"In performing a SWOT analysis to generate insights from external and internal analysis, internal strengths and weaknesses can be determined by applying the VRIO framework and external strengths can be evaluated in part by applying PESTEL."
A SWOT analysis is a strategic tool used to identify an organization's internal and external factors that can impact its performance. In this analysis, internal strengths and weaknesses are evaluated using the VRIO framework, which assesses a company's resources, capabilities, and competitive advantage.
External strengths are evaluated through the PESTEL framework, which assesses the political, economic, social, technological, environmental, and legal factors that can affect an organization's operations. By applying these frameworks, organizations can identify their strengths, weaknesses, opportunities, and threats, and make informed strategic decisions to improve their overall performance.
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Consider the long run effects of an increase in the money supply. The classical theory of inflation predicts that an increase in the money supply will (Click to select) increase decrease have no effect on aggregate demand, (Click to select) decrease increase have no effect on short-run aggregate supply, and (Click to select) have no effect on increase decrease long-run aggregate supply.
According to the classical theory of inflation, an increase in the money supply will increase aggregate demand, decrease short-run aggregate supply, and have no effect on long-run aggregate supply.
This is because the classical theory assumes that prices are flexible and will adjust in the long run to restore equilibrium in the economy. An increase in the money supply increases aggregate demand because people and businesses have more money to spend, leading to an increase in the demand for goods and services. However, this increase in demand will eventually lead to higher prices, which will decrease short-run aggregate supply.
In the long run, the increase in prices will cause wages and other production costs to increase, leading to a decrease in short-run aggregate supply, but no change in long-run aggregate supply.
In summary, the classical theory predicts that an increase in the money supply will have short-run effects on the economy but will eventually lead to an increase in prices and a decrease in short-run aggregate supply. However, in the long run, prices will adjust to restore equilibrium, leading to no effect on long-run aggregate supply.
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which of the following is a reason why firms with a low level of diversification are often able to earn positive returns? a. they develop capabilities that are useful across many markets. b. they can transfer knowledge across businesses. c. they are able to constantly adjust the mix in their portfolio to increase profits. d. they can provide superior customer service.
The reason why firms with a low level of diversification are often able to earn positive returns is that they can develop capabilities that are useful across many markets. The correct option is a. they develop capabilities that are useful across many markets.
What is diversification?Diversification is a risk management technique that distributes investment assets among a variety of financial instruments, businesses, and other categories to decrease risk.
What is a diversified portfolio?A diversified portfolio is a group of various investments that has been diversified to decrease risk. Diversification in investments is designed to reduce the overall risk of the portfolio.
What is meant by portfolio management?Portfolio management is the art and science of selecting and overseeing a collection of investments that meets the long-term financial goals of an individual, a family, or an organization.
What are the advantages of diversification?There are many advantages of diversification. Here are a few of them:
Risk is spread across a variety of instruments, industries, and regions. This lowers the likelihood of all of your investments declining in value at the same time. Potentially higher long-term yields. Holding a diversified portfolio over the long term may offer a higher return than holding a single asset class with a higher risk.
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the terms economies of scope, synergies, and 1 1>2 all refer to ways the diversified firm creates and captures value. group of answer choices true false
The given statement "the terms economies of scope, synergies, and 1 1>2 all refer to ways the diversified firm creates and captures value." is true because companies can combine different business units or operations to achieve greater efficiency and effectiveness, leading to cost savings, increased revenue, and other benefits.
Synergies, on the other hand, refer to the benefits that can be gained by combining different business units or operations.
The 1+1>2 effect refers to the idea that the value of two companies combined may be greater than the sum of their individual values. This can occur when the combined company is able to leverage synergies to create new products or services, enter new markets, or otherwise achieve greater success than either company could have achieved on its own.
In summary, economies of scope, synergies, and the 1+1>2 effect are all ways in which a diversified firm can create and capture value.
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what should the body of a cover letter include? contain a greeting followed by a colon, express your interest in the company, express your appreciation for being considered for the position, or supply your address?
The body of a cover letter should include a greeting followed by a colon, expressing your interest in the company, expressing your appreciation for being considered for the position, and supplying your address.
A cover letter should begin with a greeting followed by a colon, such as "Dear [Name]," or "To [Name]." The greeting should be specific to the person receiving the letter. This is usually the hiring manager or other member of the organization.
Next, express your interest in the company. Include any research you have done into the company and why you believe you would be a good fit. Demonstrate your understanding of the role and the organization’s needs.
Next, express your appreciation for being considered for the position. This section should briefly mention why you feel you are a qualified candidate for the job. Show enthusiasm for the opportunity and why you think it is an ideal fit for you.
Finally, supply your address. This should include your street address, city, state, and zip code. It is also recommended to provide a phone number and/or email address in the event that the employer wants to contact you for an interview.
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every time we choose to do one thing, we give up doing something else. this best describes the economic principle of:
This best describes the economic principle of opportunity cost. Opportunity cost is the cost of an alternative that must be foregone in order to carry out a certain action. When we choose to do one thing, we are giving up doing another, so we have an associated opportunity cost.
Therefore, it is important to carefully consider the cost of sacrificing opportunity before making a decision. This helps us make more informed decisions and get the best return for our resources.
In conclusion, the opportunity principle is a fundamental concept in economics because it helps us evaluate the costs and benefits of doing one thing instead of another. This evaluation allows us to make decisions based on costs and benefits, which helps us maximize the use of our resources.
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suppose gives the value of an investment account after years. the integral to find the average value of the account between year 3 to year 5 would look like
The integral to find the average value of an investment account between year 3 and year 5 would look like:
[tex]\int_{3}^{5} Investment \; dt[/tex]
Where 'Investment' is the value of the investment account after each year.
The integral between year 3 and year 5 represents the average value of an investment account over that time period. By integrating the value of the investment account at each year, it is possible to calculate the average value of the account over the three-year time period. This is helpful for determining the overall performance of the investment, as well as for making predictions about future returns.
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involves semistructured decisions. a. research and development b. budget preparation c. record keeping d. hiring and firing
Budget preparation involves semi structured decisions. these are decisions that require a mix of intuitive and analytical problem-solving techniques. The Correct option is b budget preparation
Research and Development: Research and development involves designing, developing and testing products, processes and systems. It requires a combination of creativity and analytical skills to successfully complete the tasks.
Budget Preparation: Budget preparation involves forecasting revenue, estimating expenses and ensuring that resources are allocated efficiently. It is a semistructured decision as it requires both analysis and intuition to ensure the budget is accurate and feasible.
Record Keeping: Record keeping involves organizing and managing data and information related to the company. It is a semistructured decision as it requires both analytical and creative skills to identify and maintain records.
Hiring and Firing: Hiring and firing involves selecting and removing employees from the company. It is a semistructured decision as it requires both analytical and interpersonal skills to assess a candidate’s suitability for the role.
In conclusion, budget preparation involve a combination of both analytical and intuitive problem-solving techniques. Examples include research and development, budget preparation, record keeping and hiring and firing.
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Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to...a. decrease and the equilibrium quantity of the other good to decrease.b. increase and the equilibrium quantity of the other good to decrease.c. decrease and the equilibrium quantity of the other good to increase.d. increase and the equilibrium quantity of the other good to increase.
When two goods are substitutes, a decrease in the price of one good will cause the equilibrium price of the other good to decrease and the equilibrium quantity of the other good to decrease.
This is because when the price of one good decreases, consumers will switch to the cheaper good, decreasing the demand for the more expensive good and causing its price to decrease. Since the demand for the more expensive good has decreased, the quantity demanded decreases as well, leading to a decrease in the equilibrium quantity of the other good.
Therefore, when two goods are substitutes, a decrease in the price of one good will lead to a decrease in the equilibrium price and quantity of the other good.
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true or false: during the candidate selection process, human resource managers should try to predict how long a candidate will stay in the job.
During the candidate selection process, human resource managers should try to predict how long a candidate will stay in the job. This statement is true.
Mortal resource operation( HRM) is the practice of recruiting, hiring, planting and managing an association's workers. HRM is frequently appertained to simply as mortal coffers( HR). A company or association's HR department is generally responsible for creating, putting into effect and overseeing programs governing workers and the relationship of the association with its workers. The term mortal coffers was first used in the early 1900s, and also more extensively in the 1960s, to describe the people who work for the association, in total.
HRM is hand operation with an emphasis on those workers as means of the business. In this environment, workers are occasionally appertained to as mortal capital. As with other business means, the thing is to make effective use of workers, reducing threat and maximizing return on investment( ROI).
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equity is the: group of answer choices money value of property and the ownership right in property. none of these are correct. money value of property. ownership right in property.
Equity is the ownership right in property. It means the market value of a property minus the outstanding mortgage balance.
The difference between the property's value and what is owed on it is known as equity. Equities are a type of security that represents ownership in a corporation. It is determined by the difference between the current market value of the property and the outstanding mortgage balance.
Thus, we can say that equity is the ownership right in property. Hence, option b is correct. Option a is incorrect as the monetary value of the property is not the correct definition of equity. Similarly, option c is incorrect as none of these are correct.
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when goods are allocated in a way that creates the largest economic surplus: group of answer choices output is evenly allocated across firms. production is minimized. efficient allocation has been achieved. the marginal benefit of the last unit bought is the maximum marginal benefit.
when the allocation of goods results in the greatest economic surplus: The allocation has been achieved efficiently .
How Does Economic Efficacy Work?When an economy is economically efficient, all goods and production factors are distributed or allocated to their most valuable uses, and waste is minimized or eliminated. If the production factors are utilized at a level that is either close to or equal to their capacity, a system is deemed economically efficient.
In contrast, if available factors are not utilized to their full potential, a system is deemed economically inefficient. Economic inefficiencies may result from deadweight losses and wasted resources.
Financial productivity alludes to how really a general public's scant assets are utilized to create merchandise.
Based on the allocation of inputs, costs, or final consumer goods, economists can measure economic efficiency in several ways.
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the failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:
The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called "non-disclosure".
Non-disclosure is a common issue in insurance applications, where the applicant may intentionally or unintentionally withhold information that would have affected the insurer's decision to underwrite the policy or the premium rate.
Non-disclosure is considered a breach of the applicant's duty of utmost good faith to the insurer. When an insurer discovers non-disclosure, they may void the policy from its inception or adjust the policy terms and premium rate retrospectively to reflect the material facts.
Therefore, it's essential for applicants to provide complete and accurate information in their insurance application to avoid potential disputes and ensure that their policy covers their intended risks.
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the sales tax rate is 7%. if jim bought a new buick and paid a sales tax of $1,820, what was the cost of the buick before the tax?
The cost of the Buick before the sales tax is $25,971.14. This can be calculated by taking the sales tax of $1,820 and dividing it by the sales tax rate of 7%, which is 0.07. Once you have the decimal form of the sales tax rate, you can multiply it by the amount paid in sales tax.
The result of this calculation is $25,971.14, which is the cost of the Buick before the sales tax was applied.
To understand this better, let's break it down:
Step 1: Take the sales tax rate and convert it to a decimal by dividing it by 100. In this example, 7% would be 0.07.
Step 2: Multiply the decimal form of the sales tax rate by the amount paid in sales tax. In this example, 0.07 multiplied by $1,820 is $127.40.
Step 3: Subtract the amount from Step 2 from the total amount paid for the Buick. In this example, $1,820 minus $127.40 is $1,692.60.
Step 4: Divide the amount from Step 3 by the decimal form of the sales tax rate from Step 1. In this example, $1,692.60 divided by 0.07 is $24,171.14.
This is the cost of the Buick before the sales tax was applied.
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the constitution of the united states expressly forbids group of answer choices import tariffs export tariffs import quotas export quotas
The constitution of the United States expressly forbids import tariffs, export tariffs, import quotas, and export quotas.
It has been one of the fundamental guiding principles of the United States trade policy to protect its citizens and the nation from unfair foreign trade practice's.
The Constitution of the United States of America is the supreme law of the land, and it was adopted on September 17, 1787, by the Constitutional Convention in Philadelphia, Pennsylvania.
The Constitution establishes the framework of the Federal government, which is divided into three branches, namely the legislative branch, the executive branch, and the judicial branch.
Why does the Constitution of the United States expressly forbids import tariffs, export tariffs, import quotas, and export quotas?The Constitution of the United States expressly forbids import tariffs, export tariffs, import quotas, and export quotas to protect the US citizens from unfair foreign trade practices.
These are used by countries to protect their domestic industries by imposing trade barriers, which limit imports and exports.
The US Constitution is a foundation of the American system of government, which provides a framework for the rights of the people and the limits of the power of the government.
The US government recognizes the importance of trade, and it has a long history of working to promote free trade, both domestically and internationally.
Free trade promotes economic growth, job creation, and increased standards of living for people in the United States and around the world.
The US Constitution does not prohibit international trade or restrict the government from implementing trade policies. Instead, the Constitution establishes the framework for the government to regulate foreign commerce to promote the general welfare of the country.
It is important to note that the US Constitution does not expressly prohibit the use of tariffs or quotas, but it does require that they are implemented in a manner that is consistent with the principles of free trade and fair competition.
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spots, inc. produces ink and sells it to write on target, which makes pens. the ink produced by spots, inc. is called
The ink produced by Spots, Inc. and sold to Write on Target is "an intermediate good", meaning it is a product used in the production of another good rather than sold directly to consumers. Option B is correct.
An intermediate good is a product that is used in the production of another good rather than sold directly to consumers.
In this case, the ink produced by Spots, Inc. is not sold directly to consumers but is instead sold to Write on Target for use in the production of pens. Intermediate goods are not included in the calculation of GDP since they are not sold directly to consumers, but they are important in the production process and contribute to the overall economy.
This question should be provided as:
Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called
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the price of capital (r) is $50.why wouldn't the firm choose to produce 3,000 units of output with the combination at a?
The price of capital (r) is $50, so the firm would not choose to produce 3,000 units of output with the combination at a because it would not be cost effective.
This is because the marginal cost of production will exceed the marginal revenue, meaning the firm would not be able to cover the cost of production and thus make a profit.
In this case, the firm would need to produce fewer units of output so the cost of production is less than the marginal revenue and therefore make a profit.
To do this, the firm must find the optimal output level, which is the point where marginal cost equals marginal revenue. Beyond this level, the firm’s profit would decrease and they would be unable to cover their production costs.
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What tasks will a small business professional perform during the post award phase
A small business professional will be responsible for tasks related to the management and execution of the contract. These tasks may include: Contract management, Financial management, Quality control, Communication
Contract management: This involves ensuring that the terms and conditions of the contract are being met, and that all parties are fulfilling their obligations.
Financial management: This involves managing the budget for the project, ensuring that costs are kept within budget, and monitoring expenses. Quality control: The small business professional may be responsible for ensuring that the work being performed under the contract meets the required quality standards.
Communication: The small business professional will need to maintain regular communication with the client to keep them informed of progress and any issues that arise.
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How will nominal wages respond to a decrease in the price level in the short run?
In the short run, nominal wages are likely to respond to a decrease in the price level by not changing at all.
This is because nominal wages are typically set in advance of the changes in the price level, and employers may not adjust wages as a result. As such, the real wage, or the wage relative to the price level, would decrease as the prices decrease, thus resulting in a decrease in purchasing power for workers.
Nominal wages refer to the wages paid to workers in terms of current dollars or the face value of money, without taking into account changes in the purchasing power of money due to inflation or deflation.
In other words, nominal wages represent the amount of money that an employee is paid for their work, as stated in their employment contract or agreement, and are typically expressed in terms of an hourly, daily, weekly, or annual rate. Nominal wages do not reflect changes in the cost of living or the real value of money over time.
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question 2 during which of the four phases of analysis do you compare your data to external sources?
During the third phase of analysis, which is data processing and analysis, you compare your data to external sources.
The four phases of analysis are data collection, data processing and analysis, data interpretation, and data dissemination. During the third phase of analysis, which is data processing and analysis, you analyze the data that you have collected and process it into a more usable format.
During this phase, it is common to compare your data to external sources to gain additional insights and validate your findings. This might involve comparing your data to industry benchmarks, government statistics, or data from other sources. By comparing your data to external sources, you can gain a broader perspective and determine if your findings are consistent with other data sources.
Therefore, during the third phase (data interpretation) of analysis, comparing your data to external sources can help to ensure that your analysis is comprehensive and accurate.
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a commercial development has stabilized and is performing with revenues of $800,000 per year, and expenses of $450,000, providing income of $350,000 per year. the loan provided 75% the project's total cost of $4,000,000 (or $3,000,000 in loan principal) and the balance of funds were raised in cash equity. the loan interest rate of 5% requires annual payments of $150,000, that leaves $200,000 in net cash flow after loan payments are made. what return on equity does the $200,000 ncf yield?
The return on equity can be calculated as the net cash flow o 200,000 divided by the total cash equity of 1,000,000, which yields a return of 20.
What is net cash flow?Net cash flow refers to the amount of cash generated or consumed by a business during a specific period. It is calculated by subtracting the total cash outflows from the total cash inflows.
Cash inflows can include revenues from sales, investments, and financing activities, while cash outflows can include expenses, investments, and financing activities such as paying bills or taking out loans.
The net cash flow of 200,000 is derived from the total revenue of 800,000 and total expenses of 450,000, providing an income of 350,000.Of this 350,000, 150,000 is paid in loan payments, leaving 200,000 in net cash flow after loan payments are made.
The loan provided 75 of the project's total cost of 4,000,000, or 3,000,000 in loan principal.
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according to a cnn article discussed in class, ireland is one country in the european union that has a 0% luxury tax. group of answer choices true false
According to a CNN article discussed in class, Ireland is one country in the European Union that has a 0% luxury tax: this statement is: True.
This means that luxury goods in Ireland do not incur an extra tax.
What is luxury tax?
A luxury tax is a tax levied on the purchase of luxurious items. It is also known as a sin tax, a vice tax, or a demerit tax. This is a tax on goods that are considered non-essential or exclusive for a few. The tax on luxury goods is a method of generating additional government revenue while also discouraging people from purchasing these goods.
Luxury goods are defined as items that are not necessary for daily living but are considered desirable for individuals with a high-income bracket.
In conclusion, according to a CNN article discussed in class, Ireland is one country in the European Union that has a 0% luxury tax.
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what three things do businesses typically do when faced with increased risk from cross-border investments?
Businesses typically take the following three steps when faced with increased risk from cross-border investments: diversification, hedging, and insurance.
Diversification means investing in a variety of assets, as it reduces the risks of a single investment. Hedging is the use of financial instruments to reduce the potential losses of a particular investment.
Lastly, insurance can be purchased to protect against any losses due to unexpected changes in the market.
By diversifying, hedging, and insuring investments, businesses are able to reduce their risk from cross-border investments.
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T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?
If T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as the date of the application or medical examination, whichever is later, and if T is an acceptable risk, the policy is given to T.
The item given to T is a life insurance policy. A life insurance policy is a contract between an insurer and a policyholder in which the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the policyholder's death. Life insurance is a method of managing the risk of death that provides financial protection for the insured's family or estate in the event of the insured's death.
The date of the application or medical examination is used to establish when the policy's coverage begins. A life insurance policy may be bought from a licensed insurance broker, an insurance company, or a financial planner who specializes in insurance policies.
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why is the balance in the depreciation expense account generally different from the balance in the accumulated depreciation account?
The balance in the depreciation expense account is generally different from the balance in the accumulated depreciation account because depreciation is an accounting concept used to recognize the wearing away of an asset's value over time.
When an asset is initially acquired, the cost is spread out over its useful life and is recorded as a depreciation expense each accounting period. This expense is recorded in the depreciation expense account. The accumulated depreciation account is a contra-asset account that tracks the total amount of depreciation that has been applied to the asset since it was acquired. The balance in the accumulated depreciation account is the total of all prior depreciation expenses that have been applied to the asset.
The balance in the depreciation expense account is the current accounting period's depreciation expense, while the balance in the accumulated depreciation account is the total amount of all prior depreciation expenses. This is why the balance in the depreciation expense account is generally different from the balance in the accumulated depreciation account.
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a law involving the sale of property and the ownership of property would have originated in statutory law. group of answer choices true false
True. Statutory law is a body of laws enacted by a legislature and is the primary source of law in the United States.
Statutory law involves the sale and ownership of property, as this is an issue that most legislatures must address in order to maintain order in their jurisdictions. This law would most likely be located within the civil code of the state, which is a collection of statutes that address different aspects of civil law.
Property law is a very broad field of law that governs the rights of individuals in relation to their possession and use of personal property. It sets forth rights and obligations with regards to buying, selling, and owning real property. Statutory law governs the terms and conditions of any sale, as well as the legal obligations of both the buyer and the seller.
This law also determines how the title to the property is transferred, as well as any rights that the owner has to use or manage the property. It also outlines what constitutes a valid contract for the sale or purchase of real property, and the necessary procedures for concluding such a contract.
Statutory law also governs ownership of property, and includes provisions related to the division of real property when a couple divorces, inheritance rights, zoning laws, and other regulations. Finally, it also contains provisions related to the enforcement of property rights, such as eviction and foreclosure proceedings.
In summary, statutory law involving the sale and ownership of property is an important part of the law of the United States. It sets forth the rights and obligations of individuals and businesses in relation to their property, and helps to ensure that property rights are respected and enforced.
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you are paying off a debt at a nominal 8% per year by paying $400 at the end of each quarter for the next year. find the interest paid in the last $400 payment.
To find the interest paid in the last $400 payment, we can use the formula for the future value of an ordinary annuity. We know that the interest rate is 8% per year and that payments of $400 are made at the end of each quarter for the next year. Using the formula, we have:
FV = PMT x [(1 + i)n - 1] / i
Where:
FV = future value of the annuity
PMT = payment amount
i = interest rate per period
n = number of periods
To find the interest paid in the last payment, we need to find the future value of the annuity one period before the end. This is because the final payment of $400 includes both principal and interest.
Therefore, the amount of interest paid in the last $400 payment is the difference between the final future value and the final principal payment of $400.
Using the given information, we can calculate the future value of the annuity:
FV = $400 x [(1 + 0.08/4)^(4*1) - 1] / (0.08/4)
FV = $1,678.96
The future value of the annuity is $1,678.96, which means that the last payment of $400 includes both principal and interest.
Therefore, the interest paid in the last payment is the difference between the future value of the annuity one period before the end and the final principal payment of $400. We can find this as follows:
Interest paid = $1,678.96 - $400
Interest paid = $1,278.96
Therefore, the interest paid in the last $400 payment is $1,278.96.
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connor owns a pottery and craft store. pottery division sales are $120,000 with variable costs of $90,000, and craft division sales are $80,000 with variable costs of $52,000. if connor were to calculate the weighted-average contribution margin ratio for the store, what would he find? select answer from the options below the weighted-average contribution margin ratio for the store is 15%. the weighted-average contribution margin ratio for the store is 29%. the weighted-average contribution margin ratio for the store is 19%. the weighted-average contribution margin ratio for the store is 60%.
Conner would discover that the store's weighted-average contribution margin ratio is 15% if he calculated the weighted-average contribution margin ratio for the business.
What is the median contribution margin ratio in the formula?Subtracting the total variable costs from the total sales revenue yields the contribution margin. Contribution Margin is calculated as Total Sales Revenue - Total Variable Expenses.
How is weighted average contribution per unit determined?A weighted average of the share price paid for the shares can be calculated by the investor. To do this, multiply the total number of shares purchased by each price, add those numbers, and then divide the total by the number of shares purchased.
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you are a team leader in charge of six employees. when would you be wise to make fun of a negative situation?
Employee effort and productivity increase as a result of receiving greater attention from management, coworkers, and customers.
Which actions are typical of group members in the fourth stage of their development?The fourth stage is characterized by dependency in interpersonal interactions and problem-solving in the context of task-related activities. The team should be working at its peak efficiency by this point. The need for collective approval is no longer necessary because each member is now self-assured.
What exactly is the Hawthorne experiment's primary goal?The most well-known experiment examined whether altering the quantity of light that workers got would affect how productive they were when working shifts.
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which of the following are functions of money? multiple select question. hedge against inflation store of value unit of account medium of exchange
Answer:unit of account Median of exchange Store of value
Explanation:
The following are functions of money:
Hedge against inflation.Store of value.Unit of account.Medium of exchange.Money is defined as something that is accepted as a method of payment for goods, services, or debts, as well as a means of calculating the relative worth of things. In other words, money is used as a medium of exchange, a store of value, a unit of account, and a hedge against inflation. The characteristics of money are distinct, although they may overlap.
Hedge against inflation
When a country experiences inflation, the prices of goods and services increase, and the value of money decreases. Money is a useful hedge against inflation since it can maintain its value in the long run when inflation rates rise.Store of value:Money serves as a store of value since it can be saved for future purchases.
If an individual saves their money, it can be utilized in the future to purchase something of worth, and it will not lose its value. Money can be held in a variety of forms, including bank deposits, currency, and bonds.Unit of account:Money is employed as a unit of account to determine the worth of goods and services.It enables individuals to determine the cost of a good or service and allows for a common language for pricing.
Medium of exchange:One of the most critical functions of money is to act as a medium of exchange. Money can be used to buy goods and services. Rather than bartering or trading one good for another, cash can be exchanged for a good or service.
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true or false? economies of scale occur when the production of goods increases and the average cost of production decreases.
True. The statement "economies of scale" occur when the production of goods increases and the average cost of production decreases" is true.
Economies of scale are a concept in economics that explains how increasing the size of a business or production leads to lower costs of production and greater efficiency.
This is mainly due to the fact that companies can take advantage of certain cost-saving benefits that come with larger production volumes. The economies of scale are also the benefits a company derives from expanding the size of its operations. The cost per unit decreases as output increases when a company grows in size.
As a result, economies of scale enable a business to improve efficiency and reduce the cost of production, which increases its profitability. Economies of scale may occur when there is a decrease in average costs as production output grows. There are two types of economies of scale, internal and external economies of scale, as shown below:
Internal economies of scale: It happens within the firm as a result of an increase in scale. When a firm expands, internal economies of scale can arise. Internal economies of scale can occur in different areas of a firm such as production, financial management, marketing, etc.
External economies of scale: It happens outside the firm, typically in the industry, region, or location where the company is located. For instance, if the government provides the roads, then all businesses will benefit from it equally.
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