Defining job means making sure that the manager and the subordinate agree on the subordinate's job standards and the appraisal method to be used
Finding the ideal candidate for the position is only one benefit of clearly defining job tasks and responsibilities. Additionally, it enhances employee satisfaction and boosts your organization's effectiveness. Every role has essential duties appropriate to that position. When thinking about the significance of roles and duties, it's critical to comprehend the words' definitions. By doing this, it will be possible for everyone to work effectively.
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Knowledge management (km) benefits organizations because it ________.
- A) Allows distributors to work within the company premises
- B) Enables suppliers to work according to the organizational policies
- C) Enables customers to provide bulk feedback
- D) Enables employees and partners to work smarter
Knowledge management (km) benefits organizations because it Enables employees and partners to work smarter and more efficiently.
What is Knowlwdge Management?
Knowledge Management is the practice of capturing, organizing, and sharing an organization's collective knowledge within its workforce. It involves the management of both tacit (unwritten) and explicit (written) knowledge, including information, data, insights, ideas, and processes. The goal of Knowledge Management is to ensure that the right knowledge is available to the right people at the right time, resulting in improved decision-making and performance.
What is Data?
Data is information that can be processed and analyzed to draw conclusions or make decisions. It can be structured or unstructured, and can come from a variety of sources, including databases, surveys, interviews, and observations. Data can be qualitative or quantitative, and is often used to inform decisions in a variety of fields.
Therfore the correct option is D. Enables employees and partners to work smarter.
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What Cannot be solved by an algorithm?
An algorithm is unable to resolve undecidable problems. By any algorithm, these issues are theoretically intractable.
Do algorithms have the ability to address every issue? No, There are several known mathematically undecidable problems, and as a result, no method exists that can fully resolve them.Issues that are intractable, By any algorithm, these issues are theoretically intractable. With a yes-or-no response, the halting problem is an intractable decision problem. A computer is incapable of knowing whether it is stuck in an endless loop or will eventually come to an end.An algorithm is unable to resolve undecidable problems. By any algorithm, these issues are theoretically intractable.To learn more about algorithm refer to:
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Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is
The number of units that the market wants is two.
Market quantity demanded is the amount of a specific good that customers have placed on the market and is inversely correlated with the cost of the good.
Given that the quantity of the commodity desired is inversely correlated with the price of the commodity, it follows that as the price of the commodity rises, the quantity of the commodity will decrease. The graph of this is negatively sloped as a result.
The only shoppers at the store are Phil and Miss Kay. Therefore, 2 units are needed to meet market demand.
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What is loan repayment What are the benefits of repaying loan in time?
The act of repaying a lender for money borrowed is called repayment. The loan agreement, which also specifies the agreed-upon interest rate, contains information about the loan's repayment terms.
What is the interest rate?The cost a company charges a borrower is known as something of a risk premium, and it is specified as a % of the principal, and or amount loaned. The annual percentage rate, called APR, is typically used to express the interest rate on a loan.
What do you mean when you say the interest paid?The interest levied is a percentage applied to the principal sum. People choose to save their money in a high bond yields economy because they get more from the interest rate.
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Can a fixed-rate mortgage go up?
In essence, the mortgage's interest rate will not vary throughout the loan's term, and the borrower will continue to make equal monthly payments for interest and principal.
Do fixed mortgage rates ever increase? A home loan option with a fixed interest rate for the duration of the loan is known as a fixed-rate mortgage.In essence, the mortgage's interest rate will not vary throughout the loan's term, and the borrower will continue to make equal monthly payments for interest and principal.Naturally, if you have a fixed-rate mortgage, the increase in interest rates won't have any effect on your loan; your interest rate and monthly payment will stay the same.But if you have an ARM, rising interest rates could increase your monthly payment, and new home loans with fixed mortgage rates might cost more overall.To learn more about mortgage refer
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What are 3 characteristics of a command economy?
The 3 characteristics of a command economy are Centralized decision-making, State ownership of production, and Limited economic freedom.
What is a command economy?A command economy usually referred to as a planned economy, is a form of capitalism in which all economic decisions are made by the government.In a command economy, the government controls the distribution of resources and owns the market of production.A command economy aims to increase social and economic equality.Prices are not determined by market forces but by the government.A free market economy, where supply and demand are determined by each party, is the principal alternative to a command economy.A free market system exists in capitalist nations, whereas the command economy is a feature of a communist political structure.To learn more about command economy from the given link
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Place the following effects of a long-run binding price ceiling in the order they will occur. Start by clicking the first item in the sequence or dragging it here Drag the items below into the box above in the correct order, starting with the first item in the sequence. O A binding price ceiling is imposed, forcing the open-market price below the natural equilibrium point. O Quantity demanded increases, while quantity supplied decreases. O The shortage becomes so acute that consumers will choose substitutes. O The market is at natural equilibrium where the supply and demand curves cross. O Consumers see they can save on each unit, while producers realize they will earn less.
I
The graph below shows a price ceiling that is binding in both the long and short terms. As can be seen, the binding price ceiling causes a scarcity that is longer-lasting than it is momentary. The establishment of a black market is another consequence of fixed price limitations. the cost of the item in
The supply and s demand curvecross at equilibrium on a graph of the two curves. At this time, the amount that consumers and companies are willing to buy matches the quantity that producers are willing to supply. By excluding individuals who are solely interested in acquiring the item at a lower price than the market would otherwise allow, establishing a contractual price floor causes an unbalanced market. Thus, a surplus is produced.
When the government imposes a necessary price on an item or group of goods at a price higher than equilibrium, some report the price as a binding price floor.
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When the supply of workers is plentiful, one would predict that market wages would be a. low, other things equal. b. determined solely by factors that affect demand. c. determined outside the domain of economic theory. d. high, other things equal. N
When there is a plentiful supply of workers, one would expect market wages to be option a. low, all else being equal.
Which is the best option for someone who wants to pursue a career with a relatively high earning potential?If someone is looking for a career with a relatively high earning potential, "a career with a relatively low supply and high demand for workers" is the best option. Because there is a limited supply of a specific job and a high demand for workers, competition can be fierce, resulting in relatively high earnings. Because of the high wages, supply wages tend to rise, and more workers enter the industry of that occupation.
The concept of labor demand is a topic that states that the amount of labor demand that an economy is willing to employ at a given point in time.According to the concept of labor supply, it is the number of workers willing to take a specific job.To know more about wages visit:
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George has been selling 5,000 T-shirts per month for $8. 50. When he increased the price to $9. 50 he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was rasing the price profitable?
George has been selling 5,000 T-shirts per month for $8. 50. When he increased the price to $9. 50 he sold only 4,000 T-shirts. The demand elasticity is -0.2
What is Demand Elasticity?Demand Elasticity is inelastic if the elasticity is less than 1, which means that the quantity demanded does not change significantly as a result of changes in price. A markup is a distinction between cost and price
The following formula can be used to determine the demand elasticity:
Demand Elasticity = (% Change in Quantity Demanded) / (% Change in Price).
Demand dropped from 5,000 to 4,000 units as the price rose from $8.50 to $9.50, so:
Demand Elasticity = (-1,000/5,000) / (1/8.50) = -0.2.
Knowing the marginal cost, which is $4 per shirt, can help us determine the needed markup. Given that markup is a distinction between cost and price, the following formula can be used to determine the appropriate markup:
The desired markup = Price - Marginal Cost
Suppose the cost is $9.50 and the price is $9.50.
Markup = 9.50- 4
Markup = 5.50
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Why is automation bad for the economy?
Automation has a bad influence on economic development, this is because many jobs have been replaced by machines. So that people lose their jobs and the economy can be hampered.
In this era, Automation generally can be defined as a wide range of technologies that reduce human intervention in processes. The key process of automation is by predetermining decision criteria, related actions, subprocess relationships, as well as embodying those predeterminations in machines. In the other side, automation has a biggest impact through the production process, but in other hand, it is also has a biggest negative impact.
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Nathanson Corporation was organized on May 1. The following events occurred during the first month:a. $67,000 cash from the five investors who organized Nathanson Corporation. Each investor received 108 shares of $10 par value common stock. B. Ordered store fixtures costing $18,000. C. Borrowed $17,000 cash and signed a note due in two years. D. Purchased $19,000 of equipment, paying $1,300 in cash and signing a six-month note for the balance. E. Lent $1,200 to an employee who signed a note to repay the loan in three months. Received and paid for the store fixtures ordered in (b). Required:Prepare journal entries for each transaction
Additional Paid In Capital would be 61,600. A share is the smallest unit of stock in a company.
Calculation:Events occurred in Nathanson Corporation: $67,000 in cash from five investors each received 108 shares of common stock with par value $10.
Debit: Cash (+a) 67,000
Credit: Common Stock (+se) 5,40 [5 * 108 = 540]
Credit: Additional Paid In Capital (+se) 61,600 [67000 - 540 * 10]
What does share stock mean?A share is the smallest unit of stock in a company. Therefore, when classifying stocks to refer to specific characteristics, the correct word is share. Technically, share is a unit of stock. Ordinary and preferred shares refer to different classes of stock in a company
What distinguishes stock and stock?Shares are financial instruments that represent partial ownership of a company. Stocks are financial instruments that represent partial ownership in one or more organizations. Two different shares in one company may have the same value.
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A stock has a beta of 1.13, the expected return on the market is 10.7 percent, and the risk-free rate is 4.6 percent. What must the expected return on this stock be
The expected return on this stock is 11.493%.
Beta, B 1.13
Return on Market, Rm 10.7%
Risk-Free Rate, Rf 4.60%
Ke = Rf+ B(Rm-Rf)
Ke = 4.6% + 1.13(10.7%-4.6%)
Ke = 4.6% + 6.893%
ke=11.493%
Shares are a type of protection that gives stockholders a proportion of possession in an employer. shares also are known as “equities. “An inventory is a well-known time period used to describe the possession certificate of any enterprise. A percentage, on the other hand, refers to the inventory certificates of a specific employer. maintaining a particular enterprise's proportion makes you a shareholder. Description: shares are of sorts—common and desired.
A stock is a sort of investment in an organization. agencies problem inventory shares to raise money that allows you to finance operational desires and to fuel growth, and traders buy the one's stock stocks for the possibility to generate a go back on their funding. A proportion is a monetary instrument that represents the component possession of an organization. An inventory is a financial tool that represents part possession in one or more establishments.
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Can you have a credit score of 900?
It's impossible to have a credit score of 900. A credit score of 850 is only feasible for 1% of people, therefore, attempting to achieve the maximum credit score possible is completely unrealistic after a certain point.
What is a Credit Score?A number based on a person's credit history is attributed to their level of creditworthiness.Lenders evaluate the risk of lending money to an individual using the individual's credit score.The range of a credit score is commonly 300 to 850, with a higher number denoting a reduced risk.The availability of loans, credit cards, and other types of credit as well as the interest rate and credit limit can all be determined by a person's credit score.It's a record of your credit history, including whether you pay your payments on time, how many credit cards you have, what kinds of credit you use, and how much debt you have.If you apply for a loan or a credit card, the lender will look at your credit history before approving you.To learn more about credit score from the given link :-
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An agent is very satisfied with the work being done by his unregistered sales assistant and would like to compensate her with 5% of his commissions. Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, this would be
In accordance with NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, a broker may assert that US government bonds are guaranteed with respect to principle and interest payments.
According to the Uniform Securities Act, which of the following actions by a broker-dealer agent would be unethical?putting orders to sell stocks in a client's individual and joint accounts into action when the client's spouse gives the go-ahead.
Which of the following is not a part of what the Uniform Securities Act defines as an agent?People who represent ISSUERS in trading exempt securities, broker-dealer staff members who have no sales responsibility, and silent partners of broker-dealers are not considered agents under the definition of the term.
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Marketing research used for ___________ deals largely with determining which marketing opportunities are worthwhile and which are not promising for the firm.
Choosing which marketing prospects are valuable and that are not prospective for the company is a major focus of marketing study used for planning.
What does marketing's primary purpose?It acts as the public face of your firm by organising and creating the materials that reflect it. Reaching out to potential clients, consumers, investors, and/or the general public is the responsibility of the marketing department, which must also develop a unified brand image that favourably portrays your business.
What possibilities exist in marketing?Opportunities in marketing are chances for a business to sell a product to a specific kind of customer. These clients, or prospective leads, are in need of a good or service which the business can offer.
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Candace makes a lot of phone calls for her job. She has received feedback indicating that she speaks in a monotone and does not sound very engaged. Which of the following can she do to speak more enthusiastically and pleasantly?
a -Candace should close her eyes during phone calls and focus all her energy on the call and her words
b- during phone calls, Candace should make sure she stays still and concentrates on elevating the pitch of her voice
c - Candace should listen to her recorded voice to get ideas about changes she should make
d - Candace should engage in nonverbal behaviors, such as smiling, sitting up straight, and gesturing, during phone calls
Candace should listen to her recorded voice to get ideas for future changes. (Option C)
What is the definition of personal personality development?The process by which the organised thought and behaviour patterns that make up a person's unique personality emerge over time is referred to as personality development. Many factors influence personality, including genetics and environment, parenting style, and societal factors.
Make an imaginary persona based on your real self and your imaginary persona."My Imaginary Self" I am a young man who enjoys sports. My basketball team won the championship. But when it comes to studies, I am completely useless. I have backlogs and poor grades. However, I have a good heart. I adore pets, even if they do not reciprocate. I was bitten by a dog once for petting him.
When it comes to people, I am also very humble. I have a long list of things I want to accomplish in my life. I can also sing. My hobby is singing.
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Costs that change with increases and decreases in the amount produced are _____.
A-fixed costs
B–opportunity costs
C-variable costs
D-none of the above
The kind of cost, which varies with the amount of it produced will be - variable cost
What are the 3 types of economy?
The 3 types of economy are: traditional economy, market economy, command economy.
What is the Traditional Economy?
A traditional economy is an economic system in which economic decisions are based on customs, beliefs, and traditions passed down through generations. It is based on agriculture and hunting and gathering, and it is usually a rural, subsistence type of lifestyle. In a traditional economy, resources are allocated according to customs and beliefs, and there is typically no central authority or market that determines what is produced or consumed. The primary focus is on providing basic needs, rather than on generating profit. This type of economy is usually found in rural, isolated, and pre-industrial societies, and it is becoming increasingly rare as the world becomes more integrated.
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Experts estimate that for the US to reach 100% renewable energy in 2050, it will require $7. 8 billion. Calculate the percent change
In the US, investments in renewable energy increased by 308% between 2005 and 2018.
Renewable power is generated from resources that are obviously renewed throughout the course of a human lifetime. It is made up of resources including sunshine, wind, water movement, and geothermal heat. Many renewable energy sources are sustainable, but not all of them. For instance, certain biomass resources are deemed unsustainable at the rate at which they are being used.
Renewable energy commonly supplies energy for stand-alone energy systems, air and water heating/cooling, and electricity technology for a grid. Initiatives in renewable energy technologies are often large-scale, but they may also be ideal for rural, distant, and underdeveloped places, where power is frequently essential for human growth. Renewable energy is frequently used in conjunction with comparable electrification, which has a number of advantages energy may efficiently flow heat or devices and is easy on the factor of intake. Furthermore, electrification using renewable energy is more effective and, as a result, causes significant drops in the demand for electricity.
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Note : The correct question would be as bellow,
Experts estimate that for the us to reach 100% renewable energy in 2050, it will require $7.8 trillion. calculate the percent change this would represent from the 2018 investment level of $46.5 billion.
The appropriate section in the statement of cash flows for reporting the cash payment of wages is: O Operating activities. O Financing activities. O Investing activities. O Schedule of noncash investing or financing activity.
The appropriate section in the statement of cash flows for reporting the cash payment of wages is: Operating activities
Option A is correct .
The statement of cash flow has three sections:a) Operating activities, which are the funds received and paid for in the normal course of business;
b) Investing activities, which are the funds received and paid for long-term investments or non-current assets like property; and
c) Financing activities, which are the funds received and paid for the issuance of common stock, bonds, and dividends.
With an example, what are operating activities in cash flow?The term "cash flow from operating activities" (CFO) refers to the amount of money a company receives from its regular, ongoing operations, such as manufacturing and selling goods or providing a service to customers. The entirety of a company's ongoing efforts to bring its goods and services to market are referred to as its operating activities. Non-operating activities are one-time events that aren't part of the regular, core business but could affect the company's revenues, expenses, or cash flow.
Question is incomplete,missing part is given below :
The appropriate section in the statement of cash flows for reporting the cash payment of wages is:
A. Operating activities.
B.Financing activities.
C. Investing activities.
D.Schedule of noncash investing or financing activity.
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When a market is in equilibrium, Group of answer choices producers earn profits excess demand is less than excess supply the maximum possible price is achieved the minimum possible price is achieved there is no incentive for consumers or producers to change their current behavior
When a market is at equilibrium, neither consumers nor producers have any reason to modify their existing behavior. Hence, the correct answer is there is no incentive for consumers or producers to change their current behavior.
What exactly is an equilibrium market?In the absence of external forces, economic equilibrium is a situation in which economic elements such as supply and demand are balanced and the values of economic variables do not fluctuate.
Market equilibrium is a circumstance in this scenario in which a market price is formed via competition such that the number of goods or services sought by buyers matches the number of goods or services provided by sellers. This price is sometimes referred to as the competitive price or market clearing price, and it is unlikely to change unless demand or supply changes, at which point the amount is referred to as the "competitive quantity" or market clearing quantity.
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A registered representative opens a new account for a customer by telephone and receives an order to sell 300 shares of ABC at the market, regular way. Under FINRA Rules, the registered representative must do which of the following before executing the transaction?
[A] Have the stock in its possession
[B] Nothing, there are no restrictions on accepting the order
[C] Receive reasonable assurance from the customer that the stock will be delivered in good deliverable form within two business days from trade date.
[D] Receive reasonable assurance from the customer that the stock will be delivered in good deliverable form within four business days from trade date.
Receive reasonable assurance from the customer that the stock will be delivered in good deliverable form within two business days from trade date must do before executing the transaction.
What is transaction?
Transaction is the transfer of goods, services, or resources between two or more parties. In business, a transaction occurs when money is exchanged for goods or services. Transactions can also be made between individuals, companies, or other entities. Transactions are typically recorded in the form of a ledger, which is a comprehensive record of all the transactions that occur over a certain period of time. Transactions can be made in a variety of ways, including through cash, check, credit card, or online payment platforms. Transactions are critical to the success of any business, as they are the lifeblood of the organization and enable it to function.
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Which of the following formulas would you choose to calculate the future balance on an account that earns compound interest? O FV = PV" x (1 + i) O FV = (PV x i)" O FV = PV x (1 + i)" O FV = PV x (1 + i) xt
Comparing operations and activity to additional evidence is the process of reconciliation.
Where is the utility of simple interest?When acquiring credit card loans, auto loans, student loan debt, consumer loans, and occasionally even mortgages, simple interest is frequently employed. Compound interest, on the other hand, is frequently employed to increase long-term investment returns for things like 401(k)s and many other assets.
Why is straightforward interest useful?Because they have to pay less interest than loans with compound interest, simple interest debt are quite advantageous for borrowers. The underlying loan balance on the payment due date determines how the interest is computed in a straightforward loan.
Compound interest: FV = PV / (1+I)^N
Simple interest: FV = PV + (PV x I x N)
a. True
b. False
a. True
Explanation:
accumulated interest
FV = PV / (1+I)^N
simple interest
FV = PV + (PV x I x N)
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Which of the following is true of price discrimination as a part of international pricing strategy?
A. The more competitors there are, the lesser consumers' bargaining power will be.
B. The more competitors there are, the less likely consumers will be to buy from the firm that charges the lowest price.
C. A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.
D. Many competitors cause low elasticity of demand.
E. If a firm raises its prices above those of its competitors, consumers will refuse to switch to the competitors' products.
C. A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense is true of price discrimination as a part of international pricing strategy.
This is called first-degree price discrimination, when a firm charges different prices for the same product to different customers based on their willingness to pay. In a country where competition is limited, a firm may charge a higher price as consumers may have less bargaining power and less alternatives to choose from. While, in a country where competition is intense, the firm may charge a lower price to compete with other firms and increase market share. The other statements are not always true and are determined by the market conditions and the firm's pricing strategy.
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You are considering an investment in a tax-exempted bond that has a yield of 4%. Your tax rate is 25%. What is the equivalent yield for a regular equivalent taxable bond
Consider a scenario in which your marginal tax rate is 25% and you are considering a 4% yielding tax-free bond. Your tax-equivalent yield under these circumstances would be 5.33%.
What is the formula for equal taxable yield?Tax-free bond yield / (1 - marginal tax rate) = Tax-equivalent yield is the formula for calculating the yield of a tax-exempt bond divided by one less the investor's marginal tax rate.
What is the yield in tax-exempt dollars?The return that a taxable bond would need to earn in order to match the yield on a comparable tax-exempt municipal bond is known as the tax-equivalent yield. Investors can use the computation to contrast the returns of tax-free investments versus alternatives that are subject to taxes. The related marginal tax rate only applies to income that falls within a certain bracket. Apply the percentage of tax due to the amount of income in each bracket in accordance with your filing status, then sum the totals to determine your marginal tax rate.
[tex]Tax equivalent yield= \frac{Tax free rate}{1-tax rate} = \frac{4}{1-25} = 5.33%[/tex]
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If a customer is concerned about interest rate risk, which of the following securities is least appropriate?
A)5-year corporate bonds. B)10-year corporate bonds. C)25-year municipal bonds. D)Treasury bills.
The correct answer is (D) Treasury bills. Treasury bills or T- bills, which are plutocrat request instruments, are short-term debt instruments issued by the Government of India.
They are presently issued in three tenors, videlicet, 91 days, 182 days and 364 days. Treasury bills are zero pasteboard securities and pay no interest. Treasury bills are debt scores issued by the U.S. Department of the Treasury.
Treasury bills have the shortest maturity date of all the debt issued by the civil government. You can buy T- bills in$ 100 supplements in non-competitive and competitive flings. T- bills are subject to civil, but not state and original levies.
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A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have
To bring a specific performance lawsuit; Failure to comply with the agreement's conditions constitutes a breach of contract.
Can a vendor terminate a deal without cause?You may be required to perform the contract in accordance with its terms by a court order if you don't finish the transaction and don't have a valid reason to break the agreement. This is known as "specific performance."
What occurs if a vendor breaches a contract?The repercussions for vendors who breach contracts In certain circumstances, a property seller who violates a purchase agreement may be held liable for breach of contract. A judge could mandate that the seller execute a deed and proceed with the transaction.
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The tendency of the media to make coverage and programming decisions based on what will attract a large audience and maximize profits is known as ______.
The answer is Commercial bias.
Commercial bias is the tendency of the media to prioritize content and programming that will bring in the most viewers and generate the highest profits. This bias is often seen in news outlets that prioritize stories that are likely to attract the most attention, or in television networks that focus on programming that will generate the most ad revenue.
This bias can lead to a lack of balanced news coverage and a narrowing of the types of programming available to viewers. It can also limit the diversity of perspectives presented, as the focus is on what will bring in the most viewers. Ultimately, commercial bias can create an environment where media outlets are driven more by profit than by providing a balanced and diverse range of content.
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Car insurance and cars are complements. If the price of car insurance increases, the quantity of cars demanded decreases. demand for cars increases.
More information is needed to determine if the demand increases or decreases.
demand for cars decreases.
Which of the following shifts the supply curve for oranges?
O an increase in income for all orange consumers if oranges are a normal good
O an increase in the price of bananas, a substitute in consumption for oranges
O a newly discovered increase in the nutritional value of oranges
O disastrous weather that destroys about half of this year's orange crop
An increase in price of bananas, a substitute in consumption for oranges shifts the supply curve for oranges.
What is a supply curve?The supply curve shows how the cost of a good or service relates to how much is provided over a given length of time. In a typical situation, the price will be displayed on left vertical axis and the quantity delivered will be displayed on the horizontal axis. In the event that a variable other than price or quantity changes, a new supply curve must be created. Imagine, for example, that some new soybean growers enter the market, clearing land for cultivation while increasing the area used for soy production. In this scenario, more soybeans will be produced even if the price remains unchanged, moving the supply curve to the right in the graph below (S2).
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The Quaker Foods division of PepsiCo is most likely treated as a(n)
A. revenue center.
B. cost center.
C. investment center.
D. profit center.
Most likely, PepsiCo treats its Quaker Foods division as an investment center .
What exactly is an investment center ?An investment center is an organizational unit whose profitability in relation to the unit's own investment base is accountable to top management. In the same way that profit centers measure revenues and expenses, assets used are also measured. As a result, the concept of a profit center can be extended to an investment center: Profit is measured for both, but this profit is only linked to the size of the investment base in an investment center.
Therefore, deciding to designate a division as one of these types of centers entails choosing between two methods of assessing the division's contribution to the business. We are particularly interested in the investment center as a strategy for increasing company returns because of the ratio of profit to capital invested in a division. This method probably provides a more accurate picture of a division's contribution to the economic well-being of the company than the profit center method does because it takes into account more factors.
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