Once a vendor is selected for a product, the vendor's identity is recorded in the inventory master file.
An item master records all vital information about a particular inventory item. This includes date of manufacture, brief description of inventory item, dimensions (height, weight, etc.), cost, and current inventory information.
An inventory file is typically a document that contains an electronic list of all items in a company's inventory, including items that are in stock or expected to be in stock soon. Items are listed and identified by category and classified into specific inventory groups based on the item's attributes.
A master file is the main file that contains a relatively permanent record of a particular item or entry. For example, a customer file contains customer details such as customer ID, name, and contact address.
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on january 1, 2022, janna has a tax basis of $19,250 in her mimikaki stock (mimikaki has been an s corporation since inception). in 2022, janna was allocated $24,250 of ordinary income from mimikaki. what are the amount and character of gain she recognizes from end-of-the-year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution?
a. Mimikaki distributes $10,125 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
b. Mimikaki distributes $20,250 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
c. Mimikaki distributes $30,375 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
d. Mimikaki distributes $40,500 to Janna.
Gain: What is the amount and character?
Stock Basis: What is the amount and character?
The shareholder's first capital contribution to the S corporation or the initial cost of the shares they acquired is the starting point for calculating stock basis.
Why is stock basis important?In order to appropriately record their distributive shares of profit and loss on their US individual income tax returns, shareholders must keep track of their basis.The shareholder's first capital contribution to the S corporation or the initial cost of the shares they acquired is the starting point for calculating stock basis (the same as a C corporation). Then, depending on the pass-through amounts from the S company, that amount is raised or lowered.Common basis changes include Sec. 179 deductions, charity donations, nondeductible costs, and dividends; common basis increases include capital contributions, regular income, investment income, and gains. Normally, basis adjustments are determined at the conclusion of the corporation's tax year.Given data :
a) At the time of the distribution, Janna's stock basis is 43,500 ( 19,250 original basis plus 24,250 ordinary income allocation). On the distribution, Janna recognizes $0 gain, and the distribution reduces her stock basis to 33,375 ($ 43,500 - $10,125 ).
b) At the time of the distribution, Janna's stock basis is 43500 (33375 original basis plus 20,250 ordinary income allocation). On the distribution, Janna recognizes $ 0 gain, and the distribution reduces her stock basis to 23250 (43500 - 2025 ).
c) At the time of the distribution, Janna's stock basis is 43500 ( 19250 original basis plus 24,250 ordinary income allocation). On the distribution, Janna recognizes 0 gain and the distribution reduces her stock basis to 13125 (43500 - 30,375 ).
d) At the time of the distribution, Janna's stock basis is 43,500 (19250 original basis plus 24,250 ordinary income allocation). On the distribution, Janna recognizes 13125 gain and the distribution reduces her stock basis to 0.
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Choose whether each structural control dimension listed in the table represents bureaucratic control or decentralized control Dimension Description Bureaucratic DecentralizedPerformance expectations that accept a minimum level of performance O OControl based on employee commitment O O Rewards based on individual performance You have a committed group of employees. Which form of structural control should you use? O Bureaucratic O Decentralized
In a corporate setting, centralized and decentralized organizational systems are both common. Business owners can benefit from and avoid each arrangement.
What is meant by Bureaucracy OR Decentralized?A bureaucratic organization is known for having a pyramidal command structure. The administrative framework is well-organized and runs with a lot of formality.
The bureaucratic organization standardizes tasks.
The alternative that best fits the beliefs of a decentralized organizational structure is that decision-making authority should be placed in the hands of the people closest to and most familiar with the situation. A decentralized organization is one whose decision-making process is not only in the hands of top management, that is, in this type of decision making, employees of lower hierarchical levels also participate in crucial company decisions.
The organizational culture, work environment, organizational strategy, etc., are some aspects that influence this type of structure.
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Because it has a _____ inventory turnover, a grocery store will likely have a _____ profit margin than a heavy-equipment manufacturer.
Because it has a higher inventory turnover, a grocery store will likely have a lower profit margin than a heavy-equipment manufacturer.
Why would someone examining a chain of food stores be more concerned with the inventory turnover percentage than someone examining an insurance firm?However, as services are essentially a perishable good that cannot be stored, an insurance company that provides services does not need to worry about inventory. Because of this, a grocery store's inventory turnover ratio is more significant than an insurance company's.
In general, a greater ratio value is preferable because it typically denotes robust sales. A lower ratio may indicate sluggish product sales and/or declining market demand.
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Explain what debt securities are and describe the various types of debt securities. short answer toolbar navigation opens in a dialog
A financial instrument known as a debt security is one that has been issued by a business or other organization and sold to an investor with the promise that the face value and interest will be repaid when the debt security reaches its maturity date or renewal date. Government, corporate, and municipal bonds are typical forms of debt securities.
difference between debt and equity securitiesDebt securities are financial assets that entitle their owners to a stream of interest payments. Unlike equity securities, debt securities require the borrower to repay the principal borrowed. The interest rate on a debt security will be determined by the borrower's perceived creditworthiness.
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consistency of a product mix refers to the . group of answer choices number of versions offered for each product in the line ways in which the various product lines are related number of different product lines the company carries total number of items a company carries within its product lines total market share captured by the entire product line
The degree to which the various product lines are related in terms of their intended use, manufacturing requirements, distribution methods, or other factors is referred to as the product mix's consistency.
The width of the product mix refers to what?The variety of products that accompany sales is referred to as the product mix width. Consider a business that sells toothpaste, mouthwash, and floss as three examples of various items. This business has a product mix breadth of three.The degree to which the various product lines are related in terms of their intended use, manufacturing requirements, distribution methods, or other factors is referred to as the product mix's consistency.Product combination, a specific range of goods that a corporation sells to satisfy the needs of its market and its objectives. line of goods. a set of connected products (toothbrush, toothpaste, mouthwash etc.).To learn more about Product mix's consistency refer to:
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please refer to the following process consisting of five machines producing a metal part. the parts move from machine to machine in the sequence shown. the time each machine takes to work on the part is also shown. which machine in this process is the bottleneck machine?CAN ASK THIS QUESTION AS TEXT WITHOUT INCLUDING DIAGRAM OF THE SEQUENCE:
A process consists of five machines producing a metal part. The parts move in sequence from Machine 1 to Machine 5. Processing at Machine 1 takes 10 seconds then the parts move to Machine 2 where processing takes 15 seconds. In Machine 3, the processing takes 12 seconds and in Machine 4, the processing takes 20 seconds. The parts finally move to Machine 5 where processing takes 18 seconds. Which machine in this process is the bottleneck machine?
a. Machine 1
b. Machine 2
c. Machine 3
d. Machine 4
e. Machine 5
Based on the discussion, Machine 4 does have the longest processing (20 seconds). As a result, Machine-4 is the process's bottleneck.
What is a machine, and what are some examples?
A device is a hardware device that does active work. This is in contrast to an entity that performs work passively, such as a drainpipe. A machine consumes power but is not always electrical. Machines, for example, can be powered by breeze, water, thermal, chemical, or human power.
What are the five most important simple machines?
The wheel and axle, the pulley, predisposed plane, screw, wedge, and lever are examples of simple computers that are widely used.
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When a firm is a price taker it means they have no ability to set a price that they would like to charge. a price taker lacks market power.A. TrueB. False
When a firm is a price taker it means they have no ability to set a price that they would like to charge. a price taker lacks market power. This statement is true.
What does a company being a price taker mean?A perfectly competitive business must accept the equilibrium price at which it sells its products because it is a price taker. A completely competitive business will not be able to generate any sales if it seeks to charge even a small amount above the going rate.
In a type of the market known as perfect competition, there are many buyers and sellers, and a homogeneous good is offered for sale at a fixed price.
If a company is a price taker, it must accept the price set by the forces of supply and demand in the market.
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Hexagon Widgets wants to build its customer base and begins a huge marketing push. It begins advertising across various mediums, it hires public relations staff to drive publicity, and offers deep discounts on its widgets. This scenario is most likely part of the ________ strategy in the marketing process.
Multiple Choice
pricing
competitive
promotion
benefit
economic
This scenario is most likely part of the promotion strategy in the marketing process.
What is the promotion strategy?The method you employ in your marketing plan to raise demand for your good or service is referred to as a promotion strategy. The following are the main focuses of promotional tactics, which are an essential component of the marketing mix (product, price, location, and promotion): target market.Organizations may concentrate their limited resources on the greatest possibilities to boost sales and gain a competitive edge by using marketing strategies. Building on strategic management, strategic marketing arose as a separate subject of study in the 1970s and 1980s.Traditional and online advertising, personal selling, direct marketing, public relations, sponsorships, and sales promotions are examples of promotional strategy types.To learn more about promotion strategy refer to:
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how much government assistance in terms of trade and tariffs, tax breaks, incentives etc. do these corporations receive for nike
The 10% duties will take effect on Sept. 1, impacting consumer goods such as apparel, home textiles like bedding and shoes.
How Nike is Winning the U.S.–China Trade War?
Despite the ongoing trade conflict between the United States and China, Nike Inc. (NKE) shares are outperforming the overall market. A supply chain that is more resistant to tariffs than it was a decade ago has helped the producer of athletic footwear and apparel's shares increase by 22% this year.
Chinese customers continue to be loyal to the Nike brand despite possible tensions between the governments of the U.S. and China. Nike announced better-than-expected sales in its most recent quarterly results report, mostly due to China. According to the Wall Street Journal, the company's Greater China revenue increased by 22% in the most recent quarter, more than three times faster than the company's total sales growth of 7%.
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Holding other factors constant, if a larger proportion of the population enters the labor force as a result of a growing acceptance of women working, then the real wages of workers will _____ and the employment of workers will _____.A. increase, increaseB. decrease, increaseC. increase, decreaseD. decrease, not change
The right answer is Option B. When more people enter the labor force, the supply of labor increases. This increase in supply shifts the supply curve to the right, decreasing real wages and increasing employment.
Effects of an Increased Labor Force on Real Wages and EmploymentOption B. decrease, increaseCompleting the statement: Holding other factors constant, if a larger proportion of the population enters the labor force as a result of a growing acceptance of women working, then the real wages of workers will decrease and the employment of workers will increase.
When more people enter the labor force, the supply of labor increases. This increase in supply shifts the supply curve to the right, which means that the real wages of workers will decrease and the employment of workers will increase.
In other words, when more people enter the labor force, the competition for jobs will increase, resulting in a decrease in real wages and an increase in employment. This is especially true when the labor force is expanded by a growing acceptance of women working. The influx of female workers into the labor force increases the overall supply of labor, leading to a decrease in real wages and an increase in employment.
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number of orders shipped is a good measure of demand for an item circumstances relating to historical data should be recorded demand for different groups should be recorded separately none of the above is true
Averaging is yet another straightforward method. Using averaging, one can simply take the average of a certain number of periods of historical data by adding up all of the periods and dividing the result by the number of periods.
This allows one to make a forecast. Short-range forecasting has shown this method to be very effective.
Treating the demand plan as a request for product from the organization's supply side is an important control for keeping demand plans realistic.
The normal is the factual synopsis, in one worth, of a gathering of numbers. Averages fall into three broad categories: the mean (the total or result of the upsides of a gathering of numbers separated by the number of numbers there that are in the gathering); the middle value of a group of numbers, or the median.
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The magnitude of operating leverage for perkins corporation is 4. 5 when sales are $100,000. If sales increase to $110,000, profits would be expected to increase by what percent?.
45% Percentage increase in net income = Percentage increase in sales × Magnitude of degree of operating leverage Percentage increase in net income = [$110,000 − $100,000) ÷ $100,000] × 4.5 = 45%
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
When there is considerable operating leverage, a sizable amount of the company's expenses are fixed expenditures. When operating leverage is low, a sizable amount of a company's revenues are made up of variable costs, which are only incurred when a sale is made. In this scenario, the company makes less money on each additional sale, but it just needs to make a little amount of sales to make up for its lower fixed costs.
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which of the following statements about the general data protection regulation (gdpr) is not true? group of answer choices the gdpr replaces the data protection directive. the gdpr applies to any firm operating in any e.u. country. the gdpr eliminate the right to be forgotten. the gdpr limits the ability of companies to use data for purposes other than those for which it was collected.
The exchange rate is the quantity of one currency that can be exchanged for one unit of another currency. Exchange rates frequently fluctuate. It is better to travel overseas when foreign currency exchange rates are favorable.
What exactly does the GDPR do?
In accordance with the GDPR rule, companies must safeguard the privacy and personal information of EU people when conducting business within EU member states. And breaking the law might cost businesses a lot of money.
What is a GDPR example?
Personal data includes things like a person's phone number, credit card number, or employee ID, account information, license plate information, appearance, customer number, or address. Since "any information" is included in the definition, it follows that the word "personal data" should be used as broadly as possible.
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Determine the x- and y- components of the average force on the 5.125 oz baseball during an impact that lasts 0.05 s. Answers in N or lbf will be accepted. Include Free Body Diagram
Answers:
X-Component of Average Force = 25.4 N * Cos(θ)
Y-Component of Average Force = 25.4 N * Sin(θ)
Free Body
A free-body diagram shows how a body is affected by several types of forces depending on its position and direction.
Explanation:
Assuming the average force is constant:
Average Force = [tex]\frac{(Force at Start + Force at End)}{2}[/tex]
Average Force =[tex]\frac{ (Force during Impact)}{2}[/tex]
Average Force = [tex]\frac{(Mass * Acceleration)}{2}[/tex]
Average Force = (5.125 oz x 9.81 m/s2)/2
Average Force = 25.4 N
X-Component of Average Force = 25.4 N x Cos(θ)
Y-Component of Average Force = 25.4 N x Sin(θ)
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which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
The following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage the resources must be valuable, rare, imperfectly imitable, and non substitutable.
A corporation, sometimes referred to as a "co.," is a sort of legal entity that represents a group of individuals who are either natural or juridical persons or a mix of both. The company's members cooperate with one another to achieve specific goals.
To limit the company's liability when members comply with or disregard their obligations under the formation or public disclosure policy, a corporation can be established as a legal entity. It could be necessary to liquidate a firm after it has shut down in order to pay off any outstanding debts.
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suppose that you have $10 to spend on pepsi and pizza. pepsi costs $1 per can, and pizza costs $1 per slice. given the marginal utilities shown, which pepsi-and-pizza combination(s) will maximize satisfaction? there may be more than one correct answer.
-5 Pepsis, 5 pizza slices
(This will get you to a total of 95 utils.)
-6 Pepsis, 4 pizza slices
(This will get you to a total of 95 utils.)
What is marginal utilities?Marginal utility is the added satisfaction that a consumer gets from having one more unit of a good or service. The concept of marginal utility is used by economists to determine how much of an item consumers are willing to purchase.Positive marginal utility occurs when the consumption of an additional item increases the total utility. On the other hand, negative marginal utility occurs when the consumption of one more unit decreases the overall utility.Economists use the idea of marginal utility to gauge how satisfaction levels affect consumer decisions. Economists have also identified a concept known as the law of diminishing marginal utility. It describes how the first unit of consumption of a good or service carries more utility than later units.To learn more about economist refer to:
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In a control chart, a point that occurs above the upper control limit typically means that some sort of special cause is creating the variation and requires a specific intervention.a. Trueb. False
True. In a control chart, a point that occurs above the upper control limit often denotes the need for a particular intervention since the variation is being caused by a special source.
What is meant by a control chart?A control chart is a statistical tool used to track a process's performance over time. It consists of a graph with a central line representing the mean or average and two additional lines representing the upper control limit and lower control limit, which are separated from the mean by a predetermined number of standard deviations.
A control chart is used to determine whether a process is statistically controlled, which means that any fluctuation in the process is caused by common, inherently occurring factors and that the process is stable and predictable.
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the disparity between wages for union labor and wages for non-union labor creates: select the correct answer below:
The disparity between wages for union labor and wages for non-union labor creates excess in labor
What is labor?It is an important component of the labor market, represents a cost in the production process, because if we want to incorporate workers into the production process, they must be paid, they are the ones who work, or contribute their effort to the production process, for this reason they are the ones who receive payment of labor remuneration.
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when reporting a computer ethics violation of a co-worker to your employer, which two of the following guidelines are important to remember?
when reporting a computer ethics violation of a co-worker to your employer 1)They should not use a laptop to damage different people: 2) They should no longer intrude with other people's pc work: 3) They should now not snoop round in other people's files: 4)
Thou shalt no longer use a pc to steal: 5) Thou shalt now not use a computer to undergo false witness: 6) Thou shalt now not use or copy software
What is computer ethics in the workplace?The 10 Commandments (of pc ethics)
Thou shalt no longer use a computer to harm other people. Thou shalt no longer intervene with other people's pc work. Thou shalt not snoop around in different people's computer files. Thou shalt now not use a laptop to steal. Thou shalt not use a pc to endure false witness.
They are "(1) computer crime; (2) duty for pc failure; (3) protection of laptop property, data and software; and (4) privacy of the company, employees and customers”
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https://brainly.com/question/16776145#SPJ4True or false: Given a portfolio made up of Asset A and the risk-free rate, the percentage invested in A can never exceed 100 percent.
The answer is false. The risk-free rate represents the rate of return on an absolutely risk-free investment over a specified time period. The so-called "real" risk-free rate is calculated by subtracting.
The current inflation rate from the yield on the Treasury bond that corresponds to the duration of your investment. To arrive at a Quantative Risk Rating, first assign a number to the Likelihood of the risk occurring and the Severity of Injury, and then multiply the Likelihood by the Severity. Kroll The normalised risk-free rate in the United States has been raised from 2.5% to 3.0%, effective April 7, 2022. Business, asset, and alternative investment valuation for financial reporting, tax, and other purposes.
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Given the profit-maximizing choice of output and price in a monopolistic competition, the shop is making a negative profit, which means there are _____ shops in the industry relative to long run equilibrium.
When firms leave the market in long run, demand curve will shift _____.
-more
-right
Given the profit-maximizing choice of output and price in a monopolistic competition, the shop is making a negative profit, which means there are more shops in the industry relative to long run equilibrium. When firms leave the market in the long run, the demand curve will shift to the right.
What is monopolistic competition?
Monopolistic competition is a market structure in which there are many firms selling similar but slightly differentiated products. This means that each firm has some control over the price of its product, but not complete control like a monopoly. The firms in a monopolistically competitive market also face relatively low barriers to entry, meaning that new firms can enter the market relatively easily.
What are the advantages of monopolistic competition?Monopolistic competition has a number of advantages, including:
Product variety: Monopolistic competition allows for a greater variety of products to be available to consumers, as each firm is able to differentiate its product in some way.
Innovation: The ability to differentiate products can encourage firms to be innovative and come up with new and improved products in order to stay competitive.
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for each ratio listed, identify whether the change in ratio value from the prior year to the current year is usually regarded as favorable or unfavorable.
In light of this, the following ratios are favorable: (1) profit margin; (2) debt ratio; (3) gross margin; (4) acid test ratio; (5) accounts receivable turnover; (6) basic earnings per share; (7) inventory turnover; and (8) dividend yield.
What is the profit margin means?Profit margin is the difference between your company's total operating expenses and its total revenue. The more money your company keeps, the larger your profit margin will be. Profitability is gauged by profit margin. To figure it out, determine the profit as a percentage of revenue. There are three distinct types of profit margins: operating profit margin, net profit margin, and gross profit margin. To calculate the gross profit margin, multiply the gross profit by the net sales.
How to calculate profit margin and why it is important?Profit multiplied with revenue equals profit margin. There is a higher gross profit margin in addition to a net profit margin (smaller).
Profit margins determine the amount of money you are making and how stable your business is financially overall. Businesses must keep a tight eye on profit margins to ensure strong financial position. Profit margins show how well a business is doing.
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The complete question is:For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current Year is usually regarded as favorable or unfavorable.
Profit marginDebt ratioGross marginAcid-test ratioAccounts receivable turnoverBasic earnings per shareInventory turnoverDividend yieldall of the following are issues usually addressed in a term sheet between a venture capitalist and entrepreneur except? question 11 options: valuation management fee of the fund board position registration rights amount of investment
All of the following issues are usually addressed in a term sheet between a venture capitalist and entrepreneur except a. valuation
The definition of a venture is a mission, particularly one which entails a few kinds of hazards or threats. An example of an undertaking is mountaineering to the top of the united states tallest mountain.
Startups are organizations or ventures which can be targeted on unmarried services or products that the founders need to carry to the marketplace. those groups typically do not have a completely developed commercial enterprise model and, extra crucially, lack adequate capital to move directly to the following phase of business. traditionally, entrepreneurship is labeled into four important types: small businesses, scalable startups, huge groups, and social entrepreneurs.
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jaydon was casually browsing online for a pair of suede boots on the website of millrock boots. for the next few days, he noticed that there were banner ads for millrock suede boots on almost every website that he visited. in the given scenario, the website of millrock boots is using .
Jaydon was casually browsing online for a pair of suede boots on the website of millrock boots. In the given scenario, the website of millrock boots is using smart agent software.
What is web marketing?
Online marketing, sometimes referred to as Internet marketing, digital marketing, or web marketing, is a type of marketing and advertising that makes use of the Internet to advertise goods and services to target markets and platform users.
Why is advertising on websites important?
Without spending money on a disproportionately large audience, online advertising enables you to identify, connect with, and engage people who are likely to be interested in your company. Online advertising provides detailed audience information so you may better target your efforts. You can target a certain online market sector with your ads and narrow down your target audience by location, interests, or age.
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The chapter contends that Internet companies are in business for the money and hence they really would prefer to keep their customers in the dark about how their personal data is being used to generate profits. Assuming this statement is true, with which ethical theory would you say these Internet companies are most aligned?O fiduciary theoryO stakeholder theory O normative theory O property theory O stockholder theory
Assuming this statement is true, with which ethical theory would you say these Internet companies are most aligned will be stakeholder theory .
According to the stakeholder theory, managers must pursue projects in a way that supports societal well-being. The goal of this concept of normative business ethics is to advance human welfare in a fair and nondiscriminatory way.
A cookie would be just one as well as more pieces of data that are stored on that your own computer as text strings. You receive a cookie from a web server, and your browser keeps it. The next time the page was accessed, the browser then sends the cookie back to the server.
Text files called tracking cookies are placed on a user's browser by websites to gather information about the user. They gather information about clicks, purchasing preferences, device details, location, as well as search history.
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What is the relationship between descriptive and predictive analytics?
Answer:
If descriptive analytics tells you what has happened and predictive analytics tells you what could happen, then prescriptive analytics tells you what should be done
Explanation:
Which one of the following will increase the slope of the security market line? Assume all else constant.
A. increasing the beta of an efficiently-priced portfolio
B. increasing the risk-free rate
C. increasing the market risk premium
D. decreasing the market rate of return
E. replacing a low-beta stock with a high-beta stock within a portfolio
See Section 12.5
One of the following factors increases this same slope of both the security market line: the market's risk premium.
What is the most accurate way to define a market?A markets is a social hub for both buyers and sellers who can exchange items and services. Markets could be real-world, like the a regular shop, or digital, like an online merchant.
Why do we need a market definition?By doing this, you may improve your understanding of your clients, which is crucial for expanding your company. Your chances of increasing sales can be boosted by discovering and focusing on your intended audience groups to help you develop and roll out successful promotions.
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Circumstances can occur that result in favorable direct materials price variances and unfavorable direct materials quantity variances. A. TrueB. False
The given statement is true.
The real cost of the materials was more than the standard cost of the materials.
What is real cost ?
The actual cost is determined by the amount of physical labour and materials used in the production process. Real costs might, but are not restricted to, production, market research, distribution, and advertising.
The reverse of a positive variance, when real costs are lower than standard costs, is an unfavourable variance. A negative variance in manufacturing might be the result of rising direct material prices or ineffective production facility operations.
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business format franchises typically allow franchisees substantial flexibility in how they run their individual franchise units. True or False ?
In a typical competitive market, the supply curve reflects the _________________cost to the private sellers producing a good or service. The demand curve reflects the marginal________________to buyers of a good or service. a. Total, total
b. Total, quantity
c. Marginal, cost
d. Marginal, benefit
In a typical competitive market, the supply curve reflects the _________________cost to the private sellers producing a good or service. The demand curve reflects the marginal________________to buyers of a good or service.
Answer is: d. Marginal, benefit
If, at the equilibrium price, the marginal benefit of the final unit of output sold matches the marginal cost of that unit, the outcome is deemed economically efficient. This only occurs in marketplaces with intense rivalry (many buyers and sellers) and no price controls.
A product is neither in short supply nor in excess when its quantity is in balance. When demand and supply converge, the quantity of an item that customers want to purchase is equal to the quantity that its producers are offering. The marginal societal benefits of a producer should be contrasted with their marginal cost at the equilibrium market quantity.
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