Explain why the announcement of new investment is usually accompanied by a change in the firm's share price?

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Answer 1

The announcement of new investment by a firm often signals to the market that the firm is planning to expand or improve its operations in some way.

This can create expectations of higher profits in the future, which can increase demand for the firm's shares and drive up the share price.

For example, if a company announces plans to build a new factory or develop a new product, investors may expect that these investments will lead to higher revenues and profits in the future.

This can create a positive sentiment among investors, which can cause them to buy more shares of the company, increasing the demand and driving up the share price.

Additionally, the announcement of new investment can also signal that the company is confident in its future growth prospects, which can increase investor confidence and lead to a rise in the share price.

However, it's important to note that the relationship between new investment and share price can be complex, and other factors such as overall market conditions, industry trends, and interest rates can also influence a firm's share price.

Additionally, if the new investment is not seen as a positive for the firm, the share price may not rise, and could even fall.

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Related Questions

long-run macroeconomic equilibrium occurs when aggregate demand __ short-run aggregate supply and they __ the long-run supply curve

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Long-run macroeconomic equilibrium occurs when aggregate demand equals short-run aggregate supply and they intersect at a point on the long-run supply curve

What is long-run macroeconomic equilibrium?

When aggregate demand and short-run aggregate supply are equal at a certain point on the long-run aggregate supply curve, long-run equilibrium is reached. The unemployment rate is now equal to its natural rate, and actual real GDP is equal to potential GDP. Full employment equilibrium is another name for long-run equilibrium.
What is aggregate demand?

A macroeconomic concept known as "aggregate demand" refers to the total demand for products and services during a specific time period at any given price level. Since the two indicators are calculated in the same way, aggregate demand is equal to GDP over the long run.

What is short-run aggregate supply?

A visual representation of the correlation between the level of overall prices and the aggregate output supplied in an economy

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The pure food and drug act and the meat inspection act were passed in order to protect food manufacturers. protect businesses. protect consumers.

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The pure food and drug act and the meat inspection act were passed in order to protect consumers. This is further explained below.

What are consumers?

Generally, purchasing products and services for one's own use. It is when individuals generate things and services, goods and services, goods and services, that they become producers. They are consumers when they make use of the goods created when they utilize the goods produced when they make use of the goods produced.

In conclusion, We enacted laws to safeguard consumers, such as the Pure Food and Drug Act and the Meat Inspection Act.

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Answer:

protect consumers

Explanation:

assignment/introduction

A job shop is an example of a(n): line process. intermittent process. specialized process. continuous process. repetitive process.

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A job shop is an example of an intermittent process.

An intermittent process is one in which manufacturing facilities are periodically shut down and reset to produce slightly different products before resuming production. Intermittent processes are used in intermittent systems that make things only when the buyer needs or orders them.

Production is not the same every day. Products are typically manufactured on a microscale, and industrial processes are not continuous, making them intermittent processes. Products developed through this process come in a wide variety of types, designs, and dimensions. This is considered a flexible system.

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The presence of barriers to entry in a particular market will generally make acquisitions____________________ as an entry strategy.

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The presence of barriers to entry in a particular market will generally make acquisitions more likely as an entry strategy.

A marketplace access strategy is wherein you spell out such all-essential specifics. It outlines your commercial enterprise goals, an outline of the target marketplace, precisely what you may promote there, predicted sales, and how you may achieve them. an average market entry plan can take six to 18 months to implement.

A marketplace entry strategy is a deliberate distribution and delivery approach of products or services to a brand new target market. inside the import and export of services, it refers to the advent, established order, and management of contracts in a foreign country.

A number of the most common consist of Exporting: Sending goods directly or in a roundabout way to the worldwide marketplace. Licensing: Authorizing any other enterprise to fabricate or produce the corporation's goods and services. Franchising: Copying and pasting a concept into every other market.

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One reason businesses need an inventory control system is a. to evaluate the effectiveness of advertising campaigns. b. to determine when to mark down merchandise. c. for reporting inventory in the financial statements. d. all of these are true.

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Option d is correct. All of these are the reasons why the businesses usually need the inventory control system.

What is an inventory control system?

This is the term that is used to track the goods that a company has through the use of the supply chain. The inventory control is done through the use of technology. The inventory is the stock of the goods that are available in the business at a particular time.

The control system helps in the integration of all of the ways that the goods would be able to get to the company. This has to do with the shipping of the goods also.

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Who must personally certify the financial statements and company disclosures or risk financial penalties and criminal prosecution for fraudulent misstatements?

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Corporate executives must personally certify the financial statements and company disclosures or risk financial penalties and criminal prosecution for fraudulent misstatements. This is further explained below.

What are Corporate executives?

Generally, They are the ones that are in charge of developing the company. They are responsible for developing business strategies as well as the overarching vision and objective of the firm, as well as setting goals, making progress on those goals, and ensuring that the business remains operational. They are in charge of everything pertaining to the company, including the finances, marketing, personnel, and so on.

In conclusion, The amount of light that emanates from a light bulb is measured in lumens. When there are more lumens, the light is brighter, and when there are fewer lumens, the light is dimmer. Lumens are used to measure how much light. What a pound is to a bunch of bananas. Milk is measured in gallons.

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A bank’s reserve ratio is 6.5 percent and the bank has $1,950 in reserve. Its deposits amount to?

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A bank’s reserve ratio is 6.5 percent and the bank has $1,950 in reserve. Its deposits amount to $30,000.00.

⇒Amount in reserve/money deposit = reserve ratio

⇒Let money deposit be x,

⇒1950/x = 6.5

⇒1950X6.5/1000

⇒1950/x X 6.5/100 = 0.065

⇒1950/6.5X100= x =30000

The percentage of deposits that a commercial bank must retain in reserve is known as the mandated reserve ratio.

A ratio of a bank's cash held in the Federal Reserve to all of its deposits can be used to represent the required reserve ratio formula.

A bank's reserve ratio, for instance, would be 1/20 or 5 percent if it had $100,000 in deposits and was required to retain $5,000 in the Federal Reserve.

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Aggregate supply is represented as a schedule or curve showing the relationship between the nation's

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Aggregate supply is represented as a schedule or curve showing the relationship between the nation's price level (index) and the amount of real domestic output that firms in the economy produce.

What is Aggregate supply?The whole supply of products and services produced within an economy at a specific overall price over a specific time period is known as aggregate supply, also known as total output.The relationship between price levels and the amount of output that businesses are prepared to produce is depicted by the aggregate supply curve. Usually, the level of prices and total supply have a positive connection.A change in aggregate supply can be ascribed to a number of factors, such as shifts in the quantity and quality of labor, technical advancements, salary increases, production cost increases, producer tax changes, producer subsidy changes, and changes in inflation.While some of these factors cause aggregate supply to increase, others cause it to decrease. By lowering the labor cost per unit of supply, for instance, higher labor efficiency—possibly achieved through outsourcing or automation—raises supply production.By raising manufacturing costs, salary increases, on the other hand, put downward pressure on the overall supply.

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Because it is difficult to estimate the future value of research and development, fasb requires that research and development costs be treated as:_________

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Because it is difficult to estimate the future value of research and development, fasb requires that research and development costs be treated as: an expense in the income statement.

What is research and development?

This is the term that is used to refer to the new changes that may come into a nation based on the fact that there were breakthroughs made in the field of research in a particular field. This is one of the ways that a lot of nations are able to get ahead and also get stronger, economically and also in the field of science.

This is difficult to estimate hence the fasb requires that research and development costs be treated as: an expense in the income statement.

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The maximum number of shares of stock that the corporate charter allows the corporation to issue is?

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The maximum number of shares of stock that the corporate charter allows the corporation to issue is authorised stock.

What is authorised stock?

Shares are used by public companies to raise capital needed for business operations. People who buy shares in a company are regarded as the shareholders of the company. Shareholders are regarded to be the owners of that company. Shareholders are paid dividends on the excess of revenue earned by the company.

Authorised shares are the maximum number of shares a company can issue to investors. According to the Securities and Exchange Commission, the maximum number of shares that can be issued by a corporation is 500,000,000. Of which 400,000,000 would be common shares and 100,000,000 would be preferred stocks.

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Project leaders have to take decisions on the allocation and utilization of materials and labor. Such decisions are called ________ decisions.

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Project leaders have to take decisions on the allocation and utilization of materials and labor. Such decisions are called Operational decisions.

What is Operational Decisions?

Operational decisions, which typically have effects for no more than a year or even a day, are those that are altered more frequently in accordance with the current external and internal situations.

Every company that conducts any type of business must make 100 decisions per day. These might range from simple tasks like restocking the water cooler to difficult ones like quickly fulfilling a customer purchase.

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Nenisha had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Denisha cautioned against doing this, most likely because

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Denisha cautioned against doing this because differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets.

Different campaigns for different markets

Although it is understandable for the client to want to roll out the same campaign if it was a successful one, Denisha is right to prevent it from happening. The campaign being successful in the United States does not mean it will do well in other countries.

The reason for that are the cultural differences among countries and societies. What is a need in the American market might not be a need in the Brazilian market. What is a want in the European market might not be a want in the Chinese market.

Thus, the campaign should be revised and altered according to the country where it will be carried out. A proper study of the audience or market should be conducted before doing so.

With the information above in mind, we can select option E as the correct  answer.

The missing answer choices for this question are the following:

he did not have the budget for a global rollout.copyright and intellectual property concerns prevented him from wanting to share his good ideas outside of the U.S. market.he was unfamiliar with the code of ethics for advertising in other countries.he had not applied for or received international certification that was required for working outside the United States.differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets.

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Adding or deleting features and functions from an existing product platform is: Group of answer choices A high-end strategy. The optional-pricing strategy. A low-end strategy. A promotional strategy. All of these answers are correct.

Answers

b. The optional pricing strategy (O.P.)

More about optional pricing:

When a company uses optional product pricing, it sets a base product at a lower cost and additional, optional products at a higher price to make up for any losses. Optional products are not required for the base product to function, but they typically improve the customer experience.

The two key components of optional product pricing:

A base product is the main draw for the customer or the reason they are purchasing. It meets the needs of the customer and does not require the optional product to function.A complimentary product(s): A product that a customer who purchased the base product is likely to purchase in order to improve their experience with the base product.

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If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday).

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If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday): TRUE

What are tax returns?A tax return is a form or form that is filed with a tax authority and discloses income, expenses, and other relevant tax information. Tax returns enable taxpayers to assess their tax liability, plan their tax payments, and receive refunds for overpayments. In most nations, an individual or corporation having a reportable income, such as wages, interest, dividends, capital gains, or other profits, must file an annual tax return.For example, if April 15th comes on a Saturday, the deadline for individual tax returns is April 17th (assuming it is not a holiday).

Therefore, the statement "if April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday)" is TRUE.

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Complete question:

If April 15th falls on a Saturday, the due date for individual tax returns will be on Monday, April 17th (assuming it is not a holiday). TRUE or FALSE

Alec must purchase 14 identical shirts and only has $\$130$. There is a flat $\$2$ entrance fee for shopping at the warehouse store where he plans to buy the shirts. The price of each shirt is the same whole-dollar amount. Assuming a $5\%$ sales tax is added to the price of each shirt, what is the greatest possible price (in dollars) of a shirt that would allow Alec to buy the shirts

Answers

Assuming a 5% sales tax, the greatest possible price (in dollars) that would allow Alec to buy 14 shirts for $130 is $8.70 per shirt.

What is the sales price?

The sales price represents the price at which a unit is sold, excluding other costs like sales tax.

Data and Calculations:

Number of shirts required = 14

Funds available for the purchase = $130

Entrance fee for shopping = $2

Net funds available for the purchase = $128 ($130 - $2)

Sales tax = 5%

Sales price plus tax = $9.14 ($128/14)

Sales price less tax = $8.70 ($9.14/1.05)

Thus, assuming a 5% sales tax, the greatest possible price (in dollars) that would allow Alec to buy 14 shirts for $130 is $8.70 per shirt.

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When the economy took a downturn and jobs were difficult to find, many people blamed immigrants. What would be a good explanation for rising prejudice in this situation

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Realistic conflict theory would be a good explanation for rising prejudice in this situation.

What do you mean by Realistic conflict theory ?

According to the realistic conflict theory, wherever there are two or more groups vying for the same few resources, there will be conflict, false preconceptions and ideas, and prejudice towards the various groups.

Just the perception of competition will foster hostile emotions and discriminating behavior in one group. For instance, whether or not it is accurate, ethnic group A will feel resentment and hatred if it perceives that members of ethnic group B are a threat to them by "taking employment."

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Which type of economic system has government working closely with large, privately owned companies?

Answers

State capitalism.

Capitalism. capitalism economic system in which the means of production are privately owned. is an economic system in which the means of production are privately owned.

Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

The system with the highest level of government control is communism. In theory, a communist economy is one in which the government owns all or most enterprises. Central planning by the government dictates which goods or services are produced, how they are produced, and who will receive them.

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If a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200?

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10 percent  is yield to maturity of the security. Yield to maturity is the amount of interest that will be earned on a security if it is held until it matures. It is expressed as an annual rate, which is same as the owner's internal rate of return.

In essence, yield to maturity represents IRR on a security if held to maturity. It is predicated on  idea that all coupon or interest payments can be invested at security's rate of return. In order to determine whether purchasing security is a wise investment, yield to maturity can be quite helpful.

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If the long-run average total cost curve of an industry is declining at the point where it intersects the industry demand curve, we can expect: A) an overallocation of resources. B) the industry will be purely competitive. C) the industry will be monopolistically competitive. D) the industry will be a natural monopoly.

Answers

The answer is (D). The industry will be a natural monopoly. If the long-run average total cost curve of an industry is declining at the point where it intersects the industry demand curve, we can expect the industry will be a natural monopoly.

What is natural monopoly?

This is when all means of production is owned and held by one person where in there is lack of competition.

A natural monopoly is an industry that runs best when one firm produces all the output.

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According to the above excerpt, what type of shock would this be: A. Positive Demand Shock B. Positive Supply Shock C. Negative Supply Shock D. No Shock

Answers

Answer:

A positive demand shock

Explain the nature of individual and business decisions which drive the demand and supply of financial capital. specifically, what kinds of factors will shift demand and supply of financial capital?

Answers

Those who provide financial capital must make two major choices: how much money to set aside and how to allocate it among various financial investments.

What kinds of factors will shift the demand and supply of financial capital?

People must consider their future needs to determine how much savings they should set aside for anticipated or unforeseen circumstances. Savings will move their money to Investment B if Investment A becomes riskier or offers a lower return, which will cause the supply curve of financial capital for Investment A to move back to the left while moving Investment B's supply curve to the right. Those that ask for financial resources do so because they intend to repay it in the future. People might, for instance, take out a loan to buy a house, a car, or another type of long-term possession. To create a factory or finance a project that won't pay off for five, ten, or even more years of research and development, a corporation may look for financial investment.

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The goal of investing $50 per month for the next 12 years for your nephew's college fund is a(n):______goal.

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An investment vehicle known as a mutual fund pools the money of its shareholders and uses it to buy securities like stocks, bonds, money market instruments, and other assets. Professional money managers who specialize in managing mutual funds deploy the assets of the fund to produce capital gains or income for the fund's investors.

The portfolio of a mutual fund is structured and managed to meet the investment objectives stated in the prospectus. Mutual funds provide access to professionally managed portfolios of stocks, bonds, and other securities to small and individual investors. As a result, each shareholder shares in the fund's profits or losses in proportion.

Mutual funds invest in a wide range of securities, and their performance is typically measured by the change in the fund's total market capitalization.

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All else equal, what happens to consumer surplus if the price of a good increases?

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As the price of a good increases, the consumer surplus decreases.

What is the consumer surplus?

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

For example, if the highest amount a consumer is willing to pay for a pen is $10 and the price of the pen is $2, consumer surplus is $(10 - 2). If the price of the pen increases to $5, consumer surplus becomes $5 ($10 - $5).

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Automobile manufacturers such as ford and general motors often use ________ distribution, such that dealers act as retailers.

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Automobile manufacturers such as ford and general motors often use indirect distribution, such that dealers act as retailers.

What is indirect distribution?

Indirect distribution is selling wholesale to agents or merchants who will distribute the product on your behalf. They keep it, show it, and use salespeople to get it into the hands of customers.

When there are middlemen or intermediates in the distribution channel, this is referred to as indirect distribution. The intermediates in the wood example would be the lumber manufacturer, the furniture maker, and the retailer.

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Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of

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Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

What are floating exchange rates?A floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which the value of a currency is permitted to fluctuate in reaction to foreign exchange market occurrences. A floating currency is one that uses a floating exchange rate, as opposed to a fixed currency, the value of which is determined in terms of material items, another currency, or a group of currencies (the idea of the last being to reduce currency fluctuations).When the international value of a country's currency rises, so do its imports, and vice versa.

As it is given in the description itself, when the international value of a country's currency rises, so do its imports, and vice versa.

Therefore, Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

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The question you are looking for is here:

Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will ____.

Employees and the public are frustrated by high levels of executive compensation because:_______

Answers

The answer is that senior executives frequently receive bonuses whether or not the business is profitable. Employees compensation is a statistical word that is frequently used in business accounts as well as national accounts and balance of payments data. Essentially,

It refers to the total gross (pre-tax) salaries that employers pay to workers for services rendered over a given accounting period, such as a quarter or a year. The Hourly, Salaried, Commission, and Bonuses are  Four Major

Types of Direct Compensation. Most consumers want to hear about direct compensation, especially base pay and variable pay, when they inquire about compensation.

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Toby kirkland’s parents claim him as a dependent on their tax return. Toby had earned income in the amount of $2,897. What is toby’s standard deduction?

Answers

When we use the IRS rule which states the standard deduction amount should be greater than $900 or the income earned by the taxpayer  for the year in addition with $300 (should not be exceeding the regular standard deduction). Income earned by Toby is $2,897, then add

$300 into it.

The correct standard deduction amount would then be $3,197 ($2,897 +300)=$3197.

Standard deduction is the deduction given by the income tax authorities  to the tax payer.

Internal revenue bulletin is the instrument used by the IRS for announcing all the rules.

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An client told an intentional lie to an insurer in order to receive a favourable premium. This ais an example of?

Answers

The intentional lie told to the insurer to obtain a favourable premium is an example of asymmetric information.

What is asymmetric information?

Asymmetric information is when one of the parties in a transaction has more information than the other party in the transaction. The party with more information has an advantage over the party with less information. In this question, the party with more information in the client.

Adverse selection is an effect of asymmetric information. Adverse selection is when the seller of a product chooses a client based on the false information provided.

Another effect of asymmetric information is moral hazard. This is when a party whose risk is insured acts in a different way than he would have acted if his risks were not insured.

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Georgia was contacted by the CEO to research if adding a new data center makes sense for the organization from an economic and operational stand point. Georgia agreed to perform a(n) ________.

Answers

Georgia was contacted by the CEO to research if adding a new data center makes sense for the organization from an economic and operational stand point. Georgia agreed to perform "Feasibility Study".

What is Feasibility Study?

A feasibility study is an analysis that determines the chance of successfully completing a project by taking into account all pertinent economic, technical, legal, and scheduling issues.

The purpose of feasible study is-

An initial investigation of a prospective project or endeavour to assess its merits and viability is known as a feasibility study. An unbiased analysis of a proposed project's technical, economic, financial, legal, and environmental issues is intended to be provided through a feasibility study.

There are four main elements that go into a feasibility study-

Technical feasibility: The process of finding out how you're going to manufacture your good or service to see if it's feasible for your business is called technical feasibility.Financial feasibility: Your project's financial viability is determined by its financial viability. A cost/benefit analysis is part of a financial feasibility report and it examinesMarket feasibility (or market fit): Product-market fit occurs when an entrepreneur spots a gap in the market and develops a solution that consumers desire to purchase.Operational feasibility: The degree to which a proposed system resolves issues, seizes opportunities identified during scope definition, and satisfies requirements found during the requirements analysis stage of system development is measured by its operational feasibility.

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What quality control technique attempts to keep errors from reaching the final customer?

Answers

100% Inspection method is the quality control technique that attempts to keep errors from reaching the final customers.

100% inspection method is a quality control technique which involves assessing  and looking at all the parts of a product.

This type of quality control is done to rule out flaws in products so that they do not reach to the customers.

This method is commonly used to evaluate the valuable metals and products.

When conducting the 100% inspection method  data about the manufacturing process is required and software is also needed to analyze inventory of the products.

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