The board of directors' weakening of Kalanick's authority. By being adaptable, creative, and quick to respond to changes in the market, this kind of culture tries to create innovative products (new drugs).
Which kind of culture is internal-focused and emphasizes control over flexibility and stability?
Internal stability and control over flexibility are valued in a hierarchy culture. Flexibility is valued and an external focus is present in an adhocracy culture.
Work specialization, also known as division of labor, is the process of assigning distinct parts of a task to different people.
When chiefs and representatives inside a similar division are united in cross practical?
At the point when chiefs and representatives inside a similar division are united in cross-practical groups to take care of specific issues, their organization is utilizing a group based plan. As per Chester I. Barnard, an association is comprised of something like one individual who endeavors day to day to accomplish the association's objectives.
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suppose that poland and liechtenstein both produce ale and broccoli. poland's opportunity cost of producing a bushel of broccoli is 5 kegs of ale while liechtenstein's opportunity cost of producing a bushel of broccoli is 11 kegs of ale. by comparing the opportunity cost of producing broccoli in the two countries, you can tell that has a comparative advantage in the production of broccoli and has a comparative advantage in the production of ale. suppose that poland and liechtenstein consider trading broccoli and ale with each other. poland can gain from specialization and trade as long as it receives more than of ale for each bushel of broccoli it
Ale and broccoli are both produced in Poland and Liechtenstein. The opportunity cost for Poland to produce one bushel of broccoli is five kgs.
What is opportunity cost?Economics has a notion known as opportunity cost. When economists use the word "cost," they often mean opportunity cost. Conversations and the news commonly utilize the word "cost."
Opportunity cost, as used in economics, refers to the values or advantages that a firm, business persons, or organizations sacrifice when they select one alternative over the other when making decisions about their operations. Opportunity cost is the difference in price between a different choice's value and the option that is ultimately chosen.
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A firm has only five possible factory (plant) sizes to choose from, represented by the short-run average total cost (SRATC) curves on the long-run average total cost (LRATC) curve shown on the graph below.
The change in total revenue divided by the change in total production yields marginal revenue. The difference in income between each row in the table is $8, while the difference in production is one unit of output.
What is the total cost formula?The average total cost formula is formed by dividing the total cost of production by the total amount paid in numbers. The total-cost formula is a simple and uncomplicated technique that is computed by dividing the total production cost by the number of goods made.
A business with constant returns to scale is one that raises all of its inputs by a certain proportion and subsequently increases its output by the same amount.
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which of the following has primary responsibility for the fairness of the representations made in financial statements?
Management alone is accountable for the annual financial accounts. They are principally in charge of making sure that the financial statements objectively meet the standards established by Generally Accepted Accounting Principles.
What is finance?
Finance is the process of obtaining funds or capital for any kind of expenditure. It is the process of allocating different financial resources, such as credit, loans, and invested capital, to the areas of the economy that may most benefit from them. Financial is used to refer to or discuss money. The company is suffering financial issues. Budgeting, business, and economics are examples of synonyms. additional terms for money Financial adverb. In the 15th century, the word "finance" also made its debut in English, but it is Anglo-French in origin.
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before the industrial revolution, the economy of north america under the colonists was characterized by
Subsistence farming dominated the pre-industrial colonial economy of what would become the United States. The role of a limited government is one of the most crucial elements of a market economy, also known as a free enterprise economy.
Instead of the government, buyers and sellers make the majority of economic decisions. A market economy that is competitive encourages resource management that is effective. The American economy is heterogeneous, showing elements of both capitalism and socialism. When it comes to the utilisation of capital, such a mixed economy supports the free market, but it also permits government involvement for the greater good.
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The formula to calculate the Future Value of your investment account is FV=PV(1 + i)"
, where FV is the future value, PV is the Present Value, i is the interest rate, and n is the
I
number of compounding periods. Calculate the Future Value of a retirement account, if
PV = $50,000, i = 10%, and n is 4. (Hint: change your interest rate to its decimal value
before calculating with it).
$7,320
$800,000
$73,205
$7,320,500
Submit answer
Contact
Exit
The formula for future value (FV) can be written as follows: FV= PV*(1+i)n, where PV is the present value, I is the interest rate, and n is the number of time periods.
What is future value ?Future value is a time value of money (TVM) concept that denotes the anticipated worth as of a specific future date as a result of compounding present dollar amounts. The formula for future value (FV) can be written as follows: FV= PV*(1+i)n, where PV is the present value, I is the interest rate, and n is the number of time periods. Using quantities invested and current rates of return, investors can utilize future value calculations to project how much money they will have at various future times.For instance, in 7 years, the investor would have $1,503.63 ($1,000 * (1+.06)7) if they invested $1,000 today and were able to receive interest of 6.0% annually. As more factors are introduced, such as potential future contributions or withdrawals, fluctuating interest rates, or compounding frequency, future value equations, like all time value of money calculations, get increasingly complex.To Learn more About future value refer To:
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which of the following divisions would you invest in heavily? cargo inspection freight forwarding railroad loading shipping
I would like to invest in freight forwarding. As it is assured that many different products and goods can be delivered to almost any area with minimal effort on your part.
For businesses of all sizes, freight forwarding is now far more effective and economical. Additionally, freight forwarders will take care of all the necessary paperwork for both domestic and international shipping. Lack of correct documentation could cause protracted delays since the goods might be stuck in customs or the bank might not release the money if the identity is missing. To facilitate a seamless transaction, all shipping and export documentation will be created by a professional. A freight forwarder is aware of all the necessary details and how to deal with any unforeseen problems that may develop.
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item7 1 points ebookitem 7 under common law, refers to the ways in which laws are applied in specific situations. multiple choice tradition common custom precedent theocratic
Items 7 and 1 Common law's ebookitem 7 refers to "legal precedent," which is how laws are interpreted in particular circumstances.
Explain the term common law?A corpus of unwritten laws known as common law is founded on judicially established legal precedents.
In unique situations where the conclusion cannot be predicted based on current statutes or written principles of law, common law influences overall decision-making process.A precedent, also referred to as judicial precedent, is a body of prior judicial decisions used to evaluate similar instances in the future. Given that there is no authoritative legal system that can be applied to a particular case at hand, common law, also referred as case law, depends on thorough records of comparable circumstances and statutes.Thus, items 7 and 1 Common law's ebookitem 7 refers to "legal precedent," which is how laws are interpreted in particular circumstances.
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True or false: An operations and supply chain manager helps firms determine the best way to deliver its goods and services
Answer:
True
Explanation:
An operations and supply chain manager is responsible for overseeing and coordinating the activities involved in the production and delivery of goods and services. This includes determining the most efficient and cost-effective ways to produce and distribute products, managing the flow of materials and information within the supply chain, and ensuring that customer needs are met in a timely and cost-effective manner. Therefore, it is true that an operations and supply chain manager helps firms determine the best way to deliver its goods and services.
identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (a statement may be related to more than one element.) use the following elements in providing your response: reasonable assurance planning and supervision materiality risk assessment audit evidence
Risk Assessment. statements relates to the performance principle by considering element(s) of the principle are related to that statement. (a statement may be related to more than one element.
A risk assessment is the process of evaluating what dangers exist or may develop in the workplace, how they may cause harm, and what measures may be taken to reduce harm. A risk assessment, in broad terms, is the combined effort of identifying and analyzing potential events that may negatively impact individuals, assets, and/or the environment; and making judgments "on the tolerability of the risk on the basis of a risk analysis" while taking influencing factors into account. A risk assessment's objective is to guarantee that a workplace is safe to work in and that all employees engaged are adequately protected from dangers. A risk assessment process begins with identifying dangers in the workplace and then moves on to establishing control measures. the following elements in providing your response: reasonable assurance planning and supervision materiality risk assessment audit evidence.
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Ifan economy is operating at a point inside the production possibilities curve:A _ Its resources are being wastedB- The curve will begin to shift inwardC_ The curve will begin to shift outwardThis is a trick question because an economy cannot produce at a point insidethe curve
If an economy is operating at a point inside the production possibilities curve, option A: Its resources are being wasted.
The production possibility curve depicts the various combinations of two commodities that can be produced in an economy given the available resources and technology. So, if a company is operating within the production possibility curve, it means that the company is not making the best use of the available resources and technology. As a result, option A is correct.
A production possibilities curve is a graphical representation of the various combinations of goods and services that can be produced by an economy. It depicts the model of production possibilities. We will assume that the economy can only produce two goods and that the quantities of factors of production and technology available to the economy are fixed when drawing the production possibilities curve.
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using the data set below, what would be the forecast for period 4 using a three-period moving average? (choose the closest answer.) period actual demand 1 12,000 2 12,700 3 14,675 4 16,275 5 10,325 6 16,125 a. 13,125 b. 13,688 c. 14,550 d. 14,675
The forecast for period 4 using a three-period moving average would be 13,688.
The nature of the latest business and operation program and the nature of the papers means that this has proved a less popular question than in earlier programs of the computations can be relatively time consuming leaving little time to dissect or estimate. A moving normal is used to' smooth' the data and remove the variations produced by seasons, trade cycles and arbitrary variations. There are a number of moving pars that can be used, with the following being the most common. his is by far the easiest and quickest moving average to calculate, but it doesn't fully smooth the trend line and so makes accurate extrapolation more delicate. Three-point pars are calculated by taking a number in the series with the former and coming figures and comprising the three of them.
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a result of business expansion to global markets is that it creates new jobs in manufacturing and service businesses. it also: multiple select question. makes it much easier for existing businesses to maintain the status quo means some jobs have moved to different locations around the world maintains the existing job base here creates greater global competition between businesses and for jobs
The effect of business growth into international markets is the creation of new jobs in the manufacturing and service sectors. 1. Boosts job and business rivalry on a global scale 2. indicates that some employment have been relocated across the globe.
Lower expenses are one benefit that comes with doing company in a global market. Some nations offer significantly more affordable production, facilities, and wages. Because of this, companies can operate with reduced total expenses and higher profit margins. Businesses might be able to benefit from economies of scale as well.
Markets all around the world are now more interconnected, and there is better communication and understanding of economic prospects in distant parts of the world as a result of globalisation. More investors now have remote access to new markets and investment opportunities than ever before.
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on february 1, domino corporation ordered inventory. the inventory was received on february 15. domino paid for the inventory on february 27. on what date does domino record the transaction
The transaction dates on Domino are February 15 and February 27.
Explain Domino Corporation?
As soon as the requested inventory starts to arrive, Domino Corporation will be able to track an increase in inventory.It would be noted on February 15th, the day the materials were acquired, as they have obtained or received them.Additionally, since the cash truly left their company on February 27 and they actually made the payment for the goods on that day, they would need to keep track of the cash outflow they used to pay for the inventory.For the purpose of tracking inventory movements, inventory transactions are journalized. Based on the type of situation, different types of journal entries are created to record the inventory transactions.To learn more about Domino Corporation refer to:
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the most important tool used to determine whether or not to build a public assembly venue, as well as the type and size of venue to build, is a:
A feasibility study is the most crucial instrument used to decide whether or not to create a public assembly venue as well as the kind and size of venue to build.
A feasibility study determines the likelihood of success by conducting a detailed review of all the crucial aspects of a proposed project.
One approach to describe business success is return on investment, which shows that the project will generate enough profit to justify the investment. Numerous other important factors, such as the effect on the community and environment, can be found on either the positive or negative side.
Even while feasibility studies can help project managers evaluate the risk and reward of moving forward with an action plan, there are still a lot of things to consider.
A feasibility study assesses a proposed plan or project's viability. A feasibility study evaluates a project's viability to determine its likelihood of success. The goal of the analysis is to identify any potential issues and difficulties that might arise while the project is carried out.
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Matt has been asked to write a draft for a business message based on an outline. What is his main task?
A.
to create a polished copy of the message that can be published
B.
to create a rough draft of the message with short sentences
C.
to create a more detailed outline with grammatically correct sentences
D.
to create an alternative outline based on his own ideas for the message
His main task is to to create a rough draft of the message with short sentences.
What is a message?A message is a concise piece of communication that the source intends for a specific recipient or set of recipients to read. There are several ways to send a message, such as courier, telegraphy, carrier pigeon, and electronic bus.
A broadcast's content could be a message. A conversation is an interactive flow of messages.
A press release, which can range from a brief report or statement made by a governmental agency to commercial publicity material, is one type of message.
A verbal message is a communication that takes place verbally. Examples include verbal exchanges in person, phone calls, voicemails, and emails, among others.
Instead of using words, nonverbal communication uses actions or behaviors, such as conscious or unconscious body language.
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Answer:
a
Explanation:
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one role of a systems analyst is to... group of answer choices ensure the system conforms to infrastructure standards ensure the system conforms to information system standards analyze the key business aspects of the system design new business processes
One role of a systems analyst is to b) ensure the system conforms to information system.
As a systems analyst, it is important to ensure that any information system is compliant with the company's standards. This means meticulously analyzing the system and ensuring that all processes, data, and programming meet the required criteria.
This role also involves monitoring the system's performance, troubleshooting any issues that arise, and providing support to other members of the team.
Additionally, it is the responsibility of the systems analyst to identify areas of improvement in the system and offer suggestions for adjustments. Ultimately, the goal is to ensure the system is efficient and effective in its operations.
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a delivery company samples 500 orders and records how many deliveries were early (before quoted delivery date, yes or no). out of 500 records, 300 of them were delivered early.
Option D. When reorganizing their workforce, businesses may provide early retirement packages to long-term employees.
To entice staff to accept the offer, the package may contain incentives like health insurance and severance money. If you get an offer, knowing what an early retirement package is might help you decide if it's the best choice for your career. We define early retirement packages and go into how to assess them in this article.
An early retirement package is a set of rewards that employers give workers as an inducement to quit their jobs. Employees who have been with the company for a long period and are nearing retirement age are generally given this option. A buyout is a similar offer that is offered to younger employees.
Certain people or an entire department may be eligible for early retirement from their employers.
A delivery company samples 500 orders and records how many deliveries were early (before quoted delivery date, yes or no). Out of 500 records, 300 of them were delivered early.
The company is interested in seeing if they have statistical evidence that they deliver early a majority of the time.
a. Write down the null and alternative hypothesis using proper notation.
b. What is the estimate of the true proportion of all orders that are delivered early?
c. Using R, conduct the hypothesis test to address the goal of the company. State the p-value.
d. The company want to be able to state that they deliver early 75% of the time, 24% of the time they deliver on time and deliver late only 1% of the time. Write the null and alternative hypothesis.
e. Conduct the test in from part d. in R. State the p-value and make a conclusion about the company's statement. Assume a 0.05 significance level.
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an agent that is employed by merrill lynch believes that the stock of the parent company (bank of america), which has been trading at new lows on the nyse, is ready for a rebound. she wants to recommend it to her customers. which statement is true about doing so? a this is an unethical business practice and is prohibited b this is permitted only if the agent discloses the existence of the relationship verbally when making the recommendation c this is permitted only if existence of the relationship is disclosed in writing on the confirmation d both choices b and c above
Option (d), both choices b and c above are correct about the agent's recommendation the customers. Hence this is a conflict of interest that must be disclosed to clients when making a recommendation.
What is meant by a business relationship?All entities that conduct business are connected to one another through business relationships. Included in this are the connections between different parties in a given business networks, such as those between employers and workers, employers and business partners, and all the organizations a business associates with.
The success of your company depends on having positive working relationships with both your staff and one another. Relationships go through four stages as they develop: pre-contact, first contact, development, and maturity. Both orally when making the suggestion and in writing before the transaction is finalized, the existence of the relationship must be revealed.
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the demand curve for british pounds slopes downward because as the dollar __, british goods become __ for americans. therefore, americans purchase __ british goods and the quantity of pounds demanded increases.
The demand for British pounds is sloping downward. As the value of the dollar rises, British goods become more affordable to Americans. Americans buy more British goods, and the number of pounds requested rises.
Why is the demand curve for currency sloping downward?
The curve of pounds slopes downhill because foreigners seek more pounds when the value of the local currency falls. Because the pound rises in value relative to the dollar, the supply curve in pounds slopes higher.
In terms of the US dollar, the demand curve in British pounds is a typical downward-sloping demand curve. British imports become less expensive as the value of the pound falls. Because US buyers want to buy additional British goods, they require more British pounds.
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In each of the following situations, identify which of the twelve economic principles is at work. d. craigslist allows departing students to sell items such as used books, appliances, and furniture rather than giving them away as they formerly did.
Markets typically produce efficiency because people frequently take advantage of trade benefits.
What are the fundamental five economic tenets?The handling of money in our society and the determination of which investments are wise and which are not can be explained by five fundamental economic principles: Opportunity cost, the marginal principle, the law of declining returns, the voluntary return principle, and the real/nominal principle
What makes economic principles so crucial?The basic ideas that describe how the economy functions are known as economic principles (or fails). Everyone may make smarter financial, commercial, or purchasing decisions by having a basic understanding of these economic concepts.
The following question is incomplete the complete question is as follows:In each of the following situations, identify which of the twelve principles is at work.You choose to purchase your textbooks online through Chegg rather than paying ahigher price for the same books through your college bookstorethe true cost of something is in its opportunity costOn your spring break trip, your budget is limited to $35 a day.People must make choices because resources are scarceCraigslist allows departing students to sell items such as used books, appliances, andfurniture rather than give them away as they formerly did.
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have you signed an agreement or other document, with any prior or current employer, which restricts your ability to be hired by other employers, provide services to or solicit particular clients or potential clients, and/or solicit personnel such as your former colleagues? *
Yes, In the employment have signed an agreement or other document, with any prior or current employer.
The employment is the term which means the individual who has the ability to do work and get hired by the any organization and earn money or salary on the annual year or per month.
A non-solicitation agreement means that if you work for a competitor, you won't solicit any clients, bring over any employees. This restricts your ability to be hired by other employers, provide services to or solicit particular clients or potential clients, and/or solicit personnel such as your former colleagues
The rules of employment is to have the power to choose when to exist from the job with the help of resignation letter. No one focus the individual to stay on the job according to the organization.
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In the balance-of-payments statement, statistical discrepancy is treated as part of the merchandise trade account because merchandise transactions are generally the most frequent source of error. True/False
In the balance-of-payments statement, statistical discrepancy is treated as part of the merchandise trade account because merchandise transactions are generally the most frequent source of error is a false statement
Exports cause money to come into the country, making them a credit entry in the current account. As a result, exports enhance a country's current account balance.
The flow of taxes, the acquisition and sale of fixed assets, etc., by immigrants moving out of or into another nation are also included in the capital account. Through capital account financing, the current account's surplus or deficit is controlled, and vice versa.
The capital account provides information about a nation's overall balance of payments. Among other things, a country's capital account may comprise foreign direct investment, portfolio investment, external commercial borrowings, and NRI deposits.
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fill in the blank. maria lopez owns a sole proprietorship. based on the___assumption, she does not use her business checking account to pay her own personal bills.
Based economic entity assumption, Maria Lopez did not use the business checking account to pay personal bills.
What is meant by an economic entity assumption?The economic entity assumption seems to be an accounting principle that separates the business's transactions from its owner. It can also refer to the separation of different divisions within a company. Each unit keeps its own accounting records that are specific to business operations.According to the economic entity assumption, each entity or unit must be separate from all others for accounting purposes. This assumption has two parts: each business entity's accounting must be separate from personal accounting.The economic entity principle is significant because it ensures that the company's financial position is accurately reflected in its financial statements. This enables business owners to make informed decisions about their company's financial health.To learn more about economic entity assumption refer to :
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Maria Lopez owns a sole proprietorship. Based on the separate entity assumption, she does not use her business checking account to pay her own personal bills.
Give a brief account on sole proprietorship.A sole proprietorship, also known as a solo trader or a proprietorship, is an unincorporated business with a single owner that is subject to personal income tax on business profits. Many sole proprietors run their businesses under their own names since they don't necessarily need a distinct business or trade name. A sole proprietorship is the simplest type of business to start or close down due to the lack of government regulation. Due of this, consultants, sole proprietors, and other independent contractors particularly favour these business arrangements. Most small businesses start out as sole proprietorships and either stay that way as they expand or change to a corporation or limited liability structure. Compared to a sole proprietorship, a corporation or limited liability business has many advantages.
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in 2021a single non-dependent taxpayer over 65 is required to file a 2021 tax return if they're gross income exceeds what
It is mandatory to file ITR for individuals If the gross total income is over Rs.2,50,000 in a financial year.This limit exceeds Rs.3,00,000 for senior citizens and Rs.5,00,000 for super senior citizens the entities.
For 2021,the additional standard deduction amounts for taxpayers who are 65 and older or blind are single or head of household $1,750 increase of $50 Section 194P of the Income Tax Act,1961 provides conditions for exempting senior citizens from filing income tax returns aged 75 years and above conditions for exemption.Senior Citizen should be of age 75 years or above.If you are age 65 or older, your standard deduction increases by $1,700 if you file as single or head of household.If you are legally blind, your standard deduction increases by $1,700 as well.If you are married filing jointly and you OR your spouse is 65 or older,your standard deduction increases by $1,350.A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed.
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which of the following is the key business objective behind the technologies implemented by pcl construction, as discussed in the chapter-opening case? group of answer choices creation of a new business model survival increased supplier intimacy operational excellence improved employee morale
The main commercial goal of the technologies adopted by pcl construction, as stated in the chapter-opening scenario, is to reduce document management delays.
The major commercial objective of the technology PCL Construction uses is to lessen inefficiencies in document management.
According to PCL officials, the Autodesk Revit add-in PartsLab will revolutionise the way that the construction industry creates and maintains construction records.
The application, a native Autodesk Revit component, aims to improve project team communication and lessen the need for future field employees to recreate models.
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Out of the choices provided above, it can be ascertained that the business objective behind the technologies implemented by PCL construction will be to achieve operational excellence. Therefore, the option C holds true.
The business objectives of every organization are to achieve a greater level of effectiveness in the way it handles the different operations that it handles. Every business must learn to manage the functions and operations with excellence in order to see itself as a leading organization in terms of the same.
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A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of which growth strategy?
A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of product development growth strategy.
Option C is correct.
What does product development entail?A series of steps that include the conceptualization, design, development, and marketing of newly created or rebranded goods or services is known as product development, or new product management. The entire process of a product's creation—from its conception to its introduction to the market—is referred to as product development.
Why is it important to develop products?Before putting your products on the market, you need to use effective product development strategies to ensure that they are of the highest possible quality, that there is demand for them, and that they provide value to your potential customers.
Question is incomplete:
A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of which growth strategy?
A. Market penetration
B. Market development
C. Product development
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Answer: product development
Explanation:
refer to table 2-1. a student has only a few hours to prepare for two different exams tomorrow morning. the above table shows alternative possible exam outcomes with three alternative uses of the student's time. the opportunity cost of scoring an 84 on the history exam rather than 76 is: possibility a economics history i 94 76 ii 87 84 iii 77 91 table 2-1
The opportunity cost of getting an 84 on the history test rather than a 76 on the economics test is (B) 7 points.
The term "opportunity cost" refers to the positive return from one good that is surrendered in order to obtain units of another one. People can never have it all, and they frequently have to make sacrifices in order to achieve their goals.
The results for the two subjects are displayed in the table. And it follows that if the student wants to get 84 instead of 76 in history, he will have to settle for 87 rather than 94 in economics to satisfy himself. The end consequence would be that in order to get 84 in history, the student would have to give up seven points in economics, which would be considered an opportunity cost.
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COMPLETE QUESTION:
Possibility A Economics History
I 94 76
II 87 84
III 77 91
A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The opportunity cost of scoring an 84 on the history exam rather than 76 is:
a) 10 points on the economics exam.
b) 7 points on the economics exam.
c) 8 points on the history exam.
d) 12 points on the economics exam.
a good financial decision will do which of the following? multiple select question. increase the value of the firm's existing stock increase current dividends per share increase market value of shareholders' equity increase the cost of capital
A good financial decision will do:
Increase shareholders equityIncrease the value of the firm's existing stockWhat is good financial decision?Strong returns on investments made in the past, a growing cash balance, and a tendency for costs to remain relatively stable are all typical indicators of sound financial health.
People with good financial knowledge and decision-making abilities may balance their alternatives and choose wisely for their financial conditions, such as when and how to save and spend, compare prices before making a large purchase, or prepare for retirement or other long-term goals.
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APPLICATION: The article talks about the different forms of businesses. It can also be used to compare how the impact of a firm's bankruptcy on its owners depends on the organizational form of the business.
SUMMARY: Bankruptcy is an ordeal for executives at any business. But for entrepreneurs, it's often a double whammy: Their personal possessions are in jeopardy along with the business assets.
The following four questions are based on Wall Street Journal Article:
1. What is your main take-away from this article? What did you learn the most?
2. How does a firm's bankruptcy affect the owner of a sole proprietorship?
3. What is an LLC? How does an LLC or corporation differ from a sole proprietorship or partnership if the firm goes bankrupt?
4. How does a personal loan guarantee impact an owner if the firm is set up as a sole proprietorship, a partnership, a limited partnership, an LLC, or a corporation?
The article talks about the impact of bankruptcy proceedings on the assets of the firm/corporation. The article tries to indicate the importance of corporate/business structure and highlights the importance of personal guarantees (given by owners/partners while obtaining loan).
What type of corporate ownership is most beneficial?
However, starting a business is more expensive than using any other type of structure. Corporations offer their owners the best protection against personal liability. The recording, operating procedures and reporting obligations for companies have also become more extensive owners are subject to limited liability under what is often referred to as a subdivision of an S corporation. A sole proprietorship or, where there are multiple owners, a partnership is often the best start-up option for small businesses. Protection from personal liability, business continuity and security, and easier access to finance are the benefits of starting a business.
Part 1)
The article talks about the impact of bankruptcy proceedings on the assets of the firm/corporation. The article tries to indicate the importance of corporate/business structure (as in sole proprietorship, limited liabiity corporation, etc.) and highlights the importance of personal guarantees (given by owners/partners while obtaining loan). It indicates how the owners/partners become liable to settle various dues/loans out of their personal possessions (in case they file for bankruptcy). The most important point that this article brings out is that no form of corporate/business structure can protect personal assets (of owners/partners) if they don't exercise reasonable care (such as not providing personal guarantees for business loans) at the time of obtaining loans/finance from third party sources.
Part 2)
In case of a bankruptcy proceeding, a sole proprietor's personal assets can be used/attached to settle the due/loans of various creditors. In other words, if the business assets of the firm are not sufficient to pay off the liabilities, the personal possessions/assets (such as home, car, etc.) of the proprietor can be used to dispose off the obligations. It is so because a sole proprietorship firm is not treated as a separate legal entity (in the eyes of law) and the owner is required to file for personal bankruptcy in case he/she is not able to meet his/her business obligations.
Part 3)
In case of a limited liability corporation (LLC), the owners/partners cannot be held personally liable for business debts/obligations. This form of business structure provides protection to the personal assets of the owners/partners in case the firm goes bankrupt unlike a sole proprietorship or a partnership firm. It is so because a limited liability corporation is treated as a separate legal entity (in the eyes of law) from its owners/partners. Therefore, the bankruptcy is filed by the firm (in case the firm is not able to settle/pay off its business debts) and not by its owners/partners (personally as in case of a sole proprietorship or a partnership firm).
Part 4)
Irrespective of the form of business structure (a sole proprietorship, a partnership, a limited partnership, an LLC, or a corporation), a personal loan guarantee makes the owner personally liable for debts/obligations with respect to the loan. In simple words, the personal assets of the owner can be used to payoff the obligations in case business assets are not sufficient to settle the dues (if personal guarantee is provided at the time of obtaining the loan/finance). In such a case, the protection offered (to business owners/partners) by LLC or corporation form of business structure with respect to personal liability lapses and owners/partners become personally responsible for the debts/obligations.
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When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply.)
Cash must always equal Owner's Equity.
After recording the transaction, total assets will always equal total liabilities plus owner's equity.
Expenses are listed on the right side of the accounting equation and will increase the owner's equity account.
The accounting equation must always remain in balance.
"When recording transactions into the accounting equation, the following statements are correct.
Expenses are listed on the right side of the accounting equation and will increase the owner's equity account.
The accounting equation must always remain in balance."
What Is an Accounting Equation?The relationship between an entity's assets, liabilities, and owner's equity is represented by the basic accounting equation, also referred to as the balance sheet equation.
It serves as the basis for double-entry bookkeeping.
There are an equal number of total credits and debits for each transaction.
According to the double-entry method, the accounting equation is always balanced, indicating that the values on its left and right sides will always be equal. In other words, the value of all assets will always equal the total of shareholders' equity plus liabilities.
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