A high marginal propensity to consume implies a small change in consumption when income changes. (option A)
The marginal propensity to consume (MPC) is the increase in consumption resulting from an increase in income. A high MPC means that a large proportion of any increase in income will be spent on consumption.
Therefore, a high MPC implies that there will be a small change in savings when income changes. This is because most of the additional income will be used for consumption rather than saved.
Option B) a high savings rate, is the opposite of a high MPC. Option C) a high marginal tax rate, and option E) a low marginal propensity to save are not necessarily related to the MPC. Option D) an equilibrium level of income near full employment, refers to a macroeconomic concept that is not directly related to the MPC.
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Marketing managers have several choices in selecting a targeting strategy. Kristina Olivera is a marketing manager with Garrison Brothers Distillery, a craft bourbon distiller in Texas, and knows that there are many different types of bourbon drinkers. However, she concentrates her marketing on the enthusiast or high-involved bourbon drinker who often enjoys a bourbon beverage before or after dinner, reads magazines to keep up with the craft bourbon industry, and is a member of their e-mail list and subscriber to the company’s blog. Kristina knows that this segment of bourbon drinkers will consume more bourbon, be more likely to engage in positive word-of-mouth about the brand, and will also be more likely to purchase accessories such as glassware or T-shirts. Kristina is most likely utilizing the _____ targeting strategy, employing just one marketing mix and focusing on one target market segment. a. focused target b. homogeneous c. concentrated d. differentiated e. undifferentiated
The targeting strategy being utilized by Kristina Olivera, a marketing manager with Garrison Brothers Distillery is a concentrated targeting strategy. Therefore, the correct answer is option C.
Concentrated targeting strategy refers to a targeting strategy in which a company focuses on a single market segment with a unique marketing mix. By concentrating on this particular segment, the company may be able to achieve a stronger market position or develop a stronger relationship with its customers. This approach is frequently used by smaller firms that lack the resources to compete with larger companies in multiple markets. The focused target, homogeneous, differentiated, and undifferentiated is the different types of targeting strategies available to marketing managers.
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On June 1, Sawyer Co. borrowed $5,000 cash from Crystal Bank by signing a 45-day, 12% interest-bearing note. On July 16, Sawyer pays the amount due in full. Sawyer would record this payment with a ______ to interest Expense in the amount of __________.
On June 1, Sawyer Co. borrowed $5,000 cash from Crystal Bank by signing a 45-day, 12% interest-bearing note. On July 16, Sawyer pays the amount due in full. Sawyer would record this payment with a debit to interest Expense in the amount of $75.60.
The interest expense on a note is calculated by multiplying the principal amount of the note by the annual interest rate and the fraction of the year that the note is outstanding.
In this case, the note is outstanding for 46 days (from June 1 to July 16), which is approximately 0.126 year (46/365).
The interest expense on the note can be calculated as follows:
Interest expense = Principal x Annual interest rate x Time
where:
Principal = $5,000Annual interest rate = 12%Time = 0.126 yearPlugging in the values, we get:
Interest expense = $5,000 x 0.12 x 0.126 = $75.60
When Sawyer Co. pays the note in full on July 16, the journal entry to record the payment would be:
Debit Note Payable: $5,000Debit Interest Expense: $75.60Credit Cash: $5,075.60Learn more about interest expense here:
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select the two primary characteristics that define advertising.
The two primary characteristics of advertising are its persuasive nature and its ability to be tailored to an audience.
Persuasive advertising aims to make the consumer believe that a particular product or service is desirable or necessary. Advertising is also tailored to a particular audience, either in terms of demographics (e.g. age, gender, income) or through the use of tailored messages. For example, a company may target different age groups with different advertisements, in order to best reach each target audience. The persuasive nature of advertising is coupled with its ability to be tailored to different audiences, making it a powerful tool to shape consumer behavior.
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which indicators do economists use to determine the state of the economy? choose three answers.
Gross Domestic Product, Unemployment rate and Consumer Price Index are indicators do economists use to determine the state of the economy.
Gross Domestic Product (GDP): GDP measures the total value of goods and services produced within a country over a specific period of time, usually a year or a quarter. It is considered one of the most important indicators of a country's economic health.
Unemployment rate: The unemployment rate measures the percentage of the labor force that is unemployed but actively seeking employment. High unemployment rates are generally indicative of a weak economy.
Consumer Price Index (CPI): The CPI is a measure of the average change in prices of goods and services consumed by households over time. It is used to track inflation and its impact on the economy.
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Credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business.a. sales allowanceb. purchases returnc. purchases allowanced. sales return
The correct answer is d. sales return.
Sales return is a credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business. This is also referred to as a sales allowance.
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during a severe recession, the government issued food stamps that could only be used to acquire food to a greater number of families. the budget line graph shows food on the horizontal axis and everything else on the vertical axis. the government expects that issuing the food stamps will cause each family's budget constraint line to:
The government expects that issuing the food stamps will cause each family's budget constraint line to: Shift outward from the origin.
What is a budget constraint?
A budget constraint is an economic principle that depicts the resources and limitations of consumers in terms of their capacity to acquire products and services. A budget constraint determines how much a person can afford to spend on various items, given a limited amount of money.
In other words, it demonstrates how people's consumption patterns change as a result of changes in prices and revenue. When there is a scarcity of resources or a limited amount of money, the budget constraint can become more restrictive.
In the given scenario, the government issued food stamps that could only be used to acquire food to a greater number of families. As a result, issuing the food stamps will cause each family's budget constraint line to shift outward from the origin.
The new line would represent the family's improved purchasing power because they now have the ability to purchase more food products than they previously could. So, the answer to this question is a shift outward from the origin.
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prezas company's balance sheet showed total current assets of $4,750, all of which were required in operations. its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. what was its net operating working capital? group of answer choices $3,701 $3,878 $3,384 $3,525 $3,842
Net operating working capital is the difference between the current assets used in operations and the current liabilities arising from operations. In the given case, net operating working capital would be $3,525.
Thus, by subtracting the current liabilities of Preza's company from its total current assets, its net operating working capital can be calculated by using concepts of liabilities, assets and capital, it is as follows:
Net operating working capital = Total current assets - Current liabilities= $4,750 - ($975 + $100 + $150)= $3,525. Therefore, the net operating working capital of Preza's company is $3,525.
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In which form of learning is behavior influenced by its consequences? ... A) fear cars in the street. B) dislike the taste of dead birds. C) wag its tail wheneve
The correct answer is C) operant conditioning. Operant conditioning is a type of learning in which behavior is influenced by its consequences.
Operant conditioning is a type of learning in which behavior is influenced by its consequences. It was first introduced by psychologist B.F. Skinner, who believed that behavior could be shaped by reinforcement and punishment.
In operant conditioning, a behavior is followed by a consequence, either a reinforcement (reward) or punishment. If the consequence is a reinforcement, the behavior is more likely to occur again in the future. If the consequence is a punishment, the behavior is less likely to occur again in the future.
For example, in a workplace setting, if an employee is given a bonus for meeting a sales goal, the behavior of meeting the sales goal is more likely to occur again in the future. On the other hand, if an employee is reprimanded for being late to work, the behavior of being late is less likely to occur again in the future.
Therefore, operant conditioning is a form of learning in which behavior is influenced by its consequences, and it is used to shape and modify product behavior through reinforcement and punishment.
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The complete question is
In which form of learming is behavior influenced by its consequences? A) primary conditioning B) classical conditioning C) operant conditioning D) delayed conditioning
A robotics company hires a marketing firm to take care of its social media presence. This is an example of _______. Exporting
licensing
outsourcing
offshore outsourcing
offshoring
This is an example of outsourcing, which refers to the practice of contracting out a business function or service to a third-party provider, rather than performing it in-house.
In this case, the robotics company is outsourcing its social media management to a marketing firm. Offshoring and offshore outsourcing both involve moving business operations or services to a foreign country, so they are not applicable in this scenario.
Outsourcing is a business strategy that involves delegating certain tasks or services to external providers, rather than performing them in-house. Companies may choose to outsource to reduce costs, improve efficiency, or access specialized expertise that they do not possess in-house.
In the scenario described, the robotics company has decided to outsource its social media management to a marketing firm. This means that instead of hiring its own social media team or tasking existing employees with managing social media, the company has contracted with an external provider to handle this function.
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A project should be ___________ if its NPV is greater than zero.a. delayed
b. accepted
c.budgeting
d. rejected
A project should be accepted if its Net Present Value (NPV) is greater than zero. Here option B is the correct answer.
NPV is a commonly used method for evaluating the profitability of a project. It is calculated by subtracting the present value of cash outflows from the present value of cash inflows.
If the resulting NPV is positive, it indicates that the project will generate more cash inflows than outflows and will be profitable. Therefore, accepting such a project will be beneficial for the company. Delaying or rejecting a profitable project can lead to missed opportunities and reduced profitability in the long run.
On the other hand, if the NPV is negative, the project is expected to generate fewer cash inflows than outflows which will result in a loss. In this case, the project should be rejected as it will not be beneficial for the company. Therefore, accepting or rejecting a project based on its NPV can help companies make informed decisions and allocate their resources effectively.
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A point outside the production possibilities curve is:A. unattainable without economic growth.B. attainable and the economy is efficient.C. unattainable without inflation.D. attainable, but the economy is inefficient.
Point outside the production possibilities curve is unattainable without economic growth. Here option A is the correct answer.
A point outside the production possibilities curve represents a combination of goods and services that cannot be attained with the given resources and technology. This means that the economy is not currently capable of producing that level of output.
An attainable point on the production possibilities curve represents a combination of goods and services that can be produced using available resources and technology, and the economy is efficient. Thus, option B is incorrect.
Inflation refers to an increase in the general level of prices in an economy. Therefore, option C is incorrect as it suggests that a point outside the production possibilities curve can only be reached with inflation.
An attainable point outside the production possibilities curve would imply that the economy has idle resources, meaning that it is not using its resources in the most efficient manner. Therefore, option D is incorrect.
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the net working capital of a firm will decrease if there is: group of answer choices an increase in inventory. a decrease in accounts receivable. an increase in the checking account balance. a decrease in fixed assets. a decrease in accounts payable.
The net working capital of a firm will decrease if there is a decrease in accounts payable.
Net working capital is defined as the difference between a company's current assets (cash, accounts receivable, inventory) and its current liabilities (accounts payable). When accounts payable decrease, the company's total current liabilities decrease and thus, the net working capital is reduced.
To illustrate, if a company has $500 in cash, $200 in accounts receivable, and $100 in inventory, and its current liabilities are $300 in accounts payable, the company's net working capital would be $400 ($500 + $200 + $100 - $300).
If accounts payable decreased to $200, the net working capital would decrease to $300 ($500 + $200 + $100 - $200).
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what is the present value of $500 to be received at the end of each year for 12 years if your required rate of return is 5%? group of answer choices $4,432 $3,072 $7,968 $5,000
The present value of $500 to be received at the end of each year for 12 years is $4,432 if the required rate of return is 5%.
In order to calculate the present value of an annuity, the following formula is used:
PV = A * [1 - (1 + r)^(-n)] / r
where, PV is the present value, A is the annuity payment, r is the interest rate, and n is the number of periods.
For the given question, A = $500, r = 5%, and n = 12.
Substituting these values in the formula, we get:
PV = $500 * [1 - (1 + 0.05)^(-12)] / 0.05= $4,432.
Therefore, the present value of $500 to be received at the end of each year for 12 years if the required rate of return is 5% is $4,432.
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eugene playem, a small firm that develops games, wants to raise capital to develop a new expensive video game. the firm's finance team plans to find several video game enthusiasts online, who can afford to invest money for the video game's development. in this scenario, which of the following funding options has eugene playem planned?Crowdfundingangel investornecessity entrepreneur
In the given scenario, Eugene Played has planned to raise capital through Crowdfunding.
Crowdfunding is a type of fundraising in which a company, individual, or organization solicits small contributions from a large group of people online. It is a way of financing a project by raising small amounts of money from a large number of people, usually through the internet or social media. Crowdfunding has become increasingly popular as a way to finance startups and other projects, especially those that might not otherwise have access to traditional sources of capital such as banks or venture capitalists.Eugene Playem, a small firm that develops games, wants to raise capital to develop a new expensive video game. The firm's finance team plans to find several video game enthusiasts online, who can afford to invest money for the video game's development. Therefore, the funding option that Eugene Played has planned is Crowdfunding.
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One of retailers' most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of ______ and ______.
One of retailers' most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of product and service.
What is retailing?Retailing is a set of activities carried out by businesses to sell goods or services to the final customer for their personal, family, or household use. Retailers are in charge of providing consumers with a range of products and services that suit their needs, preferences, and desires, as well as at a fair price. They may include retailers' most essential activities that help fulfill the needs of the target market by providing the ideal combination of products and services.
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TB MC Qu. 5-46 (Algo) The Macon Company uses the high-low... The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Busiest month (June) Slowest month (December) Machine Hours 12,000 4,000 Direct Labor Costs $ 255,000 $131,000 If Macon expects to use 15,000 machine hours next month, what are the estimated direct labor costs? Multiple Choice $286,500. O $200,000. $301,500. $232,500.
the estimated direct labor costs for the next month (15,000 machine hours) are $301,500. Option (C) is the correct answer.
The high-low method is used by The Macon Company to determine its cost equation. The following data was collected during the previous year:
Busiest month: June
Machine Hours: 12,000
Direct Labor Costs: $ 255,000
Slowest month: December
Machine Hours: 4,000
Direct Labor Costs: $131,000
Expected Machine Hours for next month: 15,000
To determine the cost equation, we'll first determine the variable cost per machine hour and the fixed cost. After that, we can use that equation to calculate direct labor costs for 15,000 machine hours.Variable cost per machine hour = Change in cost / Change in activityVariable cost per machine hour = (255000 - 131000) / (12000 - 4000),Variable cost per machine hour = 124000 / 8000Variable cost per machine hour = $ 15.50,Fixed cost = Total Cost - Variable Cost * Activity,Fixed cost = 131000 - (15.5 * 4000),Fixed cost = 131000 - 62,000,Fixed cost = $ 69,000,Now we have the cost equation:Total Cost = $ 69,000 + $ 15.50 * Machine HoursFor 15,000 machine hours, the estimated direct labor costs are calculated as follows:Total Cost = $ 69,000 + $ 15.50 * 15,000Total Cost = $ 69,000 + $ 232,500Total Cost = $ 301,500
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knowledge check 01 all accounts that appear in the balance sheet, including retained earnings, are permanent accounts, and we carry forward their balances from period to period. group startstrue or falsetrue, selectedfalse, unselected
The given statement 'All accounts that appear in the balance sheet, including retained earnings, are permanent accounts, and we carry forward their balances from period to period' is true because balance in the retained earnings account is carried over from one accounting period to the next.
The Balance Sheet is a financial report that shows the assets, liabilities, and equity of a business at a specific moment in time. It is divided into two sections: assets on one side and liabilities and equity on the other side. The balance sheet is a snapshot of a company's financial position on a particular day; that is, it shows the company's financial status at a specific point in time.
Balance sheets consist of two types of accounts: permanent accounts and temporary accounts. Permanent accounts are accounts that appear on the balance sheet and whose balances are carried over from one accounting cycle to the next, while temporary accounts are accounts that appear on the income statement, statement of owner's equity, or statement of retained earnings and whose balances are reset to zero at the end of each accounting cycle.
Retained earnings are one such permanent account that appears on the balance sheet. Retained earnings are the net earnings that a company has not paid out as dividends to its shareholders. They are a measure of how much money the company has retained over time instead of distributing it to shareholders in the form of dividends.
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when the bank returns a check for which there is not enough money in the bank to cover it, what do we call the check? responses free free bounced bounced uncovered uncovered irresponsible
The term commonly used for a check that is returned by the bank due to insufficient funds in the account is B: "bounced check".
A bounced check is a check that has been written for an amount greater than the available balance in the account from which it was drawn. When the bank processes the check and finds that there are insufficient funds to cover it, they return the check to the account holder, marked as "bounced" or "NSF" (non-sufficient funds).
This can result in additional fees and penalties for the account holder, as well as damage to their credit rating. Bounced checks can also have consequences for the recipient of the check, who may face delays in receiving payment and incur fees for depositing a bounced check.
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Does the following sentence use the active or passive voice? ols The Lifetime Achievement Award was presented to Christina Balian Active Passive Parallet sentences are balanced and easy for readers to understand.
The sentence "The Lifetime Achievement Award was presented to Christina Balian" uses the passive voice.
In a passive sentence, the object (in this case, the Lifetime Achievement Award) comes before the verb (was presented). The subject (Christina Balian) is placed after the verb. The sentence is in the passive voice because the focus is on the object, not the subject.
Parallel sentences are two or more sentences that have a similar structure, meaning they are written in the same or similar grammatical pattern.
For example, the sentence "The Lifetime Achievement Award was presented to Christina Balian" has a parallel structure to the sentence "Active passive parallel sentences are balanced and easy for readers to understand".
Both sentences contain two nouns followed by a verb. This parallel structure creates a balanced, easy-to-read sentence.
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hang ten, inc. is a firm that makes surf boards. hang ten plans to market a new, longer, and more slender board to expert surfers who now buy their boards from wavecrest, a competing firm. hang ten, inc. is employing which strategy to build its business?
Hang Ten, Inc. is employing a differentiation strategy to build its business.
This strategy involves creating a new and distinctive product or service that customers perceive as being better than competitors' offerings. Hang Ten plans to market a new, longer, and more slender board to expert surfers who now buy their boards from Wavecrest, a competing firm.
This new product will likely be more appealing to expert surfers because it is better suited to their needs, providing a distinct advantage over Wavecrest's offerings.
Differentiation strategies involve creating a unique and superior product or service that customers can distinguish from the competition. This is done by creating products or services that meet customer needs better than those of competitors, or by creating a unique value proposition that stands out in the market.
Hang Ten's new product is tailored to the needs of expert surfers, who want a longer and more slender board. This product is different from Wavecrest's boards and provides an advantage that their boards do not.
By marketing this new product to expert surfers, Hang Ten will be able to gain an edge over Wavecrest and increase its business.
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Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the:
A. Newly Independent States.
B. Economic Community of West African States.
C. United Nations.
D. European Union.
E. Trans-Pacific Union.
Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the European Union. (D)
The European Union (EU) is a supranational and intergovernmental union of 27 member states. It is a unique economic and political partnership and is the largest international economic bloc in the world. (D)
The EU is responsible for the coordination and development of policies on the single market, agriculture, fisheries, and social and regional development.
The EU has implemented several measures to support cooperation among its members, including the single market, a customs union, and the euro.
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What is back translation?
Back translation is a process used in the field of translation to check the accuracy and quality of a translation.
It involves translating a previously translated text back into its original language by a different translator who has not seen the original text. The back-translated text is then compared to the original text to identify any discrepancies, errors, or omissions in the initial translation. This process is especially useful in scientific and medical research, where accuracy and precision are crucial. Back translation can help ensure that the meaning and intent of the original text are accurately conveyed in the translated version. It can also be used to identify and correct cultural and linguistic nuances that may have been missed in the initial translation.
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the following information is available for fenton manufacturing company at june 30: cash in bank account $ 6,955 inventory of postage stamps $ 79 bank account balance $ 12,900 petty cash balance $ 400 nsf checks from customers returned by bank $ 917 accounts payable $ 516 cash in register $ 757 a certificate of deposit maturing in five years $ 8,500 based on this information, fenton manufacturing company should report cash and cash equivalents on june 30 of:
The cash balance including cash and cash equivalents that must be reported on June 30 by Fenton Manufacturing Company in the register would be $21,012.
Cash in bank account $6,955, bank account balance $12,900, petty cash balance $400, cash in register $757, NSF checks from customers returned by bank $917.
Cash and cash equivalents are those assets that are readily convertible to cash and have a maturity period of fewer than three months.
The following are considered cash and cash equivalents: Cash in the bank account ($6,955), bank balance ($12,900), petty cash balance ($400), and cash in the register ($757). Cash and cash equivalents = $6,955 + $12,900 + $400 + $757= $21,012.
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refers to the latest generation of distance learning, which uses satellite technology to broadcast programs to different locations and allows trainees to respond to questions posed durning the training program using a keypad is called?
The latest generation of distance learning, which uses satellite technology to broadcast programs to different locations and allows trainees to respond to questions posed during the training program using a keypad is called Interactive Distance Learning (IDL).
Interactive Distance Learning (IDL) is the newest generation of distance learning that uses satellite technology to broadcast programs to various locations while also allowing trainees to answer questions posed during the training session using a keypad. It is a revolutionary technology that has enabled institutions to teach trainees in remote areas, lowering the barriers of distance and time. It is a type of online learning that encourages a more interactive and participatory approach to learning.
The advantages of IDL include providing access to training for those in remote areas, lowering the cost of training, and providing flexibility in terms of time and location. It also allows students to interact with instructors and other students while receiving immediate feedback on their performance. In this way, IDL has revolutionized the education system and has become a significant factor in the growth of distance learning.
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Which of the following is an example of a single product with multiple market segments? Reebok makes tennis shoes, running shoes, walking shoes
The example of a single product with multiple market segments is option C.Botox is a drug marketed to some groups as a way to reduce signs of aging on the face, and to others as a treatment for migraines.
What is market segments?Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs, preferences, and behaviors. This enables businesses to develop targeted marketing strategies for each segment, tailoring their products, services, and communication to the specific needs of each group. Some common types of market segmentation include:
Demographic segmentation involves Dividing the market based on demographic variables such as age, gender, income, education, family size, and occupation Geographic segmentation: Dividing the market based on geographical variables such as region, city size, climate, and population density.
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complete question:
Which of the following is an example of a single product with multiple market segments?
Reebok makes tennis shoes, running shoes, walking shoes, and Weeboks.
Reach Toothbrush is available in a soft, medium, and hard bristle for adults and kids.
Twinings and Bigelow both market their own brands of Earl Grey tea.
Botox is a drug marketed to some groups as a way to reduce signs of aging on the face, and to others as a treatment for migraines.
Quaker Oats oatmeal sells both its hot cereals and cold cereals to people of all ages.
LAST WORD You are given an old car by your uncle, who wants you to keep it in working condition so that you can hand it off to your younger brother in three years. It will cost you $1,500 per year to keep it in working condition for your brother. If you skip maintenance altogether, the car will die after two years, but you can pocket the maintenance costs.
a. What will you be tempted to do?
multiple choice 1
Not do the maintenance, because if you skip the maintenance, you will both enjoy the use of the car for two years and save yourself $1,500 in maintenance costs.
Not do the maintenance, because if you skip the maintenance, you will both enjoy the use of the car for two years and save yourself $3,000 in maintenance costs.
Not do the maintenance, because if you skip the maintenance, your uncle will be happy that you saved $1,500 in maintenance costs.
Not do the maintenance, because if you skip the maintenance, your uncle will be happy that you saved $3,000 in maintenance costs.
b. Would higher maintenance costs make you more or less likely to do what your uncle wants?
multiple choice 2
More likely, because the higher the maintenance costs, the less the car will be worth to your younger brother in three years.
More likely, because the higher the maintenance costs, the more the car will be worth to your younger brother in three years.
Less likely, because the higher the maintenance costs, the more money you will get to keep for yourself by skipping out on maintenance.
Less likely, because the higher the maintenance costs, the less money you will get to keep for yourself by skipping out on maintenance.
The correct option for ques. a is 1. The correct option for ques b is option 4.
Maintenance cost refers to the expenses incurred to keep a particular asset or system in good working condition. These costs can include repairs, replacement of parts, labor costs, and any other expenses related to maintaining the asset.
Maintenance costs can vary depending on the type of asset or system being maintained. For example, the maintenance costs for a car may include regular oil changes, tire rotations, and brake replacements, while the maintenance costs for a building may include routine inspections, cleaning, and repairs to the HVAC system.
In general, regular maintenance can help prevent more expensive repairs and replacements in the future. Therefore, it is important for individuals and organizations to budget for maintenance costs and prioritize regular maintenance to ensure the longevity and efficiency of their assets.
Do not do the maintenance, because if you skip the maintenance, you will both enjoy the use of the car for two years and save yourself $1,500 in maintenance costs.
Less likely, because the higher the maintenance costs, the less money you will get to keep for yourself by skipping out on maintenance.
Therefore options a and 4 are correct for ques a and b respectively.
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A 20-year bond has a 7.0% coupon rate and face value of $1000. The required return is 10%. What is the percentage change in the price of this bond if the interest rates decrease by 2%? Assume the bond makes semi-annual coupon payments. O Approximately 31% increase Approximately 31% decrease Approximately 21% increaseApproximately 21% decrease Approximately 2% increase
A 20-year bond has a coupon rate of 7.0% and a face value of $1000. The required return is 10%. If interest rates fall by 2%, the price of this bond changes by about 2%.
To calculate the percentage change in the price of the bond, we need to first calculate its current price using the given information. We can use the present value formula to find the price of the bond:
PV = (C / r) x [1 - 1 / (1 + r)^n] + F / (1 + r)^n
Where PV is the present value or price of the bond, C is the annual coupon payment, r is the required return or yield to maturity, n is the number of periods (in this case, semi-annual periods), and F is the face value of the bond.
Plugging in the given values, we get:
C = 0.07 x $1000 / 2 = $35
r = 0.10 / 2 = 0.05
n = 20 x 2 = 40
F = $1000
PV = ($35 / 0.05) x [1 - 1 / (1 + 0.05)^40] + $1000 / (1 + 0.05)^40
PV = $633.96
Now, we need to recalculate the bond price assuming a 2% decrease in interest rates. The new required return or yield to maturity is:
r' = 0.10 - 0.02 = 0.08
Plugging this value into the present value formula, we get:
PV' = ($35 / 0.08) x [1 - 1 / (1 + 0.08)^40] + $1000 / (1 + 0.08)^40
PV' = $752.48
The percentage change in the bond price is then:
[(PV' - PV) / PV] x 100%
[($752.48 - $633.96) / $633.96] x 100%
= 18.67%
Therefore, the correct answer is E - Approximately 2% increase.
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Complete question:
A 20-year bond has a 7.0% coupon rate and face value of $1000. The required return is 10%. What is the percentage change in the price of this bond if the interest rates decrease by 2%? Assume the bond makes semi-annual coupon payments.
A - Approximately 31% increase
B - Approximately 31% decrease
C - Approximately 21% increase
D - Approximately 21% decrease
E - Approximately 2% increase
In the context of the managerial (leadership) grid for leadership effectiveness, which of the following managers has low concern for both production and people?
Multiple Choice
The sweatshop manager
The impoverished manager
The status quo manager
The country club manager
In the managerial or the leadership grid for leadership effectiveness, the manager who has low concern for both production and people is the Impoverished Manager. Thus, option b is correct.
The Managerial Grid is a model that was developed by Robert R. Blake and Jane Mouton in the early 1960s. The managerial grid includes five leadership styles:
Impoverished Manager - A leader with low concern for both production and people. This means that they use a "delegate and disappear" management style.
They avoid making decisions or taking responsibility and let their employees handle everything. As a result, both the production and the people side of the organization suffer.
They tend to be indifferent towards both tasks and people, leading to a lack of direction and motivation within the team.
In the context of the managerial grid for leadership effectiveness, the "impoverished manager" has a low concern for both production and people.
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indicate which of the following use modified accrual accounting? capital projects fund government-wide financial statements special revenue fund internal service fund a) no yes no yes b) yes no yes no c) yes no yes yes d) yes yes no no
The use of modified accrual accounting would be:
Capital projects fund: YesGovernment-wide financial statements: NoSpecial revenue fund: YesInternal service fund: NoThe correct answer is (b) Yes, No, Yes, No.
Modified accrual accounting is used by governmental funds (such as the capital projects fund and special revenue fund) in accounting for current financial resources and their inflows and outflows. It is not used in the government-wide financial statements or in internal service funds.
Option (a) is incorrect because the special revenue fund uses modified accrual accounting, not the government-wide financial statements.
Option (c) is incorrect because both the special revenue fund and internal service fund use modified accrual accounting, not just the special revenue fund.
Option (d) is incorrect because the capital projects fund and government-wide financial statements use different accounting methods, so they cannot both use modified accrual accounting.
Thus, option B is the correct answer.
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if burler corp. pays an annual dividend on its common stock that is expected to grow by 4.47 percent per year forever, the next dividend is due in 1 year, and the next dividend is expected to be $2.76, then what is the dividend expected to be in 6 years?(round the value to 100th decimal)
The dividend expected to be in 6 years will be: $3.62
To find the dividend expected to be in 6 years we use the formula,
[tex]Dn = D0(1 + g)n[/tex]
[tex]D0 = $2.76,[/tex]
[tex]g = 4.47%[/tex]
[tex]=0.0447[/tex],
[tex]n = 6 years[/tex]
Thus, the dividend expected to be in 6 years will be calculated as follows:
[tex]Dn = D0(1 + g)n[/tex]
[tex]D6 = $2.76(1 + 0.0447)6[/tex]
[tex]D6 = $2.76(1.0447)6[/tex]
[tex]D6 = $2.76[/tex] × [tex]1.3107[/tex]
[tex]D6 = $3.6182[/tex]
So, the dividend expected to be in 6 years will be $3.62 (rounded to 100th decimal).
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