Answer:
C) credit to Note Payable of $1,000,000
Explanation:
The complete journal records for November 1, 2018 are:
Dr Cash account 100,000Cr Notes Payable account 100,000The company received $100,000 in cash. Since cash is an asset and it increased when the bonds were issued, it should be debited.
The company has to pay a note worth $100,000. Since notes payable is a liability and it increased when the bonds were issued, it should be credited.
Madison owns a retail clothing store. Her marketing consultant says that with all the technology at their disposal, customers will go back and forth across multiple channels before choosing to buy an outfit at her store.
The consultant recommends that Madison thinks about her customer's journey before they actually arrive at her store.
Which type of strategy is Madison’s marketing director suggesting to help her drive dales at her physical location?
Hey! How are you? My name is Maria, 19 years old. Yesterday broke up with a guy, looking for casual sex.
Write me here and I will give you my phone number - *pofsex.com*
My nickname - Lovely
Peggy is the revenue manager at a 1500 room hotel. For next Friday Peggy's PMs shows 300 check-outs, 900 stayovers, 250 transient arrivals and a 200-room group block that begins a three stay on that day. What is Peggy's current rooms available for sale for next Friday?A. 150B. 250C. 450D. 650
Answer:
option (A) 150
Explanation:
Data provided in the question:
Number of rooms in the hotel = 1500
Number of checkouts = 300
Number of stayovers = 900
Number of transient arrivals = 250
Group block that begins a three stay on that day = 200
Now,
Rooms available for next Friday
= Total number of rooms - ( stayovers + transient arrivals + group block)
= 1500 - ( 900 + 250 + 200)
= 150
Hence,
the correct answer is option (A) 150
Peggy currently has 150 rooms available for sale for next Friday at her 1500 room hotel after accounting for stayovers, group block reservations, and transient arrivals. The correct answer is option A: 150.
Explanation:To calculate Peggy's rooms available for sale for next Friday at her 1500 room hotel, we need to consider the given scenarios for that day:
300 check-outs900 stayovers250 transient arrivals200-room group blockWe start with the total rooms (1500) and subtract the rooms that will not be available for sale:
900 stayovers (these rooms are already occupied and not available for new guests)200-room group block (these rooms have been reserved for a group and are not available for new reservations)This results in 400 rooms (1500 total rooms - 900 stayovers - 200 blocked rooms). However, we still need to account for the 250 transient arrivals, which further reduces the number of rooms available for sale. After subtracting these arrivals, we are left with: 400 rooms - 250 transient arrivals = 150 rooms available for sale.
Vertical integration appears particularly advantageous when the organization has:
a. a very common, undifferentiated product.
b. purchases that are a relatively small percent of sales.
c. a very specialized product.
d. little experience operating an acquired vendor.
e. a large market share.
Answer and Explanation:
e. a large market share.
The correct option is c. Vertical integration appears particularly advantageous when the organization has a very specialized product.
Vertical integration is a strategy where a company expands its operations to include different stages of production or distribution within its organizational structure. This approach is often beneficial when the company has a very specialized product for several reasons:
1. Control Over Production: When a product is highly specialized, the company may find it difficult to locate suppliers that can meet its specific needs. By integrating vertically, the company can ensure that the components or materials required for its specialized product are produced to its exact specifications.
2. Protection of Proprietary Knowledge: Specialized products often involve proprietary technology or processes. Vertical integration helps protect this intellectual property by keeping critical aspects of production in-house, reducing the risk of imitation or intellectual property theft by external suppliers.
3. Efficiency Gains: Specialized products may require unique manufacturing processes or equipment. By vertically integrating, a company can optimize these processes for its specific needs, leading to greater efficiency and potentially lower costs.
4. Quality Control: With a specialized product, maintaining high-quality standards is crucial. Vertical integration allows the company to have direct oversight of the quality of inputs and the production process, ensuring that the final product meets the desired quality levels.
5. Supply Chain Security: Relying on external suppliers for specialized components can pose a risk if those suppliers face disruptions. Vertical integration secures the supply chain, reducing the likelihood of production delays due to supply issues.
The other options do not align as strongly with the advantages of vertical integration:
a. Very common, undifferentiated product: Vertical integration may not be as advantageous for common products because there is less need for control over specialized production processes or protection of proprietary knowledge.
b. Purchases that are a relatively small percent of sales: If purchases represent a small portion of sales, the potential benefits of vertical integration in terms of cost savings or supply chain control may not justify the investment and complexity of integrating these operations.
d. Little experience operating an acquired vendor: Lack of experience can be a significant disadvantage in vertical integration. If a company does not have the expertise to manage the newly acquired stage of production, it could lead to inefficiencies and management challenges.
e. Large market share: While having a large market share might provide the resources and scale necessary for vertical integration, it does not inherently make vertical integration more advantageous. The decision to vertically integrate should be based on strategic considerations related to the product and market conditions, not just market share.
Other things held constant, which of the following actions would increase the amount of cash on a companys balance sheet? Select one:a. The company repurchases common stock.b. The company pays a dividend.c. The company issues new common stock.d. The company gives customers more time to pay their bills.e. The company purchases a new piece of equipment.
Answer:
Correct option is (c)
Explanation:
When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.
Payment of dividend also decreases cash from balance sheet.
When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.
When company gives more time to its debtors, receipt of cash is delayed thereby not increasing cash in balance sheet.
Purchase of new equipment will reduce cash balance.
So issue of new shares increase cash balance in balance sheet.
Answer:
The company issues new common stock
Explanation:
In the Statement of Financial Accounting Concepts (SFAC) No. 8. SFAC No. 8 the position about materiality is that: Group of answer choices It should always be determined only through qualitative evaluations It should always be determined through quantitative evaluations It should always be determined by considering whether the amount affects past financial statements It should be determined by how the magnitude of the item would be viewed by a reasonable person
In the Statement of Financial Accounting Concepts (SFAC) No. 8, materiality is determined by how the magnitude of the item would be viewed by a reasonable person. Materiality can involve both qualitative and quantitative factors. The focus of materiality is on whether the information about the item would influence the decisions of the users of financial statements.
Explanation:Statement of Financial Accounting Concepts (SFAC) No. 8 and Materiality
In the Statement of Financial Accounting Concepts (SFAC) No. 8, the position about materiality is that it should be determined by how the magnitude of the item would be viewed by a reasonable person.
Qualitative and Quantitative Factors
Materiality can involve both qualitative and quantitative evaluations. Qualitative factors consider the nature and impact of an item on the decision-making process, while quantitative factors consider the monetary amount of an item.
Reasonable Person Perspective
Materiality focuses on whether the information about the item would influence the decisions of the users of financial statements. The viewpoint of a reasonable person is taken into account to assess how significant an item is.
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Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables, its marginal cost is equal to $200, and AVC is rising. If the market price of tables is equal to $150, Alex's Furniture Mart should:
a. raise the price of its tables
b. increase its level of table production
c. continue producing 250 tables
e. decrease its level of table production
Answer:
e. decrease its level of table production
Explanation:
MC = 200.
Market price = 150 which cannot be changed by any firm.
MC is greater than price = MR then in order to maximise profit MR has to be equal to marginal cost
MC has to be decreases to $150 which is possible only when it reduces output.
A statement of cash flows usually does not include which of the following?
a. Net income
b. Increase in accounts receivable
c. Contributed Capital
d. Depreciation expense
e. All of the above.
Answer:
c.
Explanation:
A cash flow statement is a financial report that a company creates and completely details where the company's is receiving money from as well as how that money is being spent throughout a certain time period. Based on the answers provided, it can be said that all of them are part of a cash flow statement except for Contributed Capital. This is a the total value of the stocks that shareholders purchased from the company. Even though this is a money input for the company it does not get included in the cash flow statement.
Isabella is working with her boss on how to achieve the goals that have been set for the next year. So far they have agreed that Donna will start a graduate degree, she will be given 2 trainee assistants, and her budget allocation will be increased by 20%. What is Isabella doing?a) Critical incident
b) MBO
c) BARS
d) MARS
e) Checklist appraisal
Answer:
B) MBO
Explanation:
An MBO is a secondary vocational education program carried out in the Netherlands. It lasts for four years and its courses go from assistant training, basic vocational training, professional training and finally middle-management training. It is basically the dutch equivalent of technical college, since you start the MBO when you are around 18 years old. After you complete your MBO you can continue your college education.
The MBO covers a lot of professions but it is basically hands on training, since between 20 -60% of the time is practical training (they work as someone else's assistant or trainee).
Isabella is her boss's trainee and since she is about to graduate, she must start training 2 new assistants.
"If you don't watch them like a hawk, they'll stop working, go sit in the air conditioning, send texts on their phones long dash do anything but work!" according to Stan, a supervisor of molders in an iron foundry. Stan agrees with _______________. A. the two-factor theory B. Theory X C. Theory Y D. Theory Z E. the theory of learnin
Answer:
The answer is letter B
Explanation:
THEORY X
Robin is working with a little autistic boy, trying to increase the amount of eye contact he can provide. She says, "Look at me." He doesn't, and then she holds his favorite candy near her eye and again says "Look at me." As he turns his gaze toward the candy, he briefly makes eye contact with Robin and she gives him the candy. What sort of treatment is Robin using with her client?
Answer:
Discrete-trial training
Explanation:
Discrete-trial training (DTT) refers to a method used to develop responses to a stimulus. The teacher uses tangible reinforcements to develop one skill at a time, i.e. one desired behavior at a time. DTT is divided into three stages:
the teacher's presentation the child's response the consequenceThe treatment Robin is using with her client is called Applied Behavior Analysis (ABA), a form of behavior therapy that uses reinforcement to encourage desired behaviors.
Explanation:Robin is using a form of behavior therapy known as Applied Behavior Analysis (ABA). This method involves utilizing reinforcement to encourage desired behaviors. In this case, the desired behavior is making eye contact. Robin uses the boy's favorite candy as positive reinforcement (reward) to encourage him to make eye contact with her. When the boy makes eye contact, even briefly, he receives his favorite candy, thereby reinforcing the behavior and making it more likely to be repeated in the future.
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Suppose there are two breakfast restaurants in your college town, Waffle Kingdom and Flip’s Flapjacks, and they decide to operate collusively as a cartel. If both restaurants abide by the cartel’s agreement, then each will earn $100,000 in profit. If both restaurants cheat on the cartel’s agreement, then each will earn $25,000 in profit. If one restaurant cheats and the other abides by the agreement, then the cheater will earn a profit of $150,000 while the firm that abides will have a loss of $12,500.1 The most profitable combined outcome for the two restaurants would bea. for both restaurants to abide by the cartel’s agreement.b. for both restaurants to cheat on the cartel’s agreement.c. for Waffle Kingdom to cheat on the agreement and Flip’s Flapjacks to abide by the agreement.d. There is not a profitable outcome for both restaurants
Answer:
a. For both restaurants to abide by the cartel’s agreement.
Explanation:
These type of agreements unite companies that have common interests or are in a similar industry to form an association.
Answer:
B.numbers
Explanation:
got it right on edg
Which of the following would be included in the gross national product (GNP) of the United States?A. Production from an Hungarian citizen who works in Denver, CO.B. Production from a U.S. firm that operates in Mexico.C. Production from a Canadian firm that operates in Montana.D. All of the above are included in the GNP of the U.S.
Answer:
B. Production from a U.S. firm that operates in Mexico
Explanation:
GNP is the sum of all final goods and services produced by a country's nationals in a given year.
In the calculation of GNP, production of foreign residents are excluded. Therefore, Production from an Hungarian citizen who works in Denver, CO and Production from a Canadian firm that operates in Montana would be excluded.
Only production from US nationals irrespective of where the production takes place would be included.
I hope my answer helps you.
Real per capita GDP in Taiwan in 1961 was about $500, but it doubled to about $1000.00 by 1981. a. What was the average annual economic growth rate in Taiwan over the 20.00 years from 1961 to 1981? (NOTE: Round this to two places past the decimal point.)
Answer:
the average annual economic growth rate in Taiwan from 1961 to 1981 was 41.42%
Explanation:
Hi, we need to use the following formula.
[tex]FV=PV(1+r)^{t}[/tex]
Where:
FV = GDP in 1981 ($1,000)
PV = GDP in 1961 ($500)
r = growth rate
t = years from 1981 to 1961 (20 years)
So, it should look like this:
[tex]1,000=500(1+r)^{20}[/tex]
Now, we solve for "r"
[tex]\frac{1,000}{500} =(1+r)^{20}[/tex]
[tex]2=(1+r)^{20}[/tex]
[tex]\sqrt[20]{2} -1=r[/tex]
[tex]r=0.4142[/tex]
So, the growth rate of Taiwan´s GDP is 41.42%
Best of luck.
The average annual economic growth rate of Taiwan's real per capita GDP from 1961 to 1981 was approximately 3.5% when rounded to two decimal places.
Explanation:To calculate the average annual economic growth rate of Taiwan's real per capita GDP from 1961 to 1981, we can use the formula for the compound annual growth rate (CAGR):
CAGR = (EV/BV)^(1/n) - 1
Where:
EV = Ending Value (Real per capita GDP in 1981)BV = Beginning Value (Real per capita GDP in 1961)n = Number of yearsPlugging in the values we have:
CAGR = ($1000 / $500)^(1/20) - 1
CAGR = 2^(1/20) - 1
CAGR ≈ 0.035 or 3.5%
Therefore, the average annual growth rate of Taiwan's real per capita GDP over the 20-year period was approximately 3.5% when rounded to two places past the decimal point.
The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.
a. late start date.
b. early finish date.
c. early start date
d. late finish date
Answer:
The correct answer is A that is late start date.
Explanation:
Late start date is the filed which comprise of the latest date on which a task could be started without delaying the finish of the project.
The date is grounded on the date when the task is started and also on the late start of the task, late finish dates of the tasks predecessor and the successor as well and also on other constraints.
So, the late start date for the activity is the latest possible time.
Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting Services." Eventually Rob would like to grow his business to include partners and bookkeepers. We would classify Rob as ________.
Answer:
entrepreneur
Explanation:
Rob can be classified as an entrepreneur.
Reason :The reason behind this is that he takes a shot at his very own and is planning to develop and procure individuals who can work for him. He is likewise ready to have accomplices which implies he is considering extending the business.
These all are the qualities of an entrepreneur i.e. thinking of doing something on their own
Final answer:
Rob is currently a sole proprietor but looking to expand his business to include partners and bookkeepers, indicating that he may transition to a partnership structure in the future.
Explanation:
Rob, a Certified Public Accountant (CPA) running 'Friendly Accounting Services' from his home, is currently classified as a sole proprietor. As a sole proprietor, Rob is the exclusive owner of his business, meaning he receives all the firm's revenues and is personally liable for all of the incurred costs. Since he is the only owner, Rob's business or personal assets may be at risk to cover any debts should the business fail to meet its financial obligations.
However, Rob's aim to grow his business to include partners and bookkeepers indicates that he may be considering transitioning to a partnership. Partnerships allow multiple individuals to own the business jointly, share profits, and contribute to covering losses. This business structure is commonly adopted by firms like legal and accounting practices where trust is a vital component, as partners often invest their own wealth, providing the firm with additional credibility.
In a partnership, raising capital becomes more feasible due to the combined assets of the partners, which helps in business expansion. Each partner in a partnership pays taxes on their share of the income, offering a tax advantage since the business itself isn't taxed.
Crucially, in this shared business structure, all partners are jointly responsible for the firm's liabilities. If Rob is indeed considering this 'growth' path, he would become an 'entrepreneur' with employees, transitioning from solo work to a collaborative business endeavor dedicated to maximizing profit and expanding service reach.
Tiffany owns a health club and contracts to buy a set of weights from Dylan for $10,000. Dylan is hurting financially, so he changes the dollar amount on the contract to $18,000. Before delivering the weights, Dylan attempts to collect the $18,000 from Tiffany who accuses him of trying to cheat her. She has a copy of the contract with the original amount. When they end up in court, the court likely:
Answer:
the court would most likely not enforce the contract because Dylan changed the contract.
Explanation:
Based on the information provided within the question it can be said that if they end up in court, the court would most likely not enforce the contract because Dylan changed the contract. Tiffany agreed to a contract at a price of $10,000 since Dylan increased the price, Tiffany never agreed to this new price and thus the contract is not valid.
If an activity generates a positive externality, the government can increase total economic surplus by ______the activity, and if an activity generates a negative externality, the government can increase total economicsurplus by ______ the activity.
A.taxing; banning
B.subsidizing; banning
C.subsidizing; taxing
D.publicizing; taxing
Answer:
C.subsidizing; taxing
Explanation:
When an activity generates positive externality, the benefits to third parties not involved in production or consumption exceeds the costs. Government can encourage the production of goods that provide positive externality by subsidizing production. Production activities that can generate postive externality is research and development.
When an activity generates negative externality, the benefits to third parties not involved in production or consumption is less than the cost. Government discourage production of goods that generate negative externality by taxation to increase cost of production.
Lee Associates borrowed $60,000. The company plans to set up a sinking fund that will pay back the loan at the end of 12 years. Assuming a rate of 8% compounded semiannually, the amount to be paid into the fund each period is_______ (use the tables in the handbook):
Answer:
$1,535.21
Explanation:
Given:
Amount borrowed = $60,000
Time period = 12 years
rate of interest = 8%
Sinking fund is created to pay off the amount borrowed after 12 years. It is required to compute periodic payments:
[tex]P = \frac{\frac{r}{m} }{(1+\frac{r}{m})^{n\times m}-1}\times A[/tex]
where r is 0.08
m = number of payments per year which is 2 (since it's semi annual)
n = number of years
A is amount of sinking fund
Substitute these values in the above formula:
[tex]P = \frac{\frac{0.08}{2} }{(1+\frac{0.08}{2})^{12\times 2}-1}\times60,000[/tex]
= $1,535.21
Therefore, $1,535.21 is paid into the fund each period.
True or False. The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle.
Answer:
Statement is True
Explanation:
Accounting cycle involves estimating, analyzing and reporting accounting transactions arising in a company. The cycle starts when a particular transaction occurs and ends when the same is reported in financial statements.
Accounting cycle helps in ensuring that financial statements are prepared correctly and timely. Transactions are first journalized and posted to ledger. Thereafter, unadjusted trial balance is prepared. Adjusting entries are made and then adjusted trail balance is prepared and finally financial statements are prepared.
Answer:
TrueExplanation:
The process of recording an processing the financial transactions of a company is called accounting cycle, it starts when the the transaction occurs and lasts till the accounts are closed. The accountants keep track of the accounting cycle, it repeats itself as long as company stays in business. The accounting cycle includes all the transactions, debits and credits, journal entries, accounts and adjustment of entries over a cycle. Journal entry is the recording of transaction into a journal, it is the first step of accounting cycle.
A bona fide occupational qualification is a defense to discrimination charges if: a. it can be established that customer preference is the basis for discrimination. b. the job can be established as too strenuous for women. c. it is customary for a woman to hold the job. d. none of the above
Answer:
D
Explanation:
Bona fide occupational qualifications has been created to allow certain criteria for employment which is not necessarily in the Civil Rights Act of 1964 which does not permit any form of discrimination in employment.
Bona fide occupational qualifications allow an employer to hire individuals for some of the following reasons: religion, sex, age, and national origin, only if they are reasonably necessary for that business or organization.
When finding the ultimate effect on the economy of a stimulus spending package according to the Aggregate Expenditures Model , the original amount of spending must be multiplied by the ratio of 1 / (1 - MPC) , where the MPC is
Answer:
Marginal propensity to consume
Explanation:
The marginal propensity to consume refers to what proportion of extra income will individuals decide to spend instead of saving. Additional consumer spending increases private consumption, while the remaining amount (marginal propensity to save) will increase investment.
_____ is responsible for coordinating Federal resources Federal resources that support State, local, tribal, and territorial efforts when a Federal emergency or disaster is declared.
A. Local government.
B. FEMA.
C. Regional government.
D. State government
Answer:
The correct answer is B
Explanation:
FEMA stands for Federal Emergency Management Agency, it is an agency which is responsible for coordinating the response of the federal government to the disasters which can be manmade or natural.
So, FEMA is responsible for the coordinating the Federal resources which support the Tribal, Local and State efforts when there is Federal emergency is declared.
FEMA (Federal Emergency Management Agency) is responsible for coordinating federal resources that support state, local, tribal, and territorial efforts when a federal emergency or disaster is declared. The correct option is B.
Federal Emergency Management Agency (FEMA) is a government agency in the United States with the aim is to coordinate and respond to disasters in the nation when local resources are not sufficiently met.
It is responsible for coordinating and responding to emergencies and disasters, both natural and man-made, within the United States.
Thus, the ideal selection is option B.
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Real GDP per capita: cannot grow more rapidly than real GDP. cannot decrease if Real GDP increases. necessarily grows more rapidly than real GDP. can increase or decrease when Real GDP increases.
Answer:
Real GDP per capita can increase or decrease when Real GDP increases
Explanation:
Real GDP per capita is calculated by dividing Real GDP by the number of people in a country. Therefore:
If population increase more quickly than the increase in real GDP, then real GDP per capita would decrease.If population decreases, stays the same or increases more slowly as Real GDP increases, then real GDP per capita would increase.The ________ phase is a technical blueprint for the whole system which captures all aspects of how a system's components will function together to accomplish goals, using descriptions and models.
a) maintenanc
b) design
c) testing
d) implementation
Answer:
b)
Explanation:
Based on the description provided within the question it seems that the phase being mentioned is the design phase. Like mentioned in the question this phase focuses on making various blueprints that provide all the information on how the final system will function. Those in charge sift through the blueprints and choose one to implement based on efficiency, time, and budget.
The design phase is pivotal in system development, serving as a technical blueprint that delineates all aspects of system components' interactions to achieve set goals. It spans defining physical elements, developing detailed schematics, and planning for subsequent prototyping and testing.
Explanation:Design Phase in System Development. The design phase is a technical blueprint for the entire system which captures all aspects of how a system's components will function together to accomplish goals. This phase utilizes descriptions and models to ensure a comprehensive plan for how the system will work. The process involves developing a design architecture by assigning functional elements of the product to the physical building blocks, determining shapes and dimensions, selecting materials and processes, and identifying product components. During this detailed design development, mathematical models are often used to document the effectiveness and performance of the design.
Moreover, the design phase includes not only the physical aspects of the system but also the detailed schematics of electrical subsystems and computer code for embedded systems. Its development is critical as it lays the foundation for subsequent steps such as prototyping, testing, and refinement. All these efforts help in achieving a well-designed monitoring system and ensure that designs, codes, and specifications integrate seamlessly and the system operates correctly.
In considering NBAC’s analytic approach, an otherwise competent person who is acutely ill might be considered at especially high risk of harm for______.
a. Capacity-related cognitive vulnerability
b. Communicative vulnerability
c. Situational cognitive vulnerability.
d. Economic vulnerability
Answer:
c. Situational cognitive vulnerability.
Explanation:
Situational cognitive vulnerability -
It is the cognitive vulnerability in the field of cognitive psychology , it is the belief of cognitive bias .
It is the situation that does not allow to exercise the capabilities effectively .
hence , from the question ,
The correct term according to the statement of the question is - c. Situational cognitive vulnerability.
A segment of Mega Inc. manufactures and sells blankets. The various models of blankets are produced in a single factory using stable technology. They are sold by the sales department, also located in the factory. The segment is most probably accounted for as a(n) _____.
a. cost center.
b. revenue center.
c. profit center.
d. investment center.
e. none of these.
Answer:
c. profit center
Explanation:
Based on the information provided within the question it can be said that the segment is most probably accounted for as a profit center. This is a specialty department formed inside an organization that deals with generating revenues and profits or losses. These departments are completely monitored and controlled since they are the main driving force of the company brand.
A recent memo from the Marketing Department stated that sales will go up next month because a new advertising campaign is being launched for the Company’s primary product line. Which of the following CANNOT be inferred from the statement?
a) Customer demand will increase for the new title.
b) The increased title sales will offset advertising costs.
c) The new advertising campaign is a contributor to sales volume.
d) The new title sales will be impacted by the new advertising.
e) Some customers listening to the advertising campaign should buy the new title.
Answer:
B) The increased title sales will offset advertising costs.
Explanation:
I solved this using an elimination process, since we can infer:
that customer demand should increase due to the new advertising campaign.the sales of the new title should help increase the total sales volume.since the advertising campaign is about the new title, it sales should be affected by it.hopefully a lot of customers that listen or watch the advertising campaign will buy the new title.The only thing that we are not given any information about is the cost of the advertising campaign, so there is no way we can tell if the increased sales will offset the costs.
Which of the following statements about the consumption component of GDP is not correct?
A. Since 1960, the consumption component of GDP has generally increased as a fraction of GDP.
B. The consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined.
C. Consumption as a fraction of total GDP in the U.S. is larger compared to all other high income nations in the world.
D. Spending on services is smaller than the amount of consumption spending on durable and nondurable goods.
The statement that the consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined is not correct.
Explanation:B. The consumption component of GDP in the U.S. is greater than all three of the other components (government, investment, and net exports) combined, is not correct. The correct statement would be that the consumption component of GDP in the U.S. is larger than the government and net exports components combined, but smaller than the investment component. The consumption component of GDP includes spending on goods and services by households, while the investment component includes spending on capital goods and structures by businesses.
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The incorrect statement is option D: Spending on services is not smaller than consumption spending on durable and nondurable goods. In fact, in developed economies, spending on services exceeds spending on goods.
Explanation:The incorrect statement about the consumption component of GDP is option D. Spending on services is actually larger than the amount of consumption spending on durable and nondurable goods. This is especially true in developed economies, like the United States, where spending on services, such as healthcare, education, and entertainment, tend to exceed spending on tangible goods. It is certainly true that since 1960 there has been a general trend of increase in consumption as a fraction of GDP (option A), and that the consumption component of GDP is the largest among the components - exceeding government spending, investment, and net exports combined (option B). However, it's not necessarily the case that the US's consumption as a fraction of GDP is larger than all other high-income nations (option C).
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Mid-market commercial lending may be typically defined as borrowers: I. with sales revenue between $5 million and $100 million. II. with a recognizable corporate structure. III. with ready access to deep and liquid capital markets.
Answer:
I, II, and III is true.
Explanation:
Mid-market is basically in between larger than the small company but smaller than the large company. Middle market lending includes various types of lenders such as banks.
Recently, Pfizer and Allergan – the makers of Viagra and Botox, respectively – initiated a $160 billion merger. Pharmaceutical companies tend to spend a greater percentage of sales on R&D activities than other industries. The government encourages these R&D activities by granting companies patents for drugs approved by the Food and Drug Administration. For instance, Allergan spent large sums of money developing its popular wrinkle-removing neurotoxin, Botox, which is currently protected under a patent. Botox sells for about $15 per vial.Calculate the Lerner index if the marginal cost of producing Botox is $1.50 per vial.
Answer:
Lerner index for Botox = 0.9
Explanation:
The Lerner index measures market power in an industry. The formula for calculating the Lerner index is: L = (P - MC) / P
Lerner index for Botox = ($15 - $1.50) / $15 = 0.9
0.9 in the Lerner index means that a company has a very large market power. Under this situation, this is quite logical since Allergen has a monopoly on Botox, at least until the patent expires.
The Lerner index varies between 0 and 1, with 0 being a situation of perfect competition and 1 a monopolistic situation.