Concerned that Styrofoam would take too long to decompose in landfills, McDonald's made the switch from Styrofoam to partially recycled corrugated boxes for its large sandwiches many years ago. McDonald's was socially responsive in this circumstance.
What distinguishes social responsiveness from social responsibility?
The fundamental contrast between friendly obligation and social responsiveness is that social obligation is the moral/ethical constraint/obligation of an individual or an element towards the general public while social responsiveness is how an individual or a substance answers a social need.
What examples of social responsibility do you have?
volunteering, donating blood, and working at a food bank or animal shelter are all examples of community service. advocating for political or social issues that can assist others, such as child labor laws, fair trade products, and recycling, are examples of issues that affect society.
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When a consumer makes a purchase of a particular product, because they are familiar with the company that makes the product, they are making the decision based on which characteristic?.
They are making the decision based on extensive-decision making characteristic.
What is extensive-decision making?One sort of consumer decision-making is extensive decision-making; others include analyzing options or making a quick choice based on pricing. The phrase is often in marketing to denote a complex consumer choice over whether or not to buy a product. According to Lucid Chart, highly complicated decisions typically involve making expensive or unusual purchases for a consumer. Due to this, companies should give customers as much information as they can on this kind of goods in order to close the sale. The benefits of buying the product, the reasons it's superior to the competitors, and its key features are some examples of the information that could be included in this.
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What are some ways that you’ve seen department stores, online stores, or social media ads try to activate the amygdala and encourage you to buy products?
Pull back the curtain - Customers want to feel like they have a relationship with a brand.
Teach your followers - Businesses often create posts that talk directly about their product, such as discussing features and why someone should buy it.
Make them laugh - Companies often err on the side of being too serious and businesslike.
Share interesting content - By sharing content from other businesses and people who are interesting and relevant to your followers, you can build trust and increase your value.
A company is a person entity fashioned through a group of people to engage in and operate a commercial enterprise—commercial or industrial—business enterprise. An employer may be prepared in diverse methods for tax and monetary legal responsibility functions depending on the corporate regulation of its jurisdiction.
An organization is a form of enterprise structure that may be a separate felony entity from its owners. It's a complicated business shape, with higher set-up and administrative fees due to more reporting requirements and higher-stage prison responsibilities.
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leisure lodge corporation is expected to pay the following dividends over the next four years: $20.00, $15.00, $7.80 and $3.10. afterwards, the company pledges to maintain a constant 6 percent growth rate in dividends forever. if the required return on the stock is 17 percent, what is the current share price?
Leisure lodge corporation is expected to pay the following dividends over the next four years: $20.00, $15.00, $7.80 and $3.10. afterwards, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 17 percent, $50.51 is the current share price.
Required return= 17%
Perpetual growth= 6%
Dividend at first year=20
Dividend at second year= 15
Dividend at third year= 7.80
Dividend at fourth year= 3.10
Dividend at fifth year=3.10*1.06 = 3.29
Terminal value at year 4=
Dividend at fifth year/required return-perpetual growth
=3.29/.17-.06
=29.87
Current price= 20/1.17 +15/(1.17)^2 + 7.80/(1.17)^3 +(3.10 + 29.87)/1.174
=17.09 + 10.96 + 4.87 +17.59
=$50.51
How do you find current share price?
The market price per share is used to determine a company's market capitalization, or "market capitalization." To calculate, multiply the company's current share price by the total number of outstanding shares.
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a. analyzing the liquidity ratios over the ten-year period, is discount goods current ratio (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year?
The modern ratio is a liquidity ratio that measures a company's potential to pay temporary responsibilities or these due inside one year. It tells traders and analysts how a corporation can maximize the contemporary property on its stability sheet to satisfy its modern-day debt and other payables
How do you analyze liquidity ratios?The method is: Current Ratio = Current Assets/Current Liabilities. This means that the firm can meet its modern-day short-term debt duties 1.311 times over. To remain solvent, the association must have a current ratio of at least one, which skill it can exactly meet its cutting-edge debt obligations.06
Repaying or restructuring debt will elevate the modern-day ratio. Explore whether you can reamortize existing time period loans and change how the lender charges you interest, efficiently delaying debt payments so they drop off your cutting-edge ratio. Negotiate longer charge cycles each time possible.
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There are three types of inflation: demand-pull inflation, supply-pull inflation, and supply-pull inflation. Inflation caused by cost-push. Inbuilt inflation.
Inflation is typically defined as a broad measure, such as the overall increase in prices or the cost of living in a country. It is the rate at which prices rise over a given time period. Inflation is typically defined as a broad measure, such as the overall increase in prices or the cost of living in a country.
Inflation, according to monetarists, is caused by too many dollars chasing too few goods. In other words, the money supply has become excessively large.
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___________ represent a special type of order taking that entitles customers to a specific unit of service.
a. Suggestions
b. Reservations
c. Trackers
d. Repossessions
e. Contracts
Reservations represent a special type of order taking that entitles customers to a specific unit of service.
What is reservations?
Customers who make reservations are entitled to a particular service unit. Reservations are an unique kind of order taking. If you make transactions easy and convenient for your customers, they might pay more quickly and with greater enthusiasm.
The practice of holding back, reserving, or separating. the action of excluding something or qualifying something. a caveat, restriction, or exemption either formally or informally: to agree to anything but with reservations.
Additionally, it can be reserved through both offline and online sources. Property Direct, online travel companies, corporations, central reservation systems, and many more are examples of online providers. You may readily track the origins of leads using web resources.
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suppose alyssa gets a sales bonus at her place of work that gives her an extra $600 of disposable income. she chooses to spend $360 and save the remaining $240. from this, you can tell that alyssa's marginal propensity to consume (mpc) is , and her marginal propensity to save (mps) is .
Marginal propensity to consume is 0.60. Marginal propensity to save is 0.4.
MPC = Change in consumption / Change in income
= $360 / $600 = 0.60
MPS = Change in saving / Change in income
= $240 / $600 = 0.4
Disposable income = Consumption + Savings ($600 = $360 + $240)
It is always true that 1 = MPC + MPS (= 0.6 + 0.4)
After-tax profits. The quantity that U.S. citizens have left to spend or store after paying taxes is crucial now no longer simply to people however to the complete economy. The formulation is simple: private profits minus private present day taxes.
A income bonus is a set amount of cash you obtain after you attain your precise person and company goals. A business enterprise might also additionally provide your income bonus expressed as a particular percent of a cumulative, pre-decided sales milestone.
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assume that the a stock price is modeled using a one-period forward binomial tree with the length of a single period equal to three months. according to this model, the stock price can take either the value of $50, or the value of $40 in exactly three months. calculate the volatility of the stock price.
The volatility of the stock price will be 0.402
What is volatility?Volatility is frequently used to describe the degree of risk or uncertainty associated with the magnitude of variations in a security's value. A security's value may potentially range over a wider range of values if its volatility is higher. This implies that the security's price can fluctuate sharply in either direction over a brief period of time. A security's value will not change significantly and will be more stable if its volatility is lower.Quantifying the daily returns (% change on a daily basis) of an asset is one technique to gauge its fluctuation. The level of fluctuation in an asset's returns is indicated by historical volatility, which is based on past prices. This value is expressed as a percentage without a unit.While volatility is a measure of that variance constrained by a given time period, variance reflects the dispersion of returns around the mean of an asset in general. As a result, we can report volatility on a daily, weekly, monthly, or annually basis. In order to better understand volatility, think of it as the annualized standard deviation.To learn more about volatility, refer to
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A rightward shift in the aggregate demand curve will cause employment and the price level to change in which of the following ways in the short run?
Employment Price Level
A. Increase Increase
B. Increase Decrease
C. Increase No change
D. Decrease Increase
E. No change No change
Option B. Increase, Decrease. A rightward shift in the aggregate demand curve will cause employment to increase and the price level to decrease in the short run.
The Impact of a Rightward Shift in the Aggregate Demand Curve on Employment and the Price LevelA rightward shift in the aggregate demand curve will cause employment to increase and the price level to decrease in the short run. This is because when aggregate demand increases, firms will demand more labor in order to produce more goods and services. This increased demand for labor will lead to higher wages and more employment. However, the higher wages will also lead to higher prices for goods and services, which will decrease aggregate demand.
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Which of the following would be found on the debit side of the Inventory T-account?
a. Frieght-out
b. Purchase Returns
c. Purchases
Freight-out would be found on the debit side of the Inventory T-account.
A collection of financial records that employ double-entry accounting are referred to informally as T-accounts. Because of the way the bookkeeping entries are organized, the account is known as a T-account. Just above the T, the account title may be seen.
The account name, such as "cash," "owner's equity," or "accounts payable," appears at the top. The left side of the T is then for debit transactions, and the right side is for credit transactions.
A T-account system has the following benefits:
Errors are simple to see, and fraud is minimized. Balances that are due can easily be seen. It is simple to see the company's financial situation over a period and contrast it with another period.
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1. describe numi's product line in terms of the four p's of marketing: product, price, place, and promotion. describe each p separately.
The Numi's product line is defined in terms of the four P's of marketing as product – an organic tea that offers health benefits, price – a premium brand with affordable but higher than average price range, place -offered at big chains stores such as Target in organic food and products section, and promotion – offered free samples to its customer.
The four P's of marketing are referred to as marketing mix and include four key components - product, price, place, and promotion which influence the marketing strategies. Marketing mix is a fundamental business model and is defined as marketing tools that the business utilizes to pursue its marketing objectives in the target market. The product refers to the product or service that a company sells. Price refers to the amount of money charged to customers for the determined product or service. Place refers to the optimal location where the product should be sold and how it should be delivered to the market. Promotion refers to the set of advertising and public relations strategies used to promotion the product.
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Rhiannon is an inside sales representative at a natural cosmetics company. She recently sold a new primer the company released to many clients. However, the pump on the primer bottle does not work properly. Investigation shows the error stems from the manufacturer of the pump. Rhiannon’s sales manager had pressured rhiannon to sell this new product, and now rhiannon is worried that this is not an isolated incident. In this case, there could be a major recall, and the firm’s ceo would have to get involved. If a client is highly dissatisfied and wants to express discontent, who are they most likely to contact first?.
"Rhiannon's sales manager" is the person a customer is most likely to call first if they are extremely unsatisfied and want to voice their displeasure.
Define the functions of sales manager?As managers, sales managers are typically in charge of hiring and firing employees, determining the need for training and delivering it, coaching sales representatives, and establishing sales territory.
In order to make wise selections, they are also responsible for developing sales plans and performing data analysis. They will frequently update the directors on their accomplishments and might even have a role in determining the direction the company will take in the future. Sales managers are typically the business leaders that set sales objectives and targets and encourage their team to meet them.The role can differ based on the size and nature of the organization as well as the service or item it offers.Rhiannon had been under pressure to promote this new product from her sales manager. There might be a significant recall in this situation, and the company's CEO would need to get involved.
Thus, the most probable person to be contacted by a highly unsatisfied customer who wishes to voice their unhappiness is Rhiannon's sales manager.
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acme manufacturing owns a warehouse that it is not currently using. it could sell the warehouse for $300,000 or use the warehouse in a new project. should acme include the value of the warehouse as part of the initial investment in the new project?
Yes, acme include the value of the warehouse as part of the initial investment in the new project.
What is Initial Investment?
The initial sum of money required to open an account or start a buy-in relationship is known as an initial investment. The two independent but linked industries of banking and long-term investment brokering are the main uses of the phrase "initial investment." The initial investments required to start a specific project are referred to as an initial outlay. For instance, in order to start a new factory, a business would need to invest in new land and equipment. Depreciation costs are subtracted from gross capital expenditures (capex) over time to get the net investment value.
Hence, Yes, acme include the value of the warehouse as part of the initial investment in the new project.
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your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. this means it is owned by
Dry cleaner or florist is likely to be categorized as an independent retailer. this means it is owned by an individual.
Who is florist?Florist is the production, business and trade of flowers. This includes floral care and handling, floral design and arrangement, sales, production, presentation and delivery of flowers. Wholesale flower sells flowers and related accessories in bulk to professionals in the field
Flower shops run shops, sell flowers. They also make and sell artistic floral and plant arrangements such as bouquets and wreaths. They are sometimes called floral designers.
Florists have different tasks and responsibilities. They stock flowers and plants in stores, plan arrangements, package and deliver products, and negotiate with customers. Because they work with perishable products under tight schedules and negotiable deadlines, their jobs can be stressful.
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suppose a new species of thermophilic bacteria is discovered that can live in undersea volcanic vents. researchers perform a microarray in order to determine the genetic similarities and differences between sulfur and high temperature tolerance. the results below show high gene expression in the experimental condition compared to the control as pink, low gene expression compared to the control as cyan, and no change in gene expression compared to the control as white. each letter represents a different gene. for the high temperature samples compared to the control gene a dark cyan gene b dark pink gene c dark pink gene d light cyan gene e dark cyan gene f light pink gene g light cyan gene h medium pink gene i medium cyan gene j light cyan gene k dark cyan. for the high sulfur samples compared to the control gene a dark cyan gene b medium cyan gene c medium pink gene d light cyan gene e dark cyan gene f light pink gene g light cyan gene h light cyan gene i medium cyan gene j dark pink gene k dark pink. what steps could the researchers do next in order to better understand the genes they identified?
The researchers will do the following next in order to better understand the genes they identified :-
-Identify shared 5' regulatory elements in gene groups and generate reporters using the elements
-Group genes in which both experimental conditions produce the same type of response
-Group genes that increase in one experimental condition and decrease in the other condition
The gene is taken into consideration the fundamental unit of inheritance. Genes are surpassed from dad and mom to offspring and incorporate the records needed to specify bodily and organic traits. most genes code for specific proteins, or segments of proteins, which have differing capabilities within the body.
In biology, the word gene may have several exceptional meanings. The Mendelian gene is a simple unit of heredity and the molecular gene is a sequence of nucleotides in DNA this is transcribed to supply a useful RNA. There are styles of molecular genes: protein-coding genes and noncoding genes.
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buyers who face a new task-buying situation usually go through ________.
Buyers who face a new task-buying situation usually go through all stages of the buying process.
the retail industry, a buyer is a private who selects what things are furnished and their key responsibility is addressing all the merchandise that acquire by the store. patrons typically work closely with designers and their selected sales representatives and attend trade fairs, wholesale showrooms, and fashion shows to watch trends.
they will work for large department stores, chain stores, or smaller boutiques. For smaller freelance stores, a client may participate in sales furthermore as promotion, whereas in an exceedingly major fashion store there are also completely different levels of seniority love initiate buyers, assistant buyers, senior buyers, and shopping for managers and buying directors.[1] Decisions concerning what to stock will greatly have an effect on fashion businesses.
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which risk control strategy attempts to shift residual risk to other assets, other processes, or other organizations.?
The control strategy known as transference aims to transfer the risk to different assets, different processes, or different organizations.
It is the one that occurs when genes normally during cell division are transmitted within the same species, that is, from their ancestors from the parental gene to the progeny, as in the case of bacteria that occurs by binary fission when bacteria duplicate.
This transfer of genetic material from parent organisms to offspring is through reproduction within the same species.
Therefore, we can conclude that according to the research, the correct option is during normal cell division. Vertical gene transfer is the transfer of dna during normal cell division.
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which of the following statements regarding media ownership today is true?
a. Fewer than ten corporations own most of the national media outlets
b. The majority of media outlets are owned by private individuals
c. The government owns most national media outlets
d. Foreign companies own more than half of the media outlets in the United States
Fewer than ten corporations own most of the national media outlets.
A corporation is an organization typically a collection of individuals or a business that has been granted by the state the right to function as a single unit (a legal person in a legal context; business a legal person recognized under private and public law) and is recognized as such in law for certain purposes.
Early corporations were created with a charter (i.e, by an ad hoc act granted by a monarch or passed by a parliament or legislature). The majority of governments currently permit the registration of new business.
Although there are many distinct sorts of corporations, they are often categorized by the legislation of the country in which they were established based on either the ability to issue stock or the purpose for which they were established business.
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When demand is elastic, the portion of the tax borne by consumers is that area between _____.
a) P1 and P3
b) a and c
c) P2 and P1
d) P2 and P3
When demand is elastic, the portion of the tax borne by consumers is that area between c) P2 and P1
What is elasticity?
Elasticity is a term used in economics to describe how much one economic variable changes in reaction to a change in another. If a product's price elasticity of demand is negative two, a 10% rise in price results in a 20% decrease in demand.
A demand that is elastic experiences a significant shift in quantity demanded as a result of a price adjustment. When the amount sought changes little as a result of a price adjustment, the demand is said to be inelastic.
There are five further types of demand elasticity: unitary elastic, perfectly elastic, moderately elastic, and perfectly inelastic. These categories help to explain the amount to which economic variables affect the quantity desired.
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what happens when a Market is at disequilibrium
Explanation:Disequilibrium refers to an imbalance between the quantity demanded and the quantity supplied, at a particular price. If the product is underpriced, it will cause a shortage (excess demand) and this will push up price, encouraging further supply until equilibrium is reached).
Answer:Disequilibrium refers to an imbalance between the quantity demanded and the quantity supplied, at a particular price. If the product is underpriced, it will cause a shortage (excess demand) and this will push up price, encouraging further supply until equilibrium is reached).
Explanation:
what is not a tool used by the federal reserve to implement monetary policy?
Deposit insurance. The Federal Reserve Bank regulates the money supply through a variety of programs. Through open market transactions, varying necessary reserve ratios, discount rates, etc., it affects the money supply.
What does deposit insurance entail?One of the key advantages of keeping money in a bank that is FDIC-insured is deposit insurance, which is how the FDIC safeguards your funds in the unusual case of a bank failure. Each account ownership category is covered by the normal insurance sum of $250,000 per depositor, per insured bank.It provides small depositors with the reassurance that their funds are secure and will be promptly accessible to them in the event that their bank fails. It keeps the public's faith in the banking system, promoting economic stability.If it is determined that your landlord failed to preserve your security deposit, they will be required to restore it to you or pay it into a custodial scheme within 14 days.To learn more about FDIC-insured refer to:
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Which of the following alternatives lists the five purposes of the sales presentation (not necessarily in their correct order)? a) conviction, knowledge, opinion, desire, and beliefs b) attitude, knowledge, desire, beliefs, and action c) attitude, knowledge, desire, beliefs, and conviction d) attention, desire, opinion, conviction, and sale e) knowledge, action, opinion, conviction, and desire
The five purposes of the sales presentation are conviction, knowledge, opinion, desire, and beliefs.
In sales engineering, a sales pitch or sales pitch is a series of conversations that attempt to persuade someone or something with a planned sales pitch strategy for a product or service with the goal of starting and closing the sale of the product or service .
Sales presentation is one of his most important tools. A well-crafted sales pitch can help you connect with potential customers and differentiate yourself from your competitors. You can set the tone for every conversation that takes place throughout the sales process.
A presentation conveys information from a speaker to an audience. Presentations are typically demonstrations, introductions, lectures, or speeches intended to inform, persuade, inspire, motivate, build goodwill, or present new ideas/products.
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order the steps for manually calculating future value of an ordinary annuity. instructions choice 1 of 4. calculate interest on the balance, and add the interest to the previous balance. toggle button calculate interest on the balance, and add the interest to the previous balance. choice 2 of 4. add additional investment at the end of the second period to the new balance. toggle button add additional investment at the end of the second period to the new balance. choice 3 of 4. no interest is calculated on the first period. toggle button no interest is calculated on the first period. choice 4 of 4. continue calculating interest on balance, adding to previous balance, then adding additional investment until desired period is reached. toggle button continue calculating interest on balance, adding to previous balance, then adding additional investment until desired period is reached.
The steps for manually calculating future value of an ordinary annuity is as follows 4. No interest is calculated on the first period. 2. Calculate interest on the balance, and add the interest to the previous balance. 3. Add additional investment at the ed of the second period to the new balance. 1. Continue calculating interest on balance, adding to previous balance, then adding additional investment until desired period is reached.( 4, 3, 2, 1 ).
How do you determine an ordinary annuity's future value?
The future value of an ordinary annuity is calculated using the formula F = P * ([1 + I]N - 1)/I, where P is the payout amount. I is equivalent to the discount (interest) rate. There will be N payments; the "" denotes that N is an exponent. F stands for the annuity's future value.
The following equation can be used to determine future value with compound interest: future value = present value x (1 + interest rate)n. Use the following equation to determine future value with simple interest: future value = present value x [1 + (interest rate x time)].
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What keeps firms from entering the market when a monopoly is able to produce where price is greater than average cost?.
Antitrust laws prohibit conduct by a single firm that unreasonably restrains competition by creating or maintaining monopoly power.
Traditionally, monopolies gain the corporations that have them, as they can improve expenses and decrease offerings without effect. But, they are able to harm purchaser pastimes because there's no appropriate opposition to encourage decreased prices or better-first-class services.
The benefit of monopolies is the guarantee of regular delivery of a commodity this is too pricey to provide in an aggressive marketplace. The disadvantages of monopolies consist of rate-fixing, low-pleasant merchandise, loss of incentive for innovation, and fee-push inflation.
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married individuals who elect to file separate tax returns may use the single rates to compute their tax
Married couples who decide to report their individual earnings, exemptions, and deductions on separate tax returns are said to be "married filing separately."
Married filing jointly is an alternative to married filing separately. In most cases, filing jointly makes financial sense for married couples. However, filing separately might be a better idea if one spouse has considerable medical costs or other itemized deductions, or if both spouses earn roughly the same amount of money.
Married couples who decide to report their income, exemptions, and deductions on different tax returns are said to be married filing separately.
Some couples may find it advantageous to file separately, particularly if one partner has large medical expenditures or other itemized deductions.
However, filing separately may prevent you from benefiting from several tax breaks available only to joint filers.
When completing their annual tax returns, taxpayers have a choice between the following five tax filing statuses: single, married filing jointly, married filing separately, head of household, or qualifying widow (er).
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shinetime manufacturing has spent the year eliminating numerous mid-level managers, supervisors, and team leads. the company has most likely committed to which form of organizational change? multiple choice strategy heroes delegation structure people
Shine time manufacturing has spent the year eliminating numerous mid-level managers, supervisors, and team leads. the company has most likely committed to structure form of organizational change.
Manufacturing is the process of creating products by hand or machine, which the company then sells to a customer. Raw materials or little pieces of a larger product may be the items used in manufacturing. On a large-scale production line with specialized staff and equipment, manufacturing often takes place.
The definition of manufacturing is the process of making new goods out of components or raw materials. Manufacturing businesses include bakeries, shoemakers, auto manufacturers, and tailors because they all produce goods rather than offering services.
1. Sculpting and casting
2.Machining.
3.Joining.
Shearing and forming, fourth.
these 4 production processes are available.
A manufacturing job entails the manufacture of new items from unfinished goods or by physically, chemically, or mechanically putting together various components.
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the practice of high risk assets on a banks books while removing low risk assets with the same capital requirement is known as
The practice of high risk assets on a banks books while removing low risk assets with the same capital requirement is known as regulatory arbitrage.
What is regulatory arbitrage ?Using more advantageous rules in one country to get around less favorable regulations in another is a practice known as regulatory arbitrage.Due to the fact that it utilizes legal loopholes, this approach is frequently regarded legal yet unethical.When certain activities or positions within a conglomerate are moved, it is referred to as "supervisory arbitrage." This may be done to avoid being subjected to one set of supervisors' relatively stricter prudential oversight or to completely avoid it.
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Costs that have no impact on future cash flows and are irrelevant to decisions are ______ costs.
Costs that have no impact on future cash flows and are irrelevant to decisions are sunk costs.
Sunk costs are those that have already been incurred but are not recoverable. Sunk costs are not considered in future business decisions because the cost remains constant regardless of the outcome of the decision. Salary, insurance, rent, non-refundable deposits, and repairs are examples of sunk costs (as long as each of those items is not recoverable).
Businesses that proceed with a course of action because they have already invested time or money in a prior decision risk falling into the sunk cost trap. All sunk costs are fixed costs, but not all fixed costs are sunk costs. Sunk costs are different in that they cannot be recovered. It is not a sunk cost if equipment can be resold or returned at the original purchase price.
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if the percent rise in price is smaller than the percent decline in quantity, then a price will lead to in your total revenue. please choose the correct answer from the following choices, and then select the submit answer button. answer choices
When the percent change in price is smaller than the percent change in quantity demanded, demand is inelastic. So, the correct answer is A.
Demand can be described as the consumer's require to buy a particular item or service. Market demand refers to the demand for a particular item in the market. Aggregate demand means the sum demand for items and services in the economy.
The question is not complete, there is a missing part. The complete question can be seen below:
"When the percent change in price is____ than the percent change in quantity demanded, demand is____. please choose the correct answer from the following choices, and then select the submit answer button. A. A. smaller; inelastic
B. smaller; either elastic or inelastic
C. larger; elastic
D. smaller; elastic
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the discount rate is the rate at which someone is willing to give up current dollars for future dollars. true false
The discount rate is the rate at which someone is willing to trade present money for future money, hence the statement is true.
What Does "Present Money" Mean?
A certain rate of return i.e. present value (PV) is the current value of a future asset and stream of cash flow. Future cash flows are discount to some extent depending on the discount rate, and the greater the rate, the lower the current value of those future cash flows will be. Choosing the appropriate discount rate is crucial for appropriately valuing future cash flows, whether they pertain to earnings or debt obligations. The following are some points:
• Present value asserts that a sum of money is worth more today than it will be tomorrow.
• In other words, present value demonstrates that a sum of money obtained in the future is not as valuable as a similar sum received today.
• Unspent funds today could depreciate in value over time at an assumed yearly rate as a result of inflation or the rate of return on investments.
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