Answer:
D) Straight commission
Explanation:
When a company uses the straight commission compensation method, it pays no fixed salary to its salespeople, instead all the salespeople's salaries are calculated based on a percentage of their total sales. This means that a salesperson is paid according to his/her performance, if they sell a lot, they will earn a lot.
Neue Inc reports net income of $500,000; during the year, the company declared $100,000 in preferred stock dividends and had an average of 250,000 shares of common stock outstanding. Earning per share rounded to the nearest cent will be:
Answer:
1.60
Explanation:
($500,000 - $100,000)/250,000
If the average of 250,000 shares of common stock outstanding the earning per share is $1.60.
Using this formula
Earnings per share (EPS) =Net income -Preferred stock dividend )/Average shares of common stock outstanding
Where:
Net income=$500,000
Preferred stock dividend=$100,000
Average shares of common stock outstanding=250,000
Let plug in the formula
Earnings per share (EPS) =($500,000-$100,000)/$250,000
Earnings per share (EPS) =$400,000/$250,000
Earnings per share (EPS) =$1.60
Inconclusion the average of 250,000 shares of common stock outstanding the earning per share is $1.60.
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A baseball fan with a Mike Trout baseball card wants to trade it for a Giancarlo Stanton baseball card, but everyone the fan knows who has a Stanton card doesn't want a Trout card. Economists characterize this problem as a failure of the:_________
Answer:
Principle of a double coincidence of wants.
Explanation:
The principle of a double coincidence of desires is the basis of an exchange economy. It occurs when two parties wish to exchange an item they each own without the exchange being made involving any monetary payment, so both parties need to be willing to agree to sell and buy each commodity. This economic phenomenon arises due to needs, desires or motivational situations for the exchange to take place in the same place and time.
If Stan and Marcus, a new trainee at the manufacturing plant, are working together to resolve an issue on the line, they would be using joint problem solving as a means of transferring Stan's tacit knowledge to Marcus.A. TrueB. False.
Answer:
TRUE
Explanation:
Working together, both sides can share ideas and knowledge to generate an optimizing result. In the narrated case, Stan was already a company employee and Marcus is a trainee. Thus, Stan is expected to have accumulated knowledge about the characteristics of the type of project they are working on. Thus, it is natural and expected that Stan will transfer tactical knowledge to Marcus. However, this does not prevent Marcus from giving suggestions for improving plant processes. Thus, together they can produce a more efficient result for the factory.
Suppose that under your health insurance policy, hospital expenses are subject to a $1,500 deductible and $300 per day copay. You get sick and are hospitalized for 5 days, and the bill (after insurance discounts are applied) comes to $7,000. How much of that hospital bill will you have to pay yourself
Answer:
$3,000
Explanation:
The patient is responsible for paying the deductible (amount of money the insured has to pay before the insurance company starts paying) and the daily copay (fixed amount that the patient has to pay):
deductible: $1,500
5 days copay: 5 x $300 = $1,500
total = $1,500 + $1,500 = $3,000
At December 31, 2018 and 2019, Frist Company had outstanding 50 million common shares and 4 million shares of 10%, $10 par cumulative preferred stock. Net income for 2019 was $20 million. No dividends were declared in 2018 or 2019. EPS for 2019 was:
Answer:
The EPS for 2019 was $0.32
Explanation:
A Net Income $20,000,000
B No. of preferred Stock shares $4,000,000
C Par value per share $10.00
D = C*10% Dividend per share (10%) $1.00
E = B*D Preferred Dividend $4,000,000.00
F = A - E Net Income(Common Stockholders) $16,000,000.00
G Number of share(common stock)outstanding 50,000,000
H = F - G Earning per share for 2019 $0.32
Therefore,The EPS for 2019 was $0.32
Answer:
Eet
Explanation:
Suppose during the course of a year an economy produces $7 trillion of consumer goods, $1 trillion of investment goods, $5 trillion in government services, and has $1 trillion of exports and $2 trillion of imports. For that economy, GDP would be: A)$16 trillion. B) $14 trillion. C) $13 trillion. D) $12 trillion.
Answer:
D) $12 trillion.
Explanation:
GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP = Consumption + Investment + Government Spending + Net Export
Net Export = Export - Import
Net Export = $1 - $2 = -$1
GDP = $7 + $1 + $5 - $1 = $12
All calculations are in trillion
I hope my answer helps you.
When pay is made public, people evaluate how equitable their pay is in light of the pay other people are receiving. The problem in this case is that Dwight and Guillermo have found out that others are getting paid more than they do for the same work. What are they likely to do under these circumstances? Check all that apply.
A. Try to convince the coach to give them more money
B. Come to more practices
C. Quit the team
D. Attend fewer practices
Answer:
A , C, D
Explanation:
Answers:
A: Try to convince the coach to give them more money
C: Quit the Team
D: Attend fewer practices
When pay is made public, people assess the fairness of their pay relative to others. Dwight and Guillermo may try to convince the coach for a raise, attend more practices, or quit the team if they perceive the pay inequality as unjust.
Explanation:When pay is made public, people evaluate the equity of their pay in comparison to others. In the case of Dwight and Guillermo finding out that others are getting paid more for the same work, there are a few possible reactions:
Try to convince the coach to give them more money: They may approach the coach and present their case for a raise. Come to more practices: They may believe that attending more practices will demonstrate their commitment and performance, potentially influencing their pay. Quit the team: If they feel strongly about the inequity, they may decide to leave the team. Learn more about Pay equity here:
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A report indicated that the average real wage in manufacturing declined by 2 percent between 1990 and 2000. If the CPI equaled 1.30 in 1990, 1.69 in 2000, and the average nominal wage in manufacturing was $35 in 2000, what was the average nominal wage in manufacturing in 1990?
Final answer:
To find the average nominal wage in manufacturing in 1990, calculate the inflation-adjusted wage using the CPI. The average nominal wage in manufacturing in 1990 was approximately $35.
Explanation:
To find the average nominal wage in manufacturing in 1990, we need to calculate the inflation-adjusted wage using the Consumer Price Index (CPI). First, we can calculate the inflation rate by dividing the CPI in 2000 (1.69) by the CPI in 1990 (1.30). This gives us an inflation rate of approximately 1.3 (1.69 / 1.30).
Next, we can calculate the real wage in 2000 by multiplying the average nominal wage in 2000 ($35) by the inflation rate (1.3). This gives us a real wage of approximately $45.5 (35 * 1.3).
Finally, to find the average nominal wage in 1990, we need to adjust the real wage in 2000 for inflation. We divide the real wage in 2000 ($45.5) by the inflation rate (1.3). This gives us an average nominal wage in 1990 of approximately $35 (45.5 / 1.3).
Manning Company purchased a factory for $120,000. The factory included land, a building, and equipment. The land contributes 40.8%, the building contributes 49.6%, and the equipment contributes 9.6% of the factory’s value. How much of the cost should be assigned to the building?
Answer:
$59,520
Explanation:
Data provided in the question:
Purchasing cost of the company = $120,000
Particular Contribution
Land 40.8%
Building 49.6%
Equipment 9.6%
Now,
The cost that should be assigned to the building
= Purchasing cost of the company × Percentage Contribution of Building
= $120,000 × 49.6%
= $59,520
The cost assigned to the building that Manning Company purchased is calculated by multiplying the total cost by the percentage that corresponds to the building, which equals to $59,520.
Explanation:The Manning Company purchased a factory for $120,000, with the building contributing 49.6% of the factory's value. To find out how much of the cost is assigned to the building, you would multiply the total cost of the factory by the percentage that corresponds to the building. In this case, it would be $120,000× 0.496 (49.6% in decimal form) which equals to $59,520. Therefore, the amount of the cost that should be assigned to the building is $59,520.
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The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n)_____________.
Answer:
Marketing information system.
Explanation:
By the definition of renowned marketing scholar Philip Kotler, a marketing information system is an information system that collects, selects, and analyzes relevant information to support the decision-making process of marketers.
This system functions as a cycle that systematizes internal and external organizational data to provide alternatives and determine future trends that may aid marketing team decision making.
Mandy and Timothy exchange equipment in a like-kind Exchange. Mandy receives equipment with a fair market value of $28,000 and transfers equipment worth $20,000 (adjusted basis of $14,000) and cash of $8,000. What is Mandy’s realized and recognized gain?
Answer:
Realized gain of Mandy will be $6000
Explanation:
We have given Mandy receives equipment with a fair market value of $28000
Adjusted basis = $14000+$8000 = $22000
We have to find the Mandy realized gain
So Mandy realized gain is given by
Realized gain = market value - adjusted basis = $28000 - $22000 = $6000
So the realized gain of Mandy will be $6000
Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members?a. World Trade Organizationb. International Monetary Fund
c. World Bank
d. United Nations
e. Multinational corporation
Answer:
World Bank
Explanation:
One of the core objectives of the world bank is to bridge the gap between rich and poor countries. They achieve this by providing short term loans to member countries with deficit.
Danny's boss is apathetic to whether Danny works at home, at the office, or from his beach house. All he cares about is that the project is completed on time, on budget, and with exemplary quality. Which characteristic of organizational culture describes this aspect of Danny's job?
A) low risk taking
B) high outcome orientation
C) high attention to detail
D) low aggressiveness
E) high stability
Answer:
B) high outcome orientation
Explanation:
For high outcome orientation organizational cultures, the final results are the most important thing. High achievement is very valued, and the actions taken to fulfill the goals are secondary. Only the final outcome counts.
This type of organization is usually more effective than means oriented organizations (where how work gets done is more important).
In a process costing system, the calculation of equivalent units is used for calculating the dollar amount of ending inventory the dollar amount of the cost of goods sold for the accounting period the dollar cost of a particular job Both A and B are correct
Answer:
calculating the dollar amount of ending inventorythe dollar amount of the cost of goods sold for the accounting periodExplanation:
The calculation of equivalent units main purpose is to convert partially completed units that are still in production, into completed units according to the amount that could be produced using the same amount of inputs.
Once you calculated the equivalent units, you can assign a value to your ending inventory including both finished units and equivalent units. By doing this you can calculate the cost per unit and the COGS for the accounting period.
In a process costing system, equivalent units are used to allocate costs of a specific period over all units produced during that period, crucial for evaluating stock and cost of goods sold. 'Equivalent units' refers to fully completed units equivalent to the work done during a period, for fair cost distribution.
Explanation:In a process costing system, the calculation of equivalent units is used to determine the dollar amount of both the ending inventory and the cost of goods sold for an accounting period. The term 'equivalent units' refers to the amount of work done during a period, expressed in fully completed units. This concept helps to allocate the costs of an accounting period fairly over all units worked on during that period.
For example, if a factory produces 1000 units in a period, but 200 are only 50% complete at the end of the period, we would say there are 900 equivalent units. The costs of the accounting period would then be spread across these 900 units. Therefore, the calculation of equivalent units aids in evaluating the ending inventory and cost of goods sold in a process costing system.
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international trade, and changes in the aggregate price level.
a. Suppose that the MPC is equal to 0.75. What was the size of the change in government purchases of goods and services that resulted in the increase in real GDP of $200 million?
b. Now suppose that the change in government purchases of goods and services was $20 million. What value of the multiplier would result in an increase in real GDP of $200 million?
c. Given the value of the multiplier you calculated in part b, what marginal propensity to save would have?
Answer:
A) 50 millions
B) 10
C) 0.10
Explanation:
Government spending multiplier:
1/(1-MPC) = 1/MPS
1/(1-0.75) = 1/0.25 = 4
The government multiplier is 4 thus, to increase the GDP by 200 million the government spending should be of 50 millions as:
government spending x multiplier = increasein GDP
G x 4 = 200
G = 200/4 = 50
we are given with G and increase in GDP we should solve for multiplier:
government spending x multiplier = increasein GDP
20 x m = 200
m = 200 / 20 = 10
C) the multiplier is: 1/(1-MPC) = 1/MPS
if m = 10 then:
1/MPS = 10
MPS = 1/10 = 0.10
The size of the multiplier is determined by the proportion of the marginal dollar of income that goes into taxes, saving, and imports. The multiplier effect occurs when an initial increase in spending cycles repeatedly through the economy, having a larger impact than the initial dollar amount spent. To calculate the change in government purchases of goods and services required to increase real GDP by a certain amount, divide the desired increase in real GDP by the multiplier.
Explanation:The size of the multiplier is determined by the proportion of the marginal dollar of income that goes into taxes, saving, and imports. These factors are known as "leakages." The multiplier effect occurs when an initial increase in spending cycles repeatedly through the economy, having a larger impact than the initial dollar amount spent.
a. To calculate the change in government purchases of goods and services required to increase real GDP by $200 million, you need to divide the desired increase in real GDP by the multiplier. If the MPC is 0.75, the multiplier is 1/ (1 - MPC) = 1/ (1 - 0.75) = 1/0.25 = 4. So, the change in government purchases of goods and services would be $200 million divided by 4, which is $50 million.
b. In this case, you need to divide the desired increase in real GDP by the change in government purchases of goods and services to find the value of the multiplier. If the change in government purchases of goods and services is $20 million and the desired increase in real GDP is $200 million, the multiplier would be $200 million divided by $20 million, which is 10.
c. Given the value of the multiplier calculated in part b (which is 10), you can find the marginal propensity to save by subtracting it from 1. So, the marginal propensity to save would be 1 - 10, which is -9.
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The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called aA. new-product purchaseB. repetitive purchaseC. straight rebuyD. modified rebuyE. standard order
Answer:
C. straight rebuy
Explanation:
Straight rebuy -
It is the method , when the customer purchases another identical goods in the same amount with the same terms and condition , from the very same supplier , is known as straight rebuy .
Hence , from the question ,
The United States Navy buys uniform from the same supplier for the last 25 years .
Therefore ,
the information given in the question is about straight rebuy .
Pavers Inc. contracts to buy some heavy equipment from Earthmovers, Inc. Before either party performs, Earthmovers sells its assets to Excavation Corporation. On learning of the sale, Pavers is concerned about its contract with Earthmovers. Pavers should:
Answer:
Pavers should demand some assurance of performance from the seller.
If Excavation only bought Earthmovers assets and not the whole company, then Pavers should request Earthmovers to give assurance of performance.
The problem that Pavers faces is that when companies only sell their assets and not the whole company, they usually do it because their liabilities are too high and it's not certain that they will keep operating. That way the buyer (Excavation) gets the assets and the seller (Earthmovers) the liabilities.
Pavers Inc. should review the contract for assignment clauses, seek written assurance from Excavation Corporation, consult a lawyer, and monitor performance to protect its interests after Earthmovers sells its assets.
Pavers Inc. has a legitimate concern regarding its contract with Earthmovers, Inc., especially after Earthmovers sells its assets to Excavation Corporation. In contract law, this type of scenario involves the assignment of rights and delegation of duties to another party. It is important for Pavers to know that unless the contract explicitly prohibits assignment, Excavation Corporation can assume Earthmovers' contractual obligations.
Here are the steps Pavers Inc. should take:
Review the Contract: Check for any clauses that address assignment and delegation. If there are restrictions, Earthmovers might be in breach.Seek Written Assurance: Pavers should request written confirmation from Excavation Corporation that they will honor all terms of the original contract.Consult a Lawyer: It’s advisable for Pavers to consult with a legal expert to explore their rights and remedies under the contract.Monitor Performance: Ensure that Excavation Corporation performs as stipulated in the contract. Document any deviations or failures to perform.By following these steps, Pavers can protect its interests and ensure that the contracted terms are fulfilled even after the sale of assets.
Conventional database technologies often choke when trying to sift through the massive amounts of data collected by many of today's firms, leading to the rise of Hadoop and other "Big Data" technologies. True False
Answer:
true
Explanation:
The Hadoop software developed by Apache Technologies is an open source software library that allows the processing of big data across computers using a programming model. It was designed to facilitate the handling of big data from single servers to thousands of computers.
Most companies cannot afford to invest millions in computer hardware in order to support all their big data, so they have use Hadoop or similar software to handle it (it is cheaper this way).
Horseshoe Stables is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The last annual dividend was $0.90 a share but all future dividends will be decreased by 10 percent annually. What is a share of this stock worth today at a required return of 15 percent?
Answer:
$3.24
Explanation:
Data provided in the question:
Last annual dividend, D0 = $0.90
Growth rate, g = -10% = - 0.10 (negative sign means decrease)
Required return, r = 15% = 0.15
Now,
Future dividend, D1 = D0 × (1 + r)
= $0.9 × (1 + (-0.10) )
= $0.81
Current worth of the stock = $0.81 ÷ ( 0.15 - (-0.10) )
= $0.81 ÷ 0.25
= $3.24
Through shared values, organizational cultures can informally do all the following EXCEPT:
a. determine how people are treated, controlled and rewarded.
b. eliminate politics in the workplace
c. establish how cooperation, competition, conflict and decision making are handled.
d. motivate the ethical actions and communications of managers and subordinates.
Answer:
B
Explanation:
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the values that guide member behavior, and is expressed in member self-image, inner workings, interactions with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid (The Business Dictionary).
Organizational culture has to do with the culture of the firm, hence, it cannot eliminate politics in the workplace.
After reviewing the Law of Diminishing Marginal Returns, an economist would correctly conclude that in the short run: total production must fall after a certain point. price must fall after a certain point on the production function. the additional output of labor will eventually decrease as more workers are hired. wages of workers must eventually increase. the total cost will eventually fall after enough workers have been employed.
Answer:
The correct answer is: additional output of labor will eventually decrease as more workers are hired.
Explanation:
The law of diminishing return states that keeping other things constant if we go on increasing the quantity of one input, the marginal returns from that input will go on declining.
In other words, if we go on hiring an input the increase in output because of each additional input employed will go on declining.
For instance, keeping other things constant we go on hiring more and more workers the marginal product of workers or additional output created by each worker will go on declining.
The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is the company's current stock price, P0? a. $18.62 b. $19.08 c. $19.56 d. $20.05 e. $20.55
Answer:
option (a) $18.62
Explanation:
Data provided in the question:
Dividend just paid, D0 = $0.75
Expected growth rate, g = 5.50%
Company's beta = 1.15
Market risk premium, Rm = 5.00%
Risk-free rate, Rf = 4.00%
Now,
D1 = D0 × ( 1 + g)
= $0.75 × ( 1 + 5.5% )
= $0.79125
Required rate of return = Rf + ( beta × Rm )
= 4.00% + ( 1.15 × 5.00% )
= 4.00% + 5.75%
= 9.75%
Also,
Stock price = D1 × ( R - g )
therefore,
Current stock price = $0.79125 ÷ (9.75% - 5.50%)
= $0.79125 ÷ 0.0425
= $18.617 ≈ $18.62
Hence,
The correct answer is option (a) $18.62
Of the following, which most closely describes the method by which companies engage and create benefits for their customers?
A. Supply chain
B. Value delivery network
C. Marketing channel
D. Customer relationship management
E. Channel level
Answer:
D. Customer relationship management
Explanation:
Customer relationship management is the approach that companies use to interact with its customers and this approach analyze customer interactions to improve its relationships with them and create benefits for their customers, As this leads to increased sales and profits.
Establishing mutual aid agreements to obtain resources from neighboring jurisdictions is an example of which resource management activity ?
A. Acquiring, storing, and inventorying resources
B. Qualifying, certifying, and credentialing personnel
C. Planning for Resources
D. Identifying and Typing Resources
Answer: Option C
Explanation: In simple words, planning for resources refers to the activity of NIMS of management which helps in making strategies for resource management. Stock pilling resources and Mutual aid agreements are some of the many examples of it.
In planning for resources under mutual aid agreements two different countries agrees to exchange their resource in such a way that the utility from such resources could be derived to maximum.
Hence from the above we can conclude that the correct option is C .
The activity of establishing mutual aid agreements to obtain resources from neighboring jurisdictions is known as Planning for Resources. This part of resource management involves preparing for the resources that may be required in different situations and making formal arrangements with other organizations or jurisdictions for mutual assistance.
Explanation:Establishing mutual aid agreements to obtain resources from neighboring jurisdictions is an example of the resource management activity known as C. Planning for Resources. This entails preparing in advance for the resources that may be required in specific situations. In this context, 'resources' can refer to anything from personnel and equipment to supplies and facilities.
An integral part of resource management involves knowing what resources are available, where they are located, and how to obtain them. Mutual aid agreements are a method used to ensure resources are accessible when needed. They typically involve formal arrangements between organizations or jurisdictions to assist one another on a reciprocal basis.
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A maple sugar manufacturer wants to estimate the average trunk diameter of Sugar Maples trees in a large forest. There are too many trees to list them all and take a SRS, so he divides the forest into several hundred 10 meter by 10 meter plots, selects 25 plots at random, and measures the diameter of every Sugar Maple in each one. This is an example of a _______.
a. multistage sample
b. stratified sample
c. simple random sample
d. cluster sample
e. convenience sample
Answer:
d. cluster sample
Explanation:
Cluster sampling is characterized as a sampling method which various clusters of individuals are generated from a population where they are representative of homogeneous features and have equal opportunities to be component of the sample.
A simple random sample is generated from the various clusters in the population in this sampling method.
The sampling method where the forest is divided into plots and a random selection of those plots have every Sugar Maple measured is an example of cluster sampling.
Explanation:The situation you've described, where a maple sugar manufacturer divides a large forest into several hundred 10 meter by 10 meter plots and then selects 25 plots at random to measure the trunk diameter of every Sugar Maple in each one, is an example of a cluster sample. In cluster sampling, the population is divided into clusters (in this case, the 10m x 10m plots), and a random selection of these clusters is made. All members (Sugar Maple trees, in this situation) within the chosen clusters are then studied. This method is different from a simple random sample (SRS) where each individual in the population has an equal chance of being selected, and different from a stratified sample which involves dividing the population into strata and sampling each stratum proportionally.
The marginal revenue received by a firm in a perfectly competitive market:____a.is greater than the market price.b.is less than the market price.c.is equal to its average revenue.d.increases with the quantity of output sold.
Answer:
C. Is equal to its average revenue.
The marginal revenue received by a firm in a perfectly competitive market is equal to its average revenue, which means it is always equal to the market price, reflecting the characteristic of firms in such markets as price takers.
Explanation:The marginal revenue received by a firm in a perfectly competitive market is equal to its average revenue. In a perfectly competitive market, the price of the product does not change with the production of an additional unit. Therefore, marginal revenue, which is the additional revenue gained by producing one more unit, is calculated by dividing the change in total revenue by the change in output quantity,
Therefore, marginal revenue for a perfectly competitive firm is always equal to the market price and does not vary with the quantity of output sold. This scenario helps in understanding how perfect competition works, where firms are price takers, meaning they accept the market price determined by the supply and demand forces.
Peggy accepts a job offer as an advertising copywriter. Her boss immediately assigns her campaigns for products such as makeup and cleaning products. Peggy asks for different clients, but her boss tells her she should stick to what she and "her kind" know best. Peggy is experiencing: A. Sexism B. Homophobia C. Masochism D. Sexual orientation
Answer:
Sexism
wich is a discriminatory attitude of someone who underestimates people of the opposite sex.
It also distinguishes betwen the 2 sex
Peggy is experiencing Sexism, a form of discrimination where one is treated unfairly because of their sex or gender. The boss implies women should stick to topics they allegedly know best, thus suggesting limited knowledge and capability, which is clearly sexist.
Explanation:In the scenario described, Peggy is experiencing Sexism. Sexism is a discriminatory behavior where a person or group is unfairly treated based on their sex or gender. This frequently manifests in the workplace and can take many forms. In this case, Peggy's boss suggests that because she is a woman, she should only work on campaigns for products typically associated with women - such as makeup and cleaning products. His comment suggesting she stick to what 'her kind' know best, implies he believes women are only capable or knowledgeable about certain subjects, which is a clear case of sexism.
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Irving Fisher took the view that the institutional features of the economy which affect velocity change ________ over time so that velocity will be fairly ________ in the short run.
A) rapidly; erratic
B) rapidly; stable
C) slowly; stable
D) slowly; erratic
Answer:
C) slowly; stable
Explanation:
Velocity is defined as the rate of turnover of money.
Velocity = Nominal aggregate income / money supply
Irving Fisher posited that the factors that affect velocity are institutions that impact how transactions are conducted. According to him, institutional factors that affect the velocity of money change slowly. Therefore, in the short run, velocity is fairly stable.
The correct answer to the student's question is C) slowly; stable, reflecting Irving Fisher's view on the change in velocity of money over time being gradual, contributing to its stability in the short run.
Explanation:Irving Fisher took the view that the institutional features of the economy which affect velocity change slowly over time so that velocity will be fairly stable in the short run. The correct answer is C) slowly; stable. This perspective aligns with the idea that in the short run, velocity can be quite unpredictable and the stability of velocity in the long run is a key assumption of the Quantity Theory of Money. Despite this, the experiences in the 1980s through the 2000s showed that the velocity of M2 varied, leading to debates about the predictability and stability of velocity as a measure and thus its impact on monetary policy decisions. Monetarists claim that while velocity can be erratic in the short term, in the long term it tends to stabilize.
Castille Corp. purchases, for $600,000, land upon which a building and a dilapidated shed are situated. Castille plans to use the building as-is for operations but immediately razes the shed at a cost of $5,000 minus scrap recovery of $1,000. A recent tax appraisal of the property allocated $100,000 to the land and $400,000 to the building. In the entry to record the acquisition of the property,
at what amount will Castille debit Land?
a. $124,000
b. $120,800
c. $120,000
d. $100,000
Answer:
b. $120,800.00
Explanation:
Cost of the land $ 600,000/-
Associated expenses:
Razing down the shed: $ 5000
income from scrap: $ 1000
Total expenses $ 4000
The total cost of land =600,000+4000= $ 604,000
Tax allocation: land and building $ 500,000
land allocation will be: 100,000/500,000 x$ 604,000
=0.2x604,000
=$120,800.00
Information systems help achieve many important business objectives. When a manager does not receive forecasts, sales projections, or appropriate dashboards, the business objective of ______________ is not achieved.
Answer: Proper decision making
Explanation: Information is key factor when a business manager needs to make proper decisions.
The manager needs to get all the available charts, analysis, projections about a particular business to be taken. Poor information would increase the likelihood of business failure.