how much must you deposit in an account today so that you have a balance of $18,685 at the end of 9 years if interest on the account is 11% p.a., but with quarterly compounding?

Answers

Answer 1

$ 4,043.08 must be deposited in the bank account so that you have a balance of $18,685 at the end of 9 years.

Calculation

Future value required= $18,685

Term(n) = 9 years * 4 = 36 Quarters

Interest rate = 11% * 1/4 = 2.75%

Future value required = Amount deposited today * [tex](1+I)^{n}[/tex]

$18,685 = Amount deposited today * [tex](1+2.75)^{36}[/tex]

$18,685 = Amount deposited today * 4.6251480

Amount deposited today = $18,685/ 4.6251480

The amount deposited today = 4,043.07710 = 4,043.08

Hence, $ 4,043.08 must be deposited in the bank account so that you have a balance of $18,685 at the end of 9 years if the interest on the account is 11% p.a.

what is compound interest?Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit. It occurs when interest is reinvested, or added to the loaned capital rather than paid out, or when the borrower is required to pay it so that interest is generated the next period on the principal amount plus any accumulated interest.

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Related Questions

in an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expenditure equals $325 billion, investment equals $510 billion, and net capital outflow equals $225 billion. what is national saving? a. $1,390 billion b. $225 billion c. $735 billion d. $510 billion

Answers

The national saving is $225 billion as the consumption exceeds the savings in an open economy.

What is Gross Domestic Product?

The market worth of all the finished goods and services that nations produce and sell in a certain time period is measured in dollars by their gross domestic product (GDP). This measurement is frequently reviewed before being regarded as a valid indicator due to its subjective and complicated character and can be gained by economic growth propering the economy.  

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which of the following accurately describes of the effect of the government budget deficit on the open economy? a. real interest rates fall, which encourages domestic investment; the currency depreciates pushing the trade balance toward surplus. b. real interest rates rise, which causes crowding out of domestic investment; the currency appreciates pushing the trade balance toward deficit. c. real interest rates fall, which encourages domestic investment; the currency appreciates pushing the trade balance toward deficit. d. real interest rates rise, which causes crowding out of domestic investment; the currency depreciates pushing the trade balance toward surplus.

Answers

The effect of government budget deficit on open economy when Real interest rates rise, which causes crowding out of domestic investment; the currency appreciates pushing the trade balance toward deficit.

Option B is correct .

What's a deficit budget?

A budget deficit occurs when charges exceed income( i.e., duty and other espoused profit), generally measured over a single fiscal time. The term tends to be reserved for governments, although it's also possible for organisations, businesses, and individualities to run budget poverties.

How's the  budget deficit affect interest rates?

Budget deficits could often cause interest rates to rise if they caused the debt to grow at unsustainable rates, in budget deficit case investors would ask a risk premium to be induced to hold government debt for fear of default.

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martha's recently paid an annual dividend of $3.60 on its common stock. this dividend increases by 2.5 percent per year. what is the market rate of return if the stock is selling for $32.65 a share?

Answers

The stock is selling for $32.65 a share is 13.80%.

What is stock?
Stock
(also known as capital stock) in the financial industry refers to the shares into which ownership of the a corporation is divided. A single share of stock represents a fractional ownership interest in the company based on the total number of shares. This usually entitles the shareholder (stockholder) to the that portion of the company's earnings, proceeds from the sale of company assets, or voting power, dividing these items frequently in proportion to the sums invested by each stockholder. Not every class of stock is created equal; some may have enhanced voting rights, no voting restrictions, or a specific priority to receive profits as well as liquidation proceeds either before or after both these classes of shareholders.

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Which is true of a flexible spending account but not a health savings account?(1 point)

A) If you change jobs, you keep the account and all the money in it.
If you change jobs, you keep the account and all the money in it.

B) You can use it to pay for doctor visits.
You can use it to pay for doctor visits.

C) You can get one only if you have a health insurance plan with a high deductible.
You can get one only if you have a health insurance plan with a high deductible.

D) If you don’t spend it within a certain period of time, part or all of it reverts to your employer.

Answers

The correct answer is option (A) If you change jobs, you keep the account and all the money in it. If you change jobs, you keep the account and all the money in it.

What is a flexible spending account?

Generally, FSA monies cannot be rolled over to the following year until they have been fully utilised, and any unused funds carried over from the prior year are forfeited.

Unused funds are sent to your employer, who can decide whether to divide them among FSA plan participants or utilise them to lower the costs associated with administering the benefits programme.

A flexible spending account, also known as a flexible spending arrangement, is a specific account into which funds may be deposited and later utilised to cover a selection of out-of-pocket medical costs. A flexible spending arrangement is another name for this type of account.

This amount of money is exempt from taxation for you. Accordingly, you will be able to save an amount that is equal to the taxes you would have had to pay on the money you have set aside.

The key distinction between health savings accounts (HSA) and flexible spending accounts (FSA) is that HSAs are under the control of the individual and allow for the carrying over of contributions into later years, whereas FSAs are kept by the employer and offer fewer possibilities for spending.

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your late aunt gertrude left you a couple of shares of microsoft in her will, which she bought for you on the day you were born. recently, there have been rumors of microsoft acquiring a well-known social media app which you frequently use. you think this is a great idea and would like to have your (very small) voice be heard as a shareholder of microsoft.must microsoft get the approval of you, and other shareholders, before acquiring the other company?

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In my opinion,  The company doesn't need approval from him, because when you invested your money in the company that means you approve that they managed it. So, people who conduct and have a right to approval about acquiring the other company are all members at Microsoft who has the responsibility to do it.

An acquisition can be described as process when one company purchases most or all of another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company's other shareholders.

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Martina has decided to structure her new business venture to provide liability protection while gaining tax benefits over alternative structures. Her attorney has prepared the operating agreement and advised her of the complexities and expense of setting up this structure. Which of the basic types of ownership has martina​ chosen?.

Answers

LLC basic types of ownership Martina​ chose when she decided to structure her new business venture to provide liability protection while gaining tax benefits over alternative structures.

The business form known as a limited liability corporation (LLC) provides pass-through taxation and limited liability protection. The LLC has a separate legal existence from its owners, just like corporations do. As a result, owners are frequently exempt from liability for the debts and obligations of the company. In this way, Martina was able to choose basic ownership to gain tax benefits providing protection from liability. Most people use LLCs in order to shield themselves from personal responsibility for the debts of the companies they control or are affiliated with.

Since the firm is now an LLC, neither the owners nor the management is responsible for the obligations and liabilities incurred by the company. A new company entity that is legally distinct from its owners is created when an LLC is formed. This division offers what is referred to as "limited liability protection. Generally speaking, the bank account and other assets of the LLC are subject to seizure by the LLC's creditors if the LLC is unable to pay its debts.

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tanner co. manufactures products katra and klare from a joint process. product katra has been allocated $7,500 of total joint costs of $30,000 for the 1,500 units produced. katra can be sold at the split-off point for $4 per unit, or it can be processed further with additional costs of $2,000 and sold for $7 per unit. if katra is processed further and sold, the result would be:

Answers

Katra can be sold for $4 per unit at the split-off point or processed further for $2,000 more and sold for $7 per unit. If katra is further processed and sold, the gain from additional processing would be $2,500.

The term "Additional Cost" refers to any additional capital outlay, operating expense, tax obligation, or any combination thereof that the contractor has incurred or will be compelled to incur as a result of the change in the work's scope.

A joint cost is an expense that benefits more than one product and for which the contribution to each product cannot be distinguished. In order to allocate joint expenses to items consistently, the accountant must come up with a technique.

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havermill company establishes a $370 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated receipts on that date represent $85 for office supplies, $149 for merchandise inventory, and $34 for miscellaneous expenses. the fund has a balance of $30. on october 1, the accountant determines that the fund should be increased by $60. the journal entry to record the increase in the fund balance on october 1 is:

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The journal entry to record the increase in the fund will be- Debit Petty Cash $60; credit Cash $60.

A petty cash fund is a small sum of company money that is commonly kept on hand (for example, in a secured drawer or box) to cover unimportant or trivial expenses like office equipment or worker compensation.

Periodic corrections of a petty cash fund are conducted, and activities are also noted on the income statement. Each division could have its own petty cash pool in bigger companies. When sending a check or using a company credit card is impractical or undesirable, petty cash offers ease. The meager sum of money that a business may deem petty will differ.

The complete question is here:

Havermill Company establishes a $370 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $85 for Office Supplies, $149 for merchandise inventory, and $34 for miscellaneous expenses. The fund has a balance of $30. On October 1, the accountant determines that the fund should be increased by $60. The journal entry to record the increase in the fund balance on October 1 is:

Multiple Choice

Debit Petty Cash $430; credit Cash $430.

Debit Cash $60; credit Petty Cash $60.

Debit Miscellaneous Expense $60; credit Cash $60.

Debit Petty Cash $60; credit Accounts Payable $60.

Debit Petty Cash $60; credit Cash $60.

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when multinationals make a project fully operational and train local managers and workers before the owner takes control, they are using which entry-mode strategy? group of answer choices franchising direct export turnkey licensing

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Multinationals use Turnkey as a entry-mode strategy.

A turnkey project is a technique for a foreign corporation to build a plant in another nation and sell its technology and process there. Turnkey projects are typically used as an entry strategy by industrial enterprises that specialise in complicated production technology.

What is a turnkey plan of action?

The phrase alludes to the fact that a corporate buyer only needs to "turn" a "key" to get things going. Thus, a turnkey firm is one that is already operational and in a state that permits start-up right away.

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1. on each journal page, the date is written (a) for each entry. (b) only for the first entry. (c) on the first line of each column. (d) none of these.

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On each journal page, the data is written for each entry.

The date, the account name and number, the amount debited and credited, the transaction's reference number, and any additional information that should be recorded alongside the transaction are all listed in columns on an accounting journal page.A detailed account of all the financial actions of a corporation is kept in a journal. It is used to transfer data to other formal accounting records, such as the general ledger, and for account reconciliation in the future.Among them are the cash disbursements diary, the purchasing journal, the cash receipts notebook, and the sales journal. There could be more specialized journals. However, since the four accounting fields represented by these journals cover the majority of accounting transactions, additional journals are often not required.

Thus the correct option is A.

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jon is able to get his employees to support his vision for the department because he is a self-confident leader who is enthusiastic and excited about his vision. jon is a(n) leader whose style may be particularly effective when organizations are undergoing transformations.

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Jon is able to get his employees to support his vision for the department because he is a self-confident leader who is enthusiastic and excited about his vision. Jon is a(n) charismatic leader whose style may be particularly effective when organizations are undergoing transformations.

What is charismatic leader?

Charismatic leaders are those who are assertive, self-assured, and capable of sharing their vision with followers.

A charismatic leader can enthuse followers to eagerly support their vision because of their energy, dominance, and self-assurance.

A captivating leader must have a vision and exude enthusiasm when sharing it with others.

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the turkish lira lost about 40 percent of its value against the u.s. dollar in the first part of 2018. which type of exchange rate system does turkey follow? multiple choice currency board gold standard fixed floating pegged

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The Turkish lira lost about 40 percent of its value against the US dollar in the first part of 2018. Turkey follows floating exchange rate system. With a floating exchange rate, the price is determined by speculation, supply and demand, and other market factors.

Following the 2001 financial crisis, Turkey implemented a floating exchange rate system in which prices are based on market forces such as supply and demand. A country's currency price is decided by the foreign exchange market based on the relative supply and demand of other currencies in a floating exchange rate system. In contrast to a fixed exchange rate, a floating exchange rate is not constrained by trade restrictions or governmental oversight.

Because of floating exchange rate structures, shifts in long-term currency values reflect relative economic strength and variations in interest rates across nations. Disasters, speculative events, and the daily supply and demand of the currency are all represented by changes in the short-term floating exchange rate.

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collected data that may be accessed and analyzed using tools and techniques that assist managers in decision making is representative of a decision support system. true false

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A marketing decision support system is a collection of data that can be accessed and examined by managers utilizing tools and processes.

What part does marketing research play in the decision-making process?

A decision support system is an example of collected data that can be accessed and analyzed using methods and tools that help managers make decisions.

Information that is pertinent to decision-making is provided by marketing research, which benefits marketing management. Marketing research neither determines the course of action nor ensures success. Instead, market research assists in lowering the level of confusion surrounding the choices to be made. When we asked 2,000 Customer Experience (CX) specialists about their company's approach to research, surveys emerged as the most popular way of market research.

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peta spoke with deanna about how long it should take to finalize menu items and coupon values. what are some risks that might affect the time estimate for uploading menu and coupon content? select all that apply.

Answers

The risks that might affect the time estimate for uploading menu and coupon content are unpredictable carter's schedule and Carter want to revamp the menu before he finalizes the menu and coupon information.

What is project management ?

Project management is the process of carrying out certain project goals in accordance with predefined parameters by using procedures, techniques, abilities, knowledge, and experience. Project management final deliverables are subject to time and budget constraints.

The fact that project management has a final outcome and a limited time frame as opposed to management, which is a continuing process, is a crucial aspect differentiating it from simple management. Therefore, a project professional requires a varied set of skills, including various technical ones, as well as strong people-management and commercial acumen.

When a company seeks to offer a solution to specified needs within a given budget and time limit, it engages in projects, which are distinct from business as usual activities.

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The complete question is mentioned below :

Peta spoke with Deanna about how long it should take to finalize menu items and coupon values.

What are some risks that might affect the time estimate for uploading menu and coupon content? Select all that apply.

a. Carter's schedule can be unpredictable

 b. Restaurant customers are not interested in coupons

 c. Waitstaff have not yet been trained to use the tablets

d.  Carter wants to revamp the menu before he finalizes the menu and coupon information

fitzgerald inc.manufactures and sells a single product for $20 per unit. if variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be:

Answers

Break-even sales is:

$16,000 .

What is break even point?The break-even point refers to the point for which total costs and total revenue are equal, implying that your small business has no loss or gain. In these other words, you've reached the point where the costs of production equal the revenues for a product.

Here given:

Selling price = $20

The variable expenses = 60%

= 60% of $20

= $12

Given fixed cost = $9,600

Contribution margin is calculated as follows:

contribution margin = (selling price - variable expenses) / selling price.

∴ contribution margin = (20 - 12) / 12

                                 = 0.66

To Computation of break-even sales:

Break-even sales = Fixed cost / contribution margin .

Break-even sales = $9,600 / 0.6

Break-even sales = $16,000

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which function of oversight is carried out to determine whether the correctional agency is meeting established performance indicators, standards, or policies, or whether it is being fiscally responsible?

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The Audit function of oversight is carried out to determine whether the correctional agency is meeting established performance indicators.

What's oversight function?

An oversight refers to the review, monitoring, and supervision of civil agencies, programs and policy perpetration, and it provides the legislative branch with an occasion to check , examine, review and check the administrative branch and its agencies.

What's the part of audit oversight board?

The purpose of Audit Oversight Board( AOB) is to oversee the external adjudicators  of agencies who review the listed companies. Its establishment is anticipated to ameliorate the quality of the audited fiscal statements and to increase the confidence of the public on the quality of the services handed by the adjudicators.

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An incoming mba student took placement exams in economics and mathematics. In​ economics, she scored and in math. The overall results on the economics exam had a mean of and a standard deviation of ​, while the mean math score was ​, with a standard deviation of. On which exam did she do better compared with the other​ students?.

Answers

The term "standard deviation" describes how far a data collection deviates from the mean (or ""). A low standard deviation means that the data are grouped around the mean, whereas a large standard deviation says that the data are more spread out.

What is the standard deviation explained?

The standard deviation is a measure of how variable your data set is on average. It displays the standard deviation of each score with respect to the mean.

Standard deviation is important because it makes measurements easier to understand when the data is dispersed. The more equally distributed the data is, the bigger the standard deviation of the data will be.

When SD is larger than mean, it may indicate that the data's distribution isn't symmetrical or normal. As a result, the mean cannot be a reliable indicator of central tendency when the data does not follow a normal distribution.

Continuous data, not categorical data, are summarized using the mean and standard deviation. Additionally, just like the mean, the standard deviation is typically only acceptable when the continuous data is not noticeably skewed or contains outliers.

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Which type of market is the one in which a person buys stock in the fast-food company that makes their favorite breakfast sandwich?.

Answers

Financial markets are those in which a person purchases stock in a fast-food company.

What is Financial markets?A financial market is a market in which financial securities and derivatives are traded at low transaction costs. Stocks and bonds are examples of securities, as are raw materials and precious metals, which are known as commodities in the financial markets. Financial markets encompass any location or system that allows buyers and sellers to trade financial instruments such as bonds, equities, various international currencies, and derivatives. Financial markets facilitate the interaction of those in need of capital and those with capital to invest. Financial markets, in general, refer to any market where securities are bought and sold. The stock market, bond market, and commodities market are all examples of financial markets.

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In the hiring process, ____________ are people who are willing to confirm the job candidate's previous employment and discuss the candidate's qualifications for the job being applied for.
A.
Subcontractors
B.
Classifieds
C.
Personnel
D.
References

Answers

In the hiring process, Classifieds are people who are willing to confirm the job candidate's previous employment and discuss the candidate's qualifications for the job being applied for.

The term "hiring process" refers to the search, selection, and hiring of new personnel by a business. The three main parts of this process are planning, hiring, and employment selection. According to the Society of Human Resource Management, the length of the hiring process is 42 days on average (SHRM.) 27 working days are reported as the average in other job research. Your hiring process timetable should be based on the typical time to fill positions in your industry.

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smart business communicators know that dealing with disappointed customers should be done immediately and personally. however, written correspondence may be appropriate when . a. the customer is angry b. resale or promotional materials are unavailable c. personal contact is impossible d. the customer's request will be denied

Answers

Written correspondence may be appropriate when (C) personal contact is impossible. It aims so that customers are not disappointed and improve the company's good name.

Smart Businesses can be described as a business that adopt emerging new technologies in a way that delivers their business strategy, pushes IT development into the hands of the operational teams., and operational excellence across all internal core processes and external supply chain. There are several examples of business strategies, such as Improve customer retention and Improve customer service. So, we can conclude that customer is an important point for business strategy.

There are several types of business strategies, such as:

Competitive Strategy or BusinessCorporate Strategy or Organizational Operating StrategyFunctional Strategy

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digital media give consumers more control over price. this gives them a significant advantage. to compete, what must many companies do so consumers will focus on attributes other than price?

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Companies decrease prices after meeting the demand from early adopters in order to draw in more price-sensitive customers.

According to the scenario provided in the question, the rationale for the price decline over time is that businesses cut prices to entice the more price-sensitive customers after satisfying the demand for early adopters.

The users who begin utilizing the product before others do are known as early adopters. In this situation, after the early adopters are satisfied, other customers will want to purchase the product, so the price must be dropped to make it affordable for them.

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PLEASE HELP!!!! I’ll give you brainliest!!
What is a worksheet?

A) a feature of OneNote

B) a file in Excel

C) an application for Word

D) a spreadsheet in Excel

Answers

The answer is c An application for world

In an open economy, what is the source of supply of dollars in the foreign-currency exchange market?.

Answers

In an open economy, the net capital outflow is the supply of dollars in the foreign-currency exchange market.

What is an open economy?

An open economy is a form of economy in which organizations from other countries trade in goods in addition to domestically produced goods (goods and services). The exchange of management, the transfer of technology and the exchange of a wide variety of goods and services are all examples of trade.

What is foreign exchange market?

The transfer of money or foreign currency from one country to another to settle accounts is the basic and most obvious function of the foreign exchange market. In essence, the market is turning one currency into another.

The supply of dollars exchangeable in foreign currencies arises from the net outflow of capital. Since the net capital outflow does not depend on the real exchange rate, the supply curve is vertical.

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during 2021, paris 21 co. sold inventory to its 100%-owned subsidiary, tiger co. the inventory cost $30,000 and was sold to lord for $39,000. from the perspective of the combination, when is the $9,000 gain realized?

Answers

From the perspective of the combination, the $9,000 gain realized when the goods are sold to a third party by Tiger co.

What is realized gain?

When an investment is sold for more than it cost to buy it, a realized gain occurs. Capital gains tax is frequently imposed on realized gains. Either a short-term or long-term gain will be regarded as having occurred, depending on the holding duration.

Thus take the difference in the total consideration of the received and then deduct the cost basis to arrive at the realized gain or loss. Positive differences represent realized gains. No matter when you sell your investment property, all realized gains will be regarded as income and subject to taxation. The tax you pay can be as high as 37% because short-term capital gains are virtually always taxed at regular income rates.

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Compound interest is interest charged on:

Answers

Compound interest is the interest charged on the principal and the interest that accrues (Option B).

What is interest?

From a financial perspective, interest is the money charged on lending or borrowing a particular sum of money. It is important to mention that interest is expressed in terms of percentage.

Compound interest highlights interest that is calculated on the principal amount and also the interest amount that has been already accrued. Hence, compound interest includes the interest that is paid on the principal amount and also the interest amount that is paid on the interest itself.

It can be concluded that compound interest is the interest charged on the principal and the interest that accrues.

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when an organization compares a score on a selection test to the job performance of existing workers in that job, the organization is using validity. construct content convective criterion-related

Answers

The comparison of a score on a selection test to the job performance of existing workers on the same job by an organization means that they are using criterion-related validity.

What is a criterion-related validity?

Criterion - Related validity means that two different measures are being compared to see how they relate to each other or how they influence each other. Often the goal of a criterion-related validity will be to see if one measure can have an impact or influence on another measure to see if either measure can be used to improve efficiency in the other.

When an organization such as the one in the question, compares scores from a selection test to the performance of workers in that same job, they would be engaged in criterion-related validity. This is because they are comparing the measures of the selection test and the job performance to see how to improve efficiency.

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the risk register is developed when there is a known risk and serves as a plan of action to reduce the impact a risk will have on the project should the risk occur. group of answer choices true false

Answers

The risk register is developed when there is a known risk and serves as a plan of action to reduce the impact a risk will have on the project should the risk occur. the given statement is true.

What is risk?
Risk
can be defined as the chance that something negative will occur. Risk is uncertainty about how an action will affect or implicate something that people value, frequently focusing on unfavourable, undesirable outcomes. There have been many different definitions put forth. "Effect of Uncertainty on Objectives" is the international standard description of risk for use in various applications. Different practise areas have different understandings of risk, approaches to risk assessment and management, descriptions of risk, and even definitions of risk.  Links to articles with more information on these topics are provided in this article. The international standard for managing risk, ISO 31000, offers fundamental ideas and general recommendations for handling risks that organisations must deal with.

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an agreement where both parties to an existing contract agree to discharge the rights and duties of one party and substitute another person in his place is known as a/an:

Answers

A "rights assignment" is the transfer of a party's rights from the "assignor" to the "assignee." Some extra rights and obligations that come with the assignment are determined by the legal nature of the assignment and the contractual conditions of the agreement between the parties.

What are the  types of agreements between two parties?

Contracts Considering the Nature & Consideration

Unilateral Contracts: In these sorts of contracts, one party promises to pay a specific sum solely in the event that a certain event takes place.Contracts that are signed on a bilateral basis are those in which both parties reach a consensus.

One person or company transfers rights or property to another person or company through an assignment. However, only the benefits of the assignment are transferred; any remaining responsibilities belong to the original contracting party. Novations transfer to the next party both advantages and potential risks.A novation is an agreement signed between two parties to a contract that permits the replacement of one party by another.

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Which of these stores uses a fulfillment center? A: 7-11 B: Dunkin' Donuts C: Amazon D: Comet Dry Cleaner

Answers

The store which uses a fulfillment center is: C. Amazon.

What is supply chain management?

Supply chain management can be defined as an effective and efficient management of the supply or flow of goods and services, as well as all of the production processes that are involved in the transformation of raw materials into finished products, in order to meet the insatiable want and need of the consumers on a timely basis.

This ultimately implies that, the supply chain management (SCM) simply refers to a strategic process which encompasses all of the activities that are associated with planning, innovation, execution, frequent communications, and supply of finished goods and services to the consumers on a timely basis.

What is a fulfillment center?

A fulfillment center is also referred to as a packaging warehouse and it can be defined as a portion of the supply chain which primarily serves as the central hub for all logistics processes that are required to get a product (good) from the seller to the consumer (buyer).

In conclusion, Amazon is a typical example of a store that makes use of a fulfillment center.

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define the investment trade-off. multiple choice question. an increase in investment expenditure designed to boost future consumption a reduction in investment expenditure designed to boost current consumption a reduction in current consumption to pay for investment capital an increase in consumption designed to increase investment

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The risk-return tradeoff is an investment principle that indicates that the higher the risk, the higher the potential reward. To calculate an appropriate risk-return tradeoff, investors must consider many factors, including overall risk tolerance, the potential to replace lost funds.

A trade-off (or tradeoff) is a situational decision that involves diminishing or dropping one nice, quantity, or belongings of a set or design in go back for profits in different components. In easy phrases, a tradeoff is in which one component will increase, and every other should decrease. Tradeoffs stem from barriers of many origins, such as easy physics – for example, best a certain volume of gadgets can fit right into a given area, so a complete container should remove some gadgets a good way to accept any greater, and vessels can bring a few massive items or multiple small gadgets. Tradeoffs additionally commonly seek advice from extraordinary configurations of an unmarried item, which includes the tuning of strings on a guitar to enable one-of-a-kind notes to be performed, as well as an allocation of time and attention towards different responsibilities.

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