Answer:
C. Periodic payments made to both are tax deductible for the company.
Explanation:
Interest expense is tax deductible and dividends are not tax deductible.
This is because, interest is an expense charged to income statement and paid on debt, which is a compulsory payment.
Whereas, when we discuss about payment of dividend it is paid as part of retained earnings, as this is paid from retained earnings which is balance of net income added after tax to retained earnings.
Therefore, the statement which is false
C. Periodic payments made to both are tax deductible for the company.
Mason Corporation purchased a piece of land 5 years ago when the price of land was low. It plans to develop the land into a new facility when their current facility reaches its production limit, which it estimates will be in 4 years. On their classified balance sheet, Mason Corporation would classify this land as
A. property, plant, and equipment.
B. an intangible asset.
C. a long-term investment.
D. a current asset.
Answer: A long term investment
Explanation: In simple words, those assets which are purchased by an organisation with the intent of holding them for more than one year are called long term assets.
Mason is holding the land for five years. Hence, we can say that the land will be classified as long term investment.
It could have been considered as property, plant and equipment but the new facility has not been made yet.
How can the demand for one good be affected by increased demand for another one?
A. A drop in price for a good will increase demand for the good and its substitute.
B. If goods are substitutes for each other, increased demand for one will increase demand for the other.
C. When goods are bought together, increased demand for one will decrease demand for the other.
D. If goods are used together, increased demand for one will increase demand for the other.
Answer:
You answer is D or the last option if you'd rather say that
Explanation:
If goods are used together, increased demand for one will increase demand for the other.
Hope that I am able to assist current students and future students.
- Que
_______ used to create an application that is helpful in designing business process models and also helpful in simulating, optimizing, monitoring, and maintaining various processes that occur within an organization.
Answer:
Business Process Management Tools
Explanation:
According to my research on different business processes, I can say that based on the information provided within the question the term being described are called Business Process Management Tools. Like mentioned in the question these are tools that assist an organization accomplish certain goals in their everyday functions, such as simulating, optimizing, and monitoring.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Scott is an older individual applying for a job to work in a predominately millennial-aged workforce. His assumption that the interviewer thinks he is out of touch with current trends is an example of a(n) ___________ threat.
a) Discrimination
b) Personality
c) Workplace
d) Stereotype
e) Prejudice
Answer:
d) Stereotype
Explanation:
According to my research on studies conducted by various sociologists, I can say that based on the information provided within the question this is an example of a Stereotype threat. This can be said because a stereotype overgeneralized belief about a certain category of people, and Scott is applying the belief that all older generations are out of touch with current trends.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
What internal factors affect the decision-making process of a leader?
Answer:
Training, support, employee performance, company values and technology.
Explanation:
Training: All leaders must have training, such as how to perform performance evaluations. Training in practical issues and management tasks encourages leaders to be more responsible.
Support: Leaders should have the support of the organization. The company's support for its department decisions and professional aspirations is essential for the development of better leaders.
Employee performance: The aptitude and professional interests of the personnel form the basis of the decisions that the leaders take when delegating tasks and responsibilities to the employees, being the same leaders the final responsibility for the result.
Company values: Leaders who work for successful, high-level organizations demonstrate pride and commitment to their positions.
Technology: Technological solutions give the leader greater productivity and efficiency. Technology is a fundamental factor for leaders because it affects their performance.
Have a nice day!
Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Year Dividend Declared 2015 $0 2016 $6,000 2017 $32,000 The amount of dividends paid to preferred and common shareholders in 2016 is:$3,500 preferred; $2,500 common.$3,000 preferred; $3,000 common.$0 preferred; $6,000 common.$4,200 preferred; $1,800 common.$6,000 preferred; $0 common.
Answer:
$3,500 preferred; $2,500 common.
$3,000 preferred; $3,000 common.
$0 preferred; $6,000 common.
$4,200 preferred; $1,800 common.
$6,000 preferred; $0 common.
Scenario: You are the Operations Section Chief at the Incident ,nd Post and request that all response communications be conducted using a pre-determined set of frequencies. You also remind everyone in the field to use plain language. What NIMS Management Characteristics are you supporting? Select all that apply.
a. Common Terminology
b. Management by Objectives
c. Incident Action Planning
d. Integrated Communications
e. Unified ,nd
f. Accountability
Answer:
The correct answers are a. Common Terminology; d. Integrated Communications
Explanation:
Common terminology is a writing style for writing documents that are easy to understand. The language used is concise, direct and does not omit any details. All of the above creates a simpler reading experience, which makes its content understood at the first reading.
For its part, integrated communications applied to marketing, as the name implies, coordinate and integrate all the tools, ways and sources of marketing communication of an organization. This integration, which includes activities such as advertising, public relations, CRM, event management, etc. It is developed within the framework of a coherent program that aims to efficiently maximize the impact on customers and other stakeholders.
As the Operations Section Chief at the Incident Command Post, by asking for all communications to be done on a set of frequencies and in plain language, you are supporting the NIMS Management Characteristics of 'Common Terminology', 'Integrated Communications', and 'Accountability'.
Explanation:In the scenario presented, where you as the Operations Section Chief at the Incident Command Post request all response communications to be conducted using a specific set of frequencies and require everyone in the field to use plain language, you are supporting several National Incident Management System (NIMS) Management Characteristics.
The characteristics being supported are 'Common Terminology', as you are emphasizing on the use of plain language; 'Integrated Communications', as you are insisting on using pre-determined frequencies for all communications; and 'Accountability', as adherence to set guidelines and standards determine individuals' responsibilities.
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The accounting view focuses on the historical asset value, or _____ value, while the finance view focuses on the assets value as an ongoing concern, called the _____ value.
Answer:
The correct answers that fills the gaps are: Books; Market.
Explanation:
Measurement is the process of determining the monetary amounts in which an entity measures the assets, liabilities, income and expenses in its financial statements. The measurement involves the selection of a measurement base.
The IFRS for SMEs specifies the measurement bases that an entity will use for many types of assets, liabilities, income and expenses.
Two usual measurement bases are historical cost and fair value.
(a) For assets, the historical cost is the amount of cash or cash equivalents paid, or the fair value of the consideration given to acquire the asset at the time of acquisition. For liabilities, the historical cost is the amount received in cash or cash equivalents or the fair value of the non-monetary assets received in exchange for the obligation at the time it is incurred, or in some circumstances (for for example, income taxes), the amounts of cash or cash equivalents that are expected to be paid to settle the liability in the normal course of business. The amortized historical cost is the historical cost of an asset or liability plus or minus the part of its historical cost previously recognized as expense or income.
(b) Fair value is the amount for which an asset can be exchanged, or a liability canceled, between an interested and duly informed buyer and seller, who carry out a transaction under conditions of mutual independence.
Answer:
Book; Market
Explanation:
In accounting, all assets are valued at book value or historical value in the balance sheet. Book value of an asset is its cost price less depreciation or amortization.
Finance view focuses on market value of assets. Market value of assets represent their actual value at which they can be bought or sold in the market. Since market value is more realistic than book value, finance focuses more on market value.
The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a ______ innovation.
A.process
B. product
C. policy
D. breakthrough
E. reactive
Answer:
The correct answer is A.process.
Explanation:
Due to the extension of the term “innovation” it is important to keep in mind that two different meanings can be distinguished:
Innovation, as a process by which an idea is transformed into a novel product or service in the market, or by which a new manufacturing process or new organization or marketing methods is incorporated in the company (innovation capacity of the company). Innovation, such as the activity for which results derived from research and development (knowledge, prototypes) are launched into the market in the form of new products, services or are transformed into new processes in the company (R + D + i )Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years, so, dividing 100% by 5, we find the growth rate to be 20% per year." Is the statement correct?
Answer:
No, the statement isn´t correct
Explanation:
The statement is not correct because in any moment they say the growth was constant so asuming that each year the growth was of 20% is not correct. Also because usually when a company is growing and is increasing its sales it makes it in a progresive way so the first years sales are usually less than the ones of the fifth year.
The statement is incorrect. The annual growth rate cannot be found by dividing 100% by 5.
Explanation:The statement is incorrect. While it is true that sales doubling in 5 years represents a growth of 100%, the growth rate per year cannot simply be found by dividing 100% by 5. To find the annual growth rate, we need to use the compound interest formula.
A growth rate of 20% per year would result in sales increasing by 20% each year, which would lead to much higher sales after 5 years than simply doubling. The correct approach to find the annual growth rate is to use the compound interest formula, which would take into account the compounding effect over the 5-year period.
Economic Growth Rate: In economics, the annual growth rate refers to the percentage change in a country's Gross Domestic Product (GDP) over one year. It indicates the overall economic performance of a nation.
Business and Finance: Businesses use the annual growth rate to assess their performance, track revenue or profit growth, and make projections for the future.
Investments: Investors use the annual growth rate, especially CAGR, to evaluate the potential returns on an investment over a period of time.
Environmental Science: The annual growth rate can be used to analyze the expansion or decline of natural resources, populations of species, or other ecological factors.
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Nathan works as a materials scientist for a carpet manufacturer. He has developed a material that does not work well in carpeting, but it could have applications in hard flooring or other construction products. Nathan has been made the team lead for a group of scientists tasked with determining some marketable uses for the new material. The group could be referred to as:
A. skunkworks.
B. delegates.
C. horse traders.
D. bootleggers.
E. spin-offs.
Answer:
A. skunkworks.
Explanation:
skunkworks -
A skunkwork groups are the small and loosely structured group of people , who develop and research a project , and their main focus is radical innovation .
The term , skunkwork , originated in the world war ll , during the P - 80 shooting star design . This term was then generalized to be applicable to same high - priority R & D projects .
From the data of the question , the group is called the skunkwork .
Some new production facilities are designed to have a flexible layout that can be easily modified as needed. These facilities use a number of modules that can be assembled in different ways to produce different layouts. Such designs are called __________ layouts.
a) Process
b) Cellular
c) Fixed-position
d) Product
Answer:
b) Cellular
Explanation:
Cellular layouts in new productions facilities are designed to have flexible layouts, making it possible for the workers to modify them accordingly to their necessities, this can help prevent time-loss and wasting resources, while giving the opportunity to produce different products and create different layouts for differente processes of production.
The production facilities that can be easily changed and adjusted according to need are known as Cellular Layouts. In such layouts, machines are organized into modular cells that can perform all necessary operations for a specific product type. This design allows for quick reconfiguration to meet changing production needs.
Explanation:The production facilities described in the question, which are designed using modules that can be assembled in different configurations to allow for flexibility, are known as Cellular Layouts. In cellular layouts, machines are grouped into cells, and each cell can perform all the operations necessary for a particular product type. This setup allows the production layout to be easily adjusted to accommodate different products, or changes in production scale.
For example, in an automobile manufacturing industry, one cell may be designated for making engines, another for body assembly, etc. If demand for a certain type of car increases or decreases, the modular cells can be reconfigured quickly to meet the changing needs.
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The typical pattern revealed in a budget constraint model shows that as the quantity consumed rises,total utility rises, but marginal utility falls.marginal utility increases.total utility decreases, but marginal utility rises.total utility decreases.
Answer:
total utility rises, but marginal utility falls
Explanation:
As more units of a commodity are consumed, the total satisfaction derived increases. Therefore, total utility rises.
However, with the consumption of additional units, the extra satisfaction derived as more and more units are consumed decreases. This is the law of diminishing marginal utility.
You have just been promoted to manage a team of production specialists at work. You soon realize that many of the employees seem withdrawn from their work and the team, citing issues such as stress, negative attitudes about a supervisor, and poor interactions with co-workers. To combat these problems you examine group cohesion, which focuses on _________. A.the ability of the group to stick together B.the group's process development C.the quantity and quality of a group's output D.thegroup's productivity E.the group's team member selection process
Answer:
Option (A) the ability of the group to stick together
Explanation:
The team is defined as the group of individual who work together to get a specified task done.
Here,
The workers seems to have withdrawn from the work and team that means, the group of members are not behaving as a team.
Therefore, it is needed for the manager of the team to make them stick together as a team so as to get the production better.
Howard Industries is a computer manufacturer located in Laurel, MS. This company is interested in expanding internationally. Which of the following is a cultural factor that affects consumer behavior and marketing strategy that Howard Industries needs to be aware of _________________.
a) Nonverbal communications
b) Natural resources
c) Economic conditions
d) Exchange rates
e) All of the above
Answer:
The correct answer is a) Nonverbal communications.
Explanation:
Nonverbal communication is a communication process in which there is a sending and receiving of messages without words, that is, by means of signs, gestures and signs. It has no syntactic structure, so it is not possible to analyze sequences of hierarchical constituents. The messages can be communicated through kinesics (gestures, body language, posture, facial expression, eye contact, etc.) the language; the proxémica and the chronémica.
The following data is available for Blaine Corporation at December 31, 2012: Common stock, par $10 (authorized 25,000 shares) $200,000 Treasury Stock (at cost $15 per share) 900 Based on the data, how many shares of common stock are a) outstanding, and b) have been issued ? a.25,000 b.20,000 c.24,940 d.19,940
Answer:
a) b.20,000
b) b.20,000
Explanation:
a) Number of common stocks issued = 200,000/10
= 20,000
So, 5000 stocks remain with company.
Number of common stocks outstanding = 20000
b) b. 20,000
How does the Federal Reserve achieve these goals?
A) Raising and lowering the minimum wage
B) Helping to develop the taxation policies
C) Increasing and decreasing government spending
D) Raising and lowering short-term interest rates
Answer:
D.
Explanation:
The Federal Reserve achieve these goals by Raising and lowering short term interest rates. This monetary policy stimulates the economy. Taxation and government spending are also done in form of fiscal policies. Minimum wage is tool used raise the standard of living in USA. hence the correct answer to the question is D) Raising and lowering short-term interest rates
Answer:
D
Explanation:
Address You, a fancy dress manufacturer, sold a dress for $8,000 on credit. The cost of producing this dress was $1,000. First, how would the revenue and receivable from this transaction impact the accounting equation of Address You? Please enter the amounts in the boxes below.
Answer:
It will affect the accounting equation in $7.000.
Explanation:
The Assets will increase in $8.000 because Address You now have the right to claim to a customer $8.000 and is recognized in the Receivables. At the same time, Address You has to diminish its inventories at $1.000, because it delivered the dress to the customer. Finally, on the other hand, the profits for selling the dress ($8.000 - $1.000) affect the equity, and now the Accounting equation is balanced.
Final answer:
In a credit sale where a dress is sold for $8,000 and has a cost of $1,000, receivables and revenue both increase by $8,000 in the accounting equation, with no immediate liability change and a decrease in inventory for COGS.
Explanation:
When Address You, a fancy dress manufacturer, sold a dress for $8,000 on credit, the revenue and receivable would have the following impact on the accounting equation:
Receivables will increase by $8,000 because the customer owes this amount to the company.
Revenues will also increase by $8,000 reflecting the credit sales.
There is no immediate cash flow impact since the transaction is on credit.
The cost of the goods sold (COGS), which is $1,000, will decrease the inventory by this amount and is recorded as an expense.
This can be represented in the accounting equation as follows:
Assets = Liabilities + Owner's Equity
+ $8,000 (increase in receivables) = Not Applicable (no immediate liability from this transaction) + $8,000 (increase in revenues)
- $1,000 (decrease in inventory from COGS) = Not Applicable + Not Applicable
If all angles are measured in degrees, the ratio of three times the measure of $\angle A$ to four times the measure of the complement of $\angle A$ to half the measure of the supplement of $\angle A$ is $3:14:4$. What is the number of degrees in the measure of the complement of $\angle A$?
Answer:
The measure of the complement of angle A is [tex]70\°[/tex]
Explanation:
we know that
If two angles are complementary, then their sum is equal to 90 degrees
If two angles are supplementary, then their sum is equal to 180 degrees
Let
x ----> the measure of angle A
(90-x) ----> the measure of the complement of angle A
(180-x) ---> the measure of the supplement of angle A
we know that
[tex]\frac{3x}{4(90-x)}=\frac{3}{14}[/tex] -----> equation A
[tex]\frac{3x}{0.5(180-x)}=\frac{3}{4}[/tex] ----> equation B
Solve equation A or equation B to determine the value of x
Solve equation A
[tex]\frac{3x}{4(x-90)}=\frac{3}{14}[/tex]
[tex]14(3x)=4(90-x)(3)\\42x=1,080-12x\\54x=1,080\\x=20[/tex]
Verify the value of x in the equation B
[tex]\frac{3(20)}{0.5(180-20)}=\frac{3}{4}[/tex]
[tex]\frac{60}{80}=\frac{3}{4}[/tex]
[tex]\frac{3}{4}=\frac{3}{4}[/tex] ---> is ok
Find out the measure of the complement of angle A
([tex]90-x)\°=(90-20)\°=70\°[/tex]
A factory has a contract to produce small engines for lawn mowers. In order to find the greatest efficiencies possible
throughout the process, you have conducted a time study. If you invite the workers to participate in analyzing the results
and suggesting improvements, what type of methodology are you using?
Six Sigma
Cellular
Matrix
Winslow
Answer:
Winslow
Explanation:
Frederick Winslow Taylor said that any new improvement idea proposed by a workman, should be cientifically analized and considered. If it becomes superior to current method, must be adopted by the company as the new applicable standard.
This is the core of “Scientific Management” ( 1911 ) proposed by Winslow.
In the other hand, peculiarly, "inviting workers" action, as itself, could be considered an application of Marslow principles:
This move would pursue the three top levels of his pyramid :
Belonging: they are part of the whole
Self-esteem: employees will feel they are respected - and needed- by the organization
Self-actualization: workers will be able to develop their capabilities. So, applying those to the job, will make them know that goals proposed can be achieved
Answer:
six sigma
Explanation:
I took the answer from the other person and got it wrong. The correct answer is six sigma.
Owen, the owner of Owen’s Bar and Grill, repeatedly warns his bartenders to check ID’s and to be on the lookout for fake ID’s. Bartender was caught by police serving alcohol is a minor. Owen will be held criminally liable, despite his many warnings, under the doctrine of__________________.
A. Personal culpability
B. Primary liability
C. Vicarious liability
D. Retailing fraud
Answer: Vicarious liability
Explanation: It refers to a situation when a person is held liable for wrong actions of some other person. This doctrine is usually used in workplace contexts. If an employee do something illegal then the employer could be held liable for that employees actions, given that the action is taken in course of employment.
In the given case, Owen will be held liable as the wrongful conduct of serving alcohol to the minor is done by his employee and on his workplace.
Hence from the above we can conclude that the correct option is C.
How does a leader positively reinforce the efforts of the team?
Answer:
Rewarding at all levels
Explanation:
In order to reinforce efforts of the team, a good leader should:
1. Pay attention to the team. It ´s the first sign of respect: make the team know that they are the most important part of the machinery. How ? watching, evaluating, advising, even correcting.
2. Provide resources: bonuses, promotions, technoloy, and professional advice ( not everything is dollars )
3. Being the best: leader must be the first one in knowledgment, personal effort, care, camarederie, respect.
All of those will provide value to team members, finally that is the prize, and clearly a win-win.
Answer:
by recognizing and rewarding team members’ contributions
Explanation:
If the Ricardian equivalence theorem LOADING... is not relevant, then an income-tax-rate cut A. will result in a multiple times higher increase in equilibrium real GDP in the long run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be more stable. B. will result in a multiple times higher decrease in equilibrium real GDP in the long run, however; a tax-rate reduction will reduce the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be more stable. C. will result in a multiple times higher increase in equilibrium real GDP in the short run; however, a tax-rate reduction will reduce the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable. D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Final answer:
The correct answer is D. A tax-rate cut will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Explanation:
The correct answer is D. A tax-rate cut will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
According to the Ricardian equivalence theorem, tax cuts are not relevant and do not have a significant impact on the economy. Therefore, a tax-rate cut will not result in a multiple times higher increase in equilibrium real GDP in the long run as option A suggests.
Additionally, a tax rate reduction reduces the automatic stabilizer properties of the tax system. This means that the tax system is less effective in stabilizing the economy during fluctuations. As a result, the equilibrium real GDP would be less stable.
The basic operational responsibilities of the manager in the "wheel of management" include:
1) define objectives in support or the organization's goals;
2) organize work to be done;
3) measure efforts and performance associated with work;
4) develop people and talent;
Answer:
1) define objectives in support or the organization's goals;
Explanation:
The explanation of the exercise, is the key word "operational" all the different duties need to be done, day to day like; organize work to be done, measure efforts and performance associated with work, develop people and talent.
But define objectives in support or the organization's goals are related with the strategic and managerial skills, these types of activities depend of the strategic planning of the company .
In 2017, President Trump considered imposing a tariff on automobiles assembled by U.S. manufacturers in Mexico that were to be sold in the United States. If this tariff was imposed and as a result, some of these manufacturers moved their automobile assembly from Mexico back to the United States, these firms would be reacting to which of the three key economic ideas?
Answer: People respond to economic incentives.
Explanation:an incentive can influence different individuals in different ways. Responses to incentives are predictable because people usually pursue their self-interest. Changes in incentives cause people to change their behavior in predictable ways. Incentives can be monetary or non-monetary.One of the clearest examples of where people respond strongly to incentives is retirement. If you raise the retirement age, many people who'd otherwise be eligible continue to work. Since retirement probably increases life satisfaction/happiness and perhaps even health we obviously want it to happen at some point, but since it's also very costly in terms of benefits paid and productive activity not done, we want to be mindful of both costs and benefits.
Money is always based on a precious metal like gold or silver. anything that is generally accepted in payment for goods and services or in the repayment of debt. a flow of earnings per unit of time. the total collection of pieces of property that are a store of value.
Answer: Option(B) is correct.
Explanation:
Money is a term or instrument that is generally used in making transaction of goods and services. Individuals use money as a medium of exchange, unit of value and for making standard deferred payments. It is easy to store money. We can easily measure the value of goods and services in terms of money. Now days, money is normally utilized as a medium of exchange.
A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n): a) assembly drawing. b) route sheet. c) bill of material. d) work order. e) assembly chart.
Answer:
Either A or E (probably more A)
Hope this helps :)
Lemonade.You want to buy a new car, and you knowthe model you want. The model has three options, eachone of which you can either take or not take, and you havea choice of four colors. So far 100,000 cars of this modelhave been sold. What is the largest number of cars thatyou can guarantee to have the same color and the sameoptions as each other?
Final answer:
The largest number of cars with the same color and options that can be guaranteed out of 100,000 is at least 3126, calculated using the Pigeonhole Principle with 32 possible color and option combinations.
Explanation:
The question involves finding the largest number of cars that can have the same color and the same options out of 100,000 cars sold with given customizations.
With three options available for each car, each of which can be either selected or not, there are 23 possible combinations of options since each option has two possible states: taken or not taken. With four colors available, this creates a total of 23 × 4 = 32 different combinations for options and color.
Using the Pigeonhole Principle, to guarantee that at least two cars have the same combination of color and options, you would divide the total number of cars sold by the number of possible combinations and round down to the nearest whole number.
Therefore, 100,000 cars divided by 32 possible combinations equals 3125 whole combinations with at least one car leftover, meaning at least 3126 of these cars will share the same color and options configuration.
This is the largest number we can guarantee will have the same color and options out of the 100,000 cars sold. It is important to note that in real scenarios such as purchasing a car, factors like imperfect information about the condition of used cars and the associated risks are important considerations.
Marvin's concerns in the provided text about the potential of acquiring a 'lemon,' represent the challenges in ensuring high-quality purchases and the balance between cost and reliability.
If Joe transfers $1,000 from his savings account to his checking account and assuming that banks cannot lend this money, then: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices
a. M1 will increase by $1,000.
b. M1 will remain the same.
c. M1 will increase by $1,000, and M2 will decrease by $1,000.
d. M2 will increase by $1,000.
Answer:
A
Explanation:
M1 money supply includes coins and bill in circulation, which are most liquid ones: cash, amounts held in the checking accounts and travelers’ checks. M2 money supply includes everything in M1 but it also includes savings deposits in banks, money market securities, mutual funds and other time deposits.
At the begging Joe had $1,000 in his savings account, which means those $1,000 were included in M2. When he transferred this amount to the checking account, M1 increased by $1,000. M2 will not decrease because this money supply includes everything in M1 plus other types of deposits.
Answer: Option (a) is correct.
Explanation:
M1 consists of:
M1 = currency with the public + Check-able deposits + other deposits with RBI
M2 consists of:
M2 = M1 + post office savings bank account
If Joe transfers $1,000 from his savings account to his checking account, then there is a reduction in M2 and increase in M1. We know that M1 is a component of M2, therefore, M2 increases.
Hence, there is no change occur in M2 and M1 increases by $1,000.
Businesses are motivated to organize as corporations because stockholders in a corporation have _______ liability for corporate debts.
limited
personal
unlimited
no
Answer: Limited
Explanation: As per the law. the owners of a company and the company itself will be considered two separate entities. Thus, the liability of the owners will be limited to their extent of investment. And any court case in case of default will be named on company and not owners.
No personal assets of owners of a company shall be taken into consideration while repaying the stakeholders in case of default.
Hence from the above we can conclude that the correct answer is A.