Answer:
C. Utilizing an online ordering system that allows him to sell bikes across the country
Explanation:
It is only through using an online ordering system that sales of the bikes can increase.
Also, using an online ordering system represents a form of technological advance.
Suppose that the Bank of Apples has excess reserves of $450,000 and checkable deposits of $30,000,000. If the bank has a reserve requirement of 30 percent, what is its total amount of reserves?
Answer:
$9,450,000
Explanation:
To determine the amount of reserves that the Bank of Apples has, we first have to multiply the total amount of checkable deposits by the reserve requirement, and then add the excess reserves.
($30,000,000 x 30%) + $450,000 = $9,000,000 + $450,000 = $9,450,000
Consider the market for electronics. Patents are granted to investors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy, without the existence of patents; it is argued that research and development for improved electronics is unlikely to take place, since there's nothing preventing another firm from stealing the idea, copying the product, and producing it.Which of the following best explains the barriers to entry that exist in this scenario?a. Legal barriersb. Exclusive ownership of a necessary resourcec. Economies of scale
Answer:
The answer is a. Legal barriers.
Explanation:
As government granted patent, copyright, trademark for a player in electronics market, they legally protect the intellectual right of that player. As a result, the government also have set up a legal barrier for any potential new players who want to join the market from taking the existing best ideas/ innovation from their starting, instead, they will have to either purchase the patent or invest in R&D for keeping up with the market most modern technology; both at a very high cost.
Ultimately, this type of legal protection will create a barrier to enter for any new player as they will have to prepare for huge expenditure for getting the best technologies at the time.
Last year, Big W Company reported earnings per share of $2.50 when its stock was selling for $50.00. If its earnings this year increase by 10 percent and the P/E ratio remains constant, what will be the price of its stock?
Answer:
The price of the stock is $55
Explanation:
Computing the present EPS (Earnings per share) as:
EPS (Earnings per share) = Last year earnings per share × Increase in EPS by 10%
where
Increase in EPS by 10% = 1 + Growth rate
= 1 + 0.1
= 1.1
= $2.5 × 1.1
= $2.75
Previous P/E ratio is computed as:
P/E ratio = Selling Price / Last year EPS
= $50 / $2.5
= $20
Now,
Computing the current stock price as:
P/E = Market Price per share/ Current EPS
$20 = Market Price per share / $2.75
$20 × $2.75
= $55
Based on the given P/E ratio and the 10 percent increase in earnings, the price of the stock is expected to be $55.00.
Explanation:If the Big W Company reported earnings per share of $2.50 last year when its stock was selling for $50.00, this indicates that the Price to Earnings (P/E) ratio was 20 (since $50.00/$2.50 = 20).
Now the question states that earnings have increased by 10 percent this year. So, the new earnings per share would be $2.75 because 10% of $2.50 is $0.25, and $2.50 + $0.25 = $2.75.
If the P/E ratio is supposed to stay constant at 20, then you would multiply the new earnings per share ($2.75) by the P/E ratio (20).
So, $2.75 x 20 = $55.00 would be the new price of the stock, assuming the P/E ratio remains constant.
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he following information relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per unit $ 105 Total fixed manufacturing costs $525,000 Variable marketing and administrative costs per unit $ 33 Total fixed marketing and administrative costs $250,000 The regular selling price per chaise lounge is $ 350. The company is analyzing the opportunity to accept a special sales order for 400 chaise lounges at a price of $ 200 per unit. Variable marketing and administrative costs would be $ 15 per unit lower than on regular sales. Fixed costs would increase by $ 13 comma 000. The company has the capacity to produce 35 comma 000 chaise lounges per year, but is currently producing and selling 9 comma 000 chaise lounges per year. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? A. Decrease by $ 30 comma 800 B. Decrease by $ 17 comma 800 C. Increase by $ 30 comma 800 D. Increase by $ 17 comma 800
Answer:
Increase by $17,800
Explanation:
If the company accepts the special order for 200 chaise lounges, its profit will be:
Sales revenue = 400 x $200 = $80,000
variable production costs = 400 x $105 = ($42,000)
variable marketing and administrative costs = 400 x $18 = ($7,200)
increase in fixed costs = ($13,000)
profit resulting from the special order = $17,800
When using various forms of promotion to carry the promotion message, it is important that the recipients of the message interpret it in the same way. Creating a unified promotional message, where potential customers perceive the same message, whether it is in a TV commercial, or on a billboard, or in a blog, is called ____________.
A. personalized sellingB. integrated marketing communicationC. delivery cue analysisD. branding assimilation
Answer:
B. integrated marketing communication
Explanation:
Based on the information provided within the question it seems that this is called integrated marketing communication. This term refers to making sure that all promotional communications and messages are meticulously linked together when advertising a product or service, in order for the recipients of the message to interpret it in the same way regardless of the platform. Which is what is being described in this scenario.
Creams-R-Us is known for making facial lotions and creams, which are mostly promoted to women. They introduced a modified version of their facial lotion targeted to men. Creams-R-Us is employing a _____ product strategy.
Answer:
product modification strategy
Explanation:
Product modification strategies are usually carried out with products that are already in its maturity stage. It basically refers to adding modifications that increase the perceived value or use of the product, in an attempt to appeal to broader markets. That way the life cycle of the product will be extended.
The main difference with a product line extension strategy, is that a product modification strategy is used to reach new markets, while product line extension is used to increase the sales within an existing market.
The correct term for the strategy employed by Creams-R-Us is a market segmentation product strategy.
When a company like Creams-R-Us takes an existing product and modifies it to target a different segment of the market, in this case, men, they are engaging in market segmentation. This strategy involves dividing a broad target market into subsets of consumers with similar needs, wants, or characteristics, and developing or modifying products to cater to the preferences of these specific segments. By creating a modified version of their facial lotion specifically for men, Creams-R-Us is addressing the unique skincare needs and preferences that may exist within the male consumer segment. This approach allows the company to expand its customer base and increase its market share by tailoring its products to different groups within the overall market.
In the context of adopters who participate in the diffusion process, which of the following statements is true of the late majority?a. They are characterized as being venturesome.b. They are more worldly and more active outside their community than noninnovators.c. Their opinions heavily influence their friends and neighbors.d. Their adoption of a new product stems from pressure to conform to group norms.
Answer:
The answer is letter D.
Explanation:
Their adoption of a new product stems from pressure to conform to group norms.
In the traditional labor model, the amount that an additional worker hired adds to the revenues of the firm is called the _____ of labor. Question 4 options: maximum revenue price marginal factor cost marginal product marginal fractional cost
Answer:
The correct answer is marginal product.
Explanation:
The marginal product of labor is the change in the output or total product because of hiring an additional unit of labor. In other words, the amount that an additional worker adds to the revenue is its marginal product.
It can be expressed as,
[tex]MP_{L} \ =\ \frac{\Delta Y}{\Delta L}[/tex]
The marginal product of labor depends on the quantity of capital and labor already employed.
Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's friend Nick learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $60, and Andrew agrees, since he would have sold it for $45. Nick is thrilled, since he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. What is the total surplus generated from Andrew’s sale to Nick?
Answer:
The total surplus from Andrew's sale to Nick is $35.
Explanation:
The total surplus is the sum of producer surplus and consumer surplus.
The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he/she actually has to pay.
While producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he/she actually gets.
Consumer surplus for Nick
= $80 - $60
= $20
Producer surplus for Andrew
= $60 - $45
= $15
Total surplus from generated from Andrew's sale to Nick
= $20 + $15
= $35
"Jenn switched jobs to one that was within a half mile of her home and she could walk on most days. After about three months, her new boss announced the company was moving 15 miles outside the city. This would mean that Jenn would now have an hour and half commute that involved a subway and two busses. Her stressor would be considered a"A. strong stressor.B. negative stressor.C. hassle.D. positive stressor.E. crises.
Answer:
C. hassle
Explanation:
It is a genuine nuisance having to commute longer than what you are used to. However, Jenn's issue cannot be defined as a true stressor, as it is something she would probably get used to in the long run.
On the other hand, real stressors would refer to work and workplace issues per se. For example, a negative stressor can be a long-term inability to avoid conflict with managers, which is directly influencing job stability and our feeling of economic safety. On the other hand, a positive stressor (or eustress) refers to the positive excitement related to events we are looking forward to, for example, our promotion.
Strong stressors and crises are related to exceptionally tough issues to overcome. For example, continuous burnout that makes us unable to cope with work is something a lot more serious than the hassle of a longer commute.
Gina hired Frank, an attorney, to handle her divorce. If, during face-to-face negotiations, Frank strikes the opposing attorney, Gina will be liable because Frank was her agent employee.
Answer:
false
Explanation:
An employer could be responsible for an injury caused by his/her employee only if the employee is acting within the scope of employment. Striking the opposing attorney cannot be considered acting under the scope of being an attorney representing a client, unless you are a mobster.
For example, if you are driving your company's car while shopping for Christmas and you hit a pedestrian, your company is not liable for the accident since you were not involved in any activity related to your normal work.
Final answer:
Gina is typically not liable for Frank's action of striking the opposing attorney as it falls outside the scope of his professional duties. Agency law requires the agent's acts to be within the employment scope for principal liability to arise.
Explanation:
The question relates to the legal concept of principal-agent liability, specifically within the context of an attorney (agent) acting on behalf of a client (principal). It's important to note that in most cases, a principal is not liable for the intentional torts of an agent that are outside of the scope of agency. Agency law dictates that for a principal to be held liable for the acts of an agent, the agent's acts must be within the course and scope of employment. In the scenario provided, because Frank's actions (striking the opposing attorney) would likely be considered outside the scope of his professional responsibilities as an attorney handling divorce proceedings, Gina would typically not be liable for Frank's conduct. The right to an attorney and standards of representation are addressed in cases such as Glasser v. United States, which discusses conflicts of interest, but this is distinct from the question of physical acts committed by an attorney.
A corporation's management a. owns the corporation. b. hires the board of directors. c. is liable for the corporation's debts. d. operates and controls a corporation in its day-to-day activities.
Answer:
d: operates and controls a corporation in its day-to-day activities
Explanation:
Jayden is a project manager in a multinational company and is currently managing a complicated project. This has affected his mental as well as physical health. He is going through a rough phase where he is neither able to do his regular job properly nor interact with his clients cordially. Which of the following "4 Ds" of determining whether something is a mental disorder does Jayden's condition reflect?
A. Dysfunction
B. Deviance
C. Distress
D. Disturbance
Answer:
Dysfunction
Explanation:
A dysfunctional mental disorder occurs when an individual starts to behave in an unusual and abnormal way as a result of stress or mental impairment. The pattern of thought ,emotion and behavior will no longer be in line with his normal way of life as deviation from normal social life and ideal mental health becomes obvious.
Jayden's failure to do his regular job again and even cordially interact with his clients are evidences that he is going through a dysfunctional mental disorder as a result of the complicated project he is handling.
An investor purchased 100 shares of MJS on June 19, 2015 at a price of $40 per share. On June 1, 2016, MJS declared a 25% stock dividend. On July 1, 2016, the investor sold 50 shares of the MJS at $50 per share.
Which of the following statements are correct?
I. The adjusted cost basis of the shares is $30
II. The adjusted cost basis of the shares is $32
III. There is a short-term capital gain on 25 shares, long-term gain on the other 25 shares
IV. There is a long-term capital gain on all of the shares sold
Answer:
IV) There is a long-term capital gain on all of the shares sold
Explanation:
Long term capital gains refers to a profit made on an asset that an individual or business has held for more than a year. In this case, the investor had a long term capital gain when he sold 50 shares at $50 per share, since their cost basis was $40 per share ($10 per share as long term capital gains). He bought the shares on June 19, 2015 and sold them on July 1, 2016.
He also had some short term capital gains, since he received 25% stock dividends on June 1, 2016.
Long-term capital gains are those you earn on assets you've held for more than a year. ... The long-term capital gains tax rates are 0%, 15% and 20%, and they're typically much lower than the ordinary income tax rate
Which of the following is notone of the assumptions of the basic EOQ model?
A. Annual demand requirements are known and constant.
B. Lead time does not vary.
C. Each order is received in a single delivery.
D.Quantity discounts are available.
E. All of the above are necessary assumptions.
Answer:
D. Quantity discounts are available.
Explanation:
The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
The total cost is computed below:
= Purchase cost + ordering cost + carrying cost
These three components are required to compute the total cost and for calculating the economic order quantity, the ordering cost and the carrying cost is required.
The number of orders would be equal to
= Annual demand ÷ economic order quantity
The average inventory would equal to
= Economic order quantity ÷ 2
The total cost of ordering cost and carrying cost equals to
Ordering cost = Number of orders × ordering cost per order
Carrying cost = average inventory × carrying cost per unit
No quantity discounts are available.
Final answer:
Option D, 'Quantity discounts are available,' is not an assumption of the basic EOQ model; the model's basic assumptions include a constant demand, non-varying lead time, and single delivery for each order.
Explanation:
The question relates to the assumptions of the Economic Order Quantity (EOQ) model, which aids in determining the ideal order quantity that minimizes costs associated with inventory management. When examining the listed options, it's clear that option D, 'Quantity discounts are available,' is not a basic assumption of the EOQ model.
The EOQ model assumes that the cost per unit of product is constant and doesn't account for possible discounts that might be applied with different order sizes. The assumptions of a constant demand, non-varying lead time, and receiving orders in a single delivery are all parts of the basic EOQ model. However, the availability of quantity discounts is not a necessary assumption for this model.
What type of receivable is evidenced by a formal instrument and normally requires the payment of interest? A trade receivable An account receivable Past-due accounts receivables A note receivable
Answer:
A note receivable
Explanation:
A note receivable is a composed guarantee to get a particular measure of money from another gathering on at least one future dates. This is treated as a benefit by the holder of the note. Past due records receivable are some of the time changed over into notes receivable, in this manner giving the indebted person more opportunity to pay, while additionally once in a while including an individual assurance by the proprietor of the account holder.
Samantha is a single mom and the administrative assistant for the marketing department. Her son's soccer games begin right after school so Samantha often has to choose between supporting her son at his games and working. Samantha is experiencing role ________.
A. overload
B. conflict
C. clarity
D. ambiguity
Answer:
The correct answer is (B)
Explanation:
A conflict is a clash of interest. The idea of conflict might be close to home, racial, class, standing, political and universal. Samantha is encountering a conflict of interest where she has to choose whether to watch her son's football match or go to work. Conflicts usually can lead to misunderstandings between two parties and they must be resolved by communication.
Final answer:
Samantha is experiencing role B. conflict as she has to choose between supporting her son at his soccer games and fulfilling her responsibilities as an administrative assistant for the marketing department.
Explanation:
Samantha is experiencing role conflict. Role conflict occurs when one or more roles are contradictory, leading individuals to have difficulty in fulfilling the requirements of each role. Thus, it occurs when an individual experiences challenges in fulfilling the expectations of different roles they hold, leading to tension and stress.
This conflict arises when the demands of one role interfere with another, causing difficulties in balancing responsibilities. Managing conflicting expectations from various roles, such as work and family, can result in psychological strain and a sense of being torn between competing obligations. In Samantha's case, she has to choose between supporting her son at his soccer games and fulfilling her responsibilities as an administrative assistant for the marketing department.
Par value a.is the monetary value assigned per share in the corporate charter b.is established for a share of stock after it is issued c.represents what a share of stock is worth d.represents the original selling price for a share of stock
Answer:
c.represents what a share of stock is worth
Explanation:
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Par value is the nominal value set for a share of stock in the corporate charter; it is distinct from the market value determined by demand and supply and investor expectations.
Par value is a. the monetary value assigned per share in the corporate charter. This value is typically set at a minimal amount and is not reflective of the current market value or the price at which shares trade on the stock market. It is more of a legal accounting value assigned when the corporation is established and appears on the face of the stock certificate.
Stock prices are influenced by many factors, including a company's profitability and investor expectations about future profits. Market capitalization, which represents the total value of all a firm's outstanding shares, is derived from these prices. Demand and supply, along with investors' expectations of receiving dividends or capital gains, play a crucial role in setting a stock's price.
If a company's social media followers exhibit greater purchase frequency than non-followers, this could be a sign that the company's social media efforts are producing good results. Alternately, it may only reflect the fact that_______.
A. the indirect effect of social media is more dramatic than the direct effect
B. more loyal customers are more likely to follow the company on social media
C. the social media platform is exaggerating its own performance
D. the company's analytics are not properly installed
Answer:
The correct answer is B. more loyal customers are more likely to follow the company on social media.
Explanation:
Customer loyalty has a direct impact on financial results, as well as prestige and brand image. The influence of a satisfied customer can be more decisive than any marketing strategy, since:
A loyal customer consumes more. A study on American companies found that 40% of online shopping revenue comes from regular customers, who represent only 8% of ecommerce visitors (Adobe). The satisfied customer shares their positive experience in networks and through word of mouth. It is one of the most effective forms of marketing that exists. All your clients can become great clients. After purchasing the first product, a customer has a 27% chance of buying back at the same place. If you get that customer back and make a second purchase, the chances of returning increase up to 45% and, in the case of a third purchase, that percentage rises to 54% chance of making another purchase.What name is given to the index based on the prices of exported or imported merchandise?
Answer: Option C - International Price Index
Explanation:
International price index, is the index based for both imported and exported marchandise. IPI would effectively endorse the use in the U.S. of discriminatory cost-effectiveness standards used by foreign governments. Many countries, like U.K., Canada, and Greece, make drug reimbursement and coverage decisions based on cost-effectiveness assessments tied to the quality-adjusted life year (QALY).
The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense. It plays a different but supportive role in its mission of global poverty reduction and the improvement of living standards. It provides low-interest loans, interest-free credit, and grants to developing countries for education, health, infrastructure, communications, and many other purposes. According to the excerpt, what is the organization’s primary purpose?
a) to serve as a banking institution for countries that do not have banking systems
b) to provide loans directly to people living in poverty
c) to reduce global poverty and improve the standard of living
d) in developing countries to provide technical assistance to developed countries
Answer:
C
Explanation:
According to the excerpt, reducing global poverty and improving the standard of living is the organization’s primary purpose. Thus, option C is correct.
What is an organization?An Organisation can be defined as an entity that is made up of an individual or a group of individuals who come together for a single purpose. Then the organization can be a profitable and nonprofitable one.
According to the world when there are various sources that are being used by the bank to clear global interest. This is to reduce global poverty and as well as by providing them with money and giving them loans they are also increasing their organization's primary purpose of increasing the standard of living among the people.
Therefore, option C is the correct option.
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Economic growth in the country of Southville has slowed down in the last few months. Following a collapse in housing prices, several homeowners have defaulted on their mortgages. Given that this sector accounts for a sizeable portion of the GDP. many commentators believe that this will prompt a 'domino effect' in the economy. On a TV chat show: three industry experts are discussing the crisis and its possible impacts. Megan Greenboe is of the opinion that housing prices were driven up by speculation prior to the crisis. According to her, this crisis will eventually reduce liquidity in the economy and lead to a credit crunch. Bob Sacberg, however, does not agree with Megan. Bob feels that the increase in housing prices can be explained by the steady growth in population and were therefore driven by fundamentals. Samantha Morris meanwhile is not very convinced that the housing sector is solely responsible for the economic slowdown. She argues that a twelve percent fall in housing prices is unlikely to have a very widespread impact. Which of the following, if true, will weaken Bob's argument that fundamental factors in the housing market led to the increase in housing prices?
a. According to census data, the percentage of Southville's population that lives in rural areas has gradually been shrinking
b. The standards for obtaining a mortgage loan in Southville have been more stringent compared to many other countries
c. Prior to the crisis, the prices of existing homes also increased in proportion to the prices of new homes in Southville
d. A large proportion of home buyers in Southville were individuals who already owned one or more houses
e. The inflation-adjusted real wage in the construction industry increased by 10 percent prior to the crisis
Answer:
D) A large proportion of home buyers in Southville were individuals who already owned one or more houses
Explanation:
Bob argues that the price of houses in Southville increased because more the population, so more people equals more demand for houses, and more demand equals higher prices. But if many of the new houses were not primary residencies, then Bob's argument collapses. This would mean that the higher price for houses was not caused by fundamental factors, but is probably due to speculation.
enhance the ability of firms to capture profits from a concentration of market power. enhance the ability of firms to reduce economic losses. restrict the ability of firms to operate at the socially efficient level of production. restrict the ability of firms to merge.
Answer:
The correct answer is restrict the ability of firms to merge.
Explanation:
Antitrust laws are the body of law that prohibits anti-competitive behavior (also known as monopolies) and business practices that are unfair. These laws were created to encourage market competition. Antitrust laws also make certain practices considered illegal for companies, consumers or both, or those who violate the standards of ethical conduct in general. For example, antitrust laws prohibit agreements that restrict trade or encourage monopolization, attempted monopolization, anti-competitive merger and tie-in agreements; and in some circumstances, price discrimination in the sale of products.
Both the Federal Government and the State Attorney General can process antitrust claims. Private civil lawsuits may also be filed in state and federal courts, against those who violate state and federal antitrust laws. Federal antitrust laws, as well as most state laws, allow triple compensation against those who violate those laws, to encourage private lawsuits by enforcing antitrust laws.
Final answer:
The interaction between monopolies, market power, and public policy involves measures to prevent market concentration and encourage competitive markets, aiming to balance economies of scale with consumer interests.
Explanation:
The interaction between monopolies, market power, and public policy is a complex subject that falls under the study of economics, particularly within the business domain. Monopolies can lead to higher prices and reduced choices for consumers, but they may also drive economies of scale and innovations. Public policies, through antitrust laws and regulations, aim to prevent or mitigate the adverse effects of monopolies by promoting competition and preventing market concentration that could result from mergers and acquisitions. Furthermore, barriers to entry such as economies of scale, control of resources, and legal protections (patents, copyrights) play a significant role in sustaining monopolies or oligopolies.
Antitrust authorities work to identify and take action against firms abusing their market power, with the goal of maintaining competitive markets free of distortions. This involves regulating or breaking up companies with excessive market power to ensure that consumer interests are protected, and that the market operates at a socially efficient level.
Evaluate the following two statements:_________
I. Interest on bonds must be paid in full even when the corporation operates at a loss.
II. When bonds are issued at a premium, the annual interest expense reported will be greater than.
Answer:
I. True. Bond is an corporate's liabilities rather than an equity. Thus, the bond issuance is liable to its bond's holders to pay the promised interest expense on-time and in full amount being promised at the time of issuance regardless of their business's performances.
II. False. When the bonds are issued at a premium, annual interest expense will be lower. The Premium amount will be credited at first and then being allocated through out the bond's life time ( debited). This will reduce the amount of interest expense being recorded during the year of bond's life time.
Explanation:
Maria, an active partner in the Grifton/Blum CPA firm partnership, receives an annual bonus of 10% of partnership net income after deducting the bonus. For the year ended 2017, partnership income before the bonus was $220,000. Maria should receive a bonus of_________.
Answer: $19,800
Explanation: Annual Bonus is 10% of 220,000= 22,000
Net income of partnership = 220,000- 22,000= 198,000
Bonus due to maria is 198,000*10%= 19,800
What are the gains to be had from simplifying the tax code? A. Increased efficiency of households and firms. B. Greater clarity of the decisions made by households and firms. C. Resources from the tax preparation industry freed up for other endeavors. D. All of the above.
Answer:
The correct answer is D. All of the above.
Explanation:
Simplification in the field of taxes can be observed considering the tax structure, if it implies a complex tax system there will be higher compliance and administration costs, but the complexity of the system is sometimes difficult to eliminate. There are few simple things in tax compliance.
There are complications that can be avoided and these usually begin with the fact that the officials of the Tax Administration are unaware of the tax regime or the provisions of the tax laws. Usually this is linked to a limited knowledge of tax law as a discipline with a dogmatic of its own. The public function in the field of tributes is often occupied by assuming the Turkish proverb that says: "If Allah gives you authority, it will also give you the intelligence necessary to know how to command."
Regularly every official in the area of tax law is a kind of legal autarchy that knows spontaneously and naturally the subject under his responsibility. Thus, in each general rule or in each resolution or decree, concepts that are clear in the Tax Code are redefined, but redefined to give it another meaning in accordance with the notions just arrived at the Administration. Arranged with the pragmatic and practical statute that on the road the load is rigged.
Assume that last year, Isaac earned 13.6 percent on his investments while U.S. Treasury bills yielded 2.7 percent, and the inflation rate was 2.2 percent. What real rate of return did he earn on his investments last year?
A) 10.39 percent
B) 11.63 percent
C) 12.24 percent
D) 13.56 percent
E) 11.15 percent
Final answer:
Isaac's real rate of return on investments, adjusted for the inflation rate of 2.2 percent, is approximately 11.4 percent. However, when considering the excess return over the risk-free Treasury bill yield of 2.7 percent, the closest answer is 10.39 percent (Option A).
Explanation:
To calculate Isaac's real rate of return on his investments, we must consider the effects of both the inflation rate and the yield of risk-free assets such as U.S. Treasury bills. The Fisher equation, which subtracts the inflation rate from the nominal interest rate, can be used in this case to find the real rate of return. The nominal rate of return Isaac earned on his investments is 13.6 percent. To find the real rate of return, we subtract the inflation rate, which was 2.2 percent.
Therefore, the real rate of return = (Nominal rate of return) - (Inflation rate) = 13.6% - 2.2% = 11.4%.
However, this doesn't take into account the yield on U.S. Treasury bills. To adjust for the risk-free return, we need to consider the excess return Isaac earned over the Treasury bills, which is (13.6% - 2.7%). The excess return over the risk-free rate is 10.9%. Therefore, the correct answer, closest to our calculation, is Option A) 10.39 percent.
A product has a contribution margin per unit of $17 and sells at $25 per unit. If the break-even point is 82,000 units, calculate
a. the variable costs per unit and
b. the total fixed costs.
Answer:
a. $8 b. $1,394,000
Explanation:
The contribution margin per unit of a product is $17.
The price per unit is $25.
The break-even point is 82,000 units.
a. Contribution margin per unit = Sales per unit - AVC
$17 = $25 - AVC
AVC = $25 - $17
AVC = $8
So, the variable cost per unit is $8.
b. Fixed costs
= [tex]Breakeven\ in\ units\times Contribution\ margin\ in\ units[/tex]
= [tex]82,000\times 17[/tex]
= $1,394,000
Fierra Inc. is a German automobile manufacturer that has a 5 percent market share in the United States' automobile market. The company has a unit in North Carolina that imports Fierra automobiles from its parent company in Germany and assembles them. Which of the following measures is in accordance with U.S.A.'s Foreign Commerce Clause?
A) The government of North Carolina imposes an additional 10% tax on Fierra cars.
B) The government of Georgia bans the sale of Fierra cars.
C) The government of North Carolina asks Fierra Inc. to shut down its import unit in the state.
D) The federal government imposes an additional 100 percent tax only on Fierra cars being sold in North Carolina.
Answer:
A) The government of North carolina imposes an additional 10% tax on Fierra cars.
Explanation:
The above mentioned is in accordance with the USA's foreign Commerce Clause.
Final answer:
Measures by U.S.A.'s Foreign Commerce Clause cannot involve individual states imposing taxes or restrictions on foreign commerce, as this is the prerogative of the federal government.
Explanation:
The question centers on which measures are by the U.S.A.'s Foreign Commerce Clause. According to the U.S. Constitution, individual states cannot impose taxes or tariffs on imports as they are not allowed to act like independent countries—only the federal government has this power. The correct measure that aligns with the Foreign Commerce Clause would be an action taken by the federal government rather than individual states.
Therefore, options such as the government of North Carolina imposing an additional 10% tax on Fierra cars, the government of Georgia banning the sale of Fierra cars, and the government of North Carolina asking Fierra Inc. to shut down its import unit in the state would violate the Foreign Commerce Clause. An additional tax imposed by the federal government, however, should apply uniformly and not be discriminatory against a particular foreign company or state.
Consumption spending is $16 million, planned investment spending is $4 million, unplanned investment spending is $2 million, government purchases are $6 million, and net export spending is $1 million. What is aggregate expenditure?
Answer:
The aggregate expenditure is $27 million.
Explanation:
The consumption spending is $16 million.
Planned investment spending is $4 million.
Unplanned investment spending is $2 million.
The government purchases are $6 million.
The net export spending is $1 million.
The aggregate expenditure is
= Consumption spending + Planned Investment + Government spending + Net export
= $(16 + 4 + 6 + 1) million
= $27 million