Answer:
allows accurate predictions.
Explanation:
The law of large numbers states that the larger the amount of policy holders, the probability distribution of the number of claims (losses for the insurance company) will be shaped like a normal distribution. This allows the companies to make more accurate predictions about the future number of claims.
In statistics, the law of large numbers states that as the sample size increases, the mean will be much closer to the real mean of the total population.
Final answer:
The law of large numbers helps insurers make accurate predictions about losses, thereby aiding in the determination of fair premiums. It ensures that as the number of insured individuals increases, the sample mean of losses will approach the population mean, following a normal distribution.
Explanation:
The law of large numbers is a principle that is fundamental to the field of insurance and risk management. Under this law, as the number of insured individuals grows, the actual losses are more likely to average out closer to the expected losses.
This law is essential for the pricing of insurance policies and allows for accurate predictions when setting premiums. Due to large sample sizes, insurers can rely on the law of large numbers to predict and manage the risk associated with their policies effectively.
This prediction is further supported by the central limit theorem, which states that as the sample size (in this case, the number of insured individuals) increases, the sample means will follow a normal distribution, with a smaller standard deviation, indicating that the sample mean will be close to the population mean (μ).
While other factors such as investment income, administrative costs, and varying risk groups can add complexity, a fundamental law of insurance must prevail: over time, the average person's payments into insurance must cover the average person's claims, the costs of running the insurance company, and allow room for profits. In the context of life insurance, the application of the law of large numbers and its subsequent result in a normal distribution of losses helps actuaries and insurers in determining actuarially fair premiums, adhering to the fundamental law of insurance.
_____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.
A) The carryover effect
B) The hierarchy of effects model
C) Zero based communications planning
D) Inside-out communications planning
E) DAGMAR
Answer:
E) DAGMAR
Explanation:
DAGMAR (defining advertising goals for measured advertising results) is a marketing approach that is used to measure the success or failure of an advertising campaign goals and objectives . It was first introduced in 1961 bu Russell Coley to the Association of National Advisers. It uses four steps namely:
Awareness: Generating awareness about the goods and services to the customer.Comprehension: Increasing the product benefit and comprehension.Conviction: Making the customer to be convinced about the need for the product.Action: Making the customer buy the product.Answer:
E
Explanation:
According to DAGMAR the basic function of advertising is to communicate.
The model was developed by Russell H. Colley in his report for national advertisers titled Defined Advertising goals for Measured Advertising Results. He believes that effective advertising is based on communication rather than to sell.
The DAGMAR approach highlights these phases:
1. Awareness,
2. comprehension,
3. conviction,
4. action
The approach has two goals.
1. Develop a communication tasks that accomplishes the phases above
2. Make sure that the success of the goals are measurable against a baseline.
American Idle sells hammocks in a perfectly competitive market. This year, the price of hammocks has fallen to $24, and Simon Cowbell, the manager of American Idle, is trying to decide what to do. He discovers that his average variable cost (AVC) is $25, average total cost (ATC) is $30, and marginal cost is $24 and upward sloping. What should he do?
Answer:
Shut down as P < AVC.
Explanation:
Given that,
Selling price = $24
Average variable cost = $25
Average total cost (ATC) = $30
Marginal cost = $24
He should shut down because the price received by him for the product is less than average variable cost. He should shut down its operations because he won't be able cover the average variable cost associated with the production of the product.
Price = $24 which is less than average variable cost of $25.
If he will be able to cover its variable cost then he will continue operating in this market condition.
You want to have $1 million in your savings account when you retire. You plan on investing a single lump sum today to fund this goal. You are planning on investing in an account which will pay 7.5 percent annual interest. Which of the following will reduce the amount that you must deposit today if you are to have your desired $1 million on the day you retire?I. Invest in a different account paying a higher rate of interest.II. Invest in a different account paying a lower rate of interest.III. Retire later.IV. Retire sooner. A. I onlyB. II onlyC.I and III onlyD. I and IV onlyE. II and III only
Answer:
C. I and III only
Explanation:
Base on the scenario been described in the question, since I want to have one million dollars in my savings account when I retire, the best thing to do is to invest in a different account that pays high interest, this would enable me to easily reach my target of having $1million in my savings account quickly, and retiring later will also enable me to have more time for my investment to grow to meet my $1milloin target. So I and III are the best option
Potatoes cost Janice $1.25 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. How many pounds of potatoes will she purchase? What if she only had $2 to spend?
Answer:
a. 1 pound of potatoes
b. 1 pound of potatoes
Explanation:
It is important to note that Janice will purchase potatoes until the cost of potatoes is more than her value for it or until she exhausts her income.
Having that in mind
a. In this case, since only the value of first pound of potato is worth more than the cost, she'd only buy 1 pound of potatoes. Totalled at $1.25
b. If she has only $2, she'd purchase only 1 pound because the value of the potatoes is worth more than the cost.
a. 1 pound of potatoes
b. 1 pound of potatoes
The following information should be considered:
Janice will purchase potatoes as long as the benefit is more or at least equivalent to the cost she pays.She will purchase the first pound as the benefit is more than the cost for the first pound (1.5>1.25).She won't buy more as the cost is more than the worth of the additional pound.
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A favorable direct labor efficiency variance might indicate that A. lower skilled workers were paid a lower wage than expected. B. lower skilled workers were paid a higher wage than expected. C. higher skilled workers were used that performed the task slower than expected. D. higher skilled workers were used that performed the task faster than expected.
Answer:
D. higher skilled workers were used that performed the task faster than expected.
Explanation:
Labor efficiency variance gives the relationship between the number of direct labor hours you budgeted and the actual hours worked for by the staff.
A favorable direct labor efficiency variance might indicate that higher skilled workers were used that performed the task faster than expected and thus resulting in higher profits.
If the demand curve for tickets to a taping of a television show intersects the supply curve for tickets to that show at a negative price, then in order to put that market in equilibrium the producers would need to pay people to view the show being taped.A. TrueB. False
Answer: A. True
Explanation: A demand curve is the graphical representation of quantity of goods demanded and price. The price is at the left vertical axis and the quantity is at the right horizontal axis.
When demand and supply intersect, there is price equilibrium that is the quantity demanded and the quantity supply are same. The market can move below or about this equilibrium.
As the television show intersect the supply curve at a negative price, an increase in views will put it back to an equilibrium price .
Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only one type of raw material that costs $6 per pound. the company has the capacity to annually produce 130,000 units of each product. its unit costs for each product at this level of activity are given below: alpha beta direct materials $ 42 $ 24 direct labor 42 32 variable manufacturing overhead 26 24 traceable fixed manufacturing overhead 34 37 variable selling expenses 31 27 common fixed expenses 34 29 total cost per unit $ 209 $ 173 the company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.
Final answer:
To calculate total revenue and total cost, multiply the selling price by the number of units sold and add fixed costs and variable costs for each output level. Marginal revenue is the change in total revenue divided by the change in quantity, and marginal cost is the change in total cost divided by the change in quantity. The profit maximizing quantity is where marginal revenue equals marginal cost.
Explanation:
In order to calculate the total revenue and total cost for each output level, we can use the given information. The total revenue is calculated by multiplying the selling price by the number of units sold. The total cost is calculated by adding the fixed costs and the variable costs for each output level.
To find the marginal revenue and marginal cost, we can calculate the change in total revenue and total cost when one unit is produced. The marginal revenue is the change in total revenue divided by the change in quantity, and the marginal cost is the change in total cost divided by the change in quantity.
To find the profit maximizing quantity, we need to find the output level where marginal revenue equals marginal cost. This is the point where the additional revenue from producing one more unit equals the additional cost.
Joe is the owner-operator of Joe’s Haircuts Unlimited. Last year he earned $200,000 in total revenues and paid $125,000 to his employees and suppliers. During the course of the year, he received three offers to work for other barbers, with the highest offer being $50,000 per year.
1.) What are Joe’s explicit costs?
2.) What are Joe’s implicit costs?
3.) What are Joe’s accounting profits?
4.) What are Joe’s economic profits?
Answer:
1. $125000
2. $50000
3. $75000
4. $25000
Explanation:
1. Implicit cost is the cost Joe must give up in order to run his business.
Thus,
Implicit cost = $50,000
$50,000 is the highest offer for employment he received.
2. Explicit cost refers to the total amount used in starting up the business, in this case, refers to the amount used in paying salaries and suppliers.
Thus
Explicit cost = $125,000
3. Accounting profits
= Revenue - explicit cost
= 200000 - 125000
= $75000
4. Economic profits
= Revenue - (explicit + implicit)
= 200000 - 125000 + 50000
= 200000 - 175000
= $25000
Answer:
1. $125,000
2. $50,000
3. $75,000
4. $25,000
Explanation:
Explicit cost is actual cost incurred. It is the total cost incurred by running the business. Explicit cost is $125,000
Implicit cost is also known as opportunity cost. Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Implicit cost is $50,000.
Accounting profit is total revenue less total explicit cost.
Accounting profit = Revenue - Explicit Cost
$200,000 - $125,000 = $75,000
Economic profit is accounting profit less implicit cost or opportunity cost.
Economic profit = Accounting profit - implicit cost
$75,000 - $50,000 = $25,000
I hope my answer helps you
Joyce was injured by an uninsured drunk driver while she was riding in a friend's car. Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000. How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries
Answer:
Her friend's personal auto policy (PAP) against uninsured motorist will cover the first $50,000 since Joyce was in her car. The remaining $20,000 (= $70,000 - $50,000) will be covered by Joyce's PAP.
Explanation:
Uninsured motorist coverage will pay for any injuries suffered from uninsured drivers, hit and run accidents, drivers with policies that do not cover the full amount of the injury and drivers with insolvent insurance companies.
he price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the annual interest rate is 6.7%, what is the price, based on put-call parity, of a European put at the same strike and expiration?
Answer:
$0.135
Explanation:
To solve the following, we should use the following method
For us to be able to determine the price base on put call parity
The formula for put call parity is gives as c + k = f +p, meaning the call price plus the strike price of both options is equal to the futures price plus the put price.
JNJ just paid a dividend of $1.46 per share on its stock. The dividends are expected to grow at a constant rate of 3.5 percent per year, indefinitely. What will the price of this stock be in 5 years if investors require an annual return of 15 percent?
Answer:
$15.61
Explanation:
The Dividend valuation Model would be used to value the stock which is given as under:
Po = Do * (1 + g) / (r - g)
Here
Po is the value of stock now
Do is the dividend just paid
g is the dividend growth rate
And
r is the required rate of return of the investors.
By putting values, we have:
Po = $1.46 * (1 + 3.5%) / (15% - 3.5%) = $13.14
Now this is the value of stock now, so to find the value of stock after 5 years, we will have to compound this value at the growth rate.
So, mathematically:
Future value of Unit share = Share value Now * (1 + g)^n
Here Future value is at 5 years time which means n = 5 years.
g is 3.5% and share value now is Po which is $13.14 per share.
So by putting values, we have:
Future value of Unit share = $13.14 * (1 + 3.5%)^5 = $15.61 per share
As a local kayak outfitter was looking over her financial records, she noticed that when the shop down the street increased the price of stand-up paddleboard tours by 10%, her sales increased by 15%. How might her sales be impacted if the paddleboard tour price were lowered by 20%?
Answer:
Her sales would fall by 30%
Explanation:
when the shop down the street increased the price of stand-up paddleboard tours by 10%, her sales increased by 15%. This means for every decrease or increase in the price of stand-up paddleboard tours by 10%, there might be a 15% decrease or increase in sales. Therefore if the paddleboard tour price were lowered by 20%, it will lower her sales by 30%.
Which of the following statements, if any, represent a principal’s duty to an agent who works on a commission basis?
a) The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.
b) The principal is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission.
c) Both a) and b).
d) None of the above.
Answer:
a) The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.
Explanation:
The relationship between agent and principle is agreement based and differs from other agent-principle relationships.
Commission will be paid to agent as per their agreement.
"At High Flyer Airlines, managers rate their subordinates on a continuum from 1 to 7. A score of 1 indicates unsatisfactory performance, and a score of 7 indicates superior performance. High Flyer uses a _______________ as its performance appraisal method."
Answer:
The answer,in this case would be Graphic Rating Scale or Likert Scale.Explanation:
In a statistical research study,rating scale or likert scale is used indicate the intensity of magnitude of any variable or phenomenon related to the concerned research topic.Rating scale or likert scale is commonly used in statistical research methods such as surveys or questionnaire where various options are presented to the respondents or participants and a corresponding numerical value associated with each response options.The response options are scaled or ranked numerically according to the intensity or magnitude of the variable or the phenomenon which is included in the survey or questionnaire question.In this instance,the subordinate performance has been scaled or ranked on a rating or likert scale from 1 to 7 which represent the numerical values associated with each rank or scale.A grocery chain is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of sales, 4% is profit, 50% is spent in the supply chain, and the remaining 46% is evenly divided between fixed and production costs. If the chain can save $1 in the supply chain, it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (27% profit margin combined now).
Answer:
$3.70
Explanation:
In this question we have to assume the items values
Let say
Sales = $100
So supply chain it spends 50% i.e $50
Profit is 4% i.e $4
Since the 46% is dividend among fixed and production costs
So the fixed cost is $23 and variable cost is $23
Now if the sales increase by $X, the revenue will increase by X.
So it would also increased the cost by X × (0.5+0.23)
And in overall, the profit is also increased
Plus it is given that there is 27% profit margin
So, the equation is
0.27X = 1
Therefore X = $3.70 with additional profit of $1
Zoco, a restaurant chain, introduced a new version of lemonade that was red in color and had a thick consistency. The company had relied on the fact that its drink was different from other lemonades. However, the consumers did not respond positively. What is the most likely reason for the consumers' negative response?A. ExtinctionB. Selective distortionC. AssimilationD. Contrast
Answer:
D. Contrast
Explanation:
Contrast is the situation whereby consumers are familiar with an idea and are unwilling to change the idea. It is situation whereby a product does not share enough existing or common information with known categories. In this scenario, the lemonade introduces didn't share common information with existing categories in the form of color and consistency, hence why consumers had negative response towards the drink.
The HR manager of Carl Investments, a share broking firm, has decided to arrange regular yoga classes for the employees of the firm. He has taken this decision because many employees have recently complained of poor health due to work load. In the given scenario, the HR manager of Carl Investments is using a(n) _____.
Answer:
collateral stress program
Explanation:
collateral stress program is program which is being implemented in organization to help employee cope with stress and anxiety.
It has been seen that long working hours, increasing workload and uncertainty in roles and responsibilities accompanies with unbalanced work life balance has been affecting physical and mental well being of employee. This reduces the productivity of employee and organization. An organization is meant to take care of employees. Hence under such circumstances. Collateral stress program is being use dot help employees.
Under this program, employees are made to learn stress management, health promoting program is conducted. Employees are given assistance of psychological expert to discuss their issues. Nowadays Yoga program is also used in organization to ensure overall being of employees.
Hence any activity and event to ensure mental and physical well-being of employee constitute collateral stress program.
Since, in the problem stated above carl investment firm is introducing yoga classes for its employee to help in mitigating their stress. It comes under the purview of collateral stress program
The HR manager of Carl Investments is implementing a proactive care policy to invest in human capital by arranging yoga classes for employees, aligning with Theory Y management practices.
Explanation:The HR manager of Carl Investments is utilizing a proactive care policy by arranging regular yoga classes for employees who have been experiencing poor health due to workloads. This initiative can be seen as an investment in human capital, aiming to upgrade the health and potentially the skills of their workforce. By fostering a supportive work environment that prioritizes employee well-being, Carl Investments is likely to see benefits such as increased employee satisfaction, productivity, and possibly a reduction in workplace stress-related issues. This approach aligns with Theory Y management, which posits that giving employees more input and better working conditions can yield higher levels of work satisfaction and efficiency.
Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $180,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _________.
Answer:
$165,000
Explanation:
The computation of the cash flows from operating activities is shown below:
Cash flow from operating activities
Net income reported for the year = $180,000
Less: Increase in account receivable -$15,000 ($40,000 - $55,000)
Cash flow provided by operating activities $165,000
Since there is a $15,000 increase in account receivable and the same is deducted from net income so that the correct amount could arrive
Without middlemen like Travelocity, Orbitz, and other travel Web sites, a consumer would have to check all airline Web sites in order to find the flight with the best connection or lowest price. The introduction of middlemen in business models is an example of ________.
Answer: The introduction of middlemen in business models is an example of REINTERMEDIATION.
Explanation: REINTERMEDIATION can be defined as the introduction of an agent acting as a mediator between a producer and the consumer.
An example can be a bakery that sells products directly adding retailer to help in the sale of their products. Which is also the case in the question whereby the travel websites are the intermediary between the airlines and the customers.
Travel websites act as middlemen by facilitating market exchanges and helping consumers to compare options easily, reducing the need to visit each airline's site.
The introduction of middlemen in business models, such as Travelocity, Orbitz, and other travel websites, is an example of market facilitation. Middlemen facilitate exchanges by aggregating information and goods, making it easier for consumers to compare and purchase what is available in the marketplace without the need to individually visit all suppliers or service providers. This is particularly evident in scenarios where large incumbents may use pricing strategies to outcompete new entrants, only to raise prices again once the competition is eliminated.
A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appraised value of the home is $560,000. The woman plans to pay $94,600 in cash and take out a mortgage for the remainder. What is the LTV for this property
Answer:
The multiple choices are as follows:
A: 82%
B: 83%
C: 84%
D: 85%
The correct option is C,84%
Explanation:
Loan-to-Value ratio(LTV)=loan amount/appraised value of the property
the price paid for the property was $565,000,out of which the buyer paid $94,600 from her pockets and borrowed the remainder,the remainder that was borrowed is computed thus:
amount borrowed=sales value-cash
=$565,000-$94,600=$470,400
The appraised value of the property is $560,000
LTV=$470,400/$560,000=0.84
The property loan to value ratio is 84%
the ford escape uses hybrid fuel technology to deliver more power, convenience, prestige, and fuel economy with the latest in technology than non- hybrid cars. These criteria would be identified in which stage of the consumer purchase decision process for an automobile?
a. problem recognition
b. needs analysis
c. information search
d. post- purchase evaluation
Answer:
C, information search
Explanation:
There are stages in consumer purchase decision process which includes problem recognition, information search, evaluation of alternatives, etc.
Information search is the second stage of consumer purchase decision process. When a consumer has recognized the need for a product, the next thing is getting information on and about the product.
For the ford escape above, in the process of information search, the consumer will find out that the vehicle uses the hybrid fuel technology to deliver more power, prestige, fuel economy, etc; which is not obtainable in non-hybrid cars.
This information will enable a consumer to determine whether or not to purchase the ford escape.
Cheers.
Cullumber Company incurred research and development costs of $101000 and legal fees of $41000 to acquire a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Cullumber record as Patent Amortization Expense in the first year
Answer:
$14,200
Explanation:
Step 1 Determine the Cost of the Patent
Research and Development costs $101000
Add legal fees $41000
Total $142,000
Step 2 Determine Amortization Expense
Amortization Expense = Cost/ Useful life
= $142,000/10 years
= $14,200
An entrepreneur sells $15,000 worth of sports memorabilia during one year and sets a goal of increasing annual sales by $6000 each year for the next 9 years. Assuming that the entrepreneur meets this goal, find the total sales during the first 10 years of this business.
Answer:
Forecasted sales: 25% maximum reduction. Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
Between March 1 and June 30 there are 4 months.
If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
Therefore, revenues may lower by 25% this year.
To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
Automated transactions for B2B e-commerce where the suppliers are able to automatically send data about shipments to purchasing firm and the purchasing firm able to provide production and inventory requirements and payment data to suppliers represent the companies using
Answer:
EDI
Explanation:
The companies use the Electronic Data Interchange in order to automatically send the data without the need for the form to do any type of shipment for the purchasing firm.Thus be able to provide the production and inventory needs with the payment data thud saving the time and the cost involved in the processing. Hence the B2B transaction can be easily done through this method of the E-commerce and is a simple and effective method of providing valuable data to any organization.Dieman Dealers has an investment in Tommy Corporation bonds that Dieman accounts for as a trading security. Tommy Corporation's bonds are publicly traded and the prevailing market price indicates that Dieman's investment is worth $20,000. However, Dieman management believes that the bond market is generally overvalued, and their analysis of the Tommy investment suggests to them that it is worth $18,000. Dieman should carry the Tommy investment on its balance sheet at:
Answer:
$20,000
Explanation:
The reason is that the standard specifically addresses the issue and says that the publicly trading security must be recorded at the market price not on the management estimation. If it was allowed we would never see a loss in the financial statement because everyone would argue that our management estimation says that the asset is worth $1 million more than the current market price. So this is prohibited by the accounting standards.
Peer production refers to:
A. the process of tracking and responding to online mentions of a product, organization, or individual.
B. users collaboratively working to create content, products, and services.
C. content that is more complex than simple text or photos and includes animation, audio, and video.
D. programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data.
E. graphical editing tools, such as those found in a wiki, page layout program, or other design tool.
Answer:
b. Users collaborately working to create content, products and services.
Explanation:
Peer production is a system where goods and services are produced by individuals working together. In peer production, the production outcome is as a result of coordinated activities of individuals. It is not created for profit purposes but for the community of users.
Some of the features of peer production is that the cooperation among member is voluntary. The production means is fairly shared. It means that there is no sole control over the usage.
Example of peer production is when people in a community decides to construct a road that leads to their community. The benefit is for their community and not for profit making.
Answer:
The answer is users collaboratively working to create content, products, and services. (option B).
Explanation:
Peer production describes when a community of individuals organize themselves to produce goods or render services. In other words, peer production is the coordination of communal labour towards achieving a common or shared goal.
A good example of peer-production which is also known as mass collaboration is WordPress development (a free content management system which numerous developers around the world help to make better for the purpose of building and maintaining websites).
During the period 1990–1998 there were 46 atlantic hurricanes, of which 19 struck the united states. during the period 1999–2006 there were 70 hurricanes, of which 45 struck the united states. (a-1) does this evidence convince you that the percentage of hurricanes that strike the united states is increasing, at α = .01? let 1 = proportion of hurricanes in united states from 1990-1998 and 2 = proportion of hurricanes in united states from 1999-2006. choose the correct null and alternative hypotheses.
Answer:
Option C is correct.
Explanation:
IMG World’s products and services are geared toward colleges and students, the students of which may be considered young achievers.
This designation can be best described as which influential factor of consumer buying behavior?
A. Age and life stages
B. Social class
C. Family role
D. Economic situation
E. Occupation
Answer:
A. Age and life stages
Explanation:
IMG World's product focuses on college and students part of the market population. Their market segmentation is based on the age and life stages of the consumer.
The target age of their consumer includes the adolescent and young adult who are in the stage of college education.
IMG World's product believes that college student will buy more of their products than the other age groups of the market population.
Aside the age and life stages segmentation of the market, there are other market segmentation based on
1. Gender
2. Level of income
3. Educational level
4. Occupation
5. Geographical location etc
Market Segmentation is the process of dividing the total market population into groups such as age, gender, income in order for the producer to focus on the satisfaction of a particular segment.
Blake has managed several restaurants for over 50 years and is close to retirement. With his maturity and business experience, his decisions are sound, based on solid, proven values. Blake tends to be an independent thinker who focuses on empowering his employees. Blake managers at Kohlberg's _____ level of personal moral development.
A. unconventional
B. preconventional
C. nonconventional
D. conventional
E. postconventional
Answer:
E. postconventional
Explanation:
Blake is at a postconventional level of personal moral development according to Kohlberg's model.
In the postconventional level of moral development, people have established personal ethical and moral ideals, and live by those, not necessarily by what is established within a society.
For this reason, they may hold unusual views, and Blake is described in the question as being an independent thinker, which is consistent with the characteristics of this stage.
The board of directors of Chester, Inc. authorizes a $0.10 cash dividend to its 10,000 shares of common stock issued and outstanding. On the date of payment, a journal entry will debit which of the following accounts and for what amount?
A) Common Dividend Expense for $1,000.
B) Cash for $1,000.
C) Common Dividend Payable for $1,000.
Answer:
C
Explanation:
In this question, we are asked to state the appropriate amount that will be debited from which of the accounts in the question.
To answer this appropriately, we need to calculate the dividend payable.
Mathematically that is equal to cash dividend * number of shares
From the question, we can identify the cash dividend as $0.10 and the number of shares as 10,000
The dividend payable is thus 0.1 * 10,000 = $1,000
The journal entry will be:-
Dividend payable $1,000
Cash $1,000
This makes option C the correct answer