Answer:
Equilibrium quantity will increase; the effect on price is ambiguous.
Explanation:
An add in the newspaper claims that the price of milk will increase next week . At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, we can say about the current equilibrium price and quantity of milk that Equilibrium quantity will increase; the effect on price is ambiguous.
The conclusion that equilibrium quantity will increase is dependent on the fact that expectation on future prices is a major factor that leads to changes in demand
People’s expectations about the future can have a significant impact on demand. Or, more specifically, their expectations of future prices can change demand.
If consumers expect prices to increase shortly, current demand often increases, i.e., the demand curve shifts to the right.
The price of milk is expected to increase, 4. leading to a higher equilibrium price. However, due to opposing effects on supply, the effect on the equilibrium quantity is ambiguous.
When analyzing the equilibrium price and quantity in the market for milk, we must consider the effects of both supply and demand changes.
The expected price increase of milk suggests a shift in the supply curve to the left, indicating a decrease in supply. However, the improved pasteurization process increases production efficiency, shifting the supply curve to the right. These two opposing shifts make the effect on the equilibrium quantity ambiguous. Therefore, the correct choice is that the equilibrium price will increase; the effect on quantity is ambiguous.An infestation of banana spiders makes it extremely difficult to harvest Indian bananas. The U.S. Surgeon General has stated that there are numerous health benefits from eating bananas. As a result, one should expect:________.A) Equilibrium price to fall, but equilibrium quantity to be indeterminate from the information given.
B) Equilibrium price to rise, but equilibrium quantity to be indeterminate from the information given.
C) Equilibrium price to be indeterminate from the information given, but equilibrium quantity to rise.
D) Equilibrium price to be indeterminate from the information given, but equilibrium quantity to fall.
Answer:
B) Equilibrium price to rise, but equilibrium quantity to be indeterminate from the information given.
Explanation:
Since it is very difficult to harvest bananas, that means that the production costs of bananas has increased. When the production costs of any good or service increases, their supply curve shifts to the left. That leftward shift will decrease total quantity supplied and increase the price of the good or service at every quantity demanded level.
We know that the equilibrium price will increase, but we cannot know what will happen to the equilibrium quantity.
At Corpceton, a plastic products manufacturing company, two to three newly hired machine operators are assigned to senior machine operators who train them for a few weeks. After the trainees complete three months of probation in the company, each of them is given a machine to operate on. In the context of training methods, this scenario best illustrates:_______.a) on-the-job training.
b) refresher training.
c) sensitivity training.
d) vestibule training.
Answer:
The correct option is A
Explanation:
on the Job training also known as OJT is a type of training in which the employee is trained at the workplace. Usually an experienced employee acts as the instructor.
Answer:
The answer to the question is D: Vestibule Training
Explanation:
The word Vestibule refers to several things one of which is the lobby next to the outer door of a building. Please see attached picture showing the vestibule of a building in New York City.
Notice that the lobby or vestibule is part of the building but not on the inside. We could say near the building.
Vestibule Training which means Near-the-Job training derives from the above.
It is an approach to personnel training in which new employees, before starting their work duties, spend some time learning in a special section (vestibule), apart from the actual work environment that duplicates as precisely as possible the setting and conditions in which the employees will actually be working once their training is complete.
This should not be confused with On-the-Job training which is training provided in the workplace during regular working hours for the purpose of developing or enhancing the knowledge, skills, and abilities of employees.
During On-the-Job training, the trainees learn under supervision whilst doing the actual job.
Some of advantages of Vestibule training are:
1. It enables the workers to secure training in the best methods to work and to get rid of initial nervousness. During the Second World War II, this method was used to train a large number of workers in a short period of time. It may also be used as a preliminary to on-the job training. Duration ranges from few days to few weeks.
2. It prevents trainees to commit costly mistakes on the actual machines and or actual work environment.
Cheers!
Which of the following best explains market segmentation? Select one: a. differentiating an organization or its products relative to the competition b. dividing a market into several smaller groups of buyers with similar characteristics c. selecting certain market segments for marketing emphasis d. attempting to reach most or nearly all consumers with the same marketing approach e. creating a marketing strategy with the same message to all segments
Answer:
b. dividing a market into several smaller groups of buyers with similar characteristics
Explanation:
The aim of market segmentation is to increase the revenue a seller earns.
For example, if a seller segments buyers based on their price elasticity, the seller can charge a higher price to the group with the less elastic demand and a lower price for those with a more elastic demand.
Also, if a seller segments buyers based on their willingness to pay, the seller can charge higher for the group with a higher willingness to pay and charge lower for the group with the lower willingness to pay. This is done with the aim of eliminating consumer surplus.
Segmentation is done to maximise profit of the seller.
Monopolies are usually able to practice segmentation more successfully.
I hope my answer helps you
Market segmentation is the process of dividing a market into smaller groups of buyers with similar characteristics. This allows a firm to target specific customer segments and tailor marketing efforts to meet their unique needs.
Explanation:Market segmentation is best explained by dividing a market into several smaller groups of buyers with similar characteristics. This strategy allows a firm to target specific customer segments and tailor their marketing efforts to meet the unique needs and preferences of each segment. By doing so, the firm can better differentiate itself and its products from competitors, attract customers who are willing to pay a higher price, and enhance overall profitability.
A client has had a splenectomy after sustaining serious internal injuries in a motorcycle accident, including a ruptured spleen. Following removal of the spleen, the client will be susceptible to:________.
Answer:infection because the spleen removes bacteria from the blood.
Explanation: The spleen is an organ that is present in all vertebrates, it functions like the lymph as it helps to cleanse the blood and balance the flow of blood in the body,the spleen is soft and purple in colour it has two tissues which includes
(1) The red pulp tissue which a ta to filter the blood and remove old or damaged red blood cells.
(2) The white pulp tissue consists of immune cells (T cells and B cells) which ensures that the immune system fight infection.
THE SPLEEN ALSO REMOVES BACTERIA AND IMPROVES THE IMMUNITY OF THE BODY.
Sven purchases a house valued at $80,000 and has a mortgage of $65,000. Several years later he decides to sell the house. The market value of the house has increased to $110,000 and his loan debt is down to $50,000. What is Sven’s equity in the house?
Answer:
$60,000
Explanation:
Given:
Purchase price = $80,000
Old mortgage value = $65,000
Market value of house = $110,000
New mortgage value = $50,000
Equity in the house = ?
Computation of Equity in the house :
Equity in the house = Market value of house - New mortgage value
Equity in the house = $110,000 - $50,000
Equity in the house = $60,000
Your organization has set up three levels of classification for data accessed by users on a small network: Low security: Data in the C:\Public folder Medium security: Data in a shared folder that some, but not all, user groups can access High security: Data in a shared and encrypted folder that requires a password to access. The folder is shared only to one user group. Classify each of the following sets of data: a. Directions to the company's Fourth of July party b. Details of an invention made by the company president that has not yet been patented c. Résumés presented by several people applying for a job with the company d. Payroll spreadsheets e. Job openings at the company
Answer:
Low security: Data in the C:\Public folder
a. Directions to the company's Fourth of July party
e. Job openings at the company
Medium security: Data in a shared folder that some, but not all, user groups can access
c. Résumés presented by several people applying for a job with the company
High security: Data in a shared and encrypted folder that requires a password to access.
b. Details of an invention made by the company president that has not yet been patented
d. Payroll spreadsheets
When Mr. Lakely, a recruiter for United Health, calls job applicant Leanne Pufall to schedule a second-round interview, he reaches Leanne’s voice mail, which has an offensive joke message. A. Leanne’s message is professional. B. Leanne’s message is unprofessional.
Answer: Leannes message is unprofessional
Explanation:
An unprofessional behavior shows a lack of respect for yourself and others as well as immaturity, and it proves a disregard for cultural and workplace ethics. Hence, Leannes message is unprofessional for such an offensive joke in a professional environment.
Resource Forestry Corporation and the Service Employees International Union are sued by plaintiffs alleging job discrimination in violation of Title VII of the Civil Rights Act. This law applies to employers and labor unions with at least
a. fifteen employees or members.
b. five employees or members.
c. ten employees or members.
d. one employee or member.
Answer:
The correct answer is A
Explanation:
Civil Rights Act, 1964, under the Title VII, dealt with or states the federal law which forbid or prohibits the employers from discriminating the employees on the grounds of race, national origin, sex, color and religion.
This law applies to the employers with fifteen (15) or more number of employees, comprising of the local, federal and state government.
So, this law applies to the labor unions and the employers with at least 15 members or employees.
Amazon expanded its single-product business by leveraging spare capacity into cloud computing and by offering its Kindle line of tablet computers. This is an example of____________.
A. unrelated diversification.
B. related-linked diversification.
C. taper integration.
D. backward vertical integration.
Answer:
B) related-linked diversification.
Explanation:
A related linked diversification strategy refers to expanding a company's product lines with products or services that are similar to the ones that it currently offers.
In this case, Amazon first sold books and selling a e-book reader follows a similar path. Since Amazon had spare cloud computing capacity, it decided to "lease it" to other businesses and is currently Amazon's star service that generates most of its cash.
GR8 Marketing Company and Brainfreeze Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze, which agrees to pay GR8 for the service. GR8 and Brainfreeze have
Full question:
GR8 Marketing Company and Brainfreeze Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze, which agrees to pay GR8 for the service. GR8 and Brainfreeze have...
a. an executed contract.
b. an express contract.
c. an implied contract.
d. a quasi contract.
Answer:
GR8 and Brainfreeze have express contract
Explanation:
An express contract is a deal whose sessions the participants have explicitly fixed out. This is additionally termed as a special contract. In an express contract, all the details would be explicitly stated. It necessity shows a proposal and complete acceptance and be revealed in an easy-to-understand way.
In this, the expressions are marked explicitly and correctly, and they are based on these terms slightly than the behaviors, activities, and obvious purposes of the parties. Any effort to change or modify the agreement is a counter-offer, not recognition of an express contract.
The administrative activities of controlling, directing, and coordinating police personnel, resources, and activities in the service of preventing crime, apprehending criminals, recovering stolen property, and performing regulatory and helping services.
Answer:
The statement is describing the functions of police management.
Explanation:
Just like managing a firm, managing the police works in a similar way: police directors have to plan, control, direct, and coordinate all aspects related to the police operations, both on a daily basis, and on a long-term basis.
It is very important to have good police management because police is a service that is public and crucial for citizens. The wrong kind of police management can cause safety and public order problems that can be very disruptive for daily life.
DMC3 Inc. will pay no dividend for 2016 or 2017. At the end of 2018, it will pay a dividend of $1.50. Thereafter dividends will grow at 4% per year. The required rate of return is 10%. The intrinsic value of DMC3 shares is:________.A) $33.50. B) $34.53. C) $34.91. D) $35.21.
Answer:
no option is correct, the correct answer is $20.66
Explanation:
we can determine the value of DMC3 stock using an adjusted perpetuity formula:
present value = [dividend / (required rate - growth rate)] / (1 + required rate)²
= [$1.50 / (10% - 4%)] / (1 + 10%)² = ($1.50 / 6%) / 1.1² = $25 / 1.21 = $20.66
Phil tells Gloria that if she works for him full time, he'll pay her $1,000 a week. As a result and based on Phil's promise, Gloria quits her job at the department store and puts a down payment on a car. When Gloria shows up at Phil's to start work, Phil tells her he's changed his mind about the full time job. What are Gloria's options
Answer:
Gloria can assert promissory estoppel in order to enforce Phil's promise.
Explanation:
Promissory estoppel refers to a legal doctrine that promises are legally enforceable. This doctrine establishes that in order for a promise to be considered legally enforceable, the party making the promise should reasonably realize that the other party will rely on it and that any reasonable person would rely on the other party's promise. This doctrine helps to avoid injustices by enforcing the promises.
On July 1, an investor holds 50,000 shares of a certain stock. The market price is $30 per share. The investor is interested in hedging against movements in the market over the next month and decides to use an index futures contract. The index futures price is currently 1,500 and one contract is for delivery of $50 times the index. The beta of the stock is 1.3. What strategy should the investor follow? Under what circumstances will it be profitable?
Answer:
26 Contracts
Explanation:
Portfolio value= P = 50,000 * 30 = 1,500,000
The formula to calculate the number of contracts is given by:
Number of contracts N = (β∗P) / Futures Value
P is the fair value of the portfolio in the market, β is the beta of the stock which is 1.3 and Future value is can be calculated by following formula:
Futures Value = Fair Value of Assets * Fair value of unit Future / Fair value of unit share
By putting values we have:
Futures Value = (45,000) * $50 per Future / $30 per Share = 75,000
By putting values we have:
Number of contracts N = (1.3∗$1,500,000) / 75,000 = 26 contracts
Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog’s ancestry, but Alyssa believes that the dog came from champion lines and agrees to the price. Alyssa later discovers that the puppy is worth only $200. Can Alyssa rescind the contract based on her mistake?
Answer:
Probably not, because Alyssa made a mistake about the dog's value, not a mistake about material fact.
Explanation:
When Sierra offered to sell the dog to Allysa, Allysa failed to discuss the ancestry of the puppy. She wrongly believed the dog came from a line of champions.
On finding out the dog is only worth $200, she will not be able to rescind the contract because the onus to ask all relevant questions about the purchase before accepting is on her.
She made the mistake of assuming the dog was worth $800. She made a mistake about the dog's value and not the material fact.
Answer:
Likely not, unless Sierra agrees, which she won’t unless she wants to give Alyssa $600
Explanation:
Sierra probably tricked Alyssa on purpose, so she won’t want to go back on the deal, because she was the one on the gaining side of it
Which of the following is considered an advantage/benefit of utilizing an ERP system? a. Enables the company to utilize a single centralized database system, thus eliminating duplicate data entries b. Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model c. Fairly inexpensive to purchase and implement
Answer:
The correct answer is A
Explanation:
ERP termed as or stands for Enterprise Resource Planning, which is defined as the centralized system, that provides the integration with the enterprise functions be it analytics, planning, sales, finance, HR, customer relations and procurement as well other application functions which are connected.
So, this system consider the benefit of enabling the company to use the single database system, which is centralized and thus remove the duplicate data entries.
A real estate salesperson brings a buyer to a For-Sale-By-Owner transaction. The home sells for $120,000, and the seller agrees to pay a commission of 3%. The salesperson is on a 65% commission schedule with her broker. How much will the salesperson receive from this transaction?
Solution:
The home sells for = $120000
The commission that is paid by the seller is 3 percent
Therefore, commission = 3% of $120000 = $3600
The sales-person is on a 65 percent commission schedule with her broker which means that the saleperson gets the 65 percent amount of the commission.
Thus, the amount which is received by the salesperson from the given transaction is = 65% of $3600 = $2340
Therefore, the salesperson receives $2340 amount from the said transaction.
The salesperson will receive $2,340 from the transaction as her commission.
The salesperson's commission from the transaction can be calculated as follows:
Commission paid by the seller = $120,000 * 3% = $3,600Salesperson's share of the commission = $3,600 * 65% = $2,340Therefore, the salesperson will receive $2,340 from this transaction.
In stratified random sampling, the population is first divided up into mutually exclusive and collectively exhaustive groups, called strata. A stratified sample includes randomly selected observations from each stratum, which are proportional to the stratum’s size.True / False.
Which of the following best describes how to account for the difference between a company's financial income and taxable income, under generally accepted accounting principles? Computation of deferred income tax based on temporary and permanent differences. Computation of deferred income tax based on permanent differences. Computation of income tax expense based on taxable income. Computation of deferred tax assets and liabilities based on temporary differences.
Answer:
The answer is D. Computation of deferred tax assets and liabilities based on temporary differences.
Explanation:
Financial income is the revenue minus total cost before deducting for tax. It is known as income before tax.
Taxable income is the amount on which tax is to be deducted from. Usually financial income will be used as the base figure for determining the tax payable.
Deferred tax liability is the tax payable i.e the amount of tax that will be carried to the next accounting year.
Deferred tax liability is the tax receivable. This arises as a result of over payment of tax in the current period which the tax authority will need to refund.
The temporary differences are the differences between the net book value (carrying amount) of a liability and an asset and its tax base(financial income) . The tax base is the financial income.
So the computation of tax asset and liability is based on temporary differences
Consider an individual who borrowed $$25,000 to purchase a used car at a fixed interest rate of 9%. If inflation is 9%, what is the real interest rate the individual will be paying
Answer:
The real interest rate is 0%
Explanation:
To calculate the real interest rate, we can use the following formula:
Real Interest Rate = [(1+nominal interest rate)/(1-+inflation rate)]-1
Now, we plug the amounts into the formula:
Real Interest Rate = [(1+0.09)/(1+0.09)]-1
=[1.09/1.09]-1
=1-1
=0
Thus, the Real Interst Rate is equal to 0%
Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on: Multiple Choice Competitive pricing. Domestic marketing. Short-term thinking. Strategic thinking. Independent judgment.
Answer:
Strategic thinking.
Explanation:
Strategic cost management refers to the process of improving the strategic position of a company by lowering its costs (both production and distribution costs). For example, Amazon's strategic cost management has helped them grow into a huge retailer by offering low prices, but low prices could only be achieved through low distribution costs per unit sold.
For a Global Strategy, Group of answer choices products tend to be customized to the local market. strategic decisions are decentralized to be responsive to the needs of the local market. creates an advantage from economies of scale. none of the above.
Answer:
CREATES AN ADVANTAGE FROM ECONOMIES OF SCALE.
Explanation:
A well designed global strategy can help firms to gain competitive advantage. This competitive advantage can be gotten from economies of scale from access to more customers, markets, technology, and resources (efficiency of operations).
Economies of scale simply means that as a company grows and production units increase, a company will have a better chance to decrease its costs.
Competitive advantage is developed largely on a global basis meaning that the world is treated as one market and one source of supply with just local variation. Example is the Pepsi and Coca-Cola that sells in every country.
Therefore, a global strategy CREATES AN ADVANTAGE FROM ECONOMIES OF SCALE.
Customers in the segment must react similarly and positively to the firm's offering. This quality is known as ______, which is an important element of successful segmentation.
Answer:
Responsiveness
Explanation:
Market segmentationnis the process by which a company groups consumers on the basis of a shared characteristic which can be income status, education, age, location, race,and so on.
For segmentation to be successful the segment must be measureable, profitable, accessible, and market responsive.
Responsiveness is the level of adoption of the product by the target segment. If the segment is not responsive then that aim of the business is defeated. Consumer decision to purchase is key to product success.
Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 8%, compounded monthly, if they want the balance to be $160,000 at the end of 18 years?
Answer:
They contribute $ at the beginning of each month
Explanation:
A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.
Formula for Future value of annuity is
F = P x ( [ 1 + I ]^N - 1 ) / I
I = interest rate = 8% / 12 = 0.67% per month
N = Number of periods = 18 years x 12 = 216 months
F = Future / final value = $160,000
P =Payment amount = ?
$160,000 = P x ( [ 1 + 0.67% ]^216 - 1 ) / 0.67%
$160,000 = P x ( [ 1.0067 ]^216 - 1 ) / 0.0067
$160,000 = P x ( [ 1.0067 ]^216 - 1 ) / 0.0067
$160,000 = P x 482.20
P = $160,000 / 482.2
p = $331.81
Answer:
$332.74
Explanation:
We can use the annuity formula to calculate the monthly deposit. Since this problem requires a lot of compounding periods we must use the memory function of our calculator to get a more exact answer.
future value = payment x [(1 + i)ⁿ - 1] / i
future value = $160,000payment = ?n = 18 years x 12 months = 216 periodsi = 8% / 12 = 0.006666... we must add this number to our calculator's memory$160,000 = payment x [(1 + 0.006666)²¹⁶ - 1] / 0.006666
$160,000 = payment x (1.006666²¹⁶ - 1) / 0.006666
$160,000 = payment x 3.2 / 0.006666
$160,000 = payment x 480.861
payment = $160,000 / 480.861 = $332.736 ≈ $332.74
For each user of accounting information, identify if the user would use financial accounting or managerial accounting.
a. investor
b. banker
c. IRS
d. manager of the business
e. controller
f. stockholder
g. human resource director
h. creditor
Answer:
a. Investor - Financial Accounting;
b. Banker - Financial Accounting;
c. IRS - Financial Accounting;
d. Manager of the business - Managerial Accounting;
e. Controller - Managerial Accounting;
f. Stockholder - Financial Accounting;
g. Human resource director - Managerial Accounting;
h. Creditor - Financial Accounting.
Explanation:
Requirement A - D
a. Investor - Financial Accounting - Investor decides after evaluating the past performance of a company whether to invest or not. They cannot provide any upper-level decisions.
b. Banker - Financial Accounting - Preparing financial statements or boosting company performance is the crucial working area for a banker. They cannot make a decision.
c. IRS - Financial Accounting - Internal Revenue Service deals with the financial statements of an organization and not deals with the organization's decision.
d. Manager of the business - Managerial Accounting - When a branch of an accounting discusses how to make managerial decisions to achieve the objective with the managers or administration, it is termed as managerial accounting. The manager of a business decides what the necessary things for a company are.
Requirement E - H
e. Controller - Managerial Accounting - The controller of an organization directly deals with the managers regarding various managerial decisions.
f. Stockholder - Financial Accounting - Stockholders cannot make any decisions. They can only give their opinions to alter the situation to maximize the value of the shares.
g. Human resource director - Managerial Accounting - Human resource director makes recruiting-related decisions that are internal. As managerial accounting deals with internal decisions, the human resource director is under the managerial accounting category.
h. Creditor - Financial Accounting - Creditors can ask for early payment, but they cannot urge the mangers to make any decisions.
The correct methods of accounting to be used for the below phenomenon will be -
Investor - Financial AccountingBanker - Financial accountingIRS - Financial accountingManager of the business - Managerial accounting Controller - Managerial accountingStockholder - Financial accounting Human resource editor - Managerial accountingCreditor - Financial accounting.Financial accounting is referred to as that branch of accounting, which deals with the financial aspects of a business and managerial accounting deals with management of the firm by accounting principles.
Methods of AccountingFinancial accounting is a process of accounting that involves recording, classifying and summarizing the accounting transactions of a firm over a period of time in chronological order.Managerial accounting is that branch which helps in analysis and interpretation of a firm's performance during an accounting financial period.
Hence, the different methods of accounting followed for specific tasks are as aforementioned in the part above.
Learn more about methods of accounting here:
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The boss praised his hourly employees for their good work. The boss hopes that the praise encourages the employees to continue to work hard. In this example, the reinforcement is _____.
A) the boss’s praise
B) the employee’s good work
C) the boss
D) an hourly wage
Answer: option (A). the boss's praise
Explanation: Reinforcement is the process of encouraging or establishing a belief or pattern of behaviour. in this scenario, The boss praised his hourly employees for their good work. The boss hopes that the praise encourages the employees to continue to work hard. In this example, the reinforcement is the boss praise.The boss hoped the praise would encourage the employees to work harder.
Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be?
a.
$93.84
b.
$99.75
c.
$209.03
d.
$312.06
Answer: $312.06
Explanation:
We are given that :
MSRP = $17500 , time = 36 months , interest rate = 9% , residual value = 57%
Exact residual value = 57% of 17,500 = $9975
Also, we know Money factor = rate ÷ 2400
money factor = 0.00375
Step 1 : To calculate monthly depreciation by using the formula :
Monthly Depreciation: MSRP-RESIDUAL VALUE / No. of MONTHS
17500-9975 / 36 = $209.03
Step 2 : To calculate monthly financial charge by using the formula :-
Monthly financial charge=( MSRP + RESIDUAL VALUE) . MONEY FACTOR.
Monthly financial charge = (17500+ 9975) . 0.00375= $103.031 25
Step 3 : To calculate lease amount by using the formula :
Lease payment = Depreciation + Financial charge
Lease payment = 209.03 + 103.031 25= 312.06
So, the approximate lease payment is $312.06
Answer:
D. $312.06
Explanation:
John and Susan Smith are in their mid 30s and have two children, a 4-year-old and a 2-year-old. Both John and Susan work and do not currently need additional income. They have determined they want to conservatively invest so that they will have funds for their childrens' college in about 12-15 years. Which of the following investments would best meet their goal? A) Common Stocks.B) Laddered Treasury Notes.C) Laddered Zero-Coupon Bonds.D) Preferred Stocks.
Laddered Zero-Coupon Bonds would best meet their goal.
Explanation:Those bonds that will not pay interest in the life of bonds refers to Zero Coupon Bonds. The investors will be getting this type of bonds with greater discount from their original value. These will be achieved by them during the time of the maturity of that bond.
In the given example, John and Susan Smith do not wish to have additional income in their current state and want to gain some investment in future for the purpose of making their children college studies. The period of waiting is about 12-15 years and hence they can make investments in Laddered Zero-Coupon Bonds.
Laddered Treasury Notes are the best conservative investment option for the Smiths' children's college fund due to their moderate to long-term investment horizon. They offer lower risk and fixed interest rates, aligning with the Smiths' conservative approach and the benefits of compound interest.
Explanation:Considering the Smiths have a moderate to long-term investment horizon and are seeking conservative investments for their children's college fund, the best option among those listed would likely be B) Laddered Treasury Notes. These are government-issued debt securities with fixed interest rates and provide a reliable, lower-risk return. While common stocks and preferred stocks may offer higher potential returns, they also come with higher volatility, which might not align with the Smiths' conservative investment strategy.
Laddered Zero-Coupon Bonds could also be a suitable approach since they can be purchased at a discount and grow to their face value over time, exclusively delivering the return at maturity, which could coincide with the children's college enrollment dates. However, this option might not provide the same level of liquidity or periodic interest payments as Treasury Notes.
Starting to save money early and leveraging the power of compound interest is essential, as it allows investments to grow significantly over time. This strategy aligns with investing in bonds, which can provide regular interest payments that compound over the years.
Which of the following statements is true of services? a.They are homogeneous in nature. b.They can be inventoried to be consumed later. c.The production and consumption of services can be separated. d.They are intangible in nature.
Answer:
D. They are intangible in nature
Explanation:
Service
Services are defined as valuable actions, deeds or effort performed in order to satisfy a consumer's or customer's needs.
It is an intangible product as opposed to goods which are tangible. Services includes banking, education, cleaning, insurance, land scaping, medical treatment and so on. Services are non physical, meaning they cannot be manufactured, transported or stored/stocked (that is, it cannot be stored for future uses).
Services are intangible in nature, which means that they cannot be seen, touched, or physically possessed like tangible products. Instead, services are experienced and consumed by customers. This intangibility is one of the key characteristics that distinguish services from physical goods.
Therefore option d is correct.
a. Services are not necessarily homogeneous. In fact, services can vary widely in terms of quality, features, and customer experience. For example, the quality of a restaurant meal or the level of customer service provided by two different companies can vary significantly.
b. Services are not typically inventoried to be consumed later. Unlike physical products that can be produced and stored in inventory, services are usually provided in real-time to meet the immediate needs of customers. For example, you can't store a haircut or a doctor's appointment for future use.
c. The production and consumption of services are often inseparable. In many cases, services are created and consumed simultaneously. For example, when you receive medical treatment from a doctor, the service is provided in real-time as you receive the treatment.
In summary, services are characterized by their intangibility, meaning they cannot be touched or possessed like physical products. This intangibility sets them apart from goods, and it also influences how they are produced and consumed, often in real-time and without the possibility of inventorying for future use. Services can vary widely in terms of quality and features, making them non-homogeneous.
Therefore option d is correct.
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A difference between book income and tax income that __________ (increases / decreases) taxable income in the current year but will __________ (reduce / increase) taxable income in a future year is a(n) ________ book-tax difference.
Answer:
Temporary difference
Explanation:
The reason is that the temporary difference is due to allowable and disallowable expenses and returns for some period which in later years equals to the allowable or disallowable incomes and expenses. This is all because of the temporary differences.