When buyers will purchase the same amount of a good, even though the price has increased, the demand for that item is .

Answers

Answer 1

Demand for an item is inelastic when consumers continue to buy the same volume of it even though the price has increased.

The demand curve is the relationship between price and quantity demand. Demand for a product is affected by a number of factors, including perceived need, price, perceived quality, convenience, available alternatives, customer preferences, and financial resources. How much did the good cost? A good's potential price and the quantities that might be purchased at those prices form the fundamental relationship between supply and demand. A rise in price will typically result in a drop in the quantity demanded because the relationship is frequently antagonistic. This unfavorable link can be seen visually in the consumer demand curve's declining slope.

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Related Questions

If bonds have been issued at a discount, then over the life of the bonds the
a. carrying value of the bonds will increase.
b. discount will increase.
c. interest expense will increase, if the discount is being amortized on a straight-line basis.
d. carrying value of the bonds will decrease.

Answers

If bonds have been issued at a discount, then over the life of the bonds the interest expense will increase, if the discount is being amortized on a straight-line basis.

Give a brief account on Straight-line amortization.

In a process known as "straight-line amortization," interest is added to each payment in the same proportion until the debt is fully repaid. You can charge the cost of the intangible asset, calculate monthly loan repayment installments that include interest, and decide how much interest to pay for intangible assets using straight-line amortization. You divide the overall interest you owe on a loan by the number of periods. You calculate the projected salvage value of an intangible asset by deducting it from the book value, then dividing the result by the number of periods of the asset's useful life. Borrowers are guaranteed to pay interest at the beginning of the repayment period thanks to straight-line amortization. Gradually, the principal repayments decrease as the amount of interest expense in the subsequent instalments decreases. By increasing the percentage of each repayment, you can allocate more money to the principal.

Formula for straight-line amortization :

Intangible asset amortization = (book value - expected salvage value) / number of periods

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Which one of the following is a name for the range over which a company expects to operate? a. Fixed range b. Variable range c. Mixed range d. Relevant range

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Option D is correct. A company expects to operate over a relevant range.

What is relevant range?

The word "relevant range" in accounting typically refers to a normal range of volume or normal amount of activity, where the total amount of a company's fixed costs won't change as the volume or amount of activity changes. Since a corporation would take action to reduce its overall amount of fixed costs if its volume were to drastically collapse, the term "relevant range" is included in the definition of fixed costs. In a similar vein, if the company's volume were to sharply rise, it would probably have to raise the overall sum of its fixed costs.

It's crucial to select a relevant range because otherwise, you risk making inaccurate estimates if you assume that all of your costs—variable or fixed—will remain constant. Additionally, if you disregard relevant range, you risk running into production capacity problems, failing to recognize that you have reached your limit for the time period and cannot physically produce all the necessary goods.

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For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender

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At the time of surrender, the person will receive C. a calculated amount of money which includes the premiums paid as well as the interest on that money.  If the policy has been in effect for five years and has built up a cash value, the person may receive more than the initial premium paid, but it will be less than the death benefit.

The amount that the person will receive when they surrender their whole life insurance policy with a cash value clause will depend on several factors, including the current cash value of the policy, any outstanding loans or penalties, and the terms of the policy. In general, the person will receive the current cash value of the policy minus any outstanding loans or penalties.

The missing part in the question is shown below.

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive:

A: one-fifth of the $20,000 face value.

B: $20,000 less the premiums paid.

C: a calculated amount of money which includes the premiums paid as well as the interest on that money.

D: a calculated amount of money that must be converted to a term life insurance policy.

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during which process does the customer approve the delivery of functionality to their business

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The process of Release on Demand is the one wherein the customer is most likely to approve the delivery of the functionality to the businesses.

A business process is the one wherein different functions of the businesses are performed by either of the parties, and leads in to adding up value for the business operations. The different processes have different outcomes. It is also noteworthy to mention that the business processes are dependent on each other due to the various cross-functioning of the operations within the organization.

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Wine and Roses, Inc. offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 7.73 percent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond?

Answers

Bonds are currently valued at $953.29 on the open market.

Bond market value equals the present value of the bond's face value plus the present value of its coupon payments.

PV of face value is equal to $1,000 / (1 + 3.86%).

¹⁸ = $505.31

Coupon payments' PV equals $35 multiplied by 12.79935 (PV annuity factor, 3.865%, 18 periods) to arrive at $447.98.

$953.29 is the current market price ($505.31 plus $447.98).

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"WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. "

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The two employees of WTI are paid weekly, but due to the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.

What is employees?

Employees are individuals who work for an employer in exchange for wages, benefits, and other forms of compensation. Employees can be either full-time or part-time, and may include individuals who are paid hourly or salaried. Employees are responsible for carrying out the duties and tasks of their job, and are also expected to adhere to the policies and procedures of the company. Employers are responsible for providing employees with a safe and healthy work environment, as well as offering fair wages and other benefits such as health insurance and retirement plans. Employees are also entitled to certain rights and protections under the law, such as protection from discrimination and harassment.

This means that the two employees will receive an additional $200 each in their next paycheck, which covers the two days' worth of wages that have accrued since the end of the year.

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When strategic interactions are important to pricing and production decisions, a typical firm will a. consider exiting the market. b. consider how competing firms might respond to its actions. c. set the price of its product equal to marginal cost. d. generally operate as if it is a monopolist.

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Think about how rival companies would react to its actions. o put its product's price at its marginal cost. do typically conduct business as a monopolist.

What are two rival companies

Companies' relentless competition to be the best frequently results in bitter rivalry. Consider comparing marketing and competitor comparison landing sites as examples of how public-facing the conflict is for some rival businesses. Others choose to keep their battle under wraps, limiting brand associations and concentrating efforts on highlighting their own advantages. Regardless of the competitive approach your business employs, I'm sure you'll agree that achieving and maintaining the top spot require a constant uphill struggle.

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Why is it important to determine the truthfulness and accuracy of a material or information?

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It is important to determine the truthfulness and accuracy of a material or information in order to make informed decisions.

Knowing the truth and accuracy of material or information is essential to make decisions. If the material or information is not accurate or true, the decisions made based on this information will not be reliable.

Therefore, it is important to verify the validity of the material or information before making a decision. This can be done by checking the source of the material or information and its accuracy.

Additionally, it is important to assess the accuracy of the material or information by consulting experts or cross-checking with other sources. Doing this helps to ensure that the material or information is factual and trustworthy. Knowing the truthfulness and accuracy of material or information is crucial in making the right decisions.

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One word for products are purchased only after customers have compared a variety of similar and competitive products​

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One word for products are purchased only after customers have compared a variety of similar and competitive products​ : Comparative

Comparative: Products that are purchased only after customers have compared a variety of similar and competitive products is known as comparative buying. This type of buying behavior involves researching, assessing, and evaluating different options before making a purchase decision.

Consumers that engage in comparison shopping do so in order to find the best deal on the goods or services they intend to purchase from a variety of suppliers. It is an assessment of prospective vendors to determine who is providing the greatest deal.

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A customer buys 10M of Allied Corporation 8% debentures, M '28, at 90 on Wednesday, May 29th. The interest payment dates are Mar. 1st and Sept. 1st. The trade settled on Friday, June 1st. The customer will receive how many months of interest in the next payment

Answers

Bondholders get set semi-annual interest payments from the issuers for the previous 6-month period. The transfer of interest accrued by buyer to seller guarantees that each one receive the appropriate amount of interest

How would you define interest?

The fee you spend to borrow the money or the fee you demand to lend money is called interest. The most common way to represent interest is as a yearly percentage of the loan amount. The rate of interest on the loan is this proportion.

Why is interest required to be paid?

Motives Why Paying Interest There are several significant reasons why lenders require borrowers to pay interest. First off, when people borrow money, they are no longer able to utilise it to pay for their own purchases.

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Which of the following is not one of the purposes of an internal control system?
A) The evaluation of performance
B) Safeguarding the company's assets
C) Ensuring that the company is using the most effective marketing plan
D) The assessment of the degree of compliance with company policies and public laws

Answers

C). A system of internal controls is not intended to ensure that an organization is employing the best marketing strategy.

Describe the internal control system.

Internal control is a practice carried out by management, the board of directors, and other employees of a firm with the goal of providing a reasonable level of assurance that the information is accurate, timely, and reliable.

Internal controls were developed as a means of safeguarding a business and lowering the risk to its objectives. Internal controls support risk mitigation, asset protection, accurate record-keeping, improved operational performance, and regulatory compliance.

Types: There are two main types of internal controls: preventative and detective. Both belong to a successful internal control system.

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What you give up in the future to make a purchase today?

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When you make a purchase today, you give up the ability to use that money for something else in the future as investment. This is known as the opportunity cost of a decision.

What's better, purchase or investment?

The decision between making a purchase or investing the money depends on the individual's goals and priorities for investment A purchase may provide immediate satisfaction and the  opportunity cost to use the item or service right away. A purchase may not provide long-term financial benefits. Investment money can provide potential long-term financial gains, but it also involves some level of risk. investment money may not provide immediate satisfaction. It is important to consider both short-term and long-term goals when making a decision about whether to make a purchase or  opportunity cost of the money. It's important to weigh the potential benefits and drawbacks of each option. It's recommended to consult with a financial advisor before making any investment decisions.

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What is the ratio of purple flowers to white flowers ?: 1?

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Purple flowers to white blossoms are split in a ratio of 3:1.

The alpha factor (), which is the ratio of a transistor's collector and emitter currents, is always less than one (between 0.5 and 1).  Current gain (= Ic/Ib), often known as the ratio of its collector and base currents, is always larger than 1. An alternate formula for calculating the factor is = /(+1) = 0.996/ 0.992=1 = /(+1).=1/1+1=1/2=0.5. A proportion also exists when two ratios are equivalent. A ratio in mathematics displays how often one number occurs in another. In a fruit plate, for instance,  the ratio of oranges to lemons would be eight to six . This demonstrates that the tweet is being criticized and that some people believe its content to be inappropriate

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An investment adviser has its home office in State C. Their only business is with registered investment companies, large employee benefit plans, and broker-dealers. They have no place of business in State D, but provide investment advice to several registered investment companies in that state. State D has recently adopted the Uniform Securities Act and the Administrator feels that the IA should be required to register there. Under the USA

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The firm does not have to register because they have no place of business in the state and their only clients in that state are registered investment companies.

An investment is the provision of funds to acquire an asset with the aim of increasing the value of the asset over time. Investment requires sacrificing current items such as time, money, and effort.

In finance, the purpose of investment is to obtain a profit from the invested capital. Returns consist of realized gains or losses on the sale of real estate or investments, unrealized capital appreciation or dividends, investment income such as interest or rental income, or a mixture of capital gains and income.

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Although this account is not protected by deposit insurance, it is extremely safe due to the securities backing the funds.

Answers

Money market mutual funds and money funds are two common names for money market funds. Investors purchase securities through a money market fund, which the brokerage holds.

What is MMMF?

Money market mutual funds (MMMF) are the most convenient way for investors to access the money market. The majority of the assets in money market mutual fund portfolios, including Treasury bills, commercial paper, bankers' acceptances, repurchase agreements, and certificates of deposit (CDs), require only a basic comprehension from smaller investors. We explain how money market funds operate and how they can help you in this post.

Money market mutual funds are not covered by the Federal Deposit Insurance Corporation, unlike cash and even standard CDs (FDIC). Although very unlikely, there is always a chance that the investor could experience a financial loss.

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Parkway Void Co. issued 16-year bonds two years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If these bonds currently sell for 109 percent of par value, what is the YTM

Answers

The bond's YTM IS 7.5%.

Yield to maturity (YTM) is the overall rate of return that a bond will have earned once all interest payments are made and the principal is repaid. In essence, YTM represents the internal return rate (IRR) on a bond if held until maturity.

The total return rate that a guarantor anticipates will get if a note is held until maturity is known as YTM in the instance of bonds. Yield to Maturity is calculated using the following formula: Yield to Maturity = [Annual Interest + (FV-Price)/Maturity] (FV + Price)/2

When the YTM is more than the dividend yield, it is likely that the property is being sold below par. The bond is being sold at a higher price if, on the other side, the YTM is lower than that of the coupon rate.

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Block trading today has been displaced to a great extent by _________ which are trading systems in which participants can buy or sell large blocks of securities without showing their hand.

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To conceal the true size, block trades are typically divided into smaller orders and conducted through various brokers. Block transactions can be conducted through a private purchasing agreement away from the public market.

A block trade is a large-scale transaction in a security that is privately arranged and carried out outside of that instrument's open market. Major broker-dealers frequently provide their institutional clients "block trading" services, also referred to as "upstairs trading desks." An extensive transaction involving more than 10,000 shares of stock or $200,000 worth of bonds is referred to as a block trade purchasing. The majority of block trades are considerably larger and involve shares valued at millions of dollars.

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How might the government remedy some of the disadvantages of a market economy?

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Government intervention is the primary means by which request failure can be corrected. This requires the government to pass legislation similar to antitrust programs and to incorporate colorful price mechanisms similar to levies and subventions.

Request failures can be corrected through government intervention, like new laws or levies, tariffs,  subventions, and trade restrictions.  Economists still identify six major functions of governments in request husbandry. Governments give the legal and social frame, maintain competition,  give public goods and services, redistribute income, correct for externalities, and stabilize frugality.  

One part of government is to correct problems of request failure associated with public goods, external costs and benefits, and amiss competition. Government intervention to correct request failure always has the implicit to move requests closer to effective results reducing shipment losses.

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With what official government bodies must a real estate brokerage file paperwork regarding the brokerage's use of an assumed name?

Answers

Texas Real Estate Commission and the county clerk in every county where the brokerage does business.

Real property is belongings together with land and the homes on it, at the side of its herbal sources along with crops, minerals or water; immovable property of this nature; an interest vested on this (also) an item of real belongings, (more generally) homes or housing in trendy. In phrases of regulation, real is when it comes to land property and isn't like private assets while property approach the "hobby" someone has in that land assets.

Actual property is different from non-public assets, which aren't completely attached to the land, such as automobiles, boats, rings, fixtures, tools, and the rolling stock of a farm. in the United States, the transfer, owning, or acquisition of actual estate may be through commercial enterprise businesses, individuals, non-profit groups, fiduciaries, or any prison entity as seen within the regulation of each U.S. nation.

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For analysis purposes, the high-low method usually produces a(n) a. reasonable estimate. b. precise estimate, C. overstated estimate. d. understated estimate. 16) In applying the high-low method, which months are relevant? Month Miles Total Cost January 80.000 $ 192,000 February 50,000 160.000 March 70,000 188,000 April 90,000 260,000 a. January and February b. January and April c. February and April d. February and March
Previous question
N

Answers

Option A is correct. For analysis purposes, the high-low method usually produces a(n) reasonable estimate.

The high-low method is a way to estimate a cost function by analyzing the relationship between a cost and an activity level. This method is useful when a company has a limited number of data points and wants to quickly estimate a cost function. The high-low method usually produces a reasonable estimate but it may not be as precise as other methods like Regression analysis. The high-low method can be affected by outliers, and it may not account for all variables that could affect the cost. For analysis purposes, the high-low method usually produces a(n) reasonable estimate. The high-low method is a way to estimate a cost function by analyzing the relationship between a cost and an activity level. This method involves identifying the highest and lowest activity levels, and then using the corresponding costs to estimate the cost function.

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A commercial building has three unused sound systems. An audio contractor is to install a new state-of-the-art audio system. The new system requires new cabling. The contractor determines that the existing cable is not to the listing of the new audio equipment, and will not use it in the future. The contractor is___________.

Answers

The contractor is to install new cabling to support the new audio system. The existing cabling does not meet the listing requirements for the new audio system, and therefore should not be used for future installations.

What is contractor?

A contractor is a person or company that provides materials or services to another party for a fee. Contractors are typically used for specialized services that require particular skills and knowledge. Contractors are hired for short-term projects, such as remodeling a kitchen or building a new website. They may also be hired to complete long-term projects, such as constructing a new building or creating a marketing strategy.

The contractor should assess the layout of the building and determine the best route for running the new cables in order to ensure the best audio performance is achieved.

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Melody is a full-time employee in Sioux City, South Dakota, who earns $4,600 per month and is paid semimonthly. She is married filing jointly and has indicated checkbox withholding allowance (use the wage-bracket tables). She has a qualified health insurance deduction of $50 per pay period and contributes 3% to her 401(k), both of which are pre-tax deductions. What is her net pay

Answers

Melody works full-time and makes $4,600 a month in Sioux City, South Dakota (paid semi-annually).

The deduction for health insurance is $50 every pay period.

Contribution = 3% to her 401(k).

Semi-monthly payment = Monthly Payment / 2

Semi-monthly payment = 4600 / 2 = $2300

Earnings before tax = Revenue from semi-monthly earnings – Deduction in health insurance

Earnings before tax = $2300 - $50 = $2250

6.2% for social security and 1.45% for Medicare is the FICA tax rate.

7.65% is the overall FICA tax rate.

Value of Tax rate:

Social Security = 6.2% * Earnings before tax

Social Security = 6.2% * $2250 = $139.50

Medicare tax = 1.45% x Earnings before tax

Medicare tax = 1.45% x $2250 = $32.63

Contribution = 3% of 401(k)

⇒ Semi-monthly earnings x 3% of the contribution

Contribution = $2300 x 3% = $69.

Taxable earnings = Semi-monthly earnings – Deductions in health insurance – contribution

Taxable earnings = $2300 - $50 - $69 = $2181

$164 is the amount of income tax withheld (the amount would be deducted in one withholding allowance, which would be between $2162 and $2182).

Net pay = Taxable earnings - Social security tax - Medicare tax – Withholding income tax

Net pay = 2181 - 139.50 - 32.63 - 164 = $1844.87

Therefore, the Net pay is computed at $1844.87

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Which of the following is the most important competitive factor in determining a company's ability to secure contracts to supply large multi-outlet retailers private-label footwear to chain retailers in a particular geographic region?
A. the number of special high-performance features the company agrees to incorporate in the private-label footwear models it supplies
B. the S/Q ratings on the private-label footwear the company offers to supply
C. the price at which the company offers to supply retailers with private-label pairs
D. the company's brand reputation
E. the amount and caliber of merchandising and promotional support the company offers to provide

Answers

One of the following is the proper pricing that the corporation provides to sell private-label pairs to retailers.

Why is the firm called?

Due to the desire among its employees to create value, a business is referred to as a firm. Latin is the origin of the word "produce," which means to lead forth or bring forth. Old French, which means compaignie or companionship, is where the word "company" first appeared. Additionally, the word "business" has its roots in Old English, which combines busy with -ness.

What is the short definition of a company?

A corporate structure that is distinct from its owners legally is a corporation. Due to additional reporting standards and increased legal duties, the business structure is now more complicated and has greater setup and administration expenses.

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ABC Bank requires a 20% down payment on all its home loans. If the house is priced at $165,000, what is the amount of the down payment required by the bank

Answers

The amount of the down payment required by the bank is $ 33,000.

165000 * 20%

165000 * 0.2 = $ 33,000

How does the down payment operate?

The portion of the buying price of a property that you pay up front and does not come from a mortgage lender through a loan is referred to as a down payment. Let's say you want to purchase a $30,000 home. The remaining $291,000 would be financed if you placed $9,000 down, or three percent, toward the buying price.

How do deposits and down payments differ?

In the event the seller accepts your offer, the earnest money deposit starts the home-buying process. After the seller accepts the offer, the purchase of the chosen home is started with a down payment.

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Which of the following must always be true as the quantity of output increases? a. Marginal cost must rise. b. Average total cost must rise. c. Average variable cost must rise. d. Average fixed cost must fall.

Answers

If the marginal cost increases as production increases, this may indicate that the greater input resources utilised to achieve the higher output were not used as effectively.

Input-output resources: what are they?

Management resources are the inputs that go into business management. They consist of assets, investments, information, and people. Sales, profitability, market share, and other measures are examples of the outcomes of effective business management. These measures and their variations are used to assess management performance. The foundation for I-O analysis is provided by input-output tables. All economic sectors' supply chains are quantified in these tables' rows and columns of data. The headers of each row and column list the industries. Each column's data shows the number of inputs that were utilised.

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A performance appraisal serves all of the following purposes except which of the following?
Select one:
a. It allows the employee to see where he or she ranks against all the other employees in the company.
b. It lets workers know how they can do better in the future.
c. It provides an effective basis for distributing rewards.
d. It lets workers know how well they are doing.
e. It helps the organization monitor its employee selection, training, and development activities.

Answers

Option e is correct. Performance appraisals helps organizations oversee employee selection, training and development activities.

Performance appraisals are used to ascertain an employee's performance over a period of time. These ratings are used to highlight both strengths and weaknesses to improve future performance. The term “performance evaluation” refers to the regular review of an employee's job performance and overall contribution to the organization. Performance appraisals, also known as annual reviews, performance appraisals or evaluations, or employee appraisals, assess an employee's skills, achievements, and growth, or lack thereof.

Organizations use performance reviews to provide employees with comprehensive feedback on their work and to justify raises and bonuses, as well as termination decisions. It can be done at any time, but is typically annual, semi-annual, or quarterly. Performance appraisal is the regular evaluation of an employee's performance and contribution to the organization.

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Business was booming at PlastiPharm, and the swing shift supervisor needed to hire 60 new employees on his shift alone to meet production demands. His first hires were two trainers, a deviation from how the two other shift supervisors were hiring. Which statement best explains how hiring trainers might lead to an improvement in the process-management culture on the swing shift?
The training of new employees becomes a focus when enough trainers are hired and allows employees time to learn what their jobs are, which reduces stress and improves morale.
Hiring two trainers sends a signal to the new employees that they will always have someone on whom they can rely to ask questions.
Training new employees on customer needs and doing the job right the first time promotes an attitude of continuous improvement that leads to successful production processes.
Providing adequate training for the new employees indicates that they will be expected to learn their jobs well in order to succeed but that they will have the resources needed to do well.

Answers

Training new employees on customer needs and doing the job right the first time promotes an attitude of continuous improvement that leads to successful production processes.

What are Customer Needs? A customer need is an unmet demand that drives them to buy a good or service. The final deciding element in which product a consumer selects is the need, which might be expressed verbally by the buyer or unspoken.For you to provide outstanding customer service, you must be aware of your clients' demands. Your purchases and loyalty are motivated by the demands of the client. You may better adapt your service and product offers by taking use of this information. You may also use it to improve your brand offering.Every successful business, whether it sells products directly to consumers or to other enterprises, is built around knowing and comprehending the demands of the client. Once you are aware of this, you can utilise it to convince both current and new clients that doing business with you is in their best interests.

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How do you find total cost from marginal cost?

Answers

To calculate total cost from marginal cost, you need to start by adding the marginal cost of each item or service to the previous cost.

This will give you the total cost of the items or services that have been added together. The total cost of all items and services will be the sum of the marginal costs.

For example, if you have three items with marginal costs of $5, $10, and $15, then the total cost would be $30. Keep in mind that this method of calculation works best if the marginal costs are consistent over time.

By following these steps, you can easily calculate the total cost from the marginal cost.

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Viktor's been tracking the conversions in his Display campaign for the last 30 days. He's had 24 conversions over that time, and plans to use target return on ad spend (ROAS) as his automated bidding strategy. Which type of automated bidding strategy will Viktor be using

Answers

In that time, there have been 24 conversions, and his automated bidding technique will be to employ target return on ad expenditure (ROAS). Viktor will employ a bidding strategy that is revenue-focused.

The definition of revenue

The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue. Because it appears only at beginning of the income statement, revenue, which is also characterized as gross sales.

What does, for instance, revenue mean?

The entirety of the money that a company has made is referred to as revenue. Typically, income and profit include additional aspects of a business. Incorporate costs like cost of sales, operational costs, taxes, and interest expenditures, for instance, into net income.

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Claims for which formal instruments of credit are issued as proof of the debt are _____.
(a) accounts receivable
(b) interest receivable
(c) notes receivable
(d) other receivables.

Answers

The correct response is (c), since notes receivable are bills of exchange, official forms of credit, and they can also be endorsed.

What are Receivable Notes?

Asset accounts are linked to an underlying promissory note, which specifies in writing the payment terms for a purchase between the "payee" (typically a company, sometimes referred to as a creditor) and the "maker" of the note (typically a customer or employee, sometimes referred to as a debtor). Notes receivable are also known as "notes payable." A company can have notes receivable with any other party, including another company, a financial institution, or an individual. They typically arise when a customer requires longer payment terms than the standard billing terms for a sale. Payees charge interest and require a signed promissory note for legal purposes in exchange for agreeing to a slower payment. Another way that notes receivable are created is through employee cash advances in which the employer requires the employee to sign a promissory note.

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