 = $248,000
b. Add the increase in accounts payable: $248,000 + $21,000 = $269,000
4. The net cash provided by operating activities is $269,000.
Thus, Klutz Dance Studio's net cash provided by operating activities for the year is $269,000.
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fiscal policy that is different across countries. goods and services that are not traded between different countries. goods that are identical in different countries. monetary policy that is different across countries.
Fiscal policy that is different across countries reflects the varying approaches and strategies adopted by governments to manage their economies.
Each country has its own fiscal policies, including taxation, government spending, and budgetary measures, tailored to their unique economic circumstances, priorities, and political considerations.
Goods and services that are not traded between different countries refer to products or services that are primarily consumed within a specific country's borders and have limited or no international trade. These can include locally provided services like haircuts or domestic goods that are not exported.
Goods that are identical in different countries typically refer to standardized or homogeneous products that are produced and available in multiple countries. Examples could be widely recognized brands or commodities like oil or gold. These goods are often subject to international trade and competition.
Monetary policy that is different across countries indicates the differences in how central banks manage their respective countries' money supply, interest rates, and other monetary tools to regulate the economy. Monetary policy decisions vary depending on a country's specific economic conditions, goals, and inflationary pressures. Central banks implement policies suited to their national circumstances, which can result in variations in monetary policy across countries.
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an example of a transfer payment is group of answer choices a teacher's paycheck. a paycheck for a member of the national guard. a welfare payment. a purchase of a new bridge in alaska.
An example of a transfer payment from the given s is a welfare payment.
Transfer payments refer to payments made by the government to individuals or groups without the expectation of receiving a good or service in return.
These payments are typically aimed at redistributing income, providing assistance, or supporting certain segments of the population.
In the case of a welfare payment, the government provides financial assistance to individuals or families who meet certain criteria, such as low income or disability. This payment is considered a transfer payment because it is a direct transfer of funds from the government to the recipient without any corresponding economic output or exchange.
While a teacher's paycheck and a paycheck for a member of the national guard are both payments, they are considered compensation for services rendered rather than transfer payments. These individuals receive payment in exchange for their work or service, which contributes to the production of goods or the provision of services.
The purchase of a new bridge in Alaska is not a transfer payment but rather a government expenditure on infrastructure development. It involves the acquisition of a physical asset (the bridge) in exchange for payment, which is not considered a transfer payment.
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was timmy’s debt to joe liquidated or unliquidated debt after timmy bought the car and subsequently decided it was worth less than what he had borrowed to pay for it?
After Timmy bought the car and subsequently decided it was worth less than what he had borrowed to pay for it, his debt to Joe would be considered unliquidated debt.
Unliquidated debt refers to a debt where the exact amount owed or the terms of repayment are not yet determined or agreed upon by both parties. In this scenario, Timmy's debt to Joe became unliquidated because Timmy believed that the value of the car was less than the amount he had borrowed to purchase it.
When Timmy initially borrowed the money from Joe to buy the car, the debt was liquidated because there was a specific agreed-upon amount and terms of repayment. However, Timmy's subsequent evaluation of the car's worth created uncertainty regarding the actual amount owed. The debt became unliquidated as the value of the car became a point of agreement between Timmy and Joe.
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Given a required reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of:
a. $80
b. $0
c. $400
d. $20
The correct answer to the question is (a) $80. The bank can use this $80 to provide loans to customers, which in turn will create new deposits and increase the money supply in the economy.
Commercial banks play a crucial role in the economy by providing loans to individuals and businesses that need them. They use the deposits that they receive from customers to lend money, earn interest, and generate profits.
However, banks must follow strict regulations, including the required reserve ratio, to ensure that they have enough funds to meet customer demands and maintain financial stability.
The required reserve ratio is the amount of deposit that a commercial bank is required to hold in reserve, either in cash or as deposits with the central bank.
In this scenario, the required reserve ratio is 20 percent, which means that the bank must hold 20 percent of the new deposit of $100, or $20, in reserve and can lend out the remaining $80. As more loans are made, the deposits in the bank will increase, and the bank will be required to hold a higher amount in reserve, as per the required reserve ratio.
In summary, a commercial bank that has received a new deposit of $100 and a required reserve ratio of 20 percent can make additional loans of $80. The remaining $20 must be held in reserve to meet regulatory requirements.
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The issuance of debt to purchase assets would be classified as a(n)
a. operating activity.
b. investing activity.
c. financing activity.
d. none of these answers are correct.
The issuance of debt to purchase assets refers to the act of borrowing money in order to acquire long-term assets, such as property, plant, and equipment or investments.
Financing activities are those that involve raising capital or funding for the business. They include activities related to the company's debt and equity financing. Examples of financing activities include issuing bonds or other debt instruments, issuing stocks or other equity instruments, and repurchasing company shares.
Therefore, the correct answer to the question is c. financing activity. The issuance of debt to purchase assets would be reported as a financing activity in the statement of cash flows.
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the act of buying or selling the underlying asset via the option contract is called _______________ the option.
Answer:
Explanation:
The act of buying or selling the underlying asset via the option contract is called exercising the option.
When an option holder decides to exercise their right, they are choosing to either buy (in the case of a call option) or sell (in the case of a put option) the underlying asset at the specified price, known as the strike price.
Exercising the option allows the holder to execute the contract and take ownership of the underlying asset or sell it according to the terms agreed upon. It is important to note that options can also be bought or sold prior to expiration without exercising them, through the process of trading options on the market.
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