When an average, or representative, firm is in long-run equilibrium in a strictly competitive industry, the following criteria hold true.
How can it be explained in detail?b. MR = MC: The representative company will produce at long-run equilibrium when marginal revenue (MR) equals marginal cost (MC) (MC).
The price (P) at long-run equilibrium will be equal to the minimum point of the average variable cost (AVC) curve because companies that cannot afford their variable costs will eventually leave the market.
d. The company is making a typical profit: In the long run, the representative firm will only be making a normal profit. This indicates that while it is paying all of its expenses, including opportunity costs, it is not turning a profit.
For a representative business in long-run equilibrium in a strictly competitive industry, this criterion is not always valid. a. The MC curve is horizontal.
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According to Maslow’s hierarchy of needs, employees would be motivated by (Job Enrichment/ Health Insurance) only if (Job Enrichment/ Health Insurance) were already offered.
Need help with this tricky Operations Management Question.
Answer:
According to Maslow's hierarchy of needs, employees would be motivated by job enrichment only if job enrichment were already offered. Health insurance, on the other hand, would motivate employees regardless of whether it is already offered.
That's right. Job enrichment is a higher-level need on Maslow's hierarchy of needs, which means it will only motivate employees if it is already offered. Health insurance is a lower-level need, so it will motivate employees regardless of whether it is already offered.
Put the stages of quality management evolution in order with 1 being the earliest and 5 being the latest
1. In the guild era, skilled craftsmen produced the entire product with pride of workmanship
2. With division of labor after the industrial revolution workers felt less responsible for the final product
3. Scientific Management applied observation methods and inspection to manufacturing
4. During World War II and post-war era, industries used statistical sampling methods on products & raw materials
5. Quality efforts turned to product design evaluation, expanded to Service Industry then evolved to prevention techniques
As per quality management evolution, the stages can be arranged as - 1, 2, 3, 4 and 5
The major goal of overall quality management is to ensure that an organisation can create an environment that continuously supports employees in increasing their level of productivity in order to speed up business operations. The stages of quality management can be arranged as -
1. Skilled artisans crafted the entire item with pride in their labor during the guild era.
2. After the industrial revolution, employees felt less accountable for the outcome due to the division of labour.
3. Scientific Management used industrial observation techniques and inspection.
4. Businesses utilised statistical sampling techniques on goods and raw materials throughout World War II and the post-war period.
5. Quality initiatives shifted to product design evaluation, grew to include the service sector, and eventually developed into prevention methods.
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Joan's project is to take a fairly straight-forward manual process and make it an electronic process. This will make the processing more efficient. Which of the following requirements analysis strategies is she using?
a) Business process automation
The requirements analysis strategy that Joan is using is A: business process automation.
Business process automation involves taking a manual business process and automating it using technology to make it more efficient. In this case, Joan's project is to take a fairly straight-forward manual process and make it an electronic process, which is an example of business process automation.
By automating the process, Joan can improve the efficiency of the process by reducing errors, increasing throughput, and decreasing processing time. This can help to improve the overall productivity of the organization and reduce costs associated with manual processing.
Therefore, the correct answer is A - business process automation.
"
Complete question
Joan's project is to take a fairly straight-forward manual process and make it an electronic process. This will make the processing more efficient. Which of the following requirements analysis strategies is she using?
a) Business process automation
b) Business process improvement
c) Business process internalization
d) Business process reengineering
"
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which of the following levels of measurement possess mutually exclusive categories, a fixed order to the categories, and equal spacing between the units of measurement?
interval and ratio are measurement possess mutually exclusive categories, a fixed order to the categories, and equal spacing between the units of measurement.
What level of measurement divides data into groups that cannot coexist?The nominal level of measurement divides data into categories that are mutually exclusive (nonoverlapping) and in which the data cannot be ranked or placed in any order.
What does measurement mean in everyday language?Measurement is the quantifying of characteristics of an object or event so that they can be compared to those of other objects or occurrences. To put it another way, measurement is the act of figuring out how big or little a physical quantity is in relation to a fundamental reference quantity of the same kind.
Finding a number to represent the quantity of something is the process of measurement.
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imagine that david is preparing his will and is trying to decide how to divide his assets between his two grown children. his daughter, tonya, is a chemical engineer who earns a high income. his son, terry, opted out of college and went to work straight out of high school. now terry works in construction; he works just as hard as tanya, but he is less affluent than she is.classify each example of possible ways david could divide his assets based on fairness and distribution as illustrated in the chapter.
David might transfer his assets according to the formula given for justice.
What types of assets are there?Equipment, estate development, raw materials, and inventories are examples of tangible assets. Intangible assets encompass things like royalties, trademarks, and other copyrights.
Fairness of Equal Results: Divide his money equally between Brian and Tonya, instead than giving it to charity.
As a matter of fair treatment, Terry should be given all of his riches in order to close the gap between he and his sister.
Fairness of Procedure: Inform his sons that he would give the cash to whoever takes the best care of him during his his senior years.
Equity of what is earned or deserved: Give the money to the kid he believes has earned the most of it.
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Assume there is a shortage in the market for digital music players. Which of the following statements correctly describesthis situation?A) The demand for digital music players is greater than the supply of digital music players.B) The supply of digital music players will increase because of the market pressures created by the shortage.C) The price of digital music players will rise in response to the shortage; as the price rises the quantity demanded willincrease and the quantity supplied will decrease.D) Some consumers will be unable to obtain digital music players at the market price and will have an incentive to offerto buy the product at a higher price.
C) As a result of the scarcity, the price of digital music players will increase, which will lead to an increase in demand and a decrease in supply.
C) The price of digital music players will increase in reaction to the scarcity, which will result in a fall in supply and an increase in demand. Digital music player shortages are an indication that there is a bigger demand than there is supply in the market. In order to account for the increasing demand, suppliers may raise the price of digital music players. As the cost increases, some customers could opt not to purchase the goods, while some suppliers might elect to increase production. In the end, the shortage will be resolved when the price increases until the quantity sought and amount provided are equal.
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Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $25,200 ($2,100/month) in advance on October 1. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of prepaid rent and rent expense (assuming the balance of Prepaid Rent at the beginning of the year is $0). Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the payment of rent in advance on October 1, Note: Enter debits before credits. General Journal Debit Credit Date October 01
If On October 1, Hoosiers would record the payment of rent in advance as follows: Debit Prepaid Rent: $25,200, Credit Cash: $25,200
How to prepare the journal entry?(1) On October 1, Hoosiers would record the payment of rent in advance as follows:
Debit Prepaid Rent: $25,200
Credit Cash: $25,200
(2) On December 31, Hoosiers would need to record an adjusting entry to reflect the amount of rent that has been used up or "expired" during the period
Debit Rent Expense: $6,300
(3 months x $2,100/month)
Credit Prepaid Rent: $6,300
(3) The year-end adjusted balances of Prepaid Rent and Rent Expense would be as follows:
Prepaid Rent:
Beginning balance: $0
Add : Rent paid in advance on October 1: $25,200
Less : Rent expense adjusted at year-end on December 31: $6,300
Ending balance: $18,900
Rent Expense:
Beginning balance: $0
Add : Rent expense adjusted at year-end on December 31: $6,300
Ending balance: $6,300
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Which of the following is an example of a competitive advantage due to a product/service differentiation?
Establishment of a brand name
Establishing a brand name and differentiating product can give the product's seller a competitive edge and, in the end, increase brand recognition.
How Do You Define a Competitive Advantage?The term "competitive advantage" describes elements that enable a business to produce goods or services more effectively or at a lower cost than its rivals. When compared to its competitors in the market, these factors enable the producing unit to produce more sales or margins.
What differentiated marketing campaign is the best example of?Marketing that is "different" focuses on a certain market that is interested in purchasing a particular kind of goods. A company that sells organic dog food, for instance, is trying to attract a certain demographic: people who value their health, love animals, and care about the environment.
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Armstrong Corporation manufactures bicycle parts. The company currently has a $19,300 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,100, or modified for $9,900 and sold for $21,300.
1A) Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts (Irrelevant data or Relevant data).
Relevant data: The $19,300 inventory of parts, the estimated sale price of $7,100 if sold as is, and the estimated sale price of $21,300 if modified. These pieces of data are relevant to the decision about what to do with the obsolete parts.
What is estimated?Estimation is the process of making an educated guess about something based on available information. It involves taking into account all known facts and making a judgement about the outcome. Estimation is commonly used in many fields such as business, engineering, construction, finance and economics. The accuracy of an estimate depends on the quality of the data used, the experience of the estimator, and the amount of time available for the calculation. Estimation is an important skill to have in order to make informed decisions and to predict future outcomes.
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companies in the service industry cannot maintain an inventory of services, however, they can maintain an inventory of question blank 1 of 1 answer which are items that are used by the service provider or the customer during the service activity.
As per the inventory, Service-based companies can maintain include complementary goods, companion goods, supplemental products, companion services, facilitating products, service goods, and intangible products.
In the service industry, companies cannot maintain an inventory of services because they are produced and consumed simultaneously.
However, companies in the service industry can maintain an inventory of answers or intangible goods, which are items used during the provision of a service.
Complementary goods refer to products or services that are sold together with the main service.
Companion goods are products or services that are consumed together with the main service.
Supplemental products are additional products or services that can be purchased in addition to the main service.
Companion services are additional services that can be purchased in addition to the main service.
Facilitating products are goods or services that support the delivery of the main service.
Service goods are tangible goods that are used in the delivery of the main service.
Intangible products are non-physical goods that support the delivery of the main service.
In summary, while service-based companies cannot maintain an inventory of services, they can maintain an inventory of various goods and products that support the delivery of their services.
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Complete Question:
Companies in the service industry cannot maintain an inventory of services, however, they can maintain an inventory of Answers which are items that are used during the service being provided.
Accompanying Products
Complementary Goods
Companion Goods
Supplemental Products
Companion Services
Complementary
Materials
Intangible Goods
Facilitating Products
Service Goods
Intangible Products
There are four main categories of strategies that managers may define to create and sustain a competitive advantage. Which of these is an example of a business-level strategy?
a. A finance director developing a plan to improve the return on invested capital (ROIC) by negotiating more favorable payment terms with customers and vendors
b. A CEO of a multidivisional company selecting a new customer market segment to pursue and establishing a new business unit to serve the segment
c. A general manager defining a superior customer service strategy for his division to better deliver its products
d. The vice president of human resources approving a 10% increase in staff in the company's Midwest division
A general manager defining a superior customer service strategy for his division to better deliver its products is a strategy
What is the business level strategy?Option (c) is an example of a business-level strategy.
A business-level strategy is a plan or approach that a company adopts to create and sustain a competitive advantage in a particular business unit or product line. It focuses on how the company can differentiate itself from its competitors and meet the specific needs of its customers.
In option (c), the general manager is defining a superior customer service strategy for his division to better deliver its products. This is a business-level strategy because it is focused on creating a competitive advantage for the specific division by delivering superior customer service, which can lead to customer loyalty and repeat business.
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a nominal amount of money, even as little as one dollar, is sufficient consideration to form a valid contract. this is true even if the other party's consideration is much more valuable. True or False
A nominal amount of money, even as little as one dollar, is sufficient consideration to form a valid contract. this is true even if the other party's consideration is much more valuable. True
The nominal value of a security, also known as its face or par value, is its redemption price and is often listed on the front of that instrument. It is the declared value of an issued security, as opposed to its market value, in the case of bonds and stocks.
In economics, nominal values refer to the unadjusted rate or current price, which does not account for inflation or other factors, as opposed to real values, which account for general price level changes over time.
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Guzman Consulting Services issued a check for $2,000 to purchase equipment. This transaction would be recorded with which of the following entries?
The journal entry will be equipment debit and cash credit.
The account being debited or credited and not the amount is entered first when a business transaction is being recorded. A journal entry in accounting is a note of a monetary transaction in a journal. The debit and credit amounts as well as the accounts being debited and credited are included in the journal entry.
The most crucial components of the journal entry are the accounts that are being debited and credited since they show which accounts are impacted by the transaction In the given case, A check for $2,000 was written by Guzman Consulting Services to pay for the equipment. Thus, the journal entry will be -
Equipment A/c Dr. $2,000
To Cash A/c. $2,000
( Being equipment purchased by check)
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A customer enters an order to buy 1,000 shares of XYZ at 21. Which of the following is true regarding these order instructions?
A)
The order must be executed immediately.
B)
The order can be executed at 21 or lower.
C)
The order can only be executed at 21.
D)
The order can be executed at 21 or higher.
A customer enters an order to buy 1,000 shares of XYZ at 21 then the order can be executed at 21 or lower. Option B is correct.
This type of order is called a limit order, where the customer sets a specific price (in this case, 21) at which they are willing to buy the shares. As long as the market price of XYZ is at or below 21, the order can be executed. The order can be filled immediately if there are enough sellers willing to sell the shares at 21 or lower.
If there are not enough sellers at 21, the order may remain open until the market price falls to 21 or lower. If the market price never falls to 21, the order may not be filled at all.
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FILL IN THE BLANK. ____ is a naturally occurring phenomenon whereby employees mold their tasks to fit their individual strengths, passions, and motives better.
Job Crafting is a naturally occurring phenomenon whereby employees mold their tasks to fit their individual strengths, passions, and motives better.
What does the term Job Crafting means?Job crafting is a self-initiated, proactive strategy to change the characteristics of one's job to better align the job with personal needs, goals, and skills. People engage in job crafting to find greater meaning at work, a positive work identity, improved work-related well-being, and improved job performance.
Job crafting as a scientific topic was founded on research indicating that employees do not always enact the job descriptions that are formally assigned to them, but rather actively shape and utilize their jobs to fit their needs, values, and preferences.
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fill in the blank. crest toothpaste markets its fruit flavored toothpaste to children, and its whitening toothpaste to adults. this is an example of __segmentation.
Children are targeted by Crest's fruit-flavored toothpaste, while adults are targeted by its whitening toothpaste. An illustration of demographic segmentation is this.
How do you define market?The market is the total population of buyers and sellers in the area or region under consideration. This topic could include Earth as well as a number of other countries, areas, states, and cities. The forces of supply and demand in the market determine the value, expenditure, and value of the items sold.
What are the two meaning for market?This market is a location where products are purchased and sold, typically outside. He had a market booth where he sold footwear. 2. countable noun (often singular) The population represents potential market for a specific sort of product.
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after a heated discussion with his boss when e learned that he was going to be transferred to a new sales territory, ken packed up his personal belongings and quit without giving any notice. which of the following best describes kens reaction to a negative work event
exit
Exit is the best way to characterise Ken's response to a bad work event. This indicates that he decided to quit his position of employment willingly as a result of a bad experience or incident.
The easiest way to sum up Ken's response to a bad workplace occurrence is to say that he left. This indicates that he left his employment voluntarily as a result of a bad experience or incident, in this example, learning that he would be moving to a new sales region. One possible employee response to unfavourable workplace events is the exit response, which entails leaving the company, either by quitting or retiring. Feeling insulted, unappreciated, or unsupported by the company, among other things, might cause this reaction. It is a typical reaction when an employee believes their only alternative is to quit because they see no prospect for development.
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a restaurant has identified a target market of elderly patrons who eat early in the evening, a slower period for the business. the best communication strategy to reach this group would be to blank .
The answer is a. Run a print ad with coupon in a senior center program schedule.A restaurant is a place of commerce where customers can order and receive food and drinks.
Despite the fact that many restaurants now provide takeaway and food delivery services, meals are frequently served and enjoyed on the premises. There are many different styles and types of restaurants, from low-cost fast food and cafeterias to exorbitant luxury places. They also offer a wide range of cuisines and service approaches.The tiniest restaurant in the world, Kuappi, is located in Iisalmi, Finland.Early in the 19th century, the French word restaurer, which also means "give food for," was originally employed to indicate "return to a former status."The verb's present participle also suggests that the word "restaurant".
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according to the book, starkist strategy to address consumer concerns for dolphins was a financial and environmental success.
Starkist tuna adopted a dolphin-safe policy and stopped purchasing tuna from vessels using dolphin netting. This move implies that it was taken in response to concerns over the market place.
How would you create a strategy?A plan outlines the ways by which the objectives (goals) will be accomplished (resources). Strategy can be set or it can develop organically when an organization competes or adjusts its surroundings. It involves tasks like strategic thinking and strategic thought.
What does the word "plan" mean?An organization's long-term aims and the plan it has to attain them are referred to as its strategy. In other respects, it demonstrates the strategy for achieving the primary intention.
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FILL IN THE BLANK. Berkshire Hathaway annual meeting, a famous yearly event, can be attended by any ___ which is someone who owns at least one share
The answer is Stockholder visit, Berkshire Hathaway annual meeting, a famous yearly event, can be attended by any stockholder which is someone who owns at least one share.
Who are stockholders, exactly?The owners of a corporation's outstanding shares, also known as stockholders, hold a portion of the company's remaining assets, earnings, and voting power. These shares are known as outstanding shares or simply shares.
What exactly are stockholders and stakeholders?Ownership-related rights are available to stockholders, who are also a portion owner of the companies in which they invest their money. Aside from business owners, stakeholders hardly ever have any ownership claims to the company in which they have an interest.
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The customer perspective of the balanced scorecard answers which of the following questions?
A. How do customers see us?
B. What must we excel at?
C. How do we look to shareholders?
D. Can we continue to improve and create value?
The customer perspective of the balanced scorecard answers is How do customers see us.
The correct option is A.
What is balanced scorecard with example?Thus, the following is an example of a balanced scorecard description: A tool for tracking the company's strategic choices based on indicators that have been previously developed and that should affect at least four areas: finances, customers, internal operations, and learning and growth.
What does a balancing scorecard aim to achieve?By adding other metrics that assess success in areas like customer happiness and product innovation to financial indicators, the balanced scorecard approach tries to provide stakeholders a more complete picture of an organization's performance.
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if an investor expects a sharp increase in a stock's price, which of the following will be the most profitable?
If an investor expects a sharp increase in a stock's price, D: exercising rights could be a profitable option.
Exercising rights involves using the pre-emptive right to purchase additional shares of a company's stock at a predetermined price. If the investor exercises the right and the stock price increases sharply, they could make a profit by selling the shares they purchased at a higher market price.
However, it is worth noting that the profitability of this option will depend on the specific terms of the pre-emptive right and the magnitude of the anticipated price increase.
"
Complete question
if an investor expects a sharp increase in a stock's price, which of the following will be the most profitable?
a) Sell puts
b) Buy puts
c) Sell calls
d) Exercise rights
"
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he --------breaks down return on equity into three component parts: operating efficiency of the firm, its asset use efficiency, and financial leverage.
A. Du Pont identity
B. Return on assets
C Statement of cash flows
D. Asset turnover ratio
E. Equity multiplier
The correct option is A. The Du Pont identity breaks down return on equity into three component parts: the operating efficiency of the firm, its asset use efficiency, and financial leverage.
In economics, an account refers to a record of financial transactions related to a particular entity or organization. These transactions can include money received or spent, assets acquired or disposed of, and liabilities incurred or paid. Accounts are typically kept in a standardized format and are used to track the financial performance of an entity over time.
For example, a company's financial account would include records of all its income, expenses, assets, and liabilities, and would be used to create financial statements such as balance sheets and income statements. A household's account would similarly track its income, expenses, and assets such as savings and investments.
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Refer to Exhibit 4.1. What is the firm's market-to-book ratio? Do not round your intermediate calculations.
Question 4 options:
A. 1.01
B. 1.35
C. 1.09
D. 1.18
E. 1.08
The firm's market-to-book ratio is 1.08 times. Thus the correct option is E.
What is the market-to-book ratio?By dividing the book value by the market value, the book-to-market ratio identifies equities that are underpriced or overpriced by comparing a company's book value to its market value.
The calculation for the market-to-book ratio
Market-to-Book Ratio = Market Capitalisation / Netbook Value
Market Capitalisation = 500 ( million shares)*30.42 (per share price)
= $15,210
Net Book value = Total Assets-Total liabilities
= $39,000 - $24,960
= $14,040
Market- to -book ratio = $15,210 / $14,040
= 1.08 times.
The market-to-book ratio is 1.08 times. Therefore, option E is appropriate.
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team communication has both advantages and disadvantages. cite at least two of each and present an argument for whether team communications or individually produced communications are easier.
Advantages of team communication include increased collaboration and the ability to draw upon diverse perspectives and expertise.
When individuals work together in a team, they can share knowledge and ideas, which can lead to better decision-making and problem-solving. In addition, team communication can help to build trust and foster a sense of camaraderie among team members. However, team communication can also have disadvantages. It can be time-consuming and challenging to coordinate schedules and ensure that everyone has an opportunity to contribute. Additionally, conflicts can arise when team members have different opinions or approaches to a problem. In terms of ease, whether team communication or individually produced communications are easier will depend on the context. For example, individual communication may be easier when a single person is responsible for completing a specific task or project. On the other hand, team communication may be easier when a project is complex or involves multiple stakeholders, as it allows for the sharing of information and ideas. Ultimately, the effectiveness of communication depends on various factors, such as the nature of the task, the communication style of team members, and the tools and resources available. Both team and individual communication have their advantages and disadvantages, and it's essential to choose the most appropriate approach based on the specific circumstances.
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true/false. to manage costs, most companies are choosing a leveraged sales force that focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and online ordering for low-end selling.
True. To manage costs, most companies are choosing a leveraged sales force that focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and online ordering for low-end selling.
Cost is commonly the cost caused for making an item or administration an organization sells. The expense to make an item could incorporate the expense of unrefined substances utilized. How much expense that goes into delivering an item can straightforwardly influence its cost and benefit procured from every deal. A few organizations will list the all out cost to make an item under the cost of products sold (Machine gear-pieces) on their fiscal reports. Pinions is the complete of direct costs associated with creation. These expenses could incorporate direct materials, like unrefined components, and direct work for the assembling plant.
Then again, a retail location could incorporate a piece of the structure's working costs and compensations for deals partners in their expenses. For things sold through a site as opposed to actual store, the cost of working the site may be remembered for costs.
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TRUE/FALSE. A private employer's refusal to give an employee overtime pay would meet the requirements for state action in a suit brought by the employee.
False. Under the Age Discrimination in Employment Act of 1967, state employers are not exempt from private lawsuits brought by employees.
Age discrimination in employment is not permitted in the United States because of a law passed in 1967 known as the Age Discrimination in Employment Act. President Lyndon B. Johnson signed the bill into law in 1967. under conditions that Title VII of the Civil Rights Act of 1964 does not explicitly address. The ADEA guarantees equal work opportunities and forbids age discrimination. The act also requires that the general public have access to information about the conditions for pensions and benefits provided by businesses. They must be compensated if they are required to work longer than what is specified in their contract, which typically includes Saturdays for employees who do not have a Saturday off and always includes federal holidays.
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is a process of weighing decision criteria in which each criterion is compared with every other criterion
O Maximizing comparisons
O Relative comparisons
O Absolute comparisons
O Satisficing comparisons
The answer is option b. Relative comparisons. The process of weighing decision criteria in which each criterion is compared with every other criterion is Relative comparisons.
What does the difference between criteria and criteria mean?The word "criterion," which is singular, refers to "a standard of judgment or critique." Criterion is the plural form of criteria and cannot be used as a singular noun. Five requirements must be fulfilled in the mechanism's design.
Which is an illustration of a criterion?Validity of the criteria If a college admission exam can forecast future academic achievement, a researcher wants to know. As it is a recognized indicator of academic success, the first-semester GPA can be used as the criteria variable.
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iven that a company reported net income for the year, determine how a company would complete its work sheet for the period by choosing the correct statement below. multiple choice question. A. the net income would be added to the credit column of the income statement columns. B. the owner, capital account ending balance, reflected in the credit column of the balance sheet, would include the net income. C. the company would add the net income amount to the credit column of the balance sheet
Answer: The company would add the net income to the Credit column of the Balance Sheet & Owners Equity columns of a work sheet.
Explanation:
which of these is a long-term liability? multiple choice question. note payable due in 5 months accounts payable contributed capital mortgage payable due in 20 years
This is a long-term liability - mortgage payable due in 20 years.
What long-term liabilities are mortgages?Bank loans, notes payable, bonds payable, and mortgages are examples of common long-term obligations.
One that the business anticipates paying over a longer period of time is referred to as a long-term liability.
Long-term liabilities are typically formalized through documentation that outlines their terms, including the principle amount involved, their interest payments, and when they are due.
Currently Owing Debt ?A current liability is one that the business anticipates being able to pay in the near future using assets listed on the current balance sheet.
Examples of common current liabilities include accounts payable, salary, taxes, and delayed revenues (services or products yet to be delivered but for which money has already been received).
On the financial statement, information about a company's solvency can be ascertained by evaluating its liabilities and its capacity to pay those debts.
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