All costs associated with a machine after it is operational are expensed in the period they are incurred. This statement is false.
Which of the costs are generally expensed as incurred?
Costs associated with both research and development must typically be deducted as they are incurred under US GAAP. Furthermore, certain expenditures associated with software development must be capitalized in accordance with US GAAP. Until the technological viability of a software product is demonstrated, the expenditures paid during its development are expensed.
After then, the costs are capitalized. Similar to this, businesses deduct the expenses associated with developing software for internal use until it is likely that the project will be finished and the program will be utilized as intended. The development expenditures are then capitalized at that point.
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the central bank of foxystan has set the reserve requirement at 10%. if dave makes a cash deposit of $5000, and the bank carries zero excess reserves, by how much will the money supply increase?
If the required percentage of reserves is 10%, the money supply reserve multiplier is 10 and the required amount of reserves should be 10 times the money supply.
Why must the bank hold a reserve of only 10% of the money deposited?
The reserve requirement in foxystan has been established at 10% by the central bank.
In a system known as fractional reserve banking, only a portion of bank deposits are guaranteed by actual cash that is on hand and accessible for withdrawal. The idea behind this is to hypothetically boost the economy by making funds available for lending. In the past, the reserve rate has varied between 0% and 10% of bank deposits. The bare minimum of cash that banks must hold on hand in case of unforeseen demand is known as a bank reserve. The additional funds that a bank maintains on hand but chooses not to loan out are known as excess reserves.
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what is the purpose of the emerging issues task force? question 4 options: provide timely guidance on select issues. provide interpretive guidance. provide interpretation of existing standards. provide a consensus on how to account for new and unusual financial transactions.
The purpose of the emerging issues task force is to provide timely guidance on select issues.
In authorities or enterprise a task force is a temporary corporation created to solve a selected hassle. it's far taken into consideration to be a more formal ad hoc committee.
A task force is a collection of those who come collectively from various branches, positions, and factors of view to facilitate the development of thoughts, create new possibilities, answer questions, or resolve a trouble.
Task groups provide a danger for personnel to relate to each other and form bonds that can make the workplace more fun and help it to feature better. solving issues collectively fosters a spirit of teamwork. but, this often way that person achievements and contributions pass unrecognized and unrewarded.
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on january 1, parson freight company issues 8.5%, 10-year bonds with a par value of $3,300,000. the bonds pay interest semiannually. the market rate of interest is 9.5% and the bond selling price was $3,075,762. the bond issuance should be recorded as:
A bond is a type of debt instrument in which the issuer is obligated to pay the bondholder the face value at maturity and specified periodic interest or coupon payments.
A discount bond is one in which the bond's issue price is lower than its face value.
How do bonds work?Like an IOU, a bond is a debt security. In order to obtain funds from investors who are willing to lend them money for a predetermined period of time, borrowers issue bonds. You are lending money to the issuer, which could be a corporation, municipality, or government, when you buy a bond.
What is a relationship's bond?A strong sense of friendship, love, or shared beliefs and experiences is what binds people together. We developed a very special bond as a result of the experience.+ between] the link that bound them together. Synonyms: More Bond Synonyms include link, union, coupling, and tie.
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when an investor is looking for large and growing markets with the opportunity to build a large company, the domain they are focusing their attention on is select one: a. macro market b. micro market c. macro industry d. micro industry
The domain they are focusing their attention on macro industry. Any macro-level decision is one that does not deal with the micro-level decisions of management structures and product management.
External influences and the issues they cause are more of a focus for macro-level issues. A company's strategic management includes macro environment analysis, which enables it to domain and identify prospective possibilities and risks that could have an impact on the firm. The objective is to provide management with information that will help them make operational decisions in advance. Trade, industrial organisation and market structure, labour economics, public finance, and welfare economics are all areas where microeconomics is used.
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what was the primary motivator for corporate giving, according to the national bureau of economic research? financial. group of answer choices financial philanthropic political influence popularity
Philanthropy is the primary reason for corporate giving, according to the National Bureau of Economic Research.
What is the national bureau of economic research?The National Bureau of Economic Research (NBER) is a private, non-profit, and non-partisan organization that conducts research with the goal of advancing economic understanding. It makes economic research available to academics, businesspeople, and public policymakers.A private, nonprofit research organization, the NBER.New statistical measurements, calculating quantitative models of economic behavior, evaluating the consequences of public policy on the U.S. economy, and forecasting the implications of various policy suggestions are the main topics of research for this study. Research papers from NBER are quickly produced and made available as "working papers." They serve as talking points for economists who are curious about fresh developments in their field.To learn more about the national bureau of economic research refer to the:
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a stronger u.s. dollar in the international exchange markets will result in a decrease in aggregate demand (ad). why?
The U.S. aggregate demand curve will be shifted to the left and output demand will be reduced by a stronger currency.
The soaring U.S. dollar, which has reached more than a two-decade high versus the Euro so far this year, is causing changes in the international trade profile of America because it drives down the price of imports for American consumers while driving up the price of exports of American goods. Exports will cost more as a result of the dollar's gain, which will result in a volume reduction. On the other hand, imports will increase in volume as they become more affordable. The overall demand in the US will decline as a result of the rise in imports and decline in exports.
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issuing an installment note in exchange for cash (select all that apply): multiple select question. does not affect equity decreases assets does not affect liabilities increases liabilities decreases equity decreases liabilities increases assets does not affect assets increases equity need help? review these concept
Option d.) increases assets does not affect equity increases liabilities is the correct answer as, this is because the debt will also increase. Because assets need to be balanced against liabilities and equity, it is useful for issuing installment certificates against cash.
Borrowing money from a bank increases a company's cash position, thereby increasing its balance sheet. In addition, the liability account, bills payable, increases as the company borrows money from the bank. When a company borrows money from a bank, the amount received is recorded as a cash debit and credited to liability accounts such as bills payable and loans payable recorded on the company's balance sheet.
All's assets are everything owned by the company. Liabilities and equity are what your company owes to third parties and owners. The golden rule of accounting to balance the books is that assets equal liabilities and equity.
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julie's parents' 25th anniversary is in 4 years. she'd like to give her parents a vacation package for their anniversary. she anticipates the vacation package will cost her $3500. an account at her bank pays 3% per year compounded monthly. how much does she need to deposit today in this account, so that she can buy the package deal for her parents' anniversary?
We must calculate the present value using Present Value with Compound Interest in order to determine the amount to be deposited today.
What is Present value:
The time value of money is used in the present value calculation to discount future cash flows and determine their present-day value. Compound interest-related present value & future value make up the present value formula. The original amount, the amount deposited, the amount lent, the sum borrowed, etc. are all included in the present value, or PV.
In finance, the present value (PV) formula is used to calculate the present value of money that will be received in the future. The present value formula is built on the compound interest formula (PV formula).
When interest on savings is calculated utilizing both the initial principle and interest that has accumulated over time, it is referred to as compound interest. The concept of compound interest, sometimes known as "interest on interest," is thought to have started. It will accelerate the growth of a total more quickly than simple interest, which is solely calculated on the principal sum.
The initial principal plus any interest charges from earlier periods are added together to calculate compound interest. The power of interest compounding is the creation of "interest on interest."
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which of the following are the most common factors influencing the decision to migrate? a. business opportunities and health care b. cultural freedom, environmental protection, and lower food costs c. reuniting with family and friends d. cultural freedom, environmental comfort, and economic opportunity e. affordable housing, healthier food, and citizenship
The following are the most common factors influencing the decision to migrate cultural freedom, environmental comfort, and economic opportunity.
These migration styles may be attributed to financial inequalities, choice for employment, or both. Economic, political, and environmental elements all play a position withinside the push/pull elements of exertions migration. People might also additionally pick to immigrate for quite a few reasons, such as employment opportunities, to get away a violent conflict, environmental elements, instructional purposes, or to reunite with family.
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a 3.0 percent coupon bond issued by the state of tennessee sells for $1,000. what coupon rate on a corporate bond selling at $1,000 par value would produce the same after-tax return to the investor as the municipal bond if the investor is in the 25 percent marginal tax bracket?
4% is the coupon rate on a corporate bond selling at $1,000 par value would produce the same after-tax return to the investor as the municipal bond if the investor is in the 25 percent marginal tax bracket.
What is the coupon rate?
A fixed-income security's nominal yield is expressed as a coupon rate. The coupon holder will yield less than the current market conditions when the market improves, as the bond won't pay more because its value was predetermined at issuance.
Information given in response to the query
3% is the coupon bond percentage.
Investor share is 25%
The following is how the corporate bond's coupon rate was calculated:
Corporate bond coupon rate = Corporate bond coupon percentage (1 - Investor percentage)
= 3% ÷ (1 - 0.25)
= 3% ÷ 0.75
= 4%
Therefore, we used the aforementioned formula to calculate the corporate bond's coupon rate.
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according to michael porter, there are five determinants of competition. an example of is when new entrants to an industry put pressure on prices and profits. a. threat of entry b. rivalry between existing competitors c. pressure from substitute products d. bargaining power of buyers e. bargaining power of suppliers 5 points
A. According to Michael Porter, the theory of entry describes how new competitors exert pressure on pricing and earnings.
On May 23, 1947, Michael Eugene Porter, an American academic known for his theories on economics, business strategy, and social factors, was born. He is one of the founders of both the consulting company The Monitor Group and the social impact consultancy FSG. He is also the Bishop William Lawrence Professor at a university at Harvard Business School.
Porter's theory states that profit comes from power. The size of a company's moat, market share, or both of these variables taken together boosts its capacity to extract profits from competitors, suppliers, and customers.
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if a firm imposes a capital constraint on investment projects, the appropriate decision criterion is to select the set of projects that has the highest positive net present value subject to the capital constraint. group of answer choices true false
The statement is false.
When there is a capital constraint , a firm should invest in those assets which gives higher value. The relevant index helps in determining the actual profitability index rate not the present rate.
Therefore, the projects that should be selected are the ones with the highest profitability index.
What is Capital Constraint ?
Capital constraint is net capital available for spending during a designated period of time. Properties are considered value added when they exhibit management or operational problems and/or suffer from capital constraints.
Capital constraint = cash flow – contingency
The company makes decisions with regard to
capital spendingspending Investment spending.Hence, The given state is false.
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if you were to calculate the yield on a security with a 10-year us treasury security, the yield will be equal to
If we were to calculate the yield on a security with a 10-year US treasury security, The yield will be equal to 6.20%
Nothing says "safety of principal" like Treasury securities when it comes to conservative investments. For decades, these instruments have served as a last line of defense against any potential loss of principal in the turbulence of the investment markets.
The guarantees that back these securities are regarded as one of the key pillars of both the domestic and international economies, and they are appealing to both individual and institutional investors for a variety of reasons.
Treasury securities are among the most secure investments because they are backed by the full faith and credit of the United States government.
Treasury securities are classified into three broad categories based on maturity. Treasury Bills, Treasury Bonds, and Treasury Notes are examples of these.
These Treasury securities are available for purchase directly from the US government through the TreasuryDirect.gov website or through a bank or broker.
Though treasuries are considered low-risk investments, they carry some risks, such as inflation and interest rate changes.
Treasuries have low yields because they are safe investments.
The interest paid on Treasury securities is federally taxable.
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scarborough faire herb farm is a small company specializing in selling organic fresh herbs, teas, and herbal crafts. the cost of growing basil is $1.59 per bunch. at the farmers market they sell the bunches for $3.00 each. at the current cost of growing basil, what would be the appropriate price to achieve a target margin of 60%?
At the farmer's market, they sell the bunches for $3.00 each. 0.715 would be the appropriate price to achieve a target price margin of 60%.
Net profit Margin = Neb profit margin/Selling Price.
= 4.2g/6
= 0.715
= 0.715 x 100
= 71.5%.
Pricing periphery – or profit periphery – is the difference between the cost of an item and the price at which it's vended. The end, thus, of utmost businesses is to make as important periphery as possible while icing prices stay competitive. There is no denying that pricing is crucially important. Profit periphery is a measure of profitability. It's calculated by chancing the profit as a chance of the profit. There are 3 types of profit perimeters gross profit periphery, operating profit periphery, and net profit periphery. Gross Profit periphery is calculated as gross profit divided by net deals.
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what is a positive indicator that agile may be appropriate to an organization as a new project methodology?
A positive indicator that agile may be appropriate to an organization as a new project methodology that the adopting organization values trust, collective ownership, and adaptability.
What is the project methodology?
A project management methodology can be defined as the set of principles, techniques, and procedures used by those who work in a discipline. These are usually structurally organised, along with workflows and software development. It should include proper research methodology, awareness, facts and analysed data. Designing framework, qualitative research coupled with raw and clear facts are important for methodology.
There are usually three methods waterfall, agile, and scrum.
Hence , A positive indicator that agile may be appropriate to an organization as a new project methodology that the adopting organization values trust, collective ownership, and adaptability.
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the management of kaladonia industries is considering dropping product x-198. data from the company's accounting system for this product for last year appear below: sales $ 918,000 variable expenses $ 403,000 fixed manufacturing expenses $ 332,000 fixed selling and administrative expenses $ 239,000 all fixed expenses of the company are fully allocated to products in the company's accounting system. further investigation has revealed that $205,000 of the fixed manufacturing expenses and $116,000 of the fixed selling and administrative expenses are avoidable if product x-198 is discontinued. what would be the financial advantage (disadvantage) from dropping product x-198?
According to the company's accounting system, The financial advantage (disadvantage) from dropping product x-198 is -$ 26,000
Sales = $ 918,000
Variable Expenses = $ 403,000
Contribution margin = Sales - Variable Expenses
= $ 918,000 - $ 403,000
∴ Contribution margin = $ 515,000
Fixed Expenses:
Fixed manufacturing expenses = $ 332,000
Fixed selling and admin Expenses = $ 239,000
Total Fixed expenses = Fixed manufacturing expenses + Fixed selling
and admin Expenses
= $ 332,000 + $ 239,000
∴ Total Fixed expenses = $ 571,000
⇒ Financial advantage (disadvantage) = Contribution margin - Total Fixed
expenses
= $ 515,000 - $ 571,000
⇒ Financial advantage (disadvantage) = -$ 26,000
The incremental profit or loss that a corporation will realize in circumstances like accepting a special order, discontinuing a business line, etc. is referred to as a financial advantage (disadvantage).Only the necessary costs are taken into account while calculating it. The incremental costs and revenues are combined to determine whether there is a financial benefit or disadvantage. Financial advantage and financial disadvantage are expressed in terms of incremental net operating income and loss, respectively.Learn more about Financial advantage (disadvantage), here
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what sales technique encourages a client to purchase additional services, products, or add-ons at the point of sale
At the point of sale, the referral sales technique encourages customers to buy extra services, goods, or add-ons.
Any exchange of tangible or intangible commodities, services, or assets services for cash between two or more persons is referred to as a sale. In some sales situations, a seller is compensated with assets other than cash.
A deal between a buyer and a seller regarding a financial security's price and precise delivery arrangements is referred to as a sale in the financial sales markets.
Whatever the circumstances, a sale is fundamentally a contract between services a vendor offering a certain commodity or service and a customer willing sales to pay for it.
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trucking companies that are concerned with the environment look for ways to increase fuel efficiency. this not only saves the company money, but it also decreases the environmental impact every time a truck makes a delivery. this is an example of the - environmental marketing strategy
Trucking comp-anies that are concerned with the environ-ment look for ways to in-crease fuel efficiency. This not only saves the comp-any money, but it also decr-eases the environ-mental impact every time a truck ma-kes a delivery. this is an example of the - eco efficiency.
What is eco efficiency?Eco efficiency is a key con-cept for companies to reach a more sustainable develop-ment, considering not only the add-ed value as-pect of its activities but also the environ-mental impacts.
Eco-efficiency is a manage-ment strategy of doing mo-re with less. It is based on the con-cept of creating more go-ods and services while using few-er resources and crea-ting less waste and pollution.
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a 6000-seat theater has tickets for sale at s24 and s40. how many tickets should be sold at each price for a sellout pertormance to generate a totalrevenue of $166,400?
For a sellout performance, 1800 and 4200 tickets must be sold at each price in order to earn a total revenue of $166,400.
What is revenue?The amount of money generated by regular business operations is known as revenue, and it is calculated by dividing the quantity of units sold by the average selling price. Revenue is also referred to as sales on the income statement.
Calculation:
Given:
The cost of tickets is $24 and $40.
Let x represent the total number of tickets sold at the $24 price.
Let y represent the total number of tickets sold at the $40 price.
There are a total of 6000 seats in the theater.
Hence,
x + y = 6000 (equation 1)
$166,400 is the entire amount of money that must be made.
24x + 40y = $166,400 (equation 2)
Now, if we multiply equation 1 by 40, we obtain:
40x + 40y = 240,000 (equation 3)
Now, we obtain by deducting equation 2 from equation 3:(40x + 40y = $240,000) - (24x + 40y = $166,400)
16x = $73,600
x = 73,600/16
x = 4,600
Now, we obtain by changing the value of x in equation 1:
x + y = 6,000
4,600 + y = 6,000
y = 6,000 - 4,600
y= 1,400
As a result, 1800 out of a total of 4200 tickets were sold.
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actory overhead costs are budgeted and controlled by separating factory overhead into a.rate and time components. b.labor and materials components. c.price and quantity components. d.fixed and variable components.
The ongoing costs of running a business are known as overhead costs. No matter how much or how little a business sells, it must pay overhead on a regular basis. Overhead expenses fall into two categories: variable and fixed.
What distinguishes a variable from a fixed one?No matter how many units are produced, fixed costs are incurred. When units are produced, variable costs are incurred. Does the number of units affect it? With an increase in the number of units produced, fixed costs decrease.
What is an overhead on a variable?The costs of running a business that change depending on the level of business or manufacturing activity are known as variable overhead. Variable overhead fluctuates in tandem with production output.
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when a company creates time and place utility by focusing on making products available when they are wanted, with adequate service and at minimum cost, it is engaged in
Time and place utility are created when a company focuses on making products available when they are demanded, with adequate service and at minimum cost, engaging in marketing.
Give a brief account on economic utility.The whole level of enjoyment a person receives from using a specific good or service is known as economic utility.
The four different categories of economic utility are form, time, place, and possession.
The value a consumer obtains from goods or services in a way they genuinely need is known as form utility.Time utility is the provision of goods or services to customers at the time of their demand or necessity.Place utility refers to placing goods or services in places where customers may conveniently obtain them.Possession utility is the use or perceived benefit a customer receives from possessing and promptly using a good or service.To know more about, economic utility, visit :
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a long year-end status report for work is 164 pages long. you need to print 15 copies for a meeting next week. how much is the paper going to cost for those reports? paper is sold in reams (500 pages) for $3.78 each.
The paper will cost $18.9 for printing the reports
Any expenses you incur because of your printer are considered printing costs. This includes the price of your printers, the price of your ink and paper for printing, as well as the price of other printer supplies.
Number of pages in the long year-end report = 164 pages
Number of copies required = 15 copies
Total pages required to be printed = 164*15 = 2460 pages
Cost of a ream of 500 pages = $3.78
So, for 2460 we will require = 2460/500 = 4.92 or 5 reams of paper
Cost of printing the report= 5*3.78 = $18.9
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The management function that involves creating a vision for the organization, communicating it to others, and motivating them to achieve goals is.
The management function that involves creating a vision for the organization, communicating it to others, and motivating them to achieve goals is leading.
Leading can be described as one of the primary important functions of management.
A leader is a person who can effectively form a set of goals or objectives of a company. He knows how to communicate with the employees and express the goals to the employees. A leader with a leading quality will also be able to motivate the employees to work harder in order to achieve the set goals.
Leading quality also includes the ability to assess the functioning of the departments of the company and to organize the workflow of the employees.
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explain which of the following approaches to strategy formulation is more likely to generate economic profits
Utilizing internal resources offers a company a superior competitive edge because they are already available to generate economic profit.
What is Profit in terms of Economics?In accounting, a profit is an income that is given to the owner throughout a successful market producing process. Profitability, which is the owner's primary interest in the income-formation process of market production, is measured by profit. There are various profit metrics that are frequently used. Profit is the term used to describe the financial gain experienced when the revenue from a commercial activity exceeds the costs, costs, and taxes associated with maintaining that activity. Income is the actual amount of money earned in a certain time period, whereas profit is the difference
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michelle has just been appointed to a virtual team that will use a wiki to keep in touch, and she wants to be a valuable team participant and contributor to the wiki. what is the best advice you can give her?
The best advice for Michelle would be to verify all facts before posting them to the wiki.
A wiki is a website or online resource that allows multiple users to edit it. Some wikis, such as Wikipedia, are open to the public. Businesses use others to manage information internally, allowing teams to share knowledge easily and collaborate more effectively.
A wiki can be a very efficient way to gather and distribute information in the right circumstances. Wikis, because they are online, can make it easier for teams to collaborate on tasks, share notes and suggestions, and contribute resources. A wiki can help with version control when multiple authors are updating the same piece of work because it is always clear which version is the most recent.
Wikis can be set up temporarily to support specific projects, or they can be developed over time as ever-evolving archives of organizational knowledge.
Wikis' adaptable structure allows them to change as the information changes. Furthermore, by documenting each step, edit by edit, wikis demonstrate how a project, a body of knowledge, or even an entire organization evolves over time.
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diana is in charge of telling employees about a new procedure for submitting expense claims. many of her employees do not have access to company e-mail. what communication channel should she use?
Diana is in charge of informing staff members of a new process for filing expense claims. Many of her staff members lack access to company e-mail. She needs to use the Memo channel of communication.
"Communication channels" – what are they?To put it simply, communication channels are means of delivering a message to its target audience. Examples of communication channels include phone calls, text messages, emails, videos, radio, and social media.
Is a memo a route of communication?In an organization, a memo (or memorandum, which is Latin for "reminder") is used to convey rules, regulations, summaries of reports, or other related official business. Instead of communicating with individuals like email or letters frequently do, it adopts a one-to-all attitude, disseminating a message to a mass audience.
To convey information of immediate importance to individuals inside a company or organization, a memo (memo) is utilized. You can also send a memo to organizations or persons with whom you have a close or long-standing connection, like vendors or consultants. A note serves as a permanent record of your conversation, much like a business letter does.
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what happens to the price of a good or service when there is excess demand? a the price stays the same b the price goes up c the government sets the price d the price goes down
When there is excess demand in the market, then the price of a good or service goes up.
How Does the Law of Supply and Demand Affect Prices?
An economic theory called the law of supply and demand explains how supply and demand are related to one another and how this relationship affects the price of goods and services. A basic principle of economics is that when there is more supply than demand for an item or service, prices decline. Prices typically increase when demand exceeds supply.
When demand is constant, there is an inverse relationship between supply and prices of products and services. Prices tend to decrease to a lower equilibrium price and a greater equilibrium quantity of goods and services if supply of goods and services increases while demand stays the same. Prices tend to increase to a higher equilibrium price and a lesser quantity of goods and services when the supply of goods and services declines and demand stays the same.
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on october 1, 2024, halsey company issued stock options for 300,000 shares to a division manager. the options have an estimated fair value of $3 each. to provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 6% in three years. halsey initially estimates that it is probable the goal will be achieved. how much compensation will be recorded in each of the next three years?
As a result, $430,000 in compensation will be recorded annually.
Your expectations for compensation include not only your starting salary but also any potential future compensation benefits, such as promotions.
What does the term "expected compensation" mean?
Your expectations for compensation include not only your starting salary but also any potential future compensation benefits, such as promotions.
What are some examples of your expectations for compensation?
You could say something like, "Based on my 10 years of experience in this field, I would expect a salary in the range of $Y to $Z." Before you mention any numbers, you should remind the interviewer why they should offer you a salary. Prepare for negotiations.
The total compensation estimation is negative. of Stock Options* Fair Value of Stock Option = 430,000 * $3 = $1,290,000 in three-year compensation = Total Estimated Compensation/Three Years = 1,290,000 /Three Years = 430,000, so $430,000 in annual compensation will be recorded.
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roland wants to start a mobile vehicle detailing service targeting owners of luxury cars, and he wants to restrict his market to a 20-mile radius around his home. which two types of segmentation will he need to consider?
Behavioral and geographic are two types of segmentation will he need to consider.
Segmentation means to divide the market into parts, or segments, that are definable, on hand, actionable, and profitable and have an increased capacity. In other phrases, an employer would discover it impossible to target the complete market, due to time, value, and attempt regulations.
Market segmentation is one of the satisfactory approaches to understanding your target audience. It refers back to the technique of dividing consumers into wonderful classes primarily based on aspects consisting of age, gender, bodily place, earnings, ethics, priorities, aspirations, values, family size, or whatever else is relevant to your brand.
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how do cash flow problems usually start? multiple choice question. the firm issues stock. the firm uses up its credit. the firm has an initial public offering. the firm uses improper ratio analysis.
The way that cash flow problems usually start is the firm uses up its credit.
How do cash flow problems usually start?Cash flow problems refer to when a company does not have enough cash to take care of its obligations. Usually when this happens, a firm can simply just borrow the cash from those it has credit with.
However, if for some reason it has borrowed too much and so has used up its credit, then it will have issues with taking care of cash expenses. This is where cash flow problems will then begin.
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