Answer:
Option A Risks affecting the business operations and potential outcomes of an organization's activities.
Explanation:
The reason is that the business risk are those risks that has potential to increase the cost of the company or decrease the revenue of the organization. So here the misstatement will not increase the cost of the organization and the only risk that increase the cost or decrease the revenues is the poor performance of the organization's activities and operations. So the right option which doesn't talks about misstatements is option A.
Client business risk refers to the risks affecting the operations and potential outcomes of a company's activities, which include various operational, strategic, and financial risks, particularly with decisions like outsourcing.
The definition of client business risk is:
a. Risks affecting the business operations and potential outcomes of an organization's activities.
This encompasses various types of risks that a business might face, including but not limited to operational risks, strategic risks, and financial risks. For example, when a company decides to outsource part of its operations, it is exposing itself to outsourcing risks such as loss of control, loss of innovation, loss of organizational trust, and potentially higher-than-expected transaction costs. Outsourcing can lead to nonquantifiable risks such as damaging the employer-employee relationship and creating confusion among employees about their roles and loyalties. Furthermore, businesses must conduct risk assessments to identify, quantify, and manage risks, considering both internal and external factors, intentional and accidental threats, and natural or man-made disasters.
Coronado Industries began the year 2022 with retained earnings of $661000. During the year, the company sold additional shares of stock for $1011000, recorded revenues of $621000, expenses of $377000, and paid dividends of $137000. What was Coronado's retained earnings balance at the end of 2022
Answer:
The Coronado`s Retaining Earnings Balance is at end of 2022 is $ 808 000
Explanation:
Retained Earnings at the end of the year is calculated by adding together The Retained Earning at the Beginning of the Period, the Distributive Profit for the year ( Profit for the year after Interest and tax), then subtracting the dividends paid during the year.
From the question Retained Earnings at the Beginning of the year was provided at $661000.
The Distributive Profit needed a calculation. Revenue minus Expenses gives us profit.Expenses here include ALL trading, operating interest and tax expenses. This give is a Distributive Profit of $ 284000 ( $621000-337000). The $1011000 is disregard in calculation of profit and only Revenues that match with expenses are regarded (Accrual Principle).
The dividend paid was provided for at $ 137000.
This the Retained Earnings figure at end of 2020 is $808000( 661000+284000-137000)
∗ percy consumes cakes and ale. his demand function for cakes is qc = m − 30pc + 20pa, where m is his income, pa is the price of ale, pc is the price of cake and qc is the quantity of cake.
Solution:
Since there exists a positive relationship between price of ale and demand for cakes, the two are substitutes.
After substituting the given values,
Qc = 100 – 30pc + 20 pa
Where, qc= quantity of the cake, m = income of percy, pa = price of ale, pc = price of cake
Qc = 120 – 30 pc
Now, Rearranging demand function calculated above,
Qc = 120 – 30 pc
30 pc = 120 – Qc
Thus, Pc = 4 – 0.033 Qc
When Val sees the RFP issued by one of his customers, he is concerned that they have changed their specifications since they placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor
A. will necessitate renegotiating price and delivery terms.
B. .allows for a straight rebuy.
C. offsets a consensus buying center culture.
D. will probably not be an advantage in getting the new order.
E. will allow Val to get the order even though his products do not meet the specifications
Answer:
D) will probably not be an advantage in getting the new order.
Explanation:
A request for proposal (RFP) is issued when a company is requesting information from possible vendors that might be able to provide them with the products that they need.
If Val has recently provided a similar product to the one included in the RFP, that means that either Vl's product did not meet their expectations or they need a similar product but with different characteristics. Whichever the case, Val is at a bad position for the new purchase process.
Mr. Noriega paid $700 for each of three suits. Since all of the suits were pleasing to his taste, he would have been willing to pay according to this schedule: $950 for the first suit, $800 for the second suit, and $700 for the third suit. How much was his consumer surplus?a. $100.b. $150.c. $350.d. $250.
Answer:
C. $350
Explanation:
When a consumer is willing to pay more compared to the product's original price, it is called consumer surplus. In this case, Mr. Noriega paid $700 for each shirt. Because of changing tastes, he would be able to give more prices for each of the shirts. Therefore, it created a consumer surplus. Total consumer surplus for buying three shirts -
1. $950 - $700 = $250 From 1st shirt.
2. $800 - $700 = $100 From 2nd shirt.
3. $700 - $700 = $0 From 3rd shirt.
Therefore, total consumer surplus = $250 + $100 = $350
Hence, option C is the answer.
Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy's firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy's primary investor, who will assume an advisory role. The group of people that will launch Kathy's firm is called its ________.
Answer:
The group of people that will launch Kathy's firm is called New Venture Team
Explanation:
As per the definition, a new venture team can be understood as a group of people who are -
FoundersAdvisors Key employeesof some already existing firm and plan to develop a separate new firm which is fully functional as a new firm.
In the question the people in the group are already a member of some firm and prepared to launch a new firm so this group will be termed as new venture team.
"If your firm expects the euro to substantially appreciate, it could speculate by ____ euro call options or ____ euros forward in the forward exchange market."
Answer:
purchasing; purchasing
Explanation:
Call option can be explained as the means through which someone has a right to buy a thing at an agreed or certain price within a specific time frame or a particular date.
Forward exchange market can be described as a market where forward contract is made. Forward contract is a kind of contract or agreement usually between two individuals or parties in exchanging or delivering designated currencies at a specified exchange rate at a specific time in the future.
It should be noted that both call option and forward contract protects the buyer from the flunctuations in the prices of currencies during that agreed specific time frame.
In this case, the firm that foresees or expects a substantially appreciation in euro can adopt these two methods.
Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay extraction until a future time. Projections indicate that the price of natural gas is expected to rise in the future. What would you do in the present?
Answer: Extract as much gas as possible now.
Explanation:
As the owner of a natural gas exploring company with the ability to drill and export gas, if I receive information of a coming price increase in the market for gas, I would rapidly increase gas exploration to increase amount of gas that I can legally send to the market.
Answer:
Delay extraction to a future time
Explanation:
The only principal reason why we venture into business is to make profits. While we are doing this, we are equally looking at options and scenarios that could grant us access to the maximum possible profit.
In clearer terms, we seem to take out the maximum profit we can from the business. Now, as we can see, there are two cases presented and we need to judge to know what to do.
Speculations have arrived that there might be an increase in the price of natural gas in the future. Hence, what is meant to happen is that we bottle up our production to a later time at which we are presented with the option to maximize our profits.
Gomer loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:__________.A. laid off.B. underemployed.C. out of the labor force.D. unemployed.
Answer: Unemployed.
Explanation:
Gomer is unemployed because he is willing and qualified to work but cannot secure a job. An individual is said to be unemployed if they are unable to secure a job after several attempts to get a job. While a person is said to be under-employed if the person is paid less than what he/she is worth based on qualification.
Answer:
Underemployed
Explanation:
You are using ROI to evaluate a project that requires investments of $500 in each of the first 3 years, and yields annual income of $100, $50, and $25 in each of the first 3 years. What would happen to ROI if the annual incomes double?
Answer:
ROI doubles
Explanation:
The formula to compute the return on investment is shown below:
Return on investment = (Annual income) ÷ (Initial investment)
If we take the first case,
Annual income = $100
And, the investment = $500
So, the ROI = $100 ÷ $500 = 0.2
If the annual income doubles i.e $200
So, the ROI = $200 ÷ $500 = 0.4
So in the given case, the ROI also doubles
Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 18 percent over the following year, and then 8 percent per year, indefinitely. The required return on this stock is 15 percent, and the stock currently sells for $60.00 per share. What is the projected dividend for the coming year?
To determine the projected dividend for the upcoming year for Frey Corp., you need to calculate the growth rate based on the provided information.
Frey Corp. is expected to have dividend growth rates of 25% for the next three years, 18% the following year, and then 8% indefinitely.
The stock is currently valued at $60.00 per share with a required return of 15%.
The projected dividend for the coming year is calculated by taking the current dividend of $60.00 and multiplying it by the growth rate of 25%:
Projected Dividend = $60.00 x 25% = $15.00.
For the purposes of estimating the effective borrowing cost (EBC), only those up-front expenses associated with obtaining the mortgage should be included, not the settlement costs associated with obtaining ownership of the property. With this in mind, which of the following costs should not be included in one's calculation of EBC?
A. Discount points
B. Loan origination fees
C. Appraisal fee
D. Buyer's title insurance
Answer:
The correct answer is D. Buyer's title insurance.
Explanation:
When you buy a home, you receive a document that is usually called a deed, which indicates that the seller legally transferred the property, or the "title" of that home. Title insurance can protect you if someone later files a lawsuit and says they have a claim against the home since before you bought it. The most common claims are usually filed because the previous owner did not pay the taxes or because certain contractors did not charge for work done on the home before you bought it.
Most lenders require the buyer a title insurance policy for the lender, which protects the amount that the lender lends. You may want to buy a title insurance policy for the owner, which can help you protect your financial investment at home.
If there is an unanticipated increase in aggregate demand, then it means that
If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with an Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rise
Explanation:
lets consider that an economy was initially in long-run equilibrium, now if their is an unanticipated increase in aggregate demand it will result in an temporary high level of output and employment which cannot be maintained. But when an economy is in a recession stage ,less demand for investment funds will cause the real interest rate to decline.
So we can say that ,If there is an unanticipated increase in aggregate demand, then according to new classical economics, the economy will self-correct with an Decrease in short-run aggregate supply, so output returns to its initial level, but the price level rise
A plumber has a car payment of $250 per month. $225 of which goes to paying off the principal, and the rest goes towards the interest. What percent is being payed for interest
Answer:
Rate=R%=11.1111%
Explanation:
Given,
Amount=A=$250 (per month)
Principal=P=$225 (per month)
Interest=A-P=$250-$225=$25 (per month)
Time=1 month
Rate=R%=?
S.I=P×R%×T/100
25=225×R%×1/100
25×100/225=R%
R%=100/3
R%=11.1111%
Final answer:
10% of the plumber's monthly car payment is for interest, calculated by dividing the interest amount by the total payment and then multiplying by 100.
Explanation:
The plumber has a car payment of $250 per month, with $225 going towards the principal and the remainder towards interest. To find out what percent of the payment is for interest, we subtract the principal amount from the total payment to find the interest amount:
$250 - $225 = $25Now, we take the interest amount and divide it by the total car payment, then multiply by 100 to find the percentage:
($25 ÷ $250) × 100 = 10%Therefore, 10% of the plumber's car payment is for interest.
In recording an accounting transaction in a double-entry systema.the number of debit accounts must equal the number of credit accounts.b.there must always be entries made on both sides of the accounting equation.c.the amount of the debits must equal the amount of the credits.d.there must only be two accounts affected by any transaction.
Answer:
c. The amount of the debits must equal the amount of the credits.
Explanation:
a. The number of debit accounts must equal the number of credit accounts.
An account means one record entry of a transaction. There may be more credit or more debit accounts, depending on the transactions.
b. There must always be entries made on both sides of the accounting equation.
Although this happens most often, it is not always true.
The Accounting Equation: Assets = Liabilities + Owner's Equity
The two sides are separated by the equal sign. There can be a transaction that's only on one side. Example:
I buy a chair for $50 cash. Only the furniture and cash accounts are affected, and they are both on the assets side.
c. The amount of the debits must equal the amount of the credits.
This must always be equal. When you increase an asset (debit), you will increase owner's equity (credit). When you decrease an asset (credit) you could either decrease owner's equity or liability (debit).
d. There must only be two accounts affected by any transaction.
This is untrue. Sometimes, three or more accounts can be affected. For example, if I buy a chair, giving $20 down payment and borrowing $30 from the bank. The three accounts affected are furniture (increase by $50), cash (decrease by $20), and bank loan (increase by $30).
In a double-entry accounting system, the amount of the debits must equal the amount of the credits in every transaction.
Explanation:In recording an accounting transaction in a double-entry system, the correct statement is: c. the amount of the debits must equal the amount of the credits.
In a double-entry system, every transaction affects at least two accounts. The total amount debited in a transaction must always be equal to the total amount credited. This ensures that the accounting equation (assets = liabilities + equity) remains in balance.
For example, if a company purchases inventory for $500, it would debit the inventory account by $500 and credit the accounts payable account by $500, ensuring that the debits ($500) equal the credits ($500).
Learn more about Double-entry system here:https://brainly.com/question/33457570
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For determinant differences to exist, actual or perceptual differences must exist between brands. And the brand difference must be important to customers as they decide which brand to purchase. A. True B. False
Answer: True.
Explanation: it is an absolute truth that for a determinant differences to exist, actual or perceptual differences must exist between brands and the brand difference must be important to customers as they decide which brand to purchase.
Sun Technologies, a cell phone manufacturing company, decided to change the operating system of its phones to eliminate the problems faced by the users while using the current operating system. Before implementing the change, the marketing team of the company started creating advertisements that informed the users about the benefits of the new system in an attempt to make them believe that the change is for the better. In the given scenario, Sun Technologies is in the _____ phase of organizational change.
Answer:
Unfreezing
Explanation:
There are three phases of organizational change. Sun Technologies can be said to be at its unfreezing stage.
The organization must properly communicate with its employees and consumers at each level of changes they are.
At the unfreezing stage, the goal is to change the mindset and belief of the consumers about a particular process being deployed. Since the adoption of the new technology is being advertised as one that will make things better, we can see elements of unfreezing here. Other stages are the actual change phase and freezing stageSun Technologies is in the communication and preparation phase of organizational change, preparing for the executing change phase in Lewin's three-step change model.
In the scenario presented, Sun Technologies is in the communication and preparation phase of organizational change, specifically before the second stage of Lewin's three-step change model which is executing change.
The marketing team's efforts to advertise the benefits of the new operating system serve the purpose of preparing users for the transition, aiming to ensure a smoother acceptance of the change.
This step is crucial as it establishes a foundation for the implementation phase and can lead to a series of small wins that build the momentum needed for the change to gain traction and be successful within the organization.
Rodney was employed by Deluxe Discount Store. Rodney's manager directed him to check the prices of dog food at Huge Savings Store. The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he would be fired by Deluxe, refused to leave. Rodney committed the tort of:_______.a. larceny.b. trespass.c. misrepresentation.d. conversion.
Answer:Trespass
Explanation:
His refusal to leave after he had been asked to is trespassing; so also, he wasn’t a customer he was a spy sent to peak at the competitor. He also sought this information without permission.
Suppose an economist found that total revenues increase for the bus system when fares were raised, the conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic.True/False
Answer:
True
Explanation:
Price in-elasticity happens when individuals can not possibly shift or change their behaviors or process of Consummation.
In the case of the bus system, people do not have a Better choice from the bus system although the bus system increase bus fares.
If people do not have a better choice or option for there consumption, we say that price elasticity demand for a particular commodity is inelastic .
Answer:
True
Explanation:
Price Elasticity of Demand is responsive change in demand, due to change in price. P(Ed) = % change in demand / % change in price.
Demand can be classified on the basis of : Elasticity & its relationship with Total Revenue [ TR = P X Q] ; as undermentioned :-
Elastic Demand : P(Ed) > 1, %change in demand > %change in price, Price & Total Revenue are inversely related [ P ↑ TR ↓ , P ↓TR ↑ ] Inelastic Demand : P(Ed) < 1, % change in demand < %change in price , Price & Total Revenue are positively related [ P ↑ TR ↑ , P ↓ TR ↓]As Given : Increase in bus fares (price) lead to increase in total revenue. This implies Price & Total Revenue are directly related. So, Demand for subway bus services is Inelastic.
Assume it costs Lady Marion Seafood, Inc. $30 to catch, process, freeze, package, and ship 5-pound packages of Alaskan salmon. The firm adds 60 percent to the cost of its salmon products and charges customers a total of $48 for a postage-paid vacuum-sealed package. What type of pricing does Lady Marion Seafood use to arrive at its final price?
Answer: Standard Markup pricing
Explanation: When pricing is made using the formula :
Price = actual price + markup. Then thw standard markup pricing strategy is in play. The seller or business owner after calculating the actual cost of production adds a certain percentage of the actual cost to arrive at his or her selling price for the product.
In the scenario above,
Actual cost of Lady Marion Sea food Inc. is $30
Markup is 60% of actual cost : 0.6 × $30 = $18
Therefore,
Selling price = $(30 + 18) = $48
Answer:
Standard markup pricing
Explanation:
Standard markup pricing is a fast an easy way to determine the price to charge for the goods and services being offered. It is calculated individually for each item based on the items costs. The standard markup price is calculated by adding the actual cost of the item to the mark up price. For this problem, the actual cost of the item is $30 and the mark up price is 60%. Therefore the markup price = 0.6 * $30 = $18
Standard markup price = Actual cost + markup price = $30 + $18 = $48
Hope is desperate for the new designer purse that she saw while window shopping at her local mall. She knew every girl in school would covet her bag and wish to be like her. When she walked in, she whipped out her credit card and purchased the $5,000 bag. This kind of purchasing is called:
Answer:
conspicuous consumption
Explanation:
The term conspicuous consumption was first introduced by a Norwegian-American economist and sociologist known as Thorstein Veblen in 1899. Conspicuous consumption refers to the practice whereby expensive goods or services are purchased by certain people at an outrageous cost just for the sake of display of flamboyant lifestyle or wealth for recognition purpose rather than for the very basic need the goods or services meet. It is simply an act of wasteful spending on goods or services that other people of that social class on a normal day cannot afford to pay such expensive price for.
The case of Hope is simply a kind of conspicuous consumption as she doesn’t mind emptying her credit card to afford the luxury of the new designer purse just for the purpose of public display among her social class.
scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device used to stream movies at home, increases prices by 48 %, total revenue decreases by 63 %. When Cinema Supreme decreases ticket prices by 12 %, total revenue does not change. When Bluebox, a DVD rental kiosk, increases its prices by 43 %, total revenue increases by 31 %.
Answer:
Elastic demand
Unit elastic demand
Inelastic demand
Explanation:
Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded/ percentage change in price.
Denand is elastic if when price is increased, the quantity demanded changes more than the increase in price. Quanitity demanded is more sensitive to changes in price.
If price is increased, the quantity demanded falls and as a result the total revenue earned by sellers falls.
The elasticity of demand is usually greater than 1 when demand is elastic.
Demand is unit elastic if a change in price has the same proportional change on quantity demanded. The coefficient of elasticity is equal to one.
If price is increased, the quantity demanded changes by the same proportion so there's no change in total revenue of sellers.
Demand is inelastic if a change in price has little or no effect on quantity demanded.
Coefficient of elasticity is usually less than one.
If price is increased, there is little or no change in the quantity demanded and as a result the revenue earned by sellers increase.
I hope my answer helps you
I was so excited for school to end and for summer vacation to begin. My grandpa and I were going to begin building a new fence around my backyard. I was really looking forward to spending the time with my grandpa. Which best describes the style of this text?
Answer: Casual.
Explanation:
A text or a paragraph is a set of words or sentences that together make a narrative. They have the distinction of starting with a capital letter and ending at a point. Paragraphs usually formulate only part of a narrative.
There are different styles of text, one of these is the casual text. This type of writing is very simple, it narrates the events in an orderly way with an urban or casual language. Emotions or actions are generally expressed in this type of text.
I hope this information can help you.
Answer: C. Casual
Anyone play r6
Ford and Xeroc are two companies that have begun moving away from strict job specialization to alleviate employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider variety of tasks. The method they have wmployed is known as job:________.
(A) enlargement
(B) substitution
(C) generalization
(D) enrichment
(E) rotation
Answer: E) Rotation
Explanation:.
Job Rotation technique is a technique where workers are shifted between two or more positions or functions at regular intervals. It is a technique used to test the employee skills and competencies in order to place employees at the right position and it also help to reduce the monotony of the job and gives employees a wider experience and motivate employee when they perform different job functions at intervals.
Job rotation technique helps to reduce the boredom of doing same type of job everyday.
Marketing research showed that consumers in the West and the Southwest like spicier foods than those in the Southeast and East. As a result, Campbell's makes a hotter nacho cheese sauce for its western and southwestern customers. The differences in the nacho cheese sauce are the result of _____ segmentation.
Answer:
Geographic segmentation.
Explanation:
Geographic segmentation is when a business groups it's clients based on their location or when consumers have preferences on the basis of where they are located. Grouping is done by country, state, region, city, and so on.
For example luxury cars can target urban area for sale of their cars, as they will not do well in rural areas.
In this instance research showed that consumers in the West and the Southwest like spicier foods than those in the Southeast and East. So Campbell's makes a hotter nacho cheese sauce for its western and southwestern customers.
Regarding the major trading partners of the United States A. the top 10 accounted for nearly 50 percent of total U.S. goods exports. B. the top 10 accounted for nearly 50 percent of total U.S. goods imports. C. China was the largest recipient of U.S. goods exports. D. China, Canada, and Japan were the three largest sources of U.S. goods imports. E. China, Canada, and Mexico were the three largest markets for U.S. goods exports.
Answer:
E) China, Canada, and Mexico were the three largest markets for U.S. goods exports.
Explanation:
As of 2017, the 10 largest markets for US exports were (measured in millions of dollars):
Canada $282,265 Mexico $243,314 China $129,894Japan $67,605 Great Britain $56,258Germany $53,897 South Korea $48,326 Netherlands $41,510Hong Kong $39,939Brazil $37,222Venus Corp. is a company that sells collectible plates. If you order one plate from the company, you will receive multiple mailings each month providing you with information relating to new products and offers. Which promotional element is Venus Corp. using in this scenario?
Direct marketing element is used in this case.
Explanation:
Direct marketing in one of promotional methods of marketing that not only involves the description of product and company but also targets the customers. Through this method, the products are sold directly to public and there is no involvement of any middleman. An offer is communicated to a pre-slected customer and is told about the product information and its features.
Thus, in the given case, the promotional method that is being used in direct marketing method.
Meadow Range Pvt. Ltd. is a firm based in France that has one of the finest wine breweries in the country. Due to the availability of many grape varieties and suitable climatic conditions for growing grapes in France, Meadow Range has an advantage when competing in the international market. According to the diamond model, Meadow Range benefits from:
Answer:
C) factor conditions.
Explanation:
Michael Porter developed his Diamond Model to try to explain why some industries within certain countries possess competitive advantages over similar industries on other countries.
In this case, the climate conditions and the land of the French countryside favor the production of fine wines. This is an example of factor conditions that cannot be copied by other wine producers in other nations.
Final answer:
Meadow Range Pvt. Ltd. benefits from competitive advantages in the international wine market due to factor conditions, demand conditions, related industries, and industry rivalry as per the diamond model.
Explanation:
Meadow Range Pvt. Ltd., a prestigious winery based in France, enjoys significant competitive advantages in the international market according to the diamond model. This framework for understanding competitive advantage suggests that certain factors can make a nation's industries more competitive. Meadow Range benefits from factors such as factor conditions, which include the availability of numerous grape varieties and the ideal climate for viticulture in France.
Furthermore, the demand conditions locally can contribute to competitiveness by encouraging firms to innovate and improve quality. The presence of related and supporting industries, including high-quality suppliers and related sectors such as hospitality and tourism, can also enhance Meadow Range's success. Lastly, the firm's strategy, structure, and rivalry within the French wine industry push it to maintain high standards and continuous innovation, further sharpening its competitive edge.
Last year both a borrower and a lender expected an inflation rate of 3 percent when they signed a long-term loan agreement with fixed nominal interest rates of 5 percent. If the actual inflation rate were lower than expected, then which of the following would be true?A. The borrower would benefit.B. The lender would benefit.C. The real interest rate would be lower than expected.D. The nominal interest rate would be higher than expected.
Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
A. The borrower will benefit
Explanation:
The borrower benefits in the sense that the anticipated margin that took a 3% inflation rate into consideration will be smaller than the actual margin when the loan is repaid due to the prevailing inflation rate being smaller than anticipated. In simple English, the value of money the borrower gets at the time of repayment is higher than what was anticipated based on the expected inflation rates
Darwin Inc. sells a particular textbook for $29. Variable expenses are $21 per book. At the current volume of 44,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:______________
a) $352,000
b) $1,276,000
c) $1,628,000
d) $924,000
Answer:
The answer is A
Explanation:
To start with;
Contribution margin per unit = selling price($29) - variable cost($21)
$29 - $21
= $8 per book...
So break even sales =fixed cost(expense) / contribution margin.
Break even sales is 44,000 units and contribution margin is $8.
Therefore, fixed cost or expenses=
Break even sales x contribution margin
44,000 x $8
=$352,000
U.S. publisher Robert de Graff copied the success of similar books in England when he founded ________ in 1939. This company produced inexpensive paperback reissues of books that had already become successful in hardback.
Answer:
Pocket books
Explanation:
Pocketbooks were founded in 1939 and revolutionised the whole publishing industry. The idea was to produce easy to carry books with inexpensive paperback reissues. The idea became an instant success and per book cost was almost 25cent. Following the success of US publisher Robert de Graff many other publishing companies across England started to manufacture pocketbooks.