Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states: True.
What is the full faith and credit clause?The Full Faith and Credit Clause is derived from Article IV, Section I of the United States Constitution and it affirms the rule that every states within the United States of America have to respect (honored) and enforce the following:
Public actsRecordsJudicial proceedings and decision.Contract rightsIn this context, we can reasonably infer and logically deduce that the Full Faith and Credit Clause ascertains that the judicial proceedings and decision in any state within the United States of America must be honored and enforced in all other states, barring exceptional circumstances.
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Complete Question:
Under the full faith and credit clause, any judicial decision in one state with respect to contract rights will be honored and enforced in all states. True or False.
If an employer decides to pay certain workers less than the federal minimum wage, because the workers were lazy and shirked their duties, the employer would be in violation of.
If an employer decides to pay certain workers less than the federal minimum wage, the employer would be in violation of law.
What is the Federal Minimum Wage?Corresponds to the minimum stipulated value of US$7.25 per hour of work in the United States, this being a law to protect workers and employers in relation to labor rights and duties.
In the case of the issue, for example, where workers did not fulfill their contractually stipulated duties, the employer should not reduce wages below those stipulated by the states and the American federation, but rather use other instruments to reduce negative behavior, such as warnings and dismissals.
Therefore, as provided by law, employers who violate the federal minimum wage law are liable to pay civil fines amounting to $1,000.
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Arizona united inc. And sunny town ltd. Operate in a competitive market. Arizona united inc. Sells 800 units and its total revenue is $120,000. Sunny town ltd. Sells 650 units, what is its total revenue?.
It brings in a total of $97,500. Total Revenue = Price * Quantity, sometimes known as TR = P * Q, is the formula used to calculate total revenue.
Define total revenue.Total revenue is the amount of money generated by a company's sales of goods and services. In other words, companies use this figure to evaluate the efficiency with which their main sources of income are producing profits. Marginal revenue and total revenue are inversely connected.
Total Revenue = Price * Quantity, sometimes known as TR = P * Q, is the formula used to calculate total revenue.
Arizona 's
p = x
Q = 800
TR = 120000
so p = 120000/800= $150
where
Sunny's
P = $150
Q = 650
so TR = 150 * 650 = $97,500
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An operating cycle is the length of time it takes to convert inventory to accounts receivable plus the time it takes to convert the account receivable back to cash. This statement is.
The time it takes for a business to purchase items, sell them, and get payment for those sales is referred to as an operating cycle.
It is, in other words, the time it takes for a business to convert its inventories into cash. Depending on the sector, an operational cycle can be any length. The following components make up the operating cycle: includes the average collection period (365 days/accounts receivable turnover ratio) plus the days' sales in inventory (365 days/inventory turnover ratio). The amount of days that pass between the time you buy goods and the time customers pay for it is known as the operating cycle. The amount of days between when you purchase inventory and when you get payment from your clients is known as the cash conversion cycle. The accounts receivable, inventory, and accounts payable cycles are examined in terms of days by the operational cycle. In other words, the average number of days it takes to collect an account is used to examine accounts receivable. The days needed for a business to receive inventory, sell the goods, and collect money from the sale of the inventory are referred to as an operating cycle. This cycle is crucial in evaluating how effectively a business operates. It is the period of time between paying suppliers in cash and collecting payment from customers. The operational cycle would be lengthened by which of the following? easing loan conditions and giving clients more time to pay.
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mountain high ice cream company transferred $60,000 of accounts receivable to the prudential bank. the transfer was made with recourse. prudential remits 90% of the factored amount to mountain high and retains 10% to cover sales returns and allowances. when the bank collects the receivables, it will remit to mountain high the retained amount (which mountain estimates has a fair value of $5,000). mountain high anticipates a $3,000 recourse obligation. the bank charges a 2% fee (2% of $60,000), and requires that amount to be paid at the start of the factoring arrangement.
The journal entry is as follows-
Receivable from factor $3.800 {$5,000 - ($60,000 × 0.20)}
To Accounts receivable $60,000
Journal entry:
Cash $54,000 ($60,000 - $60,000 × 10%)
$2,200 loss on receivables sale
Receivable from factor $3.800 {$5,000 - ($60,000 × 0.20)}
To Accounts receivable $60,000
(Because the transfer is being recorded)
Because 90% is remitted and 10% is retained, 10% is considered, and the receivable amount should be considered after the 2% fee shown above.
Here is the complete question-
Mountain High Ice Cream Company transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,000) less a 2% fee (2% of the total factored amount).
Required:
Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)
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You would like to buy shares of international business machines (ibm). the current bid and ask quotes are $96.17 and $96.24, respectively. you place a market buy-order for 100 shares that executes at these quoted prices. how much money did it cost to buy these shares?
It would cost $96 to buy 100 shares of IBM.
What is shares?
A share is a unit used in mutual funds, limited liability partnerships, as well as real estate investment trusts in the financial markets. Share capital is the collective term for an organization's shares. A stockholder (or share holder) of a corporation is someone who owns shares in that company. A share is an undividendable piece of capital that expresses the shareholder's ownership of the company. A share's face value, which may not correspond to the market value of the those shares, is its denominated value. The total face value of all issued shares represents a company's capital. A dividend is the revenue derived from of the ownership of shares. It cost $9624 to buy these shares. The bid price is the price at which the market maker is willing to buy the stock, and the ask price is the price at which the market maker is willing to sell the stock. In a market buy-order, you are buying the shares at the ask price.
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a new technological innovation occurs, and your firm chooses to adopt it. as a result of increased efficiency, five employees are no longer needed and are laid off by your firm. is wealth being created or destroyed by your firm's decision?
Wealth is being created with the technology but the labor is being destroyed by firm's decision.
Famous economists John Maynard Keynes and Wassily Leontief predicted technology unemployment would occur in the future decades ago. They believed that as robots replaced people, labor would become less significant. The analysis also took into account wage percentiles, gender, industry, and occupation. It was discovered that the effects on employment are concentrated in the manufacturing industries and are 1.5–2 times stronger for males than for women.
Except for administrative roles, all jobs experience negative consequences. Unsurprisingly, blue-collar occupations requiring frequent manual labor, such machinists, assembly workers, and transportation workers, have seen significant declines in employment. As a worker's education level rises, the negative effects become somewhat less severe, and for workers with doctoral degrees, there is no influence at all.
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a loose group of employees become tightly bonded after a competition in which they beat other teams and this increases their willingness to work together.
An example of a Group cohesiveness is when a loose group of employees become tightly bonded after a competition in which they beat other teams and this increases their willingness to work together.
What is a Group cohesiveness?It is also known as a group cohesion and social cohesion. This cohesiveness arises when bonds link members of a social group to one another and to the group as a whole. Even though a cohesion is a multi-faceted process, it can still be broken down into four main components such as a social relations, task relations, perceived unity and emotions.
In conclusion, a group cohesion means an extent to which group members are attracted to the group, its goals and can as well consist of feelings of interpersonal liking, task commitment and group pride.
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Given an industry is producing the socially efficient output level, a tax placed on the industry will result in inefficiency because the market will produce.
Too few units, giving up some units that have more consumer value than productive costs, and a tax placed on the industry will result in inefficiency because the market will produce.
A tax imposed on an industry that is already producing at a level that is socially efficient would lead to inefficiency since the market will still produce.
industry: a collective of profitable businesses or establishments that create or provide products, services, or sources of income. Industries are typically categorized in economics as primary, secondary, tertiary, and quaternary; secondary industries are additionally categorized as heavy and light.
Resources are not being used to their full potential when there is inefficiency. The term "inefficiency" is used frequently in economics to describe a variety of phenomena.
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nokia is a cell phone brand that offers digital cameras as part of its cell phone products. it is now in direct competition with camera brands such as canon and sony, and has become the world's largest seller of cameras. this is an example of:
Nokia is a company that manufactures cell phones and includes digital cameras in those products. It is now directly competing with them. This serves as an illustration of envelopment.
In order to destroy specific enemy forces and prevent them from withdrawing, the military technique known as "envelopment" entails securing objectives in the opponent's rear. An envelopment aims to manufactures exploit an enemy's flanks rather than attacking them directly as in a frontal assault, attacking them from different directions and avoiding where their fortifications are greatest.
One or more enveloping forces will assault the enemy's flank(s), and a fixing force will target the enemy's front and "fix" them in place so that manufactures they cannot withdraw or change their focus to the enveloping forces. Performing an envelopment has dangers even though it is a successful envelopment approach. An enemy counterattack might cause the encircling force to become overextended and cut off from friendly forces, or the adversary could counterattack the fixing force.
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when the yield curve is downward sloping, generally a financial manager should multiple choice expect an economic boom. utilize long-term financing. increase investment and the level of financing overall. utilize short-term financing.
When the yield curve is downward sloping, generally a financial manager should utilize short-term financing.
A yield curve is a graph that shows the yield rates for different maturities. Different maturities are represented on the yield curve's X axis, while yield rates for those maturities are shown on the Y axis.A yield curve forecasts how the economy's short-term interest rates will move.A yield curve that slopes downward signals that short-term interest rates will drop in the future.In order to take advantage of reduced short term interest rates, the management should borrow short term loans and financing while the yield curve is sloping downward because doing so would result in a cheaper cost of capital.
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pelcher company maintains a $445 petty cash fund. on january 31, the fund is replenished. the accumulated receipts on that date represent $119 for office supplies, $158 for merchandise inventory, and $79 for miscellaneous expenses. there is a cash overage of $7. based on this information, the amount of cash in the fund before the replenishment is:
The amount of cash in the fund before the replenishment is $96 if the company maintains a $445 petty cash fund.
A petty cash fund can be described as a small amount of cash kept by the company to pay for incidental expenses.
We can determine the amount in the fund before replenishment by subtracting the accumulated receipts on January 31 from the total funds.
The total accumulated receipts can be calculated as follows;
$119 + $158 + $79 = $356
Since there was a cash overage of $7, this means that the total cash fund after receipts was:
$445 + $7 = $452
Now we can calculate the amount of cash in the fund before the replenishment by subtraction as follows;
cash in the fund before replenishment = total cash - accumulated receipt
cash in the fund before replenishment = $452 - $356
cash in the fund before replenishment = $96
Hence, the amount of cash in the fund before the replenishment is calculated to be $96.
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which of the following statements is true of attitudes? a.attitudes motivate people to behave in inconsistent ways. b.attitudes and value are closely related. c.attitudes do not affect the choice of products. d.negative attitudes do not have a profound effect on consumers.
About attitudes, the true statement is letter b. attitudes and value are closely related.
What is attitude?It can be defined from a psychological concept, which relates the attitudes of individuals as a judgment developed according to their beliefs and values that leads them to develop a certain behavior.
Therefore, attitude and value are related because value influences the formation of the type of attitude that the individual will have, that is, according to their set of values, the individual will have a certain intention that will be transformed into a type of behavior.
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what is the formula to determine the total return for a stock that currently sells for $100, pays a dividend in one year of $2, and has a constant growth rate of 8 percent?
The formula to determine the total return for a stock includes the Ending stock price, Starting stock price and the rate of the growth.
What is dividend?The amount that shareholders typically get once the firm issues the rate at which they will be issuing dividends is known as a dividend. It is frequently made or awarded after the company makes a profit.
The sum of money a purchaser derives from such an asset over a given time frame, usually a year, once all payments have been reinvested, is known as total return. The overall profit is shown as a proportion of the initial investment.
Total return for a stock = { (current price - purchase price) + dividends } ÷ purchase price.
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suppose that the level of gdp increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.80. aggregate expenditures must have increased by multiple choice $80 billion. $20 billion. $100 billion. $10 billion.
Aggregate expenditures must have increased by $80 billion. It is because the marginal propensity to consume is 0.80.
Aggregate expenditures can be defined as the sum of all the expenditures undertaken in the economy by the factors during a specific time period. The formula for aggregate expenditures is AE = C + I + G + NX, where (C) is equals to consumptions, (I) is equals to investments, (G) is equals to government spending, and (NX) is equals to net exports.
The marginal propensity to consume or also known as MPC is simply identified as the proportion of an aggregate raise in pay that a consumer spends on the consumption of services and goods, as opposed to saving it.
Marginal propensity = consumption function / change in disposable income
0,8 = consumption function / $100,000,000
Consumption function = $80,000,000 = $80 billion
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variable inputs are defined as any resource that: group of answer choices varies with the size of the firm's plant. cannot be changed as output changes can be changed as output changes. can be increased or decreased hourly.
Variable inputs are defined as any resource that Can be changed as output changes.
A Which of the subsequent are examples of charges that don't range with adjustments in output. These aren't suffering from the quantity of produced output. Examples of constant charges are rent, strength bill, depreciation on machinery, land prices, and more. All those prices arise even if output is zero variable price is a company rate that adjustments in percentage to how a good deal a business enterprise produces or sells. Variable charges growth or lower relying on a business enterprise's manufacturing or income volume—they upward push as manufacturing will increase and fall as manufacturing decreases.
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when the demand function is inelastic at a given price, it means that: group of answer choices a 1% increase in price will lower demand by more than 1% any drop in price will increase demand by a very large amount a firm can increase their revenue by increasing price an increase in price will increase quantity demanded
When demand for a product does not fluctuate as much as price fluctuation, this is known as inelastic demand. Demand is considered to be inelastic when price increases by 20% but drops in demand only by 1%.
The term "inelastic refers" to an item or service's static quantity when its price fluctuates.When the cost of an item or service increases, customers' purchasing patterns essentially remain the same, and when the cost decreases, consumers' purchasing patterns similarly remain stable. This is known as inelastic demand.The demand for an item or service would not fluctuate independent of price if it were perfectly inelastic, but none of these things exists.The difference between elastic and inelastic is that the latter experiences considerable variations in demand as the price changes.While luxury commodities like cruises and expensive watches are seen to be elastic, necessities like prescription drugs are thought to be inelastic.Learn more about Inelastic demand, here
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a customer purchases 200 shares of xyz at 17.50 and writes 2 xyz jan 20 calls at 1. at expiration, with the stock trading at 19, the options expire wo
If the customer sells his long stock at the current market price, the gain is $500. The customer purchases stock at 17.50 and sells it at 19 for a $300 profit. Also, the customer keeps the $200 in premiums.
The value of the long stock listed on customer's trading account is the value of the stocks he owns. It makes no difference if he has purchased the shares for just a day or two or for several years in this case; his shareholding is all about long stock value.
Having a "long" position in a security implies that you own it. Investors hold "long" security positions in the hope that the stock's value will rise in the future. A "short" position is the inverse of a "long" position.
Here is the complete question-
A customer purchases 200 shares of XYZ at 17.50 and writes 2 XYZ Jan 20 calls at 1. At expiration, with the stock trading at 19, the options expire worthless. If the customer sells his long stock at the current market price, the gain is:
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chegg an individual who has a steady source of income and a reasonable chance to repay debts would choose chapter 13 rather than chapter 7 of the u.s. bankruptcy code. question 5 options: true false
True, An individual has the chance to submit a plan of reorganisation under Chapter 13 of the United States Bankruptcy Code and not under chapter 7.
In order to offer a chapter 13 plan that addresses all of their different classes of creditors, a person must have a regular source of income. As long as a chapter 13 plan satisfies the necessary standards under chapter 13, the bankruptcy court has the authority to accept it without the consent of creditors.
People who file for Chapter 13 bankruptcy—also referred to as a "wage earner's plan"—pay an assigned, unbiased trustee a predetermined monthly sum.
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Complete Question: (True/False) Individual who has a steady source of income and a reasonable chance to repay debts would choose Chapter 13 rather than Chapter 7 of the U.S. Bankruptcy Code.
Market researchers often report discretionary income. Discretionary income is your disposable income minus your fixed expenses. Your disposable income is $2,920. After you pay fixed expenses of rent, utilities, groceries, and a car payment, you have $900. What percentage of your disposable income is discretionary?.
Market researchers often report discretionary income. Discretionary income is your disposable income minus your fixed expenses. Your disposable income is $2,920. After you pay fixed expenses of rent, utilities, groceries, and a car payment, you have $900. 18% of your disposable income is discretionary.
Market A mechanism whereby commodities and services are exchanged as a result of buyers and sellers coming into contact with one another, either directly or through institutions or agents that operate as middlemen.
Markets are location where goods are bought and sold in the strictest sense. However, in the current industrial system, the market is no longer a physical location; rather, it has grown to encompass the entire geographic area in which vendors compete with one another for customers. For a long time, English-speaking economists looked to Alfred Marshall, whose Principles of Economics (first published in 1890), for guidance. Marshall based his definition of the market on that of the French economist A.
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marketers must be aware that because firms are introducing products at a faster rate, a general trend in marketing is that product life cycles are getting .
Marketers must be aware that because firms are introducing products at a faster rate, a general trend in marketing is that product life cycles are getting shorter.
Who is a marketer?This is the person that has the responsibility of creating a relationship that would have to exists between a product and the consumers of that particular product.
The marketers have to be made aware that due to the trend of having to introduce the products much faster than it used to be, that the life cycles of these products are likely to have become shorter than what it was known to be.
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ufa was successful because it spent lavishly to produce films outside of germany due to the beneficial exchange rate of the german currency after wwi.
It is untrue that UFA failed as a result of wasteful spending on films produced outside of Germany due to the favorable exchange rate of the German mark following World War One.
A currency's exchange rate is the cost at which two different currencies can be converted between two different countries UFA or economic regions. It is used to calculate the value of different currencies in relation to one another and is crucial in figuring out how trade and capital flows operate.
A country's trade and the flow of money between nations are impacted by the exchange rate, which is the rate at which one currency will be exchanged for another.
The economic activity, market interest rates, gross domestic product, and unemployment rate in each of the countries are frequently used to calculate the exchange rate between two currencies. They are sometimes referred to as market exchange rates and are determined in the 24-hour currency trading that takes place UFA between banks and other financial institutions on the international financial market. Rate adjustments might happen hourly, daily, in big incremental shifts, or both.
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recently, a series of studies have demonstrated the considerable beneficial health effects of food and drink derived from the amaranth plant. this has affected consumer tastes for amaranth flour, pods, root, etc. at the same time, particularly favorable weather has resulted in a bumper crop of amaranth plants.
The demand and supply curves are both trending right. The equilibrium amount rises, but the price effect is uncertain. This is further explained below.
What is the equilibrium?Generally, Now that the flavors and preferences of the Amarnath plant and the goods made from it have been enhanced, we may expect to see a rise in demand, which will cause the demand curve to move to the right.
The supply curve for Amarnath plants has moved to the right as a result of the bumper crop output, which may be seen as an indication of increased availability.
As a consequence of this, there has been a rise in the quantity, but the impact on the price is unclear.
Conclusion, It has come to our attention that both the demand curve and the supply curve are moving in the same direction, namely, to the right.
As a consequence of this, the amount at equilibrium increases, but the impact on price is unclear.
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_______ data encompasses all raw facts contained within a single process and its purpose is to support daily operational tasks.
Answer:
Transactional
Explanation
Transational data encompasses all raw facts contained within a single process and its purpose is to support daily operational tasks.
Pls Mark As Branilest
associated breweries is planning to market alcohol-free beer. to finance the venture, it proposes to make a rights issue at $11 of one new share for each three shares held. (the company currently has outstanding 300,000 shares priced at $39 a share.)
The number of new shares, the amount of new investment and the total value of company after issue are 50,000, $500,000 and $4,500,000.
Units of equity ownership in a firm are called shares. For certain businesses, shares are a kind of financial property that guarantee an equitable dividend distribution of any declared residual earnings. A company that does not pay dividends does not distribute its income to its shareholders. Instead, they look forward to further stock price appreciation and rising business earnings.Calculate the number of new shares.Number of new shares = Shares outstanding × [tex]\frac{1}{2}[/tex]
=100,000 × [tex]\frac{1}{2}[/tex]
= 50,000
Therefore, the number of new shares is 50,000.
Calculate the amount of new investment.Amount of new investment = Number of new shares × Price of each
Share
= 50,000 × $10
= $500,000
Therefore, the amount of new investment is $500,000.
Calculate the total value of company after issue.Total value = (100,000 × $40) + (50,000 × $10)
= $4,000,000 + $500,000
= $4, 500,000
Therefore, the total value of company after issue is $4,500,000.
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Associated Breweries is planning to market alcohol-free beer. To finance the venture it proposes to make a rights issue at $10 of one new share for each two shares held. (The company currently has outstanding 100,000 shares priced at $40 a share.) Assuming that the new money is invested to earn a fair return, give values for the following: a) number of new shares, b) amount of new investment, c) total value of company after issue, d) total number of shares after issue, e) stock price after the issue, f) the rights issue will give the shareholder the opportunity to buy one new share for less than the market price. What is the value of this opportunity?
Goals and objectives provide a form of control since they create a feedback opportunity regarding how well or how poorly the organization is executing its strategy. True of false?.
The statement 'goals and objectives provide a form of control since they create a feedback opportunity regarding how well or how poorly the organization is executing its strategy' is true.
Goals and objectives are the targets that a company or organization tries to achieve. Strategies are set in order to reach the goals and objectives of the workers of an organization.
These goals and objectives help in maintaining the wellness of work by the company. The goals and objectives set help a business determine whether the strategies applied are being executed properly or not and whether they are proving to be effective.
Based on the goals and objectives, feedback is generated based on the execution of strategies.
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16) In addition to owner-supplied capital, what are several other sources of financing for
a small business?
Answer:
Some financing options for a small business:
-you can get bank loan
-angel investor
-government grant (shown below as well)
-business incubator
-Small Business Administration (SBA) - For this financing option, manufacturing companies with 500 employees or fewer, and most non manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business.
-equity financing (funding given in exchange for partial ownership and future profits)
-debt financing (can be in the form of installment loans, revolving loans, and cash flow loans)
Explanation:
All of these examples of financing options are good to delve into, if you are interested in getting the funds needed to get your small business off the ground.
What type of decision-support system analysis attempts to predict the impact of changes in the assumptions, that is, the input data, on the proposed solution?.
Decision-support systems use what-if analysis to predict how changes to the input data or assumptions would affect the suggested solution.
An information system called a decision support system (DSS) assists businesses in making decisions that need judgment, analysis, and a course of action. The analysis of enormous volumes of unstructured data and the gathering of data that can help with problem-solving and decision-making from input data are both beneficial to an organization's mid- and high-level management. A DSS may be operated automatically, manually, or in conjunction with both.
A decision support system creates detailed information reports through data collection and input. Because its goal is to acquire data rather than analyze it, a decision-support system varies from a traditional operations program.
Planning departments in an organization, like the operations department, employ decision-support systems to collect data and provide reports that management may use to make choices. A DSS is generally used to send information to clients in an understandable manner, for data on inventories and operations, and for sales projection.
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Economic arguments for trade policy intervention are concerned with protecting the interests of certain groups within a nation, often at the expense of other groups, or with achieving some objective that lies outside the sphere protecting the environment or human rights. True or false?.
This is false that Economic arguments for trade policy intervention are concerned with protecting the interests of certain groups within a nation, often at the expense of other groups, or with achieving some objective that lies outside the sphere of protecting the environment or human rights.
Protecting the interests of some groups within a country (typically producers), frequently at the expense of other groups (typically consumers), or achieving some political objective that lies outside the sphere of economic relationships, such as protecting the environment or human rights, are Economic arguments for intervention.
Economic arguments for intervention often focus on increasing a country's total prosperity (to the benefit of all, both producers and consumers). The set of agreements, rules, and procedures that a government uses to influence commerce with other nations is known as trade policy. Every country sets its own requirements for trade, including its tariffs, subsidies, and rules.
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consider the following statement and argue whether it is true or false: "if the national unemployment rate decreased at an annual rate of 3 % per year, then the rate decreased by 9 % over a 3 year period
No , think unemployment in number form for ex:100 if year 1 unemployment rate is 3% means 3. This doesn't mean coming 2 year 3% is 3. its 2.91 right .
Consider the following statement and decide whether it is true or false: "If the national unemployment rate declined at a 3% yearly rate, then the rate decreased by 9% over a three-year period."
Unemployment is the state of being capable of working, actively looking for job, but unable to find any. It is vital to highlight that in order to be termed unemployed, a person must be an active part of the labour force and actively seeking remunerative work.
Time period (plural time periods) The length of time during which an activity occurs or a condition remains. It may be measured either in seconds or in millions of years, depending upon the nature of the activity of condition being considered.
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Which inventory valuation method assigns a value to the inventory on the balance sheet that approximates current cost and also mimics the actual flow of goods for most businesses?.
In addition to simulating the real flow of goods for the majority of businesses, the FIFO inventory valuation method places a value on the inventory on the balance sheet that is close to current cost.
First In, First Out, also referred to as FIFO, is an asset management and valuation strategy in which the first assets created or purchased are utilized, sold, or disposed of.
FIFO presupposes that the cost of goods sold on the income statement includes the assets with the businesses oldest costs for tax purposes (COGS). The remaining inventory assets are compared to the ones that were made or bought most recently.
Cost flow assumptions are made using the FIFO approach. The related costs with a product must be recorded as an expense in manufacturing as it advances to subsequent phases of development businesses and as final inventory units are sold.
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