Economies of scale involve reducing costs as production increases by optimizing resource use. Overproduction can lead to inefficiencies like higher costs due to increased demand.
Economies of scale
occur when the long-run average cost of producing output decreases as total output increases. One way to achieve this is by substituting labor with capital in a more efficient manner. Overproduction may lead to inefficiencies, such as increased average variable costs due to paying workers overtime and higher maintenance costs from overworked machines.
The term employment discrimination encompasses workplace-related discrimination that may include the hiring process and disciplinary action but does not include the treatment of employees in terms of promotions and demotions, work schedules and assignments T/F
Answer:
false
Explanation:
Employment discrimination includes any type of discrimination that occurs during the hiring process, any applicable disciplinary actions and when deciding which employees will be promoted or demoted.
E.g. A company cannot hire employees of only a certain race or sex. If a group of employees has done something improper, they all must be disciplined in the same way regardless of their race, sex, ethnic background, religion, etc. A company cannot promote only a certain type or employees, it must provide equal opportunities to all, the glass ceiling is considered illegal.
A CFO’s responsibility is to manage financial risk, and that covers which other element?
a.The catered lunch in the boardroom.
b.All the information and data in the company.
c.The after-hours card games.
d.Costs associated with the building’s janitorial contractor.
Answer:
b.All the information and data in the company.
Explanation:
A CFO is the Chief financial officer is an organization. He or she is responsible for the company's financial risks, management, and reporting. The CFO evaluates a company's financial opportunities against its threats and manages the lower level finance managers.
Since the CFO is responsible for the organization's finances, he or she supervises the preparation and presentation of financial reports. The CFO guarantees the accuracy of the data reported. He or she ensures that the data used in the preparation of the reports is safely stored within the organization.
City Slick, Inc., makes cosmetics. City Slick intentionally mislabels its packaged products to conceal a defect. Trusting and relying on the mislabeling, Dora buys a City Slick product and suffers an injury. City Slick is most likely liable for:___________.
A. product misuse.
B. fraud.
C. privity.
D. puffery.
Answer:
b. Fraud
Explanation:
The fraud is the wrongful act done by a person to gain a personal or financial profit. It is to be done intentionally.
Since in the given situation, the city intentionally mislabels its packaged products to hide a defect and after buying the product the dora suffers an injury
So in this case the city slick is liable for fraud as the company do this thing intentionally to generate a high profit
Bob bought a desktop computer and a laptop computer. Before finance charges, the laptop cost $300 less than the desktop. He paid for the computers using two different financing plans. For the desktop the interest rate was 7% per year, and for the laptop it was 6% per year. The total finance charges for one year were $398. How much did each computer cost before finance charges?
Answer:
Laptop = $2,900
Desktop = $3,200
Explanation:
The cost of the laptop will be represented by the variable X
The desktop costs $300 more than the laptop, therefore, its cost will be X+300
The finance charge of 398 comes from the 7% interest on the desktop (7% interest on X+300), and the 6% interest on the laptop (6% interest on X).
We can lay out the formula with the information above:
398 = 0.07*(X+300) + 0.06*X
398 = 0.07X + 21 + 0.06X
398 = 0.13X + 21
398 - 21 = 0.13X
377 = 0.13X
377 / 0.13 = X
2,900 = X
So X is the laptop, therefore, the laptop costs $2,900.
The desktop costs $2,900 + $900 = $3,200
Assume that the football team is set up as limited partnership. Lenny is the only general partner and Sarah and Sam are the only limited partners. Who would make the decision about whether or not to fire the quarterback?a) Lenny, Sarah and Sam would vote on it.b)The board of directors of the team.c) Only Lenny.d) Only Sarah and Sam.
Answer:
b. The board of directors of the team.
Explanation:
Limited partnership is a form of partnership owned by two or more partners and in which liabilities of some partners are only limited to their investment in the business. The partnership business is being managed and controlled by the general partner who has unlimited liabilities.
For a general partner in a limited partnership, he has unlimited liability. In case of dissolution of the partnership business , he losses both his investment in the business and personal properties.
The limited partners only looses their investment in the business in case of liquidation.
Susan threw away in the garbage an old chair that had been in her family for many years by placing it on the curb with the rest of the trash. alma came by and began to admire the chair. although the chair was heavy, alma picked it up and called to a friend saying that she had just found an antique chair. when susan heard this, she demanded the return of the chair. the chair belongs to: susan unless alma can show susan gave it to her. susan because there was no intent to make a gift. alma because anything one finds belongs to the finder. alma because susan abandoned it and alma took possession of it.
Answer:
It belongs to Alma because Susan abandoned it and Alma took possession of it
Explanation:
By common law, Alma is a person who has found an abandoned property and she may claim it. To do this, she has to take some definite steps to show her claim. Alma can claim this abandoned piece of chair by taking it into her house, or by placing a sign on it to show that she now owns it.
If Susan was to take this to court, the court would determine the kind of item and where it was found to determine if Alma has a right to it. But since it was found in a dump site she now has the right to it.
An exchange rate table makes it easy to compare the
Answer: A
Explanation: it’s easy to compare
Answer:
value of the currencies for two or more countries
Explanation:
Dahlia is trying to make partner at one of the city's most prestigious law firms. It is generally understood that associates remain hard at work in the office until at least 7 or 8 o'clock each evening. This is an element of the firm's group:
Answer: Norms
Explanation:
According to the given scenario, Dahlia is trying to make a connection or we can say that partner at one of the famous law firms and in every organization or firms it is understood that the employees are working in the office at least 7 or 8 o' clock each evening so this is one of the firm's social norm.
The firm's norms is the term which is used to describe about the basic rules, laws, culture and regulation of the company which is follow by each member or employee in the firm.
The main objective of the organizational norms is to maintain the discipline and the equality among each employee in the firm. Therefore, Norms is the correct answer.
Una empresa contrató cuatro trabajadores a tiempo completo el año pasado, con un coste de 18.000 € anuales cada uno; empleó 12.000 unidades de materiales, con un coste de 1,5 € por unidad. Además empleó 1.500 horas de maquinaria, con un coste de 4 €/hora. Con todos esos materiales, la empresa produjo 1.000 bicicletas y 2.000 monopatines. Este año, la empresa redujo a tres el número de trabajadores, aumentó un 12 % el consumo de unidades de materiales y descendió un 5 % el funcionamiento de horas de máquina. La producción ha variado este año, ya que obtuvo 500 bicicletas y 2.500 monopatines. Sabiendo que el precio de las bicicletas fue el año pasado de 100 € y el de los monopatines de 70 €, calcule la productividad de la empresa cada año y calcule y comente brevemente su evolución porcentual,
La productividad de una empresa se calcula dividiendo el valor de la producción por el costo total de los insumos. Para medir la evolución porcentual de la productividad se comparan los valores obtenidos entre dos años distintos. Este cálculo proporcionará una visión clara de cómo la empresa ha mejorado o empeorado su eficiencia.
Explanation:Para calcular la productividad de la empresa, es necesario tomar en cuenta tanto los insumos (costes) como los productos (cantidad de unidades producidas) cada año. La productividad puede medirse como el valor total de las unidades producidas dividido por el costo total de los insumos. Para calcular la evolución porcentual de la productividad entre los dos años, primero se tiene que obtener la productividad de cada año y luego compararlas para ver el cambio porcentual.
El primer año, la productividad se calcula sumando el costo de los trabajadores (4 trabajadores × 18.000 €), el costo de los materiales (12.000 unidades × 1,5 €) y el costo de maquinaria (1.500 horas × 4 €), luego dividiendo el valor de producción (1.000 bicicletas × 100 € + 2.000 monopatines × 70 €) por este costo total. Para el segundo año, se hacen cálculos similares, considerando la reducción del número de trabajadores, el aumento del 12 % en el consumo de materiales y una disminución del 5 % en horas de máquina. La productividad se calcula dividiendo el valor de producción del segundo año (500 bicicletas × 100 € + 2.500 monopatines × 70 €) por el nuevo costo total.
Finalmente, se calcula la evolución porcentual de la productividad mediante la fórmula ((Productividad Año 2 - Productividad Año 1) / Productividad Año 1) × 100.
Organizing is the second basic managerial function; it follows planning and decision making. involves shaping the organization over time and is never truly finished. involves grouping activities and resources. can help the organization be flexible.
Answer:
e. All of these choices
Explanation:
As we know that
The functions of management comprises of five functions i.e planning, organizing, staffing, directing and controlling
The planning is the way to plan the things so that the company could attain its goals and objectives within the prescribed time
The organizing is the second managerial function which helps to organizing the things of the company. It involves the way of doing the task and utilizing the resources efficiently and effectively so that the task could be completed at low cost and time
In addition, there should be a flexibility in a organization so that if an opportunity can comes then it would grab easily, it also consist of planning & decision making
Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia’s trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract:___________.
a. under any circumstances.
b. only if it is in writing.
c. only if the value of the trumpet is more than $500.
d. only if Claudia agrees to it.
Answer:
The correct option is B,only if it is in writing.
Explanation:
Such promise is not enforceable since one of key elements of enforceable agreement(contract) is missing.
The missing element is that Abner is not getting anything of value in return for the promise to pay for Claudia's trumpet.
The only way to get Abner to fulfill the promise in law parlance is get the promise documented as well as signed by Abner,that can be used as an evidence against Abner in future in order to ensure the promise is fulfilled.
Answer:
Option B
If only it is in writing
Explanation:
At this point in time, Abner is opting to act as a surety for Claudia. and surety contracts are legally binding, once they are signed.
Claudia already owes Brass & Woodwind Musical Instruments, Inc and there is a contract already existing between the two parties. for Abner to decide to pay Claudia's fee, it means that Abner wants to act as surety for Claudia.
However, surety contracts need to be written down and signed for them to be effective. This makes option B the correct answer
In the loanable funds market, who is usually the supplier and who is usually the demander? Entrepreneurs supply loanable funds, and savers demand loanable funds. Entrepreneurs demand loanable funds, and savers supply loanable funds. Entrepreneurs supply loanable funds, and savers also supply loanable funds. Entrepreneurs demand loanable funds, and savers demand loanable funds.
Answer:
Entrepreneurs demand loan-able funds, and savers supply loan-able funds.
Explanation:
The market for loan-able funds is where suppliers of loan-able funds(savers) trade with demands of loan-able funds(borrowers). Trading in the market for loan-able funds determines the equilibrium interest rate.
Final answer:
In the loanable funds market, savers are the suppliers of financial capital, while entrepreneurs and others who need to borrow money are the demanders.
Explanation:
In the loanable funds market, the suppliers are typically those who have financial capital to lend, such as savers or investors. Conversely, the demanders are those who need to borrow financial capital, such as entrepreneurs or firms looking to invest in business opportunities. Therefore, the correct statement is: Entrepreneurs demand loanable funds, and savers supply loanable funds.
Any individual or business that is saving money is on the supply side of this market. On the other side, any individual, firm, or government entity that seeks to borrow money is contributing to the demand for loanable funds. This interaction defines the dynamics of supply and demand within the financial markets.
Amy has to come up with a strategy to regulate the excessive use of the Internet by her employees in such a way that they accept and commit to the solution themselves. It is advisable for her to use group decision making rather than individual decision making in this situation. True/ False?
Answer:
The answer in this case would be True.Explanation:
Considering that internet usage is a part of the regular functioning or operation of the company or business organization, it is an essential resource or endowment used by the employee to fulfill the concerned organizational duties and responsibilities.However,excessive use of internet will increase the operational cost for Amy as the head of the organization or management which often comes from unwanted, redundant and personal use of internet by the staff or employee.However, before taking up the decision completely on herself,which reflects the traits of autocratic organizational leadership, Amy can consider discussing the matter with the concerned group of employee and try to find a rational solution to the issue through a more democratic decision making process.IN excel which
dialog box in backstage view should you access to view and alter your workbook's properties?
Answer:
The answer is option dialog box
Explanation:
The excel option window is generally associated with backstage view. Hence, by clicking the option entries in the backstage view of the excel sheet, there's an unrestricted access to view and alter individual's workbook properties. The answer here is Option dialog box.
When considering the education and training a career requires you must be aware of
a. the amount of time it will take
b. the amount of money it will take
the amount of effort it will take
all of the above
Please select the best answer from the choices provided
Answer:
D all of the above
Explanation:
Right on edge 2020
Publix has 2,700 pounds of bananas with a total cost of $864. Because the bananas have become too ripe, Publix is contemplating whether it should use the bananas to bake banana bread or sell the bananas ‘as is’ to the homeless center for $1,485. In addition to the cost of the bananas, it would cost $2,565 to convert the bananas into bread, which could then be sold for a total of $4,480. However, a special oven to bake the bread will have to be rented for an additional $300. What is the incremental effect on income if Publix converts the bananas to banana bread?
Answer: an increment in profit $1615
Explanation:
2700 pounds of Banana
Total cost = $864
If sold = $1485
When converted into bread $2565 and sold at the cost of $4480
Oven rentage = $300
What is the incremental effect on income if Publix converts the bananas to banana bread?
Sales Amount - Expenses incurred
= $4480 - $2565 + $300
= $4480 - $2865
= $1615
If he had sold the bananas
Sales amount - cost amount
= $1485 - $864
= $621
By converting the bananas to bread the incremental effect on income is it would yield more profits at $1615 compared to when sold at which is $621
The incremental effect on income for Publix converting the bananas to banana bread, after accounting for all the costs, would be an increase in income of $130 when compared to selling the bananas 'as is'.
Incremental Effect on Income for Converting Bananas to Bread
To determine the incremental effect on income of converting bananas to banana bread, we first calculate the net income from selling the converted banana bread and compare it to the net income from selling the bananas 'as is'. The net income from selling the bread would be the sales revenue from the bread minus all associated costs, including the initial cost of the bananas, the cost to convert them into bread, and the oven rental. Conversely, the net income from selling the bananas 'as is' is simply the sales revenue from the bananas.
Net income from selling bananas 'as is': $1,485 - $864 = $621Net income from selling banana bread: $4,480 - ($864 + $2,565 + $300) = $751The incremental effect on income from converting the bananas to bread is calculated by subtracting the net income from selling the bananas 'as is' from the net income from selling the bread.
Incremental Income = $751 - $621 = $130
Therefore, converting the bananas into banana bread would increase Publix's income by $130.
Dai owns an automobile mechanic shop. He started using digital media to have real-time exchanges and almost instant communication with his defined consumer groups. All of the following are benefits of using real-time exchanges EXCEPT they
Answer:
Real-time exchanges eliminate the need to have face-to-face interaction with customers.
Explanation:
Real-time exchanges is a form of communication in which a firm or businesses used to communicate over internet with their clients and business partners in other to have fast and secured information sharing. It is a form digital marketing and is very crucial to survival of almost all businesses in this modern world. It thus, have its own disadvantage since there is need for face to face interaction in some aspect of the business to have effective communication and interaction with one clients or customers. It is on this note that the real-time exchanges is not suitable some time.
Answer: During online interactions, both the consumer and seller need to see each other to know that neither are attempting to scam the other. Also, shared information can be leaked out.
The "Volcker disinflation" was A. an episode of stagflation that ravaged the U.S. economy between 1979 and 1989, under the leadership of Fed Chairman Paul Volcker. B. a deflationary cycle that plagued the economy between 1979 and 1989, under the leadership of Fed Chairman Paul Volcker. C. a significant reduction in the inflation rate between 1979 and 1989, under the leadership of Fed Chairman Paul Volcker. D. evidence that workers and firms really had rational expectations since they adjusted their expectations of inflation as soon as the Fed's monetary policy announcement was made. The unemployment rate A. fell from 10% to 6% during the period of the Volcker disinflation. B. remained unchanged at 6% during the period of the Volcker disinflation. C. rose from 6% to 10% during the period of the Volcker disinflation. D. rose from 6% to a higher rate in the beginning of the Volcker disinflation, but as the public started using rational expectations, the unemployment rate fell back to 6%.
Answer:
C. a significant reduction in the inflation rate between 1979 and 1989, under the leadership of Fed Chairman Paul Volcker.
C. rose from 6% to 10% during the period of the Volcker disinflation.
Explanation:
The "Volcker disinflation" was a significant reduction in the inflation rate between 1979 and 1989, under the leadership of the 12th Fed Chairman, Paul Volcker.
The unemployment rate rose from 6% to 10% during the period of the Volcker disinflation because he raised the federal funds rate from 11.2% in 1979 to 20% in June of 1981.
Workers may be able to accomplish their tasks in an autonomous fashion, but the products of their efforts must be coordinated in order for the group to be successful. This refers to: task autonomy. task feedback. task interdependence. task structure.
Answer:
task interdependence.
Explanation:
Task interdependence: Th term "task interdependence" is described as a phenomenon within a specific team as the degree to which the team members needs to interact with one another in order to complete or fulfill their tasks.
According to one of the organizational theorists named James Thompson, three distinct types of task interdependence is being utilized to design a specific team including reciprocal, pooled, and sequential.
In the question above, the given statement represents task interdependence.
At Honest Tea, there are no salespeople who attempt to coerce consumers into buying their product. Instead they rely on word-of-mouth, which indicates the company is not involved in which of the following criticisms of marketing?
Ray is a shareholder of Small Biz Company (SBC). When the directors fail to undertake an action to re-dress a wrong suffered by SBC, Ray files a suit on the firm’s behalf. Refer to Fact Pattern 20-1. Ray’s suit is a shareholder’s:_______.
a. duty-of-care suit.
b. duty-of-loyalty suit.
c. business-judgment rule suit.
d. derivative suit.
Answer:
The correct option is D,derivative suit
Explanation:
A derivative suit is a suit filed by a shareholder such as Ray on behalf of the company ,in the event that director failed to act appropriately ,when the company has been wrong.
In this Ray is considered a nominal plaintiff and SBC is a nominal defendant,however whatever damages is awarded is for the benefit of the company,the nominal defendant.
In essence ,a derivative suit usually has three parties,the shareholder,the company as well as the third party that has been sued.
Suppose that as the output of mobile phones increases, the cost of touch screens and other component parts decreases. If the mobile phone industry features pure competition, we would expect the long-run supply curve for mobile phones to be:
Answer:
Downward sloping
Explanation:
The demand curve illustrate what's known as the law of demand in economics. Consumers buy more of something when its price is lower and less when the price is higher. There is an inverse relationship between price and demand, meaning that when one rises, the other falls.
Economists give three basic reasons for the law of demand and thus for the downward slope. First is the "income effect" when prices drop (or rise), people can buy more(or less) of a good for the same amount of money. Second is the "substitution effect" if a consumer doesn't see a meaningful difference between products, they'll buy the one with the lowest price, so a price increase will drive them toward substitutes, while a reduction will draw them in.
Third is the concept of "diminishing marginal utility": if you already have plenty of something, you have less of a need to buy more of it.
An employee is given a formal written warning for an offense he has committed. Despite this, he proceeds to commit another offense. Which of the following is the most likely organizational response if the organization has adopted a progressive discipline program? Termination Last change notification Threat of temporary suspension Temporary suspension An informal verbal warning
Answer:
temporary suspension and maybe an Improvement Plan.
Explanation:
Based on the scenario, if the company has adopted a progressive discipline program then the according response would be a temporary suspension and maybe an Improvement Plan. This is because a progressive discipline program follows the following steps accordingly.
1) Verbal Counseling. The first step in a progressive discipline process is to merely have a conversation with the employee. ...
2) Written Warning. The second step should be another conversation that is documented in a written format. ...
3) Employee Suspension and Improvement Plan. ...
4) Termination.
Seeing since step 2 has already been done the next course of action would be step 3.
Answer:
The answer is Threat of temporary suspension.
Explanation:
Progressive discipline refers to the process of using increasingly severe measures in dealing with an employee that has failed to correct a problem after he/she has been given an opportunity to do so.
The underlying principle of a sound progressive discipline program is to use the action which is least severe and which is believed to be adequate in correcting the undesirable situation.
The severity of the disciplinary action is increased only when the undesirable condition is not corrected.
Therefore, in the scenario given above, the next severe step among the options is a Threat of temporary suspension.
Darren is eligible to contribute to a traditional 401(k) in 2019. He forgot to contribute before year-end. If he contributes before April 15, 2020, he is allowed to treat the contribution as though he made it during 2019.
Answer:
True
Explanation:
Base on the scenario been described in the question which, Darren was eligible to assist to a traditional of 401,000 in 2019, but we were told he forgot and later he paid in 15, June 2020, he is look as though he paid in 2019 because and it is true.
The reason why the answer is true is that Darren is that the time he paid the money in July 15, 2020, it was still within the time he allowed to still pay for the year 2019, that's why he considered as though he paid in 2019.
Which of the following is true? a. risky assets on average do not earn a risk premium b. there is a reward for bearing risk, on average c. on average, the greater the risk, the lower the reward d. when comparing the common stock of 2 firms, the riskier one will have the lower price e. there is no reward for bearing risk, on average
Increasingly, the large assembly line factories, in which an individual worker performs a single task (or set of tasks) is being replaced by workplaces where cooperation among workers is encouraged and __________.
a. jobs are more interchangeable and interconnected
b. jobs are less interchangeable and interconnected
c. jobs require individuals to become true craftsmen
d. managers attempt to squeeze as much out of workers as possible
Answer:
a. jobs are more interchangeable and interconnected
Explanation:
In the assembly line model, workers specialize in performing a single function, the assembly line is being replaced by a model where cooperation between workers is essential since their functions are more interconected and sometimes even overlap each other. In this model, teamwork and a strong sense of multidisciplinarity favor production.
Therefore, the answer is a. jobs are more interchangeable and interconnected
Mandy’s Packaging Inc. is a multibillion-dollar supplier of packaging materials. One of its salespeople rearranged production schedules at three different plants to satisfy an unexpected demand for boxes from a major client. The salesperson’s action is typical of the company’s sales philosophy and indicates an emphasis on _____. price-based selling relationship selling adaptive selling persuasive selling
Answer:
Relationship selling
Explanation:
Relationship selling is focussed more upon successfully building a long term relationship between a seller and a buyer rather than being merely focussed upon effecting a sales through .
The technique emphasizes upon the quality of interaction between the seller and the buyer which shall serve as a basis for develoment of a future relationship between the company and the customer.
This technique is prominent in case of those companies that rely on repetitive purchases on part of the buyer like private instructors. Good relationships may lead to customer loyalty which prompt repetitive purchases at their end.
In the given case, the supplier company's sales person rearranged production schedule so as to accomodate unexpected demand from a major client. Such an action demonstrates company's sales policy with emphasis upon relationship selling.
Totz Company produces jump ropes. Totz Company has the following sales projections for the upcoming year:First quarter budgeted jump rope sales in units17,000Second quarter budgeted jump rope sales in units20,000Third quarter budgeted jump rope sales in units20,000Fourth quarter budgeted jump rope sales in units25,000Inventory at the beginning of the year was 4,500 jump ropes. Totz Company wants to have 20% of the next quarter's sales in units on hand at the end of each quarter. How many jump ropes should Totz Company produce during the first quarter?
Final answer:
Totz Company should produce 16,500 jump ropes during the first quarter.
Explanation:
To calculate the number of jump ropes Totz Company should produce during the first quarter, we follow these steps:
Calculate the desired ending inventory for the first quarter, which is 20% of the second quarter's sales. 20% of 20,000 units (second quarter sales) equals 4,000 units.Add the desired ending inventory to the sales for the first quarter, then subtract the beginning inventory to find the production amount.(20,000 units * 20%) + 17,000 units - 4,500 units = 4,000 units + 17,000 units - 4,500 units = 16,500 units to be produced in the first quarter.
Mia Kaminsky wants to attend Riverside Community College. She will need to have $25,000 six years from today. Mia is wondering what she will have to put in the bank today so that she will have $25,000 six years from now. Her bank pays 6% compounded semiannually. Using the tables in the handbook, the amount Mia will have to deposit is:
Answer:
$17,534.50
Explanation:
F = P(1 + i)^n
F = Future value = $25,000
P = Present value = unknown
i = 6% compounded semiannually; This means 6/100/2 per compounding period
n = number of compounding periods = 12 (2 periods per year for 6 years)
25,000 = P(1 + 6/100/2)^12
You are solving for P
25,000 = P(1 + 0.03)^12
25,000 = P(1.03)^12
25,000 = P(1.42576)
P = 25,000/1.42576
P = $17,534.50
Therefore the amount Mia will have to deposit is $17,534.50
Final answer:
To calculate the present value of a future payment, Mia Kaminsky would need to deposit approximately $18,659.36 in the bank today to have $25,000 six years from now.
Explanation:
The formula for calculating the present value (PV) of a future payment is:
$$ PV = rac{FV}{[tex](1 + r)^n[/tex]} $$
Where:
PV is the present value, FV is the future value, r is the interest rate per period, and n is the number of periods.
For Mia Kaminsky's situation:
FV = $25,000, r = 6% compounded semiannually, and n = 6 years.
By plugging in these values, Mia would need to deposit approximately $18,659.36 in the bank today to have $25,000 six years from now.
George owns Luxury Yacht Company and has just received an order for one of its luxury models. To protect his company against the possibility that the customer cannot pay or that other economic and political conditions might intervene, he asks the customer to provide a __________.
Answer: Letter of credit
Explanation:
The letter of credit is one of the type of payment process that is specifically used for the purpose of international trading as it helps in proving the economical guarantee from the bank to the trader of various type of goods and the services.
The letter of credit is also refers as the documentary based credit and also the guarantee undertaking letter which is used at the time of payment and the main advantage of the letter of credit is that it is highly customizable, safety business process, Payment assured and also free from all the types of credit risk.
According to the given scenario, George asked the customer for providing the letter of credit for the purpose of protect his company fro the various types of payment and economical issue.
Therefore, Letter of credit is the correct answer.