At the adjourning phase the team members conduct an analysis of the project and the performance of the team.
What are dr.bruce tuckman five phases of team development and who is dr.bruce tuckman?Dr. Bruce wayne tuckman was an american psycological researcher who searched and worked at the project of dynamics.Here is asked among five phases , which phase have team members conducting an analysis of the project.The several other phases of dr.bruce wayne tuckman includes forming, storming , norming etc.Hence the adjourning is the phase amongst the five phases in which team members conduct an analysis of the project and the performance of the team.To know more about team visit:
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yusef has a businessthat will empower people over 65 to get exercise every day. how might his business look if it only delivered products and not services? how would it look if it only delivered services? which characteristics of his target market are reflected in your answers?
Typically, target markets are described by a set of traits, which could include: information on people's backgrounds, including their ages, marital status, and income level. geographic data, such as zip codes or particular cities. Psychographic data, such as lifestyles, values, and hobbies.
Explain about the target market?
Although the four primary categories of market segmentation are thought to be geographic, demographic, psychographic, and behavioral, there are many additional tactics you can employ, as well as various variants on the four primary types.
For instance, the target market and audience for a children's toy may be boys aged 9 to 11 and the parents of those boys. It can also be described as the group of consumers who are most likely to be affected by marketing initiatives. The buyer persona is separate from the target market.
A target market is a collection of potential buyers who you identify in order to market your goods or services to. Each group can be split up into more compact units. Typically, segments are organized by age, region, money, and lifestyle.
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suppose potatoes are inferior goods. if the price of potatoes increases, and we are a net seller of potatoes, what happens to our demand for potatoes?
A decrease in the price of potatoes will create an income effect which will lower the consumption of potatoes.
What happens to an inferior good when price increases?
In microeconomics, the income impact is the subsequent shift in demand for an item or service brought on by an increase or reduction in a consumer's actual income or purchasing power. The income impact predicts that individuals would start to demand more as their income rises (and vice-versa). These common patterns will be present in so-called regular commodities. On the other hand, inferior commodities can actually see a decline in demand as income rises. Store-brand products are one example of a subpar product; if consumers get wealthy, they may choose name brands instead.
The income impact explains how changing a consumer's income might alter the amount of items they will desire.
As income grows, the price of so-called "normal" things also rises.
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if a contract involves the sale of goods, it is governed by the uniform commercial code (ucc). all other contracts are governed by: blank . multiple choice question. theories of equity the parties' subjective intentions state statute common law
A set of guidelines covering every facet of business sales transactions.
The UCC (Uniform Commercial Code) is a set of rules designed for business dealings conducted in accordance with state-by-state uniform commercial laws. The UCC's regulations cover things like commercial transactions and sales.
Other choices are inaccurate. It has nothing to do with legal agreements, sales, or services.
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of the following, which is the most influential in deterring international standardization of advertising? multiple choice question. legal forces physical forces sociocultural forces economic forces
The right answer is option (c). The most potent inhibitor of global advertising standardization is sociocultural forces.
What is meant by standardized global marketing?The goal of global marketing standardization is to develop an all-encompassing, uniform plan of action for promoting your brand or product across borders. The ultimate objective is to establish consistency and develop a brand's and its standardized products' global appeal.
sociocultural factors' significanceConsumer lifestyles, purchasing patterns, education, religion, beliefs, values, demography, socioeconomic classes, se-xual orientation, and attitudes are sociocultural variables. These elements decide whether a company's goods and services are appropriate for the needs of its clients.
Sociocultural components are essential for a person's development and ability to function. Because sociocultural support, pressures, and other factors frequently have significant facilitating or inhibiting effects on the course of treatment, they frequently also have a significant impact on the outcomes of treatment.
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Describe how your three treatments improved the diffusion rate in your patient’s lungs. Include concentration difference, diffusion distance, concentration gradient, and surface area and in your answer.
When receiving oxygen via nose, the alveolar oxygen level rises and the concentration of oxygen relative to carbon dioxide in the lungs rises.
What is constriction?The diffusion distance is unaffected by this therapy if the bronchioles are constricted as a result of inflammation and/or mucus buildup. Alveoli's potential surface area for diffusion is likewise unaffected.
Despite the increase in the concentration of oxygen that is accessible in the alveoli, the diffusion distance remains same, preventing oxygen from reaching the circulation.
Thus, When receiving oxygen via nose, the alveolar oxygen level rises.
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which of the following describe values of an organization? group of answer choices what is our product or service? who is our customer? what is our strategic purpose for operating? who are we? who will we become? what do we stand for and believe in? what standards can be used to evaluate us and judge us?
Who are we? Who will we become? describe values of an organization.
An organization or agency, is an entity—along with a agency, an group, or an association—comprising one or greater humans and having a specific motive. The word is derived from the Greek phrase organon, which means device or device, musical device, and organ.
An employer is an official group of people, as an instance a political birthday celebration, a commercial enterprise, a charity, or a membership. most of these specialised colleges are supplied by using voluntary corporations. ... a file via the international Labour employer. Synonyms: group, agency, party, body extra Synonyms of company.
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there are several close substitutes for bayer aspirin but fewer substitutes for a complete medical examination. therefore, you would expect the demand for:
Therefore, we would expect Bayer's demand for aspirin to be more price elastic. It is because price elasticity of demand is the responsiveness of quantity demand.
Demand is the amount of goods and services that consumers are willing and able to buy to meet their needs at various price levels and at certain times in the market. Usually, the high demand will affect the price. Conversely, low demand will also make prices lower. The law of demand is a law that explains the existence of a negative relationship between the price level and the quantity of goods demanded. If the price increases, the quantity demanded will decrease, and if the price is low, the quantity demanded will increase. The law of demand is not absolute but has absolute properties under conditions of ceteris paribus (other factors are considered constant).
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on which dimension of quality doe dittenhoefer's compete? how are these dimensions being threatened by the problems in the manufacturing and customer service areas?
On the following quality aspects, the Dittenhoefers compete: Performance, Reliability, Durability, Aesthetics, Perceptions.
Performance -Every firm competes on its capacity to provide outcomes.Dittenhoefer's performance has been inadequate ever since the
advent of the new polymer-coating machinery.
Service to Customers-
By failing to keep up with performance, customer service isn't
helping the problem.
They are not promptly giving their clients the information they
require, and they are not monitoring their orders to make sure their
clients are happy.
Reliability: Before they began using the new polymer-coatingequipment, the organization had a stellar reputation for
dependability. More errors are now being shipped with the goods.
Customer service – They are disappointing their clients by having all
of these problems.
Orders are lost due to wrong pricing.
A change in the delivery date was not communicated to the
customers.
Durability: The new goods' durability hasn't raised many, if any,questions. As long as the product continues to be enjoyable,
durability won't be a problem.
Customer service – Their longevity has nothing to do with the client
service they provide.
Aesthetics: Aesthetics is the study of beauty, or the way things look.The new machine has added problems, yet aesthetics have been
preserved despite this. For Dittenhoefer's Fine China, this is
perhaps one of the most important factors. The firm bought the new
machinery so they could expand their current range of goods to
include a new aesthetic product.
Customer service –
Customer service has little discernible influence, good or bad, on
how appealing a product is to consumers.
Perception- Every company's perception is highly important.The way people view a firm may make or ruin it.
even when the product itself is top-notch.
The company has a good reputation, but if product problems
continue, it might lose some of it.
Customer service – Regardless of how wonderful a product is, it will
start to have a bad reputation if the customer service is poor.
People will start to associate the quality of the product with the
degree of service they get.
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13. choose the option to correctly complete the following sentence. schmidt industries received cash from a customer for a product to be delivered next month. according to the realization concept this revenue has been earned but not realized. realized but not earned. earned and realized. neither earned nor realized
According to the realization concept this revenue has been realized but not earned.(OPTION B)
Realization Concept: According to the realization principle, revenue cannot be recognized until the underlying items or services have been delivered or provided, respectively. So, only when it has been earned, can revenue be recognized.
Example of the realization principle:
The consumer pays when the item ships, but the sale cannot be recorded as income until the customer receives the shoes and the transaction is complete. The revenue can then be recognized, and the amount can be entered into your client's ledger.
Realization concept would apply when goods are delivered to customer.
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A budget says what will happen with your money, while a cash-flow statement shows what already happened. True or false?.
The statement 'a budget says what will happen with your money, while a cash-flow statement shows what already happened' is true.
In the field of business, a budget can be described as the planning of the way in which you decide to use and save your money. A budget represents the various places and expenses that you will do.
On the other, a cash-flow statement represents the expenditure of money that has already been done on your part. It shows where you utilized your money and what amount of savings you got after it. We can say that a cash-flow statement is like a report of your financial expenses. Hence, the above statement is true.
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g the epson press will cost you $450,000. the epson will last 7 years. the cost of operating and maintaining the press will be $70,000 for the first three years and $80,000 for the last four years of its useful life. at the end of the seventh year you will sell the press for $50,000. the appropriate discount rate is 10%. calculate the equivalent annual cost of each printing press. which one should you buy?
g the epson press will cost you $450,000. the epson will last 7 years. the cost of operating and maintaining the press will be $70,000 for the first three years and $80,000 for the last four years of its useful life buying.
Masters Machine Shop
PV of Salvage value = $74,000 x 0.683 = $50,542
Present value of total savings $449,126
less Present value of investments 494,888
Net Present Value $4,780
Explanation:
a) Data Amount Present Value
Cash Outflow $450,000 $450,000
Initial spare parts 33,000 33,000
Annual Inventory 3,750 11,888
PV of investments $494,888
g the epson press will cost you $450,000. the epson will last 7 years. the cost of operating and maintaining the press will be $70,000 for the first three years and $80,000 for the last four years of its useful life buying.
Project lifespan = 4 years
Discount rate = 10%
Annual pretax cost savings = $184,000
Tax rate 23% 42,320
After Tax savings $141,680
PV of Annuity of Tax savings = $141,680 x 3.170 = $449,126
Salvage value = $74,000
PV of Salvage value = $74,000 x 0.683 = $50,542
Present value of total savings $449,126
less Present value of investments 494,888
Net Present Value $4,780
g the epson press will cost you $450,000. the epson will last 7 years. the cost of operating and maintaining the press will be $70,000 for the first three years and $80,000 for the last four years of its useful life buying.
b) Master Machine Shop's Net Present Value (NPV) is the difference between the cash inflows (savings) and the cash outflows (investments) for this four-year project
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a career plateau is most likely to occur when: question 17 options: an employee starts learning new skills. organizations allow employees to use the strategy of job sequencing. an employee opts for phased retirement. opportunities to move up in an organization decrease.
A career plateau is more likely to occur when opportunities to move up in an organization decrease
What is a career plateau?Corresponds to a period of the career in which the employee has no prospects of climbing better positions in his professional life. This can be caused by several variables, which can be internal, that is, from the employee's own attitude, or external, which is related to the lack of opportunities at work.
Therefore, the career plateau is a condition that affects the employee's perception of his own career, which can generate discouragement and dissatisfaction with his own job function.
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A ________ occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency or forces authorities to expend large volumes of international currency reserves and sharply increase interest rates to defend the prevailing exchange rate.
A currency crisis is described as a speculative assault on a currency's foreign exchange value that causes a severe depreciation or compels the government to sell foreign exchange reserves and hike interest rates at home to defend the currency. included in 2013's The Evidence and Impact of Financial Globalization.
How does a monetary crisis unfold?Currency crises have occurred frequently in recent history. These include a sudden and significant devaluation of a country's currency, along with erratic markets and a lack of confidence in the economy. Even though currency crises are frequently abrupt, they can occasionally be predicted.The value of each unit of currency decreases as production falls more quickly than the amount of money available. The most prevalent monetary phenomenon, inflation, is created the other way around when the money supply increases more quickly than output.The term "currency of issue" refers to the currency in which a Series of securities issue terms indicate that the issuer will pay all principal, premium (if any), and/or interest (if any) payments.The dollar's demise is still incredibly unlikely. Only the likelihood of greater inflation seems credible among the elements required to precipitate a collapse.To Learn more About currency crisis refer to:
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to understand what items are most likely to sell from on-campus vending machines, a company distributes surveys and holds a few focus groups of vending machine users on different campuses. the company is in what step of the marketing research process?
The company is in data collection step of the marketing research process
Data collection in marketing research is a meticulous process in which the researcher conducts a planned search for all pertinent data. Quantitative research quantifies the data and extrapolates population-wide conclusions from a sample. Data can be gathered for quantitative research using one of two techniques: Methods of survey and observation.
This approach is to use numerical data and show facts or find patterns in the research. In essence, quantitative research is more objective whereas qualitative research is more subjective.
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Which is the purpose of a protective tariff? question 8 options: earn money for the government help domestic producers engage in a trade war limit unhealthy behavior
The purpose of a protective tariff is to earn money for the government help domestic producers engage in a trade war limit unhealthy behavior.
Protective tariffs are tariffs imposed to protect domestic industries. They aim to make imported goods more expensive than their domestically manufactured counterparts, thereby increasing sales of locally manufactured goods and supporting local industries.
Protective tariffs are intended to protect domestic production from foreign competition by increasing the price of imported goods. Revenue tariffs are designed to generate revenue, not restrict imports. Of course, these two goals are not mutually exclusive.
An example of a protective tariff would be the US raising tariffs on British clothing to ensure that British clothing is significantly more expensive than domestically produced clothing.
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after test driving three different cars, you have decided to buy a honda. now you must find a honda dealer within reasonable distance of your home, and preferably one with a full-service department. you are in which stage of the consumer decision process?
I am in purchase decision and purchase act stage of consumer decision process.
Five fundamental steps make up the consumer decision-making process. Consumers use this method to assess whether to make a purchase. The five processes include problem identification, information search, examination of alternative options, purchase choice, and post-purchase analysis.
5 steps in the decision-making process for consumers
Identifying the issue: acknowledges the need for a good or serviceSearch for information: collects information Alternatives assessment: compares options and weighs the pros and cons of eachMaking a purchase: really buys anythingEvaluation following purchase: considers the acquisition they madeAlthough the decision-making process for consumers can appear mysterious, all buyers follow the same fundamental processes to decide which goods and services will best suit their needs.
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sofia and her partner have been discussing purchasing property, but this will take some financial sacrifices over the next few years. sofia tells her partner she's unable to make a decision right now and needs to take a break. a week later when her partner asks whether she's come to a decision, sofia is surprised that she has made up her mind. what subconscious process took place over the past week?
Incubation subconscious process took place over the past week with sofia.
In psychology, incubation refers back to the unconscious processing of problems, whilst they're set apart for a period of time, that can result in insights.
It become initially proposed by way of Graham Wallas in 1926 as certainly one of his four stages of the innovative manner: guidance, incubation, illumination, and verification.
Contamination generally takes place in 5 levels. The incubation stage occurs proper after exposure and before symptoms increase. This stage can variety from hours for some infections to days, weeks, or maybe years for other infections.
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your original plan was to construct a building with six stories, with each story costing $150,000. this was to be completed in four months, however the project has not gone as planned. two months into the project, earned value is $400,000. what is the budgeted cost at completion?
original plan was to construct a building with six stories, with each story costing $150,000. this was to be completed in four months, however the project has not gone as planned. two months into the project, earned value is $400,000. The budgeted cost at completion is 900,000
Budget at completion, or BAC, is the total amount anticipated and budgeted for a project or particular phase of work, or, to put it simply, the project's projected cost before it starts. A project will be broken down into distinct components or activities and costs when a project manager or business forecasts and plans it.
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which of the following is not a factor specified in u.s. copyright law for determining fair use? the amount and significance of the portion used the effect on the market for the copyrighted work the for-profit or non-profit status of the copyright holder the purpose and nature of the use
The for-profit or non-profit status of the copyright holder is not a factor that is specified in the US copyright law for determining fair use.
What is copyright?Copyright is described as a means of protecting intellectual property. It is important to mention that the original author of intellectual property only has the right to the work.
Under the US copyright law, the nature and the purpose of the users take more prominence. If the copyrighted material is used only for educational purposes and not for profit, then such usage is allowed by copyright law. However, if the usage is for profit, then such usage is not allowed or permitted by law.
It can be concluded that the for-profit or non-profit status of the copyright holder is not a factor that is specified in the US copyright law for determining fair use.
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homer is considering a project with cash inflows of $950 a year for years 1 to 4, respectively. the project has a required discount rate of 11 percent and an initial cost of $2,100. what is the discounted payback period? a) 3.05 years b) 2.68 years c) 3.39 years d) 2.21 years e) never group of answer choices
The discounted payback period for the project is 2.68 years.
What is discounted payback period?The discounted payback period (DPB), also known as the time it takes to break even on an investment, is the number of years it will take for the project's initial cost to equal the discounted value of its predicted cash flows. When a project's cumulative net present value reaches zero, that time period is known as the zero period.
The cumulative discounted cash flows will start out with a negative value because of the investment's initial cost, but as money is made after the initial investment, the discounted cash flows for those years will be positive, and the cumulative discounted cash flows will move in a positive direction toward zero. DPB happens when the discounted cash flows that have been cumulatively negative turn positive or rebound.
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granite stone creamery sold ice cream equipment for $13,600. granite stone originally purchased the equipment for $84,000, and depreciation through the date of sale totaled $68,000. what was the gain or loss on the sale of the equipment?
Ice cream-making supplies were sold by granite stone creamery for $13,600. Granite Stone paid $84,000 for the equipment initially, and $68,000 in depreciation up until the date of sale., then $3,400 was lost when the equipment was sold.
We first determine the equipment's book value.
Asset cost: $84,000
Depreciation over time equals $68,000.
Cost of the asset - accumulated depreciation is a formula for book value,
$84,000 - $68,000= $16,000
Therefore, Gain or Loss on the Asset: Equipment Sale Value = $13,600
The equipment has a book value of $16,000.
Equipment loss = sale value - book value,
$13,600 -$16,000 = - $3,400. Here, a -ve sign indicates a loss
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if the fixed costs of opening an internet specialty sporting goods business are $10,000, price is $60 and variable cost per unit of $20, the break-even point is:
The point at which there are no losses or gains for your small business is known as the break-even point. This point is reached when total costs and revenue are equal.
To put it another way, you have reached the point where a product's revenues and costs of production are equal.
How is the break-even point determined?The break-even point in accounting is determined by dividing the price per unit by the fixed costs of production minus the variable costs of production. The point at which a product's production costs and revenues are equal is known as the break-even point.
Fixed Costs = $10,000
Price = $60
Variable Costs = $20
$10000 ÷ ($60 - $20)
= $10000 ÷ ($40)
= $240
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the price of grapes used to make grape juice has decreased. at the same time, the price of orange juice, a substitute good, has decreased. given these two effects, what can we say about the equilibrium price and quantity of grape juice?
The option is true, as when the price of grape juice decreases and the price of orange juice remains unchanged the demand for orange juice will fall.
What could cause the price of orange juice to increase?
Orange juice has already been subject to increasing prices since earlier this year, when a pandemic-induced increase in demand for vitamin C products ran into decreased orange supplies from a poor harvest, most recent updates. Due to a projected dramatic decline in Florida's orange juice supply as a result of a fungus illness, orange juice prices have already increased this year. The majority of the sugarcane grown in the United States is also grown in Florida, but the crops are closer to the west of the storm's course.
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abbey co. sold merchandise to gomez co. on account, $28,500, terms n/45. the cost of the goods sold was $19,950. abbey co. issued a credit memo to gomez co. for $2,200 for merchandise returned that originally cost $1,500. gomez co. paid the invoice within the credit period. what amount of gross profit is earned by abbey co. on these transactions?
The gross profit earned by Gomez Company on these transactions is $11,897.
A company's gross profit is calculated by deducting its entire sales from its total cost of products sold. All products sold by the business are included in the overall sales. All of the variable costs related to sales are added together to form the overall cost of the products sold.
Net sales are the total of a company's gross sales less any discounts, returns, and allowances. Net sales calculations are not always clear from the outside. When determining top-line revenues that are shown on the income statement, they are typically taken into consideration.
Net sales = sales - sales return - sales discount
Sales = $28,600 - $3,400 = $25,200
Sales Discount = $25,200 x 2%
Sales Discount = $504
Net Sales = $ 25,200 - $504 = $24,696
Cost of Goods Sold = $ 13,818 - $1,019
Net cost of goods sold = $ 12,799
Gross profit = net sales - net cost of goods sold
Gross profit = $ 24,696 - $ 12,799
Gross profit = $ 11,897
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jump-it corporation has a margin of safety of $272,000. the company sold 100,000 units this year. if the company sells each unit for $17, the margin of safety percentage is blank . multiple choice question. 6.25% 2.72% 14.3% 16%
Jump-it corporation has a margin of safety of $272,000. the company sold 100,000 units this year. if the company sells each unit for $17, the margin of safety percentage is 16%.
(Justification: Margin of safety equals $272k/(100k x $17) = 16%.)
The notion of margin of safety dictates that an investor only buys securities when their market price is substantially lower than their actual worth. The margin of safety is the differential when a security's market price is much less than your appraisal of its inherent value.
A corporation is a business or group of persons given legal status by the state to do business as a single unit. Non-stock corporations are businesses that aren't authorized to issue stock; as a result, people (or other entities) who have joined the company and are referred to as members are regarded the corporation's proprietors.
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which of the following combinations of policies is designed to decrease inflation? which of the following combinations of policies is designed to decrease inflation? a decrease in government spending and an open-market sale of government securties an increase in taxes and an open-market purchase of government securities an increase in government spending and a decrease in the discount rate an decrease in taxes and an open-market purchase of government securities an increase in taxes and a decrease in the reserve requirement
A decrease in government spending and an open market sale of government securities is designed to decrease inflation.
In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
Deflation, a continuous drop in the general level of prices for goods and services, is the reverse of inflation.
A fiscal policy must include both government revenue and expenditures. To boost revenue or control spending effectively, the government can alter tax rates. When the demand exceeds the supply, an inflationary gap results. There are two ways the government can approach this.
One is to cut back on transfer payments and overall government spending. Two, raising tax rates causes a decline in consumer demand and the money supply in the economy.
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the university of iowa runs a series of ads throughout the midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. this type of promotion would best be characterized as
This type of promotion would best be characterized as institutional advertising. Rather than advertising a specific product or service, institutional advertising promotes the university.
Rather than advertising a specific product or service, institutional advertising promotes an institution, business, or kind of item so that people have a favorable opinion of it. It is a type of promotion.
Institutional advertising can increase brand awareness by increasing brand exposure. The greater your brand awareness, the more people will be acquainted with your product and brand.
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g externalities are: group of answer choices the result of government failure the difference between social and private costs (benefits) outside costs that producers absorb the effects of government on the private sector
People who are not directly involved in the transactions are frequently impacted by the consumption, manufacturing, and investment decisions made by individuals, households, and businesses.
These incidental impacts can occasionally be slight. However, when they are significant, or what economists refer to as externalities, they can cause issues.
The majority of externalities fall under the heading of "technical externalities," meaning that although their indirect effects have an impact on other people's opportunities for consumption and production, the price of the product does not account for them. As a result, there are variations in the costs or returns to the private sector and those to society as a whole.
The traditional example of a negative externality is pollution, when the polluter makes decisions based solely on the direct cost of production and the potential for profit, disregarding the indirect costs to those afflicted by the pollution. The indirect costs include lost chances for production, such as when tourism is negatively impacted by pollution, greater health care expenditures, and a diminished quality of life, as in the instance of a home owner who lives close to a smokestack. The social or total costs of production are higher than the private costs because the indirect costs are not incurred by the producer and are thus not passed on to the final consumer of the items produced by the polluter.
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bunyan heavy equipment, a u.s. firm, is investigating expanding into russia using a greenfield venture. the committee researching this project has delivered a negative report. the main concern of the committee is probably:
The committee's main concern is certainly Russia's recent moves to seize governmental control of private enterprises' assets.
What is the main concern of the committee?Russia is frequently viewed as a corrupt state. Russian presidents are well-known for being multi-billionaires who were previously communists, which sounds bizarre.
When Russian officials want a private firm, they simply take it away from its legal owner, and when the legal owners complain, they are frequently imprisoned and beaten to death. This may appear ludicrous, yet it has occurred on several occasions, most notably in 2003 with Russia's largest private firm, Yukos. Its owner, whose surname is Jodorkovski, was imprisoned for around ten years, and its CFO was beaten to death in a Siberian jail.
The following firms have severed connections with Russia:
Netflix has paused its service in the nation and has put all future initiatives on hold. Sony announced the suspension of its activities in Russia. The Walt Disney Company has halted movie releases in Russia. Disney has likewise halted all of its activities in the nation.
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the max, is a mall-based specialty retailer of casual apparel and accessories. the company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. the items reported on its income statement for an earlier year (ended march 31) are presented here (dollars in thousands) in simplified form in alphabetical order: cost of goods sold $ 1,151,349 interest expense 560 net revenue 1,955,531 other selling, general, and administrative expenses 404,883 provision for income taxes 91,387 weighted average shares outstanding 74,832 required: a. prepare a classified (multiple-step) consolidated income statement (showing gross profit, operating income, and income before income taxes). include a presentation of basic earnings per share. b. what is the gross profit percentage?
a) The preparation of the classified (multiple-step) consolidated income statement for The Max is as follows:
The Max, Inc.
Classified (multiple-step) consolidated income statementFor the year ended March 31
Net revenue $1,955,531
Cost of goods sold 1,151,349
Gross profit $804,182
Other selling, general, and
administrative expenses 404,883
Operating income $399,299
Interest expense 560
Income before taxes $398,739
Provision for income taxes 91,387
Net income $307,352
Basic Earnings Per Share $4.11
b) The gross profit percentage is 41.12%.
What is the classified (multiple-step) income statement?The classified or multiple-step income statement is a financial performance statement that shows the different profit levels.
The first profit level, which can also be expressed in percentages, is the gross profit. The gross profit percentage is equal to the gross profit over the net revenue multiplied by 100.
The other profit levels are operating income, income before taxes, and net income.
Cost of goods sold $ 1,151,349
Interest expense 560
Net revenue 1,955,531
Other selling, general, and administrative expenses 404,883
Provision for income taxes 91,387
Weighted average shares outstanding 74,832
Net income = $307,352
Basic Earnings Per Share = $4.11 ($307,352/74,832)
Gross profit percentage = 41.12% ($804,182/$1,955,531 x 100)
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