Which sentences identity the investing activities of a cash slow statement?
Tyler Enterprises has achieved remarkable growth in the past five years. Qualified accountants have prepared and analyzed the cash flow statement to
offer financial advice to help safeguard the future of the business. It includes details of the amount of cash flowing into and out of the business. The
statement begins with the amount of revenue that the sales team has brought in. It also involves the corresponding marketing campaign costs incurred
in the promotional exhibition. The profit was declared to the shareholders in the form of dividends. The production team undertook projects that involved
installation of automatic botting machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project. The stakes of
an old division of packing material were sold off in order to concentrate solely on present business. Old investors were issued stocks when their
convertible bonds attained maturity. Some of the old machineries in the production line were sold off as scrap while rest was revamped

Answers

Answer 1

The sentences that identify the investing activities of a cash slow statement are - The production team undertook projects that involved installation of automatic botting machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project. The stakes of an old division of packing material were sold off in order to concentrate solely on present business. Some of the old machineries in the production line were sold off as scrap.

What are investing activities?

Investing activities include the acquisition of physical assets, the purchase of securities, and the sale of securities or assets. Cash flow from investing activities includes long-term cash uses.

Negative cash flow from investing activities may not be a bad sign if management is investing in the company's long-term health.

Therefore, the sentences mentioned above identity the investing activities of a cash slow statement.

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Answer 2

Answer:

"The production team undertook projects that involved installation of automatic bottling machines. New dishwashers were installed in the cafeteria as part of an efficiency improvement project" and "Some of the old machines in the production were4 sold off as scrap while rest was revamped."

Explanation:

I got it right on plato


Related Questions

Blake Haddon, Cyrus Oldsmen, and Graham Piper work for Aragon Foods. They work long hours for which they have quite a bit of overtime. In the initial employment contract, which is in writing, the contract stated that each person would be paid an hourly rate of $15.00 and anything over 40 hours would be paid at time and a half. During the first two years of the contract, there were times when Blake, Cyrus, and Graham were not paid their overtime. However, two years after they all had started, Aragon Foods had each of the employees sign a new employment contract where they would work for a salary of $40,000. The contract expressly stated that they did not get overtime. Blake, Cyrus, and Graham want to sue for the overtime that they were never paid. What effect does the new contract have, if any, on the first employment agreement

Answers

Novation refers to a form of discharge by agreement. When a new contract replaces or substitutes the old contract between the parties to the contract with new obligations by discharging or extinguishing the previous contractual obligations.

Employment is a relationship among parties regulating the availability of paid exertions services. normally, based on a settlement, one birthday celebration, the organization, which is probably a company, a now not-for-income enterprise, a co-operative, or another entity, pays the alternative, the worker, in return for carrying out assigned paintings. employees work in go back for wages, which may be paid on the basis of an hourly price, piecework, or an annual salary, depending on the sort of work an employee does, the triumphing situations of the world, and the bargaining strength between the events.

Employees in a few sectors might also receive gratuities, bonus payments, or stock alternatives. In a few kinds of employment, employees might also acquire blessings in addition to price. Blessings may additionally consist of health insurance, housing, and disability insurance. Employment is typically ruled by way of employment laws, agencies, or criminal contracts.

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Which of the following is not one of the philosophy principles followed by Division I institutions:
A) strive for regional and national prominence
B) maximize the number and variety of athletic opportunities available to students
C) strive to finance its athletics program through revenues generated
D) recognize the dual objectives of serving both the university or college community and the general public

Answers

Maximize the number and variety of athletic opportunities available for students  is not one of the philosophy principles followed by Division I institutions.

Option B is correct.

What are the three principles of philosophy?

His three principles of mind, consciousness and thought are the fundamental forces involved in the creation of life and all our psychological experiences. They form the eternal background behind life. This dimension of life is formless, so it does not change. It's forever, it's always there.

Why are principles important?

Principles, by contrast, help us understand the world around us, below us, and within us. Principles, therefore, are perhaps the most important kind of content that can be included in most teachings.

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Which of the following is not a reason people choose to depend on others for goods and services?
a. To improve their lives
b. To allow them to enjoy a greater variety of goods and services
c. To consume more of each good without working any more hours
d. To allow people to produce outside their production possibilities frontiers

Answers

The choice d is correct. to let people produce outside the boundaries of their production possibilities.

The Production Possibility Frontier (PPF): What Is It?

A curve on a graph called the production possibility frontier (PPF) depicts the potential quantities of two products that can be produced from the same finite resource. Additionally known as the production possibility curve, the PPF

In economics, PPF also plays a crucial role. It can, for instance, demonstrate that a nation's economy has achieved maximum efficiency.

A company can plot points on a graph to represent the number of products made with variables based on the amounts of resources available when deciding how much of each product to produce. Keeping in mind that resources are limited, resources must be diverted from one product to produce more of it.

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An organization's code of conduct is a(n) Multiple choice question. declaration of personal values. official projection of growth. written code of ethics. record of corporate business.

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An organization's code of conduct is a record of corporate business. The corporate business is also known as corporation organization in which a group of company and ruled by state government.

The corporate business is an organization in which the group of individual equity holder or share-holder and company director forms a single organization and also the company which is authorized by the government of country.

To work in the corporate business in which strong relationships by the share-holder and having multiple skills.

The code of conduct is an organization is a record of any corporate business or corporation industry. The code of conduct is an rules and regulations which is followed by every individual in the particular company.

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Janna is a salaried nonexempt employee in Laramie, Wyoming, who earns $25,100 per year for a standard 40-hour workweek and is paid biweekly. She is single with one withholding dependent. During the last pay period, she worked 5 hours of overtime. She contributes 2% of her gross pay to her 401(k) on a pre-tax basis and has a garnishment of 10% of her disposable income for a consumer credit garnishment. What is her net pay

Answers

Jane's net pay for the pay period would be $1,193.90. Her gross pay for the period, including overtime, would be $1,420.71. From this gross pay, we can deduct her 401(k) contribution of $28.41, federal income tax of $208.08, Social Security tax of $85.24, and Medicare tax of $19.90.

We then have to deduct a foreclosure of 10% of her disposable income for a consumer credit foreclosure of $87.37. This gives her a net salary of $1,193.90. To calculate Janna's disposable income, we must subtract taxes and the 401(k) contribution from her gross pay. In this case, the disposable income would be $1,106.99. 10% of that amount is $110.70, which is the garnishment amount. After subtracting this amount from the net pay, we are left with a net pay of $1,193.90.

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What are the 3 economic questions about production and distribution of resources that each nation must address?

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Any method of allocating limited resources is an economic system. Three fundamental problems are addressed by economic systems: what will be produced, how will it be produced, and how will society distribute the output it generates?

These queries can be answered in one of two ways, at either extreme. The government makes judgments in command economies about the distribution of resources as well as the distribution of production and consumption. Markets are used to organize the factors of production and consumption in market economies, when private ownership of resources is established through property rights. In a market economy, resources are distributed according to the most productive usage by market pricing.

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Diapers are a product category in the maturity stage of its product life cycle. This means that the manufacturers of diapers:

Answers

This indicates that diaper producers are expanding their product lines.

Which of the following is an illustration of a potential asset?

Personal assets are items with current or potential worth that belong to an individual or family. Cash and cash equivalents, CDs, checking and savings accounts, money market accounts, tangible cash, and Treasury bills are typical types of personal assets.

What is the capacity of the Company to expense Fixed Assets over the Life of the Asset?

Companies can deduct a percentage of long-term operating assets used in the current year thanks to the accounting practice of depreciation. It is a non-cash item that boosts net income while also assisting in balancing revenues and spending during the fiscal year.

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Which visual merchandising strategy can help you demonstrate how products can be

combined? (Select the best answer. )

Packaging

Props

Platforms

Displays

Answers

Visual merchandising strategy can help you demonstrate how products can be combined as Displays. Option D is correct

Visual merchandisers present, arrange, and display goods in shops and storefront windows, which are important locations where buyers can view, choose, and purchase goods. The position was created in the 19th century, but it has only recently expanded and become crucial in the fashion sector.

Display * is the term used to describe the aesthetic and visual elements of displaying a product to a target market of consumers. Contrarily, visual merchandising covers all aspects of the corporate environment that are artistic and visually appealing. display. the aesthetic and visual elements involved in presenting a product to a specific market of consumers.

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Based on the theory, (a rule of thumb) how many discount points are required to increase the percentage yield on a mortgage from 11% to 12%?

Answers

In theory, (a rule of thumb) 8 discount points are required to increase the percentage yield from 11% to 12% or any other 1-percentage point spread.

Every year in January, we send SSA-1099 tax forms to beneficiaries of Social Security. It displays the total benefits you got from us in the previous year so you can figure out how much Social Security income to include on your tax return and report to the Internal Revenue Service.Your employer (even if you no longer work there) is required to provide you with an IRS Form W-2, Wage and Tax Statement, by January 31 of every year, detailing your pay, tips, and other compensation from the previous year.

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Read the quotation above, an excerpt from a speech by a U.S. public official. The statement most directly reflects which of the following economic principles and contradicts which other?

Answers

The claim directly contradicts Adam Smith's theory of free enterprise and John Maynard Keynes' notion of government responsibility.

Reflects:

Given that "In the long run, we are all dead," as he put it, Keynes suggested that governments should address issues now rather than waiting for market forces to do so. This does not imply that Keynesians support periodic policy adjustments to maintain full employment.

Contradicts:

Adam Smith was one of the first thinkers of his era to assert that money is produced via labor that is productive and that individuals are driven by self-interest to make the most use of their resources. He believed that capital investments generated profits, and that capital is allocated to projects where the greatest profits can be realized.

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According to the liquidity preference model, if the interest rate rises above its equilibrium value, the quantity demanded of nonmonetary interest-bearing financial assets ________ and this leads to a ________ in the interest rate.

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According to the liquidity preference model, if the interest rate rises above its equilibrium value, the quantity demanded of nonmonetary interest-bearing financial assets increases and this leads to a fall in the interest rate.

According to the Liquidity Preference model, investors should expect a higher interest rate or premium for riskier securities with extended maturities because, when all other things are equal, they favour cash or other highly liquid investments. Macroeconomic theory defines liquidity preference as the demand for money taken into account as liquidity. It demonstrates the connection between interest rates and the amount of money that the population wants to hold. According to the Liquidity Preference Theory, the interest rate is the cost of borrowing money.

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Which of the following is not a characteristic of a fund as defined by GASB standards?
Multiple Choice
O A self-balancing set of accounts.
O A reporting entity.
O A fiscal entity.
O An accounting entity.

Answers

A reporting entity is not a characteristic of a fund as defined by GASB standards.

What are funds?

A fund is a pool of money that is allocated for a specific purpose. A fund can be established for many different purposes: a city government setting aside money to build a new civic center, a college setting aside money to award a scholarship, or an insurance company that sets aside money to pay its customers’ claims.

What are the three categories of funds prescribed by GASB standards?

Funds that are prescribed by GASB standards are:

Governmental funds.

Proprietary funds.

Fiduciary funds.

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The tremendou ucce of the ‘Pantaloon’, ‘Big Bazaar’ and ‘Food Bazaar’ retailing format, eaily made PRIL the number one retailer in India by early 2004, in term of turnover and retail area occupied by it outlet. Explain how Biyani i further planning to conolidate hi buinee

Answers

One of the most adored fashion companies in India has over 24 years of retail experience: Pantaloons, a branch of Aditya Birla Fashion and Retail Ltd.

What went wrong with future retail?

The Future Group's retail, wholesale, and transportation and warehousing businesses will be acquired by Reliance Retail for a price of Rs 24,713 crores, as reported in August 2020. The FRL founded by Kishore Biyani fell due to excessive diversification and ongoing restructuring.

In a deal for Rs 24,713 crore, Biyani, who established his company in 1987 with the launch of Manz Wear, which eventually took on the brand name Pantaloon, has agreed to cede control of his retail empire to relative newcomer Reliance Retail, a division of Mukesh Ambani-led Reliance Industries.Due to its financial situation, Big Bazaar was unable to make timely payments on its loans to lenders.

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________________is a trading strategy that seeks to capitalize on an anticipated decline in the price of a stock.

Answers

Short selling is a trading technique that aims to profit from a stock's expected price decrease. Hence, the correct answer is Short selling.

What exactly is short selling?

A short sale is an investing or trading technique that bets on the price of a stock or other security falling. It is a sophisticated method that should only be attempted by seasoned traders and investors.

Short selling is the borrowing of shares of a stock or other asset that the investor expects to lose value. Following that, the investor sells the borrowed shares to buyers willing to pay the market price. The trader is betting that the price will continue to decline and they will be able to purchase the shares at a lower cost before the borrowed shares have to be returned. The risk of loss on a short sale is potentially infinite because the price of any asset might rise endlessly.

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Nominal GDP recently decreased by 2% following contractionary fiscal policy. Meanwhile, the price level decreased by 7%. What is the real GDP growth rate during this period

Answers

During this time, the real GDP has grown by 5%.

What is the gross national product?

The gross domestic product (GDP) is the total monetary or market value of all finished products and services produced within a country's borders during a specific time period (GDP). Because it is a broad indicator of total domestic production, it provides an exhaustive evaluation of the state of the economy in a particular country.

GDP can be computed on a quarterly basis, despite the fact that it is frequently done on an annual basis. For instance, both for the entire year and for each fiscal quarter, the US government estimates annualized GDP. The fact that each piece of information in this report is presented in real terms suggests that it has already been adjusted for price fluctuations and inflation.

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What are the 4 phases of the business cycle and explain each?

Answers

A profitable cycle, which is also referred to as a business cycle, has four stages: expansion, peak,  compression, and trough.

The average profitable cycle in the U.S. has lasted roughly five and a half times since 1950, although these cycles can vary.   A profitable cycle, which is also referred to as a business cycle, has four stages: expansion, peak,  compression, and trough.

The business cycle model shows the oscillations in a nation's aggregate affairs and employment over time.  Business cycles are linked to four distinct phases: expansion, peak,  compression, and trough. The business cycle model shows the oscillations in a nation's aggregate affairs and employment over time.

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Approximately 100,000 police-reported crashes annually involve drowsiness and fatigue as a principal casual factor a) True b) False

Answers

The US Insurance Institute For Highway Safety estimates that over 100,000 police-reported crashes occur each year, with fatigue/drowsiness accounting for 1.5% of all crashes.

What is the quizlet's most frequently reported factor that causes damage or death in auto accidents?

Most car accidents and near-crashes are caused by driver distraction. A research conducted either by National Highway Traffic Safety Safety Administration (Transportation safety board (ntsb) and also the Georgia Tech Mobility Institute (VTTI) found that driver distraction accounts for 80% of fatalities and 65% of near-crash incidents.

What proportion of car accidents involve excessive speed?

Although just 20% of incidents occurred at those speeds, nearly 50% of fatal crashes took place in areas with speed restrictions of 55 mph or higher. Just one motor vehicle was involved for about 57percent of fatal collisions. Nearly half of those killed in crashes weren't using seat belts.

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The ________ is equal to the square root of the systematic variance divided by the total variance.
A. Covariance
B. Correlation coefficient
C. Standard deviation
D. Reward-to-variability ratio
E. Regression coefficien

Answers

Answer:

Explanation:

The correct answer is D. Reward-to-variability ratio.

The reward-to-variability ratio is a measure of risk-adjusted performance that compares the expected return of an investment to the amount of volatility or risk associated with that return. It is calculated by dividing the square root of the systematic variance (which measures the risk due to the overall market) by the total variance (which measures the total risk of an investment).

What are the roles of the government in a mixed economy ?

Answers

The private sector may be taxed by governments in an effort to redistribute wealth, and they may also use tax revenue to advance social goals. Government involvement is frequently seen in mixed economies through trade protection, subsidies, targeted tax credits, fiscal stimulus, and public-private partnerships.

What is redistribute wealth

A social mechanism such as taxation, welfare, public assistance, land reform, monetary policy, confiscation, divorce, or tort law can be used to redistribute income and wealth (including tangible property) from some people to others. The word often refers to redistribution among all members of the economy rather than just a select few.

Depending on one's personal viewpoint, political beliefs, and the selective use of statistics, different people will interpret the statement differently.

Politicians typically use it to describe perceived redistribution of wealth from those with more to those with less.

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Which of the following is NOT one of the tasks of random stocking​ systems? A. Maintaining a list of​ "open" locations. B. Assigning certain items or classes of items to particular warehouse areas so that the total distance traveled within the warehouse is maximized.

Answers

Option (B) . Assigning certain items or classes of items to particular warehouse areas so that the total distance travelled within the warehouse is maximized.

What's mean by warehouse?

A warehouse is large building to store the raw materials or finished products until they are exported to another country or distributed to distributors. synonym:

store, depot, storehouse, repository Synonyms for warehouse.

What warehouses do?

Warehousing is the process of storing physical inventory for sale and distribution. Warehouses are used by all kinds of businesses that need to store large quantities of products temporarily and then either ship them to other locations or ship them individually to end users.

What type of work is in the warehouse?

Job Description Warehouse Worker

Warehouse workers are responsible for completing various tasks such as: For example, receiving and processing incoming inventory and materials, picking and fulfilling orders from warehouses, packing and shipping orders, or managing, organizing, and retrieving inventory.

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Read the short case on ‘two very different hotels’ in Slack et al. (2014, p. 24 - 25) and write a response to the following questions.


1. For each hotel, what is the role of technology and the role of the operation’s staff in delivering an appropriate level of service?


2. What are the main differences in the operations management challenges facing the two hotels?

Answers

Hotel 1: The role of technology in delivering an appropriate level of service for Hotel 1 is to provide efficient processes and systems that enable the hotel to run smoothly and efficiently.

Technology is used to automate many of the operations processes, such as booking and check-in, as well as providing the hotel with a secure and reliable online presence. The operation’s staff are responsible for managing the day-to-day operations of the hotel, such as housekeeping, customer service, and maintenance. They are also responsible for providing a personalized service to guests, ensuring that the hotel is providing a high level of service and meeting customer expectations.

Hotel 2: The role of technology in delivering an appropriate level of service for Hotel 2 is to provide a platform to facilitate the personalized service that the hotel is offering. Technology is used to enable the hotel staff to provide a tailored experience to each guest, such as being able to customize the menu, music, and other aspects of the guest experience. The operation’s staff are responsible for managing the day-to-day operations of the hotel, as well as providing a personalized service to each guest. They are also responsible for ensuring that all aspects of the hotel’s operations are running smoothly and efficiently.

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Is an 800 credit score possible?

Answers

Despite the fact that both the FICO and Vantage Score credit scoring systems have a maximum score of 850, you don't actually need to reach 850 to enjoy the same advantages as people with perfect credit. You have a very strong credit history if your FICO score is 800.

How is it possible?

A credit score of 1,000 is not attainable because credit scoring models do not support it. Experian asserts that some credit scoring methods can get scores of up to 900 or 950, but they are institution-specific ratings that are only used in that industry.You most likely need a credit score of at least 580 to qualify for a $1,000 personal loan. Most lenders who provide personal loans of $1,000 or more accept borrowers with poor credit or better if they have enough income to meet the loan's monthly payments.Generally speaking, in order to be eligible for a loan to buy a property, your credit score must be at least 620. The majority of lenders have that minimal credit score for a standard loan.

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Which of the following statements regarding limited partnerships that are not being disposed of in a taxable transaction is CORRECT?
Losses from a master limited partnership (MLP) may only be used to offset income from the same MLP.
Losses from a nonpublicly traded limited partnership may only be used to offset income from another nonpublicly traded limited partnership.
A)
I only
B)
II only
C)
Neither I nor II
D)
I and II

Answers

The correct option is (D), i.e., I and II. Investors admit duty-sheltered distributions from the MLP. MLPs are considered low-threat, long-term investments,  furnishing a slow but steady income sluice.  

For limited hookups and master limited hookups, the simplest way to explain the difference between the two business structures is that the ultimate is intimately traded while offering the duty benefits of limited cooperation.  

Since MLP distributions are a return on capital, they're substantially duty-remitted. But when you vend, you'll pay levies based on the difference between the deal's price and your acclimated base.

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What is President Roosevelt's stated purpose for issuing this executive order?

Answers

Franklin D. Roosevelt signed this order on February 19, 1942, allowing the transfer of all individuals deemed to pose a threat to the nation's security from the West Coast to locations further inland.

The 32nd president of the United States, Franklin Delano Roosevelt, also referred by his initials FDR, was an American politician and attorney who presided over the country from 1933 until his passing in 1945. He became a key player in world affairs throughout the first half of the 20th century while serving as the head of the Democratic Party and winning a career high four presidential elections. The bulk of the Great Depression was under Roosevelt's guidance as he pursued his New Deal domestic agenda in response to the worst economic catastrophe in American history. He established the New Deal Coalition, which for the middle third of the 20th century in the US characterized modern liberalism. The World War 2, which came to a close just after he past away in office, dominated his third and fourth tenure. He was raised in Hyde Park, New York, where he was a member of the well-known Roosevelt family. He graduated from the Groton School, Harvard College, and Columbia Law School, which he left after passing the bar test to begin his legal career in New York City. He wed Eleanor Roosevelt, his fifth cousin once removed, in 1905. Five of the six children they had and brought to adulthood.

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Generally speaking, business-to-business sales teams are better at providing a convenient experience for their customers than sales teams who sell directly to consumers. T/F

Answers

Generally speaking, business-to-business sales teams are better at providing a convenient experience for their customers than sales teams who sell directly to consumers. This statement is false.

Business-to-business sales is just that, sales from one business entity to another, and therefore, requires persuasive communication and strong negotiation skills. However, mastering business-to-business sale is much more than just selling. Due to the complex scope and scale of the business-to-business model, salespeople must achieve a thorough understanding of a prospect’s needs, so they can adopt a consultative role.

A sales team is a group of people that market a company's products or services. They produce their own leads to contact potential clients and contribute to the growth of their firm. The size of a sales group is determined by the company's demands, however most teams consist of comparable jobs.

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Using Exhibit 1.3 as a model, describe the source-make-deliver-return relationships in the following systems:
a. An airline
b. An automobile manufacturer
c. A hospital
d. An insurance company

Answers

An organization is referred to as a supplier of the product if it manufactures anything.

Describe the source-make-deliver-return process used by the airline.

The source-make-deliver-return model for an airline is as follows:

When an organization manufactures aircraft, it is referred to as a source.

Make: The customer-facing services offered at the airport, include waiting areas and check-in activities, to name a few.

Deliver: Handling the passengers' bags after they reach their destination.

Return: Addressing client worries around lost luggage or other potential travel-related issues.

Breakdown the automaker's source-make-deliver-return cycle

The source-make-deliver-return model for an automaker looks like this:

Supplier of the raw materials used in the production of vehicles.

Make: This is a term used to describe the creation of a vehicle.

Sending manufactured vehicles to authorized dealers for sale is referred to as delivering.

Return: Providing customers with post-purchase services including certifications of warranty and guarantee.

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What are the advantages and disadvantages of market economic system?

Answers

Benefits of a  request frugality include increased effectiveness,  product, and invention. Disadvantages include monopolies, no government intervention, poor working conditions, and severance.  

Advantages A wide variety of quality goods and services will be produced as different enterprises will contend with satisfying consumer wants and making gains. Quality is assured to make sure that consumers buy from them. There's consumer sovereignty.  

Command frugality advantages include low situations of inequality and severance and the common ideal of replacing profit as monopolies. Command frugality disadvantages include a lack of competition, leading to a lack of invention and effectiveness.

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Marketing is not just for businesses selling their products and services, but also for government to promote their jurisdictions as prime locations for business. True False

Answers

Marketing is used by governments as well as enterprises to advertise their jurisdictions as desirable areas for doing business. (TRUE)

What is Business, Really?

An organization that conducts business, industry, or professional activities is referred to as a business. Coordination of some sort of economic production is the aim of a business (of goods or services). Businesses can be profit-oriented businesses or charitable groups promoting a good cause. Businesses range in size and reach from modest local startups to vast international giants.

Business also refers to a person's activities and endeavors that generate and market goods and services for a profit.

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Firms decide how much to invest by comparing the rate of return on their projects with:
Question 1 options:
a) the before-tax rate of return.
b) their total profit.
c) the productivity of the workers assigned to the projects.
d) the interest rate

Answers

Firms decide how much to invest by comparing rate of return on their projects with productivity of workers assigned to the projects.

What is productivity?

The effectiveness with which goods or services are produced is measured by productivity. The measure of productivity is commonly the ratio of total output to total input used in the production process, or output per unit of input, usually during a defined time period. It is common to find that the method inputs and outputs are integrated to create a ratio-style productivity indicator is the key factor contributing to variation in productivity measurements. How successfully firms and nations create is significantly influenced by productivity. A higher national production can boost living standards by making it easier for people to purchase goods and services, partake in leisure activities, improve their housing and education, and support social and environmental programmes.

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If gross income on a property is $84,000, net income is $40,000 and the cap rate is 7%, the value of the property using the income capitalization method is

Answers

Using the income capitalization technique, the property is worth $571,428.57.

How do you calculate the value of a property using the Income Capitalization Method?

The Income Capitalization Method is a commonly used method to estimate the value of a property using the net income generated by the property and the capitalization rate (cap rate).

The formula to calculate the value of a property using the Income Capitalization Method is:

Property value = Net income / Cap rate

In this case, the net income is $40,000 and the cap rate is 7%. So, the calculation is:

Property value = $40,000 / 0.07

= $571,428.57

So the value of the property using the income capitalization method is $571,428.57

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