Last-in First-out (LIFO) is the method produces the lowest cost of goods sold.
What is Last-in, First-out?1. a). This method often entails figuring out the cost and unit price for each commodity depending on the actual date of a inventory.
b). Determining the average cost of items per unit is one of the factors considered by the average cost technique. It is computed by dividing the entire cost of goods sold by the total amount of inventory that is currently on hand.
c). According to the FIFO approach, current inventory is ends up costing at the earliest inventory price. This is because the cost of the inventory is calculated based on the price of the earliest inventory cost.
d). According to the LIFO approach, any inventory is ends up costing using the first or most recent price, which implies that the cost of inventory is costed based on the most recent inventory price.
2. Last-in, First-out (LIFO): Under LIFO, costs that closely resemble current costs are produced because the cost of material purchased toward the end of the period is used to determine the cost of goods sold. However, the inventory is valued based on the price of the components that were purchased earlier in the year. The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.
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Answer:
I understand this completely true fact
Explanation:
majic
Answer:
Is this actually a question?? XD
Explanation:
Under the current qualification criteria an applicant for appraiser trainee must have completed ___ creditable hours of experience
The current qualification criteria for an applicant for an appraiser trainee requires the applicant to have completed at least 240 creditable hours of experience.
This experience must have been obtained from activities such as appraisal review, appraisal report writing, appraisal inspections, and other related activities. The experience must also have been acquired within a period of not less than one year.
The 240 creditable hours must be documented in a portfolio or other form of record keeping, along with supporting documentation of the experience such as a letter from an employer or supervisor.
This experience is necessary to ensure that the applicant is qualified to become an appraiser trainee and can competently perform the duties of the job.
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Government may place legal limits on prices when it is determined that prices are unfairly____for buyers or unfairly___for sellers.
Choose matching definition
a. high; low
b. marginal
c. rise; fall
d. government
When it is decided that prices are unreasonably high for buyers or unfairly low for sellers, the government may impose legislative controls on prices.
Is the maximum price a company can legitimately demand for a good or service?The established maximum amount that a seller may charge for a good or service is known as a price selling. Price restrictions are frequently applied when basic essentials like food and power become unaffordable for the average consumer. Price limitations are typically established by law. In essence, a price cap is a form of pricing control.
Why do we use the most premium method?A maximum price is intended to stop price rises at a specific point or level. Increasing the affordability of a commodity or service for consumers, especially those with lower incomes, is one of the primary goals of a price policy.
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Online benefits systems are often referred to as ______ and can result in significant cost savings in benefits administration.
Online benefits systems are often referred to as employee self-service systems and can result in significant cost savings in benefits administration. With this system, the cost savings can be maximized.
Benefits are additional income outside of salary as assistance from the company, institution or institution where you work. Generally, benefits are combined with a monthly salary. This additional is money given or allocated on a regular basis for a particular purpose. Details of the type and amount are usually listed in detail on the salary slip or income report from the employer's company or institution.
By providing benefits, employees will feel appreciated for their work. In addition, this can make employees more comfortable in doing their jobs. Then the productivity of employees at work will also increase by itself. If it's like this, employees will compete to improve and maintain their performance to stay productive and focused while working.
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The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.A. TrueB. False
It is true that The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.
What is purchasing?
The organised procurement of products and services on behalf of the buying entity is known as purchasing. To guarantee that necessary materials are obtained quickly and affordably, purchasing actions are required. The main cost of inflation is the erosion of real income, which occurs when prices rise unevenly and causes some customers' purchasing power to decline. For both those who receive and pay fixed interest rates, inflation might over time affect their ability to make purchases. A corporation or organisation uses the purchasing process to buy products or services in order to achieve its objectives. Although many businesses make an effort to establish standards for the purchasing process, procedures can differ significantly between firms.
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Waterway Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $64000 that will produce an estimated 90000 units over its useful life. Estimated salvage value at the end of its useful life is $3700. What is the depreciation cost per unit? - $7.11 - $0.71 - $6.70 - $0.67
After using the units-of-activity method in computing depreciation depreciation cost per unit in the given question is $0.67
Depreciation expense for a given year is calculated by dividing the original cost of the equipment less its salvage value, by the expected number of units the asset should produce given its useful life. Then, multiply that quotient by the number of units (U) used during the current year.
A common depreciation technique that enables firms to divide the cost of a fixed asset according to its utilisation is units of output. In manufacturing, it is common practise to compute the units of production rate by dividing the equipment's cost by its anticipated lifetime production.
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If the reserve ratio is 10% and a bank accepts $50,000 in demand deposits from the public, then it would have to keep $---- as reserves.
If a bank had to hold $500,000 in reserves along with its $10 million in deposits, the minimum reserve ratio would be 1/20, or 5%.
The reserve ratio is the percentage of reservable liabilities that commercial banks are required to hold in reserve rather than lend out or invest. This standard is established by the nation's central bank, in this instance the Federal Reserve in the United States. It is also referred to as the cash reserve ratio. If the statutory reserve ratio is 10%, banks are obligated to hold 10% of their deposits in appropriate reserves. Deposits of $20 million necessitate the retention of $2 million in reserves ($20 million multiplied by ten). Excess reserves are those that are held in addition to the minimum required.To know more about ratio here
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Required information
[The following information applies to the questions displayed below.]
Oak Mart, a producer of solid oak tables, reports the following data from its first year of business.
Sales price per unit
$ 385
per unit
Units produced this year
129,000
units
Units sold this year
129,000
units
Variable selling and administrative expenses
$ 25
per unit
Fixed selling and administrative expenses
$ 4,665,000
per year
Direct materials
$ 53
per unit
Direct labor
$ 75
per unit
Variable overhead
$ 41
per unit
Fixed overhead
$ 9,288,000
per year
2. Prepare the current-year income statement using absorption costing.
Net income calculated using variable costs is $281,250 greater than net income calculated using absorption costs.
How is the cost of absorption determined?Formula for calculating absorption costs is (Direct Labor Cost + Direct Material Cost + Variable Manufacturing Overhead + Fixed Manufacturing Overhead) / number of units produced. The order should be accepted because this approach indicates lower product costs than the pricing specified in the contract.
What function does absorption costing serve?You can use the full costing approach, also known as absorption costing, to record all of the manufacturing expenses related to the creation of a single unit of goods. Along with labor and material costs, it also includes overhead expenses that are both fixed and variable.
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Find a numerical equation relating planned aggregate expenditure to output and to the real interest rate
The equation for planned aggregate expenditure (PAE) is as follows: PAE = C + Ip + G + NX.
How do we calculate planned aggregate expenditure?The expenditure that is incurred on the programs detailed in the current five-year plan is known as planned expenditures.
According to the Keynesian model of macroeconomics, aggregate planned expenditure is calculated as the sum of planned consumption expenditures (C), planned investment expenditures (I), planned government expenditures (G) and planned net exports (NX).
The aggregate expenditure model focuses mostly on the relationships between production (GDP) and planned spending, such that : GDP = planned spending = consumption + investment + government purchases + net exports.
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Economic models are typically based on the principle that people behave rationally. However, people do not always behave rationally Which of the statements is NOT a reason why economists still consider their models valid, in spite of the irrationality of people? For the sake of simplicity, it is easier to create models from generalizations rather than from seemingly random irrational behavior The existing models have been in place for so are considered untouchable, the equivalent of an long, they economic law. People typically behave more rationally over time Despite the flaws in the model, the models are still thorough predictors of market behavior
The reason why economists still does not consider their models valid, in spite of the irrationality of people because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.
Who are Economists?
The production and distribution of resources, goods, and services are studied by economists through data collection and analysis, trend research, and evaluation of economic concerns.
1. collecting data from numerous sources, compiling and analyzing enormous amounts of data from sources like official statistics, literature, online research, and industry surveys.
2. studying and comprehending economic patterns and models.
3. using software to analyze the data gathered.
Regardless of the particular field they may work in, someone with a degree in economics will discover that they are employable in many domains. Graduates with economics knowledge are in high demand in the worldwide work market.
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_____ represent either ownership or debt of publicly held firms and government issued debt, in the form of bonds, notes, and bills.
Marketable securities represent either ownership or debt of publicly held firms and government issued debt, in the form of bonds, notes, and bills. Hence, option (b) is relevant.
Give a brief account on marketable securities.Marketable securities are readily convertible into cash at a fair price and are highly liquid financial products. Marketable securities are liquid because their typical maturities are shorter than a year, and because the rates at which they can be bought or sold have little impact on their pricing. Businesses generally keep money in reserve to be ready for circumstances where they may need to act quickly, such seizing an acquisition opportunity as it arises or making contingent payments. However, a business will invest a portion of the cash in short-term liquid securities rather than keeping all of the cash in its bank accounts, which offers no possibility to generate interest.
In this way, the company can make money off its cash rather than letting it sit around idly. The company can quickly liquidate these securities if a sudden need for cash arises. Several assets that fall under the marketable securities category are examples of short-term investment products.
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The complete question is mentioned below :
_____ represent either ownership or debt of publicly held firms and government issued debt, in the form of bonds, notes, and bills.
A. Demand deposits
B. Marketable securities
C. Set-asides
D. Traveler's checks
sander technologies is considering a research project. if successful, the project is expected to lead to sales totaling $60,000 annually. the initial cost of the research is expected to be $331,500. the factor of the internal rate of return is blank . multiple choice question. 1.989 5.525 0.181
Sander Technologies is thinking about doing a study. If the effort is successful, $60,000 in annual sales are anticipated to result. 20.34% Rate Of return 12.99%
What does that even imply to consider?conjunction. When making a decision or expressing an opinion, you can say that you are considering a specific fact by using the phrase "considering that." Your answer is a little harsh given when you're no longer associated with this man.
Briefing
Particulars Project X 1 Project X 2
nitial Investment -80,000 -1,20,000
Year 1 cash inflow 25,000 60,000
Year 2 cash inflow 35,500 50,000
Year 3 cash inflow 60,500 40,000
\Internal rate of return 20.34% 12.99%
Based on the internal rate of return, both the projects are acceptable
Kindly find the attachment for better understanding.
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Angelina will be traveling worldwide as a goodwill ambassador for a nonprofit organization. She is asked to gather information and suggestions regarding the organizations’ next humanitarian outreach program. What strategy can best reduce any listening errors caused by cultural differences?.
The strategy that can best reduce any listening errors caused by cultural differences is to practice active listening as well as respecting each other's culture.
What is active listening?Active listening is the practice of getting ready to listen, observing what verbal and nonverbal messages are being sent, and then providing appropriate feedback to demonstrate attention to the message being presented.
This type of listening demonstrates mutual understanding between the speaker and the listener.
Active listening is a method of listening to and responding to another person that fosters mutual understanding. In this case, this can be utilized by Angelina.
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limited liability companies and limited liability partnerships share which of the following characteristics?
The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation.
What is liability?
A liability, in general, is an obligation between two parties that hasn't been fulfilled or paid for. A financial liability is an obligation in the world of accounting, but it is more specifically characterised by prior business transactions, events, sales, exchanges of goods or services, or anything else that will generate income in the future. Non-current liabilities are typically viewed as long-term obligations since they are anticipated to last more than a year (12 months or greater).
Depending on their temporality, liabilities are classed as current or non-current. They might be a future responsibility to provide a service to someone else (a short-term or long-term loan from a bank, a person, or another organization) or a past deal that left an unresolved duty.
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with a downsloping demandcurve and an upsloping supply curve for a product placing an excise tax on this
An excise duty on a good with a downsloping quantity demanded curve and an upsloping supply curve will increase the equilibrium price and decrease the equilibrium quantity.
What is the price at equilibrium?A market-clearing price, often referred to as an equilibrium price, is the consumer cost involved with a good or service when supply and demand are equal or nearly equal.
The significance of equilibrium price?For a marketplace to be efficient and equitable, equilibrium is necessary. A market cannot move away from its price and quantity equilibrium since it is maintaining a balance between the quantities provided and required.
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In each of the following questions, you are asked to compare two options with parameters as given. The risk-free interest rate for all cases should be assumed to be 6%. Assume the stocks on which these options are written pay no dividends. a. Put T X Sigma Price of Option
A .5 50 .20 10
B .5 50 .25 10
Assume the stocks on which these options are written pay no dividends are:
1. Higher sigma should mean a higher price but then also the price is the same so it means a lower stock price will be for A
2. Lower stock price should mean a higher price hence B should have a lower price
3. The lower stock price should mean a higher price hence B should have a higher price but the price difference should be at least the difference in stock price i..e, 5 but the difference is only 2 so A should have a lower time to expiration
4. Higher volatility means higher price hence B should have higher volatility
Dividends are everyday income-sharing bills made among a corporation and its investors. An organization's board of directors determines the price in line with share, when, and how often dividend payments are made. Dividend stocks can provide a movement of profits, which may be especially precious in the course of inflationary periods.
A dividend refers to praise, coins, or in any other case, that an organization gives to its shareholders. Dividends may be issued in various forms, which include cash fees, shares, or another form. An organization's dividend is decided via its board of administrators and it requires the shareholders' approval.
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A fixed budget performance report not only compares results, but also indicates if the variances are: A. adequate or inadequate
B. favorable or unfavorable
C. positive or negative
D. fair or unfair
A fixed budget performance report not only compares results, but also indicates if the variances are favorable or unfavorable
Fixed budget Performance ReportIt is an analytical report that compares the actual performance numbers over a period with the forecast numbers set in the fixed budget. This report resembles an income statement with one column for the fixed budget numbers and another column for the actual number achieved during the period. It is best suited to companies where there is little chance of fluctuations in prevailing conditions. It also works as a criterion to control costs.
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PROJECT: FINANCE OPTIONS, CREDIT USE, AND BANKING Assignment Directions: Using all of the concepts you have attained throughout the course of the lesson (capital, collateral, etc.), compose a two-page, detailed business plan that illustrates how you plan to enter the “industry of your dreams” (fashion, entertainment, educational materials, etc.). Assignment Guidelines: Include at least four important concepts discussed within the lesson. Submission Requirements: Two-page business plan When submitting written assignments, please remember to: Submit the assignment question(s) and your responses. Proofread for spelling, grammar, and punctuation. Remember to use complete sentence structure. Make sure paragraphs have at least six sentences.
The industry of my choice is the fashion industry. The way I plan to enter the fashion industry is given below:
Meeting so many people with various origins, experiences, and stories is one of the benefits of working in the fashion industry. In the fashion industry, you may learn a lot from those around you, and the individuals you meet early on in your career might very well be important to your development in the future.
Therefore, Internships are the ideal starting point. Nothing equals actual experience in the fashion industry, even if you have studied the subject. You must be completely alright with beginning at the bottom. An internship in the fashion industry will undoubtedly complete your textbook education and advance your career.
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Project: When It All Goes Wrong on Wall Street
Assignment Directions
1. Find a case which involved a bankrupt or closed securities firm, such as Enron or Lehman Bros. Research the case, and the
settlement. The easiest way to do this is to go to the SEC site, look at the regulatory actions against securities firms, and follow a
case. Here is the link ( sec.gov/spotlight/ enf-actions-fc.shtml or SEC Enforcement Actions, Addressing Misconduct That Led To or Arose From the Financial Crisis) to a current list of publicly traded companies that have been cited for SEC misconduct. As you can see, many of them are banks and securities firms and some of these firms are no longer in business. It is your job to research the firm and find out which ones on this list are no longer around. Then, follow the thread through the SEC, the courts,
and other reliable media such as Bloomberg, Wall Street Journal, or the New York Times. The most important thing to learn in
this assignment is how the enforcement process works. A second aspect of your research should include noting the stock price of this public firm before the regulatory actions and ultimate demise of the firm, and what the shareholders ended up receiving. You can find this information through the SEC enforcement reports and by using your browser to find historical information on share prices.
Submission Requirements
1. Write a report detailing the company that failed and what caused the failure. Describe the economic value and the cost to individual investors from a human perspective. Discuss how the regulatory system for securities worked or didn’t work and why. Was there any legislative or regulatory change because of this failure? Were there changes in society?
2. Your report should be 3 to 4 pages, double-spaced with 1-inch margins, and contain quantitive loss information from the failure (in other words the math), as well as a detailed narrative as to what went wrong. It also must show how the regulatory system for securities worked or didn’t work and why.
pls respond asap! will give brainliest :)
Answer: was
Explanation:
Through fraudulent means, Duke induces Emma to sign a contract to invest with him the profits from her business. When Emma learns the truth, she may
a. recover what she invested.
b. enforce the contract.
c. any of the choices.
d. withdraw from the deal.
Through fraudulent means, Duke induces Emma to sign a contract to invest with him the benefits from her business. When Emma learns the truth, she may do any of the choices (recover what she invested, enforce the contract or withdraw from the deal.
According to the privity of contract law, only those who are parties to a contract have the right to take legal action to enforce it. If the promised benefit is not provided, the party who stands to gain from the contract is not eligible to initiate any enforcement action. When parties reach an agreement on a contract, it is necessary that the agreement be supported by some kind of enforcement mechanism.
Strong contract enforcement procedures improve the stability of company relations, which lowers the uncertainty involved in conducting business. Investors who are the victims of violations of the securities laws may be entitled to collect money that has been recovered from fraudulent means.
The correct answer is option c.
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Tree Top Coffee Purchases Green Coffee Beans From Various Suppliers And Then Roasts The Coffee Beans In Its Roasting Facility
Tree Top Coffee Purchases Green Coffee Beans From Various Suppliers And Then Roasts The Coffee Beans In Its Roasting Facility, it depends upon the product quality and its overall cost of the product.
How many green coffee beans are in a pound?
When you consider that the going rate for green, unroasted coffee is currently $1.53 per pound on average, it can seem a bit mysterious as to why the cost jumps tenfold (or more) when it reaches our stores. Let's examine what determines the price of coffee, from the seed to the roaster to the café to the cup.
Is purchasing green coffee beans less expensive?Unroasted coffee beans are frequently less expensive than roasted coffee beans, though this isn't always the case. It should go without saying that the seller hasn't taken the necessary steps to roast the green coffee beans on your behalf. By moving to raw coffee beans, you could achieve significant long-term savings.
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suppose your upstream supplier becomes more profitable. then: group of answer choices you become more profitable by acquiring it you become less profitable by acquiring it acquiring it will make you more profitable as you can charge a higher price due to complementarity acquiring it will make your firm more profitable only if there are synergies to exploit through the acquisition previous
Acquiring it will make you more profitable as you can charge a higher price due to complementarity.
What is profitable?Profitability is a measure of an organization’s profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a less-efficient organization, which must spend more to generate the same profit.Profitability is a situation in which an entity is generating a profit. Profitability arises when the aggregate amount of revenue is greater than the aggregate amount of expenses in a reporting period. If an entity is recording its business transactions under the accrual basis of accounting, it is quite possible that the profitability condition will not be matched by the cash flows generated by the organization, since some accrual-basis transactions (such as depreciation) do not involve cash flows.To learn more about business transaction refer to:
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during design team meetings the director and designers talk about mood, pace, atmosphere, colors, character, story, and the production's style.
It is a true statement that during design team meetings, the director and designers talk about mood, pace, atmosphere, colors, character, story and the production's style.
What is a design team meetings?A design team meetings are meeting that are typically coordinated by the lead designer, if one is been appointed and may include all, or part of the design team.
The sub meetings of the design team may also be organised to deal with specific aspects of the design such as the structure, building services etc.
Full question "during design team meetings, the director and designers talk about mood, pace, atmosphere, colors, character, story and the production's style. True / False"
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Which of the following types of advertising promotes an organization's image, reputation, or ideas rather than a specific product?
Institutional advertising is a type of advertising that promotes an organization's image, reputation, or ideas rather than a specific product.
Institutional advertising is a type of advertising that focuses on building a brand's image or reputation, rather than promoting a specific product or service. Institutional advertising campaigns are often used to create a positive perception of a company or to highlight its core values, mission, or history.
The goal is to create a lasting impression of the brand in the minds of consumers. It is used by organizations such as businesses, schools, and governments. It is typically used to promote products or services to a large audience.
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Identify the interpersonal and decisional roles Mr. Hashim performed as the “Campus Head
Justify your answers in light of the case with at least one argument for each role.
A campus director is a managerial expert who is in charge of overseeing both faculty and student services as well as the day-to-day operations of a college campus.
What is the interpersonal and decisional role?Interpersonal, informational, and decisional roles make up the three categories of management work. The emphasis of interpersonal roles is on people and interpersonal interactions. Dealing with information is the main focus of informational roles. Making decisions is the main focus of decision-making roles.
The relationships that a manager must have with others are covered by interpersonal roles. Figurehead, leader, and liaison are the three positions that fall under this category. Because of their formal power and role as the organization's emblem, managers must serve as figureheads.
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describe the warning signs that tell you that the food you are handling
is contaminated by bacterial toxins
Answer:
There are several warning signs that can indicate that the food you are handling is contaminated by bacterial toxins. Some of the most common warning signs include:
A change in the color or appearance of the food: Bacterial toxins can cause the food to turn colors, such as turning brown or black, or to become discolored or mottled.A change in the odor of the food: Bacterial toxins can cause the food to develop a bad odor, such as a sour or rotten smell.A change in the texture of the food: Bacterial toxins can cause the food to become slimy or mushy, or to develop lumps or bumps.A change in the taste of the food: Bacterial toxins can cause the food to taste sour, bitter, or metallic.If you notice any of these warning signs, it is important to throw the food away and avoid consuming it. Consuming food that is contaminated with bacterial toxins can cause food poisoning, which can be serious or even life-threatening.
The frequent symptoms of bacterial food poisoning include diarrhea, nausea, chills, vomiting, and stomach cramps. These symptoms can also serve as warning indications that the food you are handling may be contaminated with bacterial toxins.
A change in the meal's aroma: Bacterial toxins can make food smell terrible, like it has a sour or rotten stench.
Bacterial toxins can alter the texture of food, causing it to become sticky or mushy, or to grow lumps or bumps.
Bacterial toxins can alter how food tastes, giving it a sour, bitter, or metallic flavor.
Food poisoning, which can be severe or even fatal, can result from consuming food that has been contaminated with bacterial toxins.
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Product ratings, design competitions, live outfit reviews, and visual scrapbooks are examples of _________________.
Product ratings, design competitions, live outfit reviews, and visual scrapbooks are examples of social shopping mechanisms.
What is social shopping mechanisms?
Social shopping is a method of e-commerce where shoppers' friends become involved in the shopping experience. Social shopping attempts to use technology to mimic the social interactions found in physical malls and stores.
Social shopping is a form of online retail in which customers' friends participate in the purchasing process. Social shopping aims to replicate social interactions found in real-world malls and stores using technology.
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in economics, the relation between average wages of the highest earners and average wages of the lowest earners, showing the number of times one average contains or is contained within the other is called the .
in economics, the relation between average wages of the highest earners and average wages of the lowest earners, showing the number of times one average contains or is contained within the other is called the .
Answer is: salary ratio
Annual earnings may also be referred to as annual income or yearly income. It displays a person's earnings over a specific time period.
The yearly earning of a person or a corporation is calculated by dividing the monthly earnings by the number of months in a year. Men continue to earn more than women under the situation mentioned above, hence their wages are higher.
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Alani and Jeremy have considered creating their own company but are concerned about the possibility of losing all of their personal assets if the business fails. One way for Alani and Jeremy to avoid this risk would be to organize their firm as a
corporation.
One way for Alani and Jeremy to avoid the risk of of losing all of their personal assets would be to organize their firm as a corporation..
Give a brief account on corporation.An organization that is permitted by the state to act as a single entity and is recognized as such in law for specific purposes is known as a corporation. This organization is typically a company or group of persons. Early corporations were established by charters (For example, by a special act enacted by a legislative or a parliament). New corporations can now be established by registration in the majority of jurisdictions. Although there are many different types of companies, they are sometimes divided into two categories by the law of the nation in which they were founded based on either their ability to issue stock or if they were founded with the aim of making a profit.
A corporation can be categorized as aggregate (the subject of this article) or sole depending on how many owners it has (a legal entity consisting of a single incorporated office occupied by a single natural person). Limited liability was one of the most alluring early benefits that business corporations offered to their investors in comparison to earlier business entities like sole proprietorships and joint partnerships.
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Are These Statements True For Economics?
[1] The Phillips curve slopes upward, since a more positive output gap is associated with a higher level of unexpected inflation. The labor market Phillips Curve slopes downward, since a more positive output gap is associated with a lower level of unemployment. Both curves summarize the idea that excess demand leads to higher inflation.
[2] A rapid influx of foreign investment causes the output gap to become more positive. This gives rise to demand‑pull inflation. The president unexpectedly announces a tariff on aluminum and steel. This causes cost‑push inflation.
The statement about Philips's Curve is true. Hence, option A is appropriate.
What is the Philips's Curve?The Phillips curve is indeed an economic theory that bears the name of William Phillips, who postulated a link between declining unemployment and higher rates of wage growth in an economy.
The Phillips curve shows a consistent negative relationship between inflation and unemployment. The inflation that follows economic expansion, as per William Phillips' thesis, should lead to more jobs as well as lower unemployment.
The economist A.W. Phillips studied the U.K. The Phillips curve is named after the period between 1861 and 1957 and includes both unemployment and earnings. The pace of wage increase and the unemployment rate, according to Phillips, is inversely connected (i.e., wage inflation).
Hence, option A is correct.
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