Because it has a higher inventory turnover, a grocery store will likely have a lower profit margin than a heavy-equipment manufacturer.
Why would someone examining a chain of food stores be more concerned with the inventory turnover percentage than someone examining an insurance firm?However, as services are essentially a perishable good that cannot be stored, an insurance company that provides services does not need to worry about inventory. Because of this, a grocery store's inventory turnover ratio is more significant than an insurance company's.
In general, a greater ratio value is preferable because it typically denotes robust sales. A lower ratio may indicate sluggish product sales and/or declining market demand.
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sidebar interaction. Press tab to begin.
8. _____________ refers to the extent to which consumers in a defined segment are likely to respond to marketing offers targeted at them.
Substantial refers to the extent to which consumers in a defined segment are likely to respond to marketing offers targeted at them.
What does the term "marketing" mean?The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing.
What function does marketing serve?The benefit of marketing for your company is that it engages consumers and helps them decide whether to purchase your goods or services. A marketing strategy, which is a component of your business plan, also aids in establishing and sustaining demand, relevance, reputation, competition, etc.
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Eddys Inc., a denim jeans manufacturer, has employed a strategy that allows it to manufacture jeans that suit the needs of specific customers. This strategy enables Eddys Inc. to produce its goods in small quantities and offer a wide variety of options to its customers. The firm is able to do all this at costs almost as low as those associated with traditional production techniques. Given this information, it can be inferred that Eddys Inc. uses _____.a. mass productionb. flow productionc. mass customizationd. putting-out system
The firm is able to do all this at costs almost as low as those associated with traditional production techniques. Given this information, it can be inferred that Eddys Inc. uses mass customization.
The ISO 14000 own circle of relatives of requirements are evolved through ISO Technical Committee ISO/TC 207 and its diverse subcommittees. For a complete listing of posted requirements withinside the collection see their requirements catalogue. ISO 14001 presents necessities with steering to be used that relate to environmental systems.
Operations management is involved with all the sports concerned in growing items and offerings and dispensing them to customers. Goods are taken into consideration tangible, even as offerings are taken into consideration intangible.
A robotic is a programmable mechanical tool that could carry out responsibilities and engage with its environment, with out the resource of human interaction. Robotics is the technology and era at the back of the design, production and alertness of robots. The phrase robotic became coined through the Czech playwright Karel Capek in 1921.
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In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area. In the management by objectives (MBO) process of goal setting, goals are not well-defined, giving managers and employees more flexibility to respond to changing conditions.
It is true that in traditional goal setting, goals set by top management flow throughout the organization and become sub-goals for each department. It is false that MBO process of goal setting allows to respond flexibly to changing conditions.
What are some classic examples of goal setting?Traditional goal setting is defined as the process of setting goals at the top of an organization and breaking them down into sub-goals at each level within the organization.
Example: Weight loss is an example of traditional goal setting. I want to lose 20kg in half a year. So if he's doing all the "right" things, it's only lost 5 pounds after 6 months.
Why Traditional Goal Setting Doesn't Work?There is often a general sense of failure, an increased fear of failure, and apathy towards the whole goal-setting process. This makes it even more difficult to identify and pursue suitable and clear goals.
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B. A payment that you make each month that may vary in price (gasoline).
C. Expenses made to take care of your loved ones.
D. Expenses that stay the same each month and do not change.
which of the following is defined as directly or indirectly having the power to vote the shares or investment power to sell the security?
Beneficial ownership is defined as directly or indirectly having the power to vote the shares or investment power to sell the security.
What is Beneficial ownership?Assets that are genuinely held in the name of a business or another legal organisation might be used to one's advantage thanks to the concept of beneficial ownership. This happens most frequently with securities because they are typically registered with a broker whose clients are the beneficial owners. A natural person or persons who ultimately own or control an interest in a legal body or arrangement, such as a corporation, a trust, or a foundation, are referred to as beneficial owners in domestic and international commercial law. Legal ownership is distinct from beneficial ownership. The legal owners and the beneficial owners are typically one and the same. However, there are some circumstances in which the legitimate and occasionally not-so-legitimate beneficial owner of a property may prefer to remain anonymous.
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Barriers associated with a managers tendency to look at issues from a biased or limited perspective are known as _____________.
a. systemic barriers
b. behavioral barriers
c. political barriers
d. barriers to exit
Barriers associated with a manager's tendency to look at issues from a biased or limited perspective are known as behavioral barriers. Option B.
You can create a climate of trust and fairness. Able to bring about and implement change in the organization. Create a highly productive environment. A leader must play a central role in the execution of her three important interdependent activities providing direction shaping the organization and fostering a culture dedicated to excellence and ethical behavior.
Leadership is the process of transforming an organization from what it is to what the leader wants it to be. Behavioral barriers refer to systems that use stimuli to exploit the natural behavior of fish to attract or repel them. Behavioral barriers do not present a physical barrier to fish movement but use means such as electricity light sound or hydraulic barriers to move or guide the fish.
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a(n) ____ is a network of organizations and activities needed to obtain materials and other resources, produce final products, and get those products to their final users.
The supply chain is a web of businesses and activities required to gather supplies and other resources, create finished goods, and deliver those goods to consumers.
Define the supply chain.The connection of all the people, businesses, resources, tasks, activities, and technological advancements involved in the production and distribution of a good is known as a supply chain. A supply chain includes every step of the process, from the transfer of raw materials from of the source to the producer to the final distribution to the customer.
How do the seven supply chain functions work?Although the field of supply chain management is very vast, there are seven key functional areas that it revolves around: purchasing, manufacturing, inventory control, sales forecasting, storage, transportation, and customer service.
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which of the following is an economic tool that interrupts an employer's business but falls short of a stoppage or strike?
Slowdown is an economic tool that interrupts an employer's business but falls short of a stoppage or strike
When workers go on strike to force an employer, such as when the employer insists on reducing wages and benefits, this is known as an economic strike. An employer might permanently replace workers during these strikes.
Wages and safety and health concerns are common factors in legitimate strikes. The lockout is the last event.
Like a strike, a lockout often takes place in compliance with the relevant legislation and the current collective bargaining agreement. When management forbids bargaining unit members from entering corporate premises, a lockout occurs.
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Hoover Corp., a wholesaler of music equipment, issued $20,000,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 2014 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) Instructions Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $22,000,000 of 20-year, 4% callable bonds on May 1, 2045, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles 20Y5 May Nov. 1 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. 2049 Nov. 1 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.)
The Omit entry for payment of interest is 1. Cash 20,000,000
Bonds Payable 20,000,000
2. Interest Expense 600,000
Cash 600,000
3. Bonds Payable 20,000,000
Loss on redemption on bond 400,000
Cash 20,400,000.
What is the reason of payment of interest?For a number of crucial reasons, lenders require borrowers to pay interest. First, when someone lends money, they are no longer able to utilize that money to pay for their own goods. This difficulty is offset by the payment of interest. Second, a borrower can stop paying back the debt.What do interest payments serve as?Lenders may charge interest for the use of their money, or borrowers may charge interest for the use of those funds. Simple interest (based on the principle amount) or compound interest are two common definitions of interest (based on principal and previously-earned interest). Interest is the cost of borrowing money or the fee you charge to lend it. Most frequently, interest is shown as a yearly percentage of the loan amount.To more learn about payment of interest refer to:
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__________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.Select one:a. strategicb. contigencyc. operationsd. tactical
A contingency plan provides an alternative course of action that can be used if the primary plan fails to achieve its goals.
What is contingency planning?Contingency planning is a procedure designed to enable an organization to effectively respond to significant future incidents, events, or situations that may or may not occur. A contingency plan is a plan for "what if" scenarios that can ruin your project or business.
Example: Backing up all your website data in case your website is peeved. If this scenario occurs, you can easily recover your data by regaining access and changing your password.
What are main phases of a contingency plan?1) Program management: Most organizations start by recruiting a contingency planning team that includes at least one representative for each department and each management-level to entry-level position. 2) Plan. 3) Implementation. 4) test & practice. 5) Program improvements.
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Funding of credit unions using taxpayers' money helps the economy by creating______
Funding of credit unions using taxpayers' money helps the economy by creating a financial system.
CREDIT UNION: WHAT IS IT?A credit union is a customer- and member-owned financial cooperative that is democratically run by its members with the goal of maximizing the economic advantage of its members by offering financial services at reasonable and competitive rates.
How does a credit union assist its members?On financial items like credit cards, mortgages, and auto loans, credit unions provide some of the cheapest rates. Without a high minimum balance requirement, they provide fee-free checking and savings accounts as well. When your money is down to one or two dollars, that might be a big relief.
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the fact that a trial balance is balanced does not necessarily mean that all transactions were correctly recorded. which of following errors may occur but still leave the trial balance in balance? an entire journal entry was omitted. an entire journal entry was recorded or posted twice. incorrect amounts were used for the journal entry. all of the choices
Errors of omission, commission, and principle are the types of errors that do not affect the trial balance, Therefore option d is correct answer.
What are the errors in trial balance?Trial balance errors are errors in the financial accounting that cannot be detected by the trial balance sheet. Clerical errors and errors of principles are the two types of trial balance limitations. A human makes clerical mistakes. Accounting principles errors occur when an accounting principle is not followed.One of the limitations of a Trial Balance is that it can conceal errors of omission. Some transactions are not even recorded in the journal. This error cannot be detected by a properly balanced Trial Balance.The Trial Balance will not detect an error if a journal entry with an incorrect amount is recorded in both accounts.Corrections to errors in the Trial Balance can be made with a single entry into the relevant account. This will reset the Trial Balance.To learn more about trial balance refer to :
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What is the field of social work that focuses on patient advocacy?
immigrant care social work
uninsured care social work
hospital care social work
health care social work
Answer:
The answer will be the option d
Hope this helps you
when marketing managers just briefly refresh long-existing marketing plans, they run the risk of doing all the following except .
When marketing managers just briefly refresh long-existing marketing plans, they run the risk of doing all the following except, routinely checking and updating the marketing mix, based on market analysis and logic.
A marketing mix is a collection of promotional tools or strategies used to market and sell products and services. It involves product positioning and choosing when, where, and for how much price it will be sold. After then, the product will be sold in accordance with the marketing and promotion plan.
The four Ps—Product, Price, Place, and Promotion—make up the marketing mix's constituent parts. The marketing managers in the business sector develop a marketing strategy while taking into account the four Ps. However, the marketing mix now incorporates a number of additional Ps for critical development.
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Camilla entered the following group of values into the TVM Solver of her
graphing calculator. N = 24; 1% = 1.2; PV = ; PMT= -480; FV = 0 P/Y = 12; C/Y
= 12; PMT:END. Which of these problems could she be trying to solve?
The problem that Camila could be trying to solve, given the TVM solver values, is A. A person can afford a $480-per-month loan payment. If she is being offered a 2-year loan with an APR of 1.2%, compounded monthly, what is the most money that she can borrow?
How to find the amount to be borrowed ?The amount to be borrowed depends on several things such as the amount that can be paid towards repaying the debt monthly, the number of years, months, or periods that the loan is to be repaid over, and the Annual Percentage Rate.
There is also the number of compounding periods in a year shown by the symbols of P / Y and C / Y. Camila is most likely trying to find out how much a person who can afford $ 480 a month can borrow, because the values in the TVM solver reflect such a loan amount and interest rate. The compounding periods are 12 so this must be a 2 year loan for a period of 24 to be shown.
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in the ____ of organizational decline, as organizational performance problems become more visible, management may recognize the need to change but still take no measures.
In the stage of inaction, managers may acknowledge the need for change but yet do nothing as organizational performance issues become increasingly obvious.
What among the following has been determined to be the primary reason for organizational decline?According to certain statistics, competition is the leading factor in organizational decline. Industries that are making above-average earnings draw competition. Then, more businesses start to enter this sector. As a result, established organizations experience a higher rate of deterioration.
What is the decreasing stage?the stage of a product's life cycle when sales are declining because the initial demand or want has subsided or because a new product innovation has been released (after the introduction stage, growth stage, and maturity stage).
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a bank has a 10 percent reserve requirement, $36,000 in loans, and has loaned out all it can, given the reserve requirement.
A bank has made all the loans it is able to given the reserve requirement of 40,000 in deposits and a 10 percent reserve requirement of $36,000 in loans. Hence, option A is correct.
What is the meaning of reserve?Reserves are a portion of profits or gains that have been set aside for a particular use. Reserves are typically established to purchase fixed assets, pay bonuses, pay for anticipated legal settlements, pay for upkeep and repairs, and pay off debt.
In the given situation, as there is a requirement of 10 percent reserve and after this the loan will be of 36,000. This means that there is a deposit of 40,000.
Therefore, Option A is correct.
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The complete question has been attached in text form:
A bank has a 10 percent reserve requirement, $36,000 in loans, and has loaned out all it can, given the reserve requirement.
a. It has $40,000 in deposits.
b. It has $39,600 in deposits.
c. It has $3,600 in deposits.
d. It has $32,400 in deposits.
Kaleb’s football team lost 2 yards on each of 3 consecutive plays.
Kaleb’s football team lost 2 yards on each of 3 consecutive plays. But in all, they lost a total of 6 yards.
What is the meaning of Yards?According to both the British imperial and Even us regulatory systems of measurement, a yard is a unit of length that is equal to 3 feet or 36 inches. According to an international agreement, this one has been precisely standardized to 0.9144 meters since 1959. One mile is 1,760 yards in length.
A person's belt and girdle, as was known, was originally one yard long. King Henry I from England established the yard as that of the distance between his nose and the thumb of his extended arm in the 12th century. It is 36 inches right now. A cubit in ancient Egypt was the distance between the elbow and the tips of the fingers.
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Consider the following schedule under optimistic concurrency control where we highlight when transactions enter the different phases. Which of the transactions will successfully pass the validation? Answer for each transaction in isolation -- i.e., assume all other transactions are successful (and finish at the same time as validate) when deciding whether any specific transaction will validate or not. T1 T2 T3 T4 * T5 start, read (A) start, read(A) start, read(A) write(A) read(B), write(B) write(A) read(B) start, read() read(B) validate write(C) validate read() validate start, read(c) write C) validate write B) validate T1 T2 T3 T4 T5
Due to conflict serializable, T2 transactions are complete.
What is conflict serializable?
Any conflicting operations are ordered by conflict serializability in a manner similar to some serial execution. If two operations are on the same data item and one of them is a write operation, they are said to conflict.
The execution of the transaction file is not complete in the T1 transaction, T3 transaction, T4 transaction, or T5 transaction. The validation for T1 transaction is invalid since the B file is incomplete. Transaction type three cannot save points. T4 and T5 transactions are not complete because they are entered in different phases. A database could be inconsistent. Consistent state in T2 transactions database.
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One difference between project management and project leadership is that project management includes
A. Recognizing the need to alter direction.
B. Aligning people to meet new directions.
C. Monitoring results against plans.
D. Motivating people to meet new objectives.
E. Deviating from the plan.
One difference between project management and project leadership is that project management includes Monitoring results against plans.
What is project leadership?
The art and science of directing a team toward a successful project completion is referred to as project leadership. When a project leader draws people together to work toward a common objective, the team is able to do more than any one person could. Project management may be lucrative and difficult at the same time.
Starting with inspiring and encouraging teams, project managers need to have strong leadership qualities. Other leadership abilities, including as bargaining, communicating, listening, persuading skills, and team building, are also crucial, particularly insofar as they help teams perform better.
Leadership is essential for effective project management because it enables managers to communicate with their teams in an efficient manner. Strong communicators may develop the team's trust, which is crucial for a project's successful completion.
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Which of the transactions will successfully pass the validation? Answer for each transaction in isolation -- i.e., assume all other transactions are successful (and finish at the same time as validate) when deciding whether any specific transaction will validate or not. T1 T2 T3 T4 * T5 start, read (A) start, read(A) start, read(A) write(A) read(B), write(B) write(A) read(B) start, read() read(B) validate write(C) validate read() validate start, read(c) write C) validate write B) validate T1 T2 T3 T4 T5
Due to conflict serializable, T2 transactions are complete.
Any conflicting operations are ordered by conflict serializability in a manner similar to some serial execution. If two operations are on the same data item and one of them is a write operation, they are said to conflict. The execution of the transaction file is not complete in the T1 transaction, T3 transaction, T4 transaction, or T5 transaction. The validation for T1 transaction is invalid since the B file is incomplete. Transaction type three cannot save points. T4 and T5 transactions are not complete because they are entered in different phases. A database could be inconsistent. Consistent state in T2 transactions database.
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the federal employee retirement income security act (erisa) regulates funds to help ensure their -term financial security by reducing .
The labour and tax aspects of the employee.
What is ERISA?
The fiduciary, reporting and disclosure obligations of Title I of the Employee Retirement Income Security Act of 1974 are administered and enforced by the Employee Benefits Security Administration (EBSA) (ERISA). EBSA was formerly known as the Pension and Welfare Benefits Administration until February 2003. (PWBA). The Pension and Welfare Benefits Program was the name under which PWBA operated prior to January 1986. With the creation of the Assistant Secretary and Deputy Assistant Secretary positions at the time of this name change, the Agency was elevated to a sub-cabinet role.
The legislation that dealt with the labour and tax issues of employee benefit schemes culminated in ERISA. Since it was passed in 1974
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True or False; g an increase in the money supply decreases the equilibrium interest rate and increases the aggregate demand.
An increase in the money supply decreases the equilibrium interest rate and increases the aggregate demand is TRUE.
Money supply is the amount of money circulate in an economy. The amount of money supply may be increased or decreased through monetary policies made by the central bank.
To inrease the money supply in the market, the central bank will decrease the interest rate to encourage people to spend more of their money instead of investing or saving it. People then will purchase more units of products, hence shift the aggregate demand curve to the right or increase it.
Because of this shift, the real GDP will increase.
People would think they no longer need to work because they already have enough money, but manufacturers could not produce products without any labors. Hence, the manufacturer will face labor shortage and offer higher labor rates to attract labors.
This activity done by the manufacturer will shift the short-run aggregate supply to the left. This will bring back the real GDP position to its original equilibrium but with higher price. This event would cause an inflation to the economy. This event is called as Demand-Pull Inflation.
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if there is a shortage of loanable funds, then there will be no shifts of the curves, but the real interest rate rises
Yes, this is correct. If there is a shortage of loanable funds, then the demand for loans will exceed the supply of loans, causing the real interest rate to rise.
There will be no shifts in the curves in this situation because the demand and supply of loanable funds remain unchanged.
This is because lenders will be asking for higher rates of return in order to compensate for the increased risk of lending due to the shortage of loanable funds. This will lead to higher borrowing costs for consumers and businesses, which can lead to less investment and slower economic growth.
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The full question is written below:
If there is a shortage of loanable funds, then:
a. there will be no shifts of the curves, but the real interest rate falls.
b. the demand for loanable funds will shift right so the real interest rate rises.
c. the supply of loanable funds will shift left so the real interest rate falls.
d. there will be no shifts of the curves, but the real interest rate rises.
the prevent cancer organization incurred several expenses during 2019. which of the following would not be classified as a program expense?
Postage for announcements of the 2019 kickoff dinner would not be classified as a program expense.
What is cancer, specifically?Cancer is a condition in which a small number of the body's cells develop out of control and spread to other internal organs. In the millions of cells that form up the human body, cancer can begin from anywhere.
Can one endure cancer?Estimates place mesothelioma (7.2%), pancreatic cancer (7.3%), and brain cancer (12.8%) as the three cancers with the lowest five-year survival rates. The three cancers with the highest five-year survival rates (97, 92, and 88%, respectively) are testicular cancer, cutaneous melanoma, and prostate cancer.
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A recessionary gap means that short-run macroeconomic equilibrium GDP
A) is less than full-employment GDP.
B) equals full-employment GDP.
C) is more than full-employment GDP.
D) may be less than, more than, or the same as full-employment GDP depending on the level
of potential GDP.
Option (a) is correct option as meaning of recessionary gap is short-run macroeconomic equilibrium GDP is less than full employment GDP.
What is macroeconomic equilibrium GDP?The intersection of the aggregate supply and demand curves represents macroeconomic equilibrium.
Aggregate supply is the total amount of goods and services produced over a certain period of time in the economy.
The quantity of goods and services demanded overall in the economy over a specific time period is known as aggregate demand.
An economy is in a recession if its real GDP at the moment is lower than the output at full employment. An economy is in a boom if its real GDP at the moment is higher than its output at full employment. We say the economy is in long-run equilibrium if the current output is equivalent to the output at full employment. The output is not excessively high or low.
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Entry, Exit, and Long Run Profitability — End of Chapter Problem Consider some of the supply-side strategies used by firms to create cost advantages in a market. a.1.）Mass production/ Research and development , as opposed to producing in small batches, often creates cost savings from purchasing raw materials and other inputs in bulk. b. 2.)Mass production/ learn-by-doing. As firms gain experience making a product, they learn more efficient production methods, allowing them to produce more with the same inputs. This creates a cost advantage. c. 3) Research and development/ learn-by-doing is often associated with developing new products. However, it can also be used to develop new cheaper ways to make existing products that can provide a lasting cost advantage over potential entrants.
Long-time period profitability focuses much less on asset sales and greater on commercial enterprise planning. considering that lengthy-term profitability can have an effect on a corporation's boom,
The monetary desires of the agency are normally a factor while detIn macroeconomics, the lengthy-run is the period whilst the overall charge stage, contractual salary charges, and expectancies adjust absolutely to the country of the economy, in contrast to the short-run while these variables may not absolutely modify.
Lengthy-term profitability You need to keep in mind those complexities, however in general, economists commonly think of long-run or fixed prices as which include land and capital. They typically think about short-run or variable fees as including exertions and components. So, in a bakery, the land, buildings and ovens are lengthy-run or fixed fees.
The long-run is a spell of time wherein all factors of producing and prices are variable. in the long run, corporations are capable of modifying all cost prices, whereas, inside the short run, companies are most effective capable of impacting fee expenses through modifications made to manufacturing tiers.
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Daisy works for CSAT Enterprise and is responsible for preparing accounting analyses for lenders, suppliers, and government agencies. Daisy is most
likely a(n)
Multiple Choice
financial accountant.
government auditor.
managerial accountant
external auditor
consumer accountant
Answer:
financial accountant.
Explanation:
Daisy is most likely a financial accountant. Financial accountants are responsible for preparing and analyzing financial reports for a variety of stakeholders, such as lenders, suppliers, and government agencies. They may also be involved in developing and implementing financial policies and procedures for an organization.
A company had net income in its current year of $80,000 and its average total equity was $640,000. What is the company's return on equity?
The company's return on equity would be 12.5%.
What is the return on equity?The return on equity is a measure of a company's profitability in proportion to its equity. ROE may also be thought of as a return on assets minus liabilities because shareholder's equity can be computed by adding all assets and removing all liabilities.
The formula for the computation of return on equity is as:
Return on Equity = Net Income / Total Equity × 100 ..................(1)
Computation of company's return on equity:
According to the given information,
Net Income = $80,000
Total Equity =$640,000
Return on Equity = ?
Putting the given value in (1), the result would be:
Return on Equity = Net Income / Total Equity × 100
Return on Equity = $80,000/$640,000×100
Return on Equity = 12.5%
Therefore, return on equity is 12.5%.
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A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because
A. it has resources or capabilities that are eminently transferable to other related or complementary businesses.
B. the company's growth is sluggish and it needs the sales and profit boost that a new business can provide.
C. management wants to lessen the company's vulnerability to seasonal or recessionary influences.
D. unfavorable driving forces face the company's core business.
E. All of these.
A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because of point A, B, C and D.
Purpose of Company DiversificationOne of the leaders of business science, Harberg and Rieple said that there are several purposes of diversification. Among them:
1. Fulfilling Manager Personnel Ambition
This is closely related to the award received by the manager. When a company can diversify, the scope for managers will also become larger.
2. Controlling Distributors and Suppliers
The next goal of diversification is to make it easier for companies to control quality and price so they can compete.
3. Achieving a Synergy
The combination of various business segments can create synergies. Which will not be possible if each business works alone.
4. Prevent Competitors
A company that controls a strategic resource business gives it added value and prevents it from being controlled by its competitors.
5. Minimizing Risk
Investing in several types of businesses will make the risk of a business unable to affect the company as a whole. Because, it will also be balanced with returns from other businesses.
6. Give Added Value
A company can have added value only if the investment is made in the company and can provide benefits for the company. The method is similar to acquiring companies with strategic resources such as distributors who already have broad distribution channels or suppliers of key production materials.
Such diversification can provide added value to the acquired company.
Forms of Company DiversificationFrom its form, business diversification can be divided into several types. You can see the review below:
Vertical DiversificationThis form of diversification can easily be said to be diversification from top to bottom. Where every company is free to market its products. For example, a livestock company sells its livestock products to several competing leather companies.
That way, the store doesn't just focus on selling shoe products to your company. However, it also sells products to its competitors.
Horizontal DiversificationFurthermore, there is horizontal diversification where you divide your business concentrically or conglomerate sideways. That is, each business unit has the same level and degree. The difference is the target market and also the needs of potential buyers.
For example, you produce several different types of goods because the needs of potential buyers are also different.
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