Answer:
market penetration:
Explanation:
Market penetration refers to the approach of selling the service and product in the market that is specified for a particular product.
it is calculated by determining the total amount of product sales in the market compared to goal of selling products in the market.
it involves all process that is needed to promote or to grow the market percentage in a particular business.
it is calculated as
market penetration[tex]= \frac{market\ covered}{target\ market} \times 100[/tex]
Which process includes measuring progress toward project objectives and taking corrective action to match progress with the plan?a. Planning
b. Montioring and controlling
c. Executing
d. Initiating
Answer:
b. Montioring and controlling
Explanation:
Monitoring and controlling is done throughout the life of a project and involves 9 of the 10 project management areas. It is the process that involves measuring progress toward project objectives and taking corrective action to match progress with the plan.
Answer:
b. Monitoring and controlling
Explanation:
Project monitoring and controlling is one of the project implementation stage that has to do with quality control, it deals with monitoring progress to ensure the project is going according to the project plan, identifying deviation from budget as well as standards and ensuring quick corrective action on any significant negative deviation from standard.
This exercise in project management ensures project implementation is in line with the estimated cost schedule and time, the quality of work must be measured to ensure quality control.
Theo believes that everyone must develop his or her own ethical rules. So whereas he believes that gay marriage should be legal, he understands that other people might feel differently. Theo would be considered to be a(n) _______ relativist.
Answer:
Individual
Explanation:
In the new global environment, relativism has been given equal consideration. Everyone has their own beliefs and thought procedure and they must be respected. Theo is an individual relativist that means that he believes everyone must make their own ethical rules and they should follow those rules. If he feels that gay marriages should be legal at the same time he knows that other people might feel different this is individual relativism.
All organizational practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers is ________.
Answer:
recruiting
Explanation:
All organizational practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers is recruiting. This is because this practice involves everything that has to do with bringing individuals into the company, by convincing them that the company is the best fit for them at a professional level with regards to their abilities and personality.
Delta Company purchased an equipment by signing a note with the bank for $20,000. Which of the following statements correctly show the effect of this transaction on the accounting equation?
a. Assets will increase by $20,000, liabilities will decrease by $20,000, and stockholders equity will remain unchanged.
b. Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged.
c. Assets will decrease by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged.
d. Liabilities will increase by $20,000, stockholders' equity will decrease by $20,000, and assets will remain unchanged.
Answer:
(B) Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged
Explanation:
Signing a note of $20,000 with a bank to purchase an equipment will have the following double entry in the books of the borrower.
Debit Equipment (asset) account $20,000 (an increase in assets)
Credit Bank Notes (liability) account $20,000 (an increase in liabilities).
Identify the type of sampling used (random, systematic, convenience, stratified, or cluster sampling) in the situation described below.A woman is selected by a marketing company to participate in a paid focus group. The company says that the woman was selected because her name is among the first 400 in the phone number listings.
The sampling method used in the provided scenario is systematic sampling, as the company selected every 'nth' person from a phone directory.
Explanation:The type of sampling used by the marketing company is systematic sampling. Systematic sampling is a method where you select every 'nth' item from a large population. In this case, the company appears to have a list (like a phone directory), and they've chosen the first 400 names, perhaps as every 'nth' person, depending on the size of the directory. This method provides an unbiased representation of the population and is not to be confused with convenience sampling which simply selects easily accessible individuals and may not accurately represent the population.
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On January 1, Year 5, customers owed Eagle $40,000. On December 31, Year 5, customers owed Eagle $30,000. Eagle uses the direct write‐off method for bad debts. No bad debts were recorded in Year 5. Under the cash basis of accounting, what amount of net revenue should Eagle report for Year 5?
Answer:
$200,000
Explanation:
The computation of the net revenue is shown below:
= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable
= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000
= $200,000
We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable
Suppose most economists agree that the target rate of unemployment is between 4 and 7 percent. If the actual unemployment rate is 11 percent, then most economists would agree that:______________.
Answer:
Both expansionary monetary and fiscal policies can be used
Explanation:
When unemployment rate is higher than the tolerated level, the government must stimulate aggregate demand by increasing the purchasing power of the citizens. The disposable income can be increased by using any of either expansionary fiscal policy which include massive government expenditure or the reduction in income tax, or monetary policy tools, the monetary authority can use expansionary monetary policy by reducing the cost of money (i.e. interest rate), increasing money supply, e.t.c.
A technological innovation in the production of golf balls increases ______, causing the price to ______ and the ______.
a) supply; fall; quantity demanded to increase.
b) quantity supplied; fall; quantity demanded to increase.
c) supply; rise; demand to decrease.
d) supply; fall; demand to increase.
Answer:
a) supply; fall; quantity demanded to increase.
Explanation:
Technological innovation typically makes production easier and faster so the supply of golf balls would increase. This would lead to an excess of supply over demand and as a result prices would fall. The fall in price would attract consumers and the quantity demanded would rise.
I hope my answer helps you
Final answer:
A technological innovation that reduces production costs increases supply, leading to a lower price and higher quantity demanded for golf balls.
Explanation:
A technological innovation in the production of golf balls would likely lead to an increase in supply. According to economic principles, when there is an improvement in technology that reduces the cost of production, the supply curve shifts to the right, indicating a greater quantity supplied at every price level. This increase in supply, assuming demand remains constant, will cause the equilibrium price to fall, and as a result, the quantity demanded will increase since the goods have become cheaper.
The correct answer to the student's question is therefore:
a) supply; fall; quantity demanded to increase.
farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmers sales will be included as apples in GDP?
Answer:
$50,000
Explanation:
The gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
The $50,000 worth of Apples sold to individuals represent final goods. They are included as part of consumption in the calculation of GDP.
The $75,000 sold to firms which are used to produce Apple ciders are intermediate goods. Intermediate goods aren't included in the calculation of GDP.
I hope my answer helps you
Only the farmer's direct sales to individuals, amounting to $50,000, will be counted in GDP, as the apples sold to the company for cider production are considered intermediate goods and will not be counted to prevent double counting.
When calculating Gross Domestic Product (GDP), we only include the final goods and services produced within a country in a given year. This means we exclude intermediate goods to prevent double counting. In the case of the farmer's sales, the $50,000 worth of apples sold directly to consumers for consumption will be included in the GDP. However, the $75,000 worth of apples sold to the company for cider production will not be included as apples in the GDP calculation because they are intermediate goods that will be transformed into a different final good - the cider.
Only the value of the finished cider, as a final good, will be included in the GDP figures once it's sold to the final consumers or businesses. Therefore, for the reported sales of apples, only the initial $50,000 will count towards GDP as part of consumption.
If an entry to adjust unearned rent and rent revenue is not recorded at the end of the period, Rent Revenue and Net Income on the income statement will be
a. unaffected because these items are not on the income statement.
b. unaffected because the omitted entry affects two accounts that cancel each other out.
c. understated.
d. overstated.
Answer:
c. understated.
Explanation:
Unearned rent usually comes to bear where cash or other forms of consideration has been received in advance for rental income.
When this happens, the entries to be posted are a debit to cash account and a credit to unearned rent.
When the rent is earned during the year, the entries will be a debit to unearned rent (balance sheet item) and a credit to rent revenue( in the p/l).
The recognition of the rent revenue results in an increase in net income.
As such, if unadjusted, rent revenue and net income would be understated.
Option c.
If an entry to adjust unearned rent and rent revenue is not recorded at the end of the period, the Rent Revenue and Net Income on the income statement will be overstated. This is because unearned rent is a liability that, if not recorded, inflates the perceived revenue and net income.
Explanation:If an entry to adjust unearned rent and rent revenue is not recorded at the end of the period, the Rent Revenue and Net Income on the income statement will be overstated.
This is because unearned rent represents a liability (or an amount that the business owes). If this is not recorded, it gives the impression that the business earned more revenue than it actually did, thus increasing the net income on the income statement artificially.
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North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges well. It is correct to say that North Carolina has a _________sweet potato production relative to Florida. a. free trade agreement with b. trade imbalance with c. comparative advantage in d. monopoly on
Answer:
c. comparative advantage in
Explanation:
In economics, comparative advantage is the advantage a trade party has over the other party, in the production of a a particular good that has a relatively lower opportunity cost. It simply involves exploring the option that has overall best package.
North Carolina has a comparative advantage in sweet potato production relative to Florida, as the opportunity cost involved is lower, since there is little potential benefits North Carolina will get in the production of oranges.
Martha signs a listing agreement with Broker Patrick. Which of the following would probably not be found in the agreement they signed?
a. Patrick's commission
b. Martha's price
c. Expiration date of the contract
d. Martha's average utilities
Answer:
. Martha's average utilities
Explanation:
As it is mentioned in the information Martha has signed the listing agreement, a listing agreement is an agreement which is signed between the broker and owner.
The significance of listing contract is that the owner allowing the broker to work for the owner as an agent to sell the property. so it must include broker commission, Martha's property price and duration of the contract
If they produce only hamburgers, in a single day Sarah can produce 10 hamburgers, and Abe can produce 5 hamburgers. If they make milkshakes only, in a single day Sarah can produce 10 milkshakes, and Abe can produce 4 milkshakes. Therefore, _____ has an absolute advantage and a comparative advantage in making _____.
Answer:
Sarah
Milkshakes
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared with other people.
A person has an absolute advantage in the production of a good or service If she produces more quantity of a product when compared with other people.
Sarah produces more hamburgers and milkshakes when compared to Abe. Therefore she has absolute advantage in the production of both milkshakes and hamburgers.
The opportunity cost of Sarah in producing hamburgers and milkshakes are both 10/10 = 1
The opportunity cost of Abe producing hamburgers is 4 / 5 = 0.8 and for milkshakes it is 5/4 = 1.25.
Therefore, Sarah has a comparative advantage in the production of milkshakes because she has a lower opportunity cost (1) when compared with Abe (1.25)
I hope my answer helps you.
Blaine bought 4 pairs of pants and 2 shirts at a department store in California. Each pair of pants cost $25.85 and each shirt cost $15.70. Blaine was also charged an additional 6% state sales tax on the total purchase amount. How much change did Blaine receive from $200?
Answer:
$57.11
Explanation:
$25.85 × 4 = $103.40
$15.70 × 2 = $31.40
Total cost of purchase = $134.80
6% tax = 0.06 × $134.80 = $8.09
Total cost of purchase including tax = $142.89
Change received by Blaine = $200 - $142.89 = $57.11
I hope my answer helps you
Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes.
Answer:
A) Partnership
Explanation:
A partnership is a type of business where two or more people (called partners) come together and form one single company. The main advantages of forming a partnership are:
partnerships are easy to set upsince more than one person is involved, a partnership can gather more capitalthe talents of the partners are sharedthe partnership is not taxed directly, it is a pass through entity where the partners are taxed directlyThe main disadvantage of forming a partnerships is that the partners are personally liable for all the partnership's debts and obligations.
Project managers need to recognize the risk of __________, which is the piling up of small changes that by themselves are manageable, but collectively can cause significant project growth. Select one:
a. over allocation
b. critical path
c. triple constraints
d. scope creep
Answer:
The answer to this question is D- Scope creep
Explanation:
Scope creep refers changes in the requirements of a project over a project life cycle. scope creep are uncontrolled growths in projects scope after the projects has begun
scope in project is the part of planning project that involves determining or identifying the specific goals, deliverable, features, functions, deadline and cost. in other words, it refers to the overview of the project and what must be done for the project to be term successful.
Causes of scope creep
poorly defined initial requirements starting the project with cost benefit analysis that are not up-to-date
On June 1 of the current year, Jack and Angie purchased a rental beach house for $900,000 and rented it right away. Of that amount, $600,000 was for the land value. How much depreciation deduction can Jack and Angie take in the current year? (You may need to refer to the depreciation tables.) a. $5,910 b. $10,909 c. $11,820 d. $17,730
Answer:
a. $5,910
Explanation:
The computation of the deduction amount for depreciation is shown below:
= (Rental beach house - the amount of the land value) × depreciation rate
= ($900,000 - $600,000) × 1.97%
= $300,000 × 1.97%
= $5,910
Refer to the depreciation table and we assume the year would be 1 and the recovery period is 19 years is 1.97%
In the context of Frederick W. Taylor's four principles of scientific management, what is a difference between the first principle and the third principle?
The first principle of scientific management emphasizes redesigning the workplace for productivity and wages. The third principle focuses on time and motion studies to improve work efficiency and standardize work.
Explanation:The first principle of Frederick W. Taylor's scientific management is about managing the workplace to increase productivity and wages. It emphasizes redesigning the workplace to achieve the best outcome for both the employer and the employee through training and development. On the other hand, the third principle focuses on time and motion studies to improve work efficiency and standardize work. It aims to reduce wasteful movements and increase productivity through careful study and measurement of different types of operations.
The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise, But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than is waiting on customers. Marielle's is suffering from is ______ gap. A) communications B) delivery C) knowledge D) social expectations E) standards
Answer:
B) delivery
Explanation:
If Marielle's service was usually bad and slow as that specific date, then the coffee shop would be suffering from a communication gap since it offers more than it can deliver. But since that day was an exception, then we can assume that the coffee shop suffered from a delivery gap that day.
A delivery gap happens when a service or product does not match the standards.
_____ _____ includes employee behaviors that are directly involved in the transformation
of organizational resources into the goods or services that the organization produces.
Examples include_____ task performance, _____ task performance,
and ______task performance.
Answer:
Task performance
routine
adaptive
creative task
Explanation:
Task performance
This is a performance assessment system that measures the way and manner a specific task was carried out. This can cover observable work-related behavioral pattern or time and accuracy of task
Routine Task performance
This is a performance assessment technique that involves popular attitude to normal demands or routine.
Adaptive Task performance
This deals with employees behavior towards certain, predictable and unusual job.
Creative Task Performance
This is the development of a useful ideas that can be deployed in both routine and adaptive task.
It is usually easier to detect inadequate disclosure fraud that involves______ disclosures than it is to detect disclosure fraud that involves _______ disclosures.
A. fraudulent, irrelevant
B. unintentional; intentional
C. misleading; missing
D. missing; fraudulent
Explanation:
Go with D
The detection of disclosure fraud involving fraudulent disclosures is typically more difficult than that of inadequate disclosure fraud involving missing disclosures. Option D is correct.
What is the significance of fraud disclosures?False statements about the facts are a component of fraud, whether they are made to another party with the intent to deceive or purposefully withheld for the goal of obtaining something that might not have been given otherwise.
Fraud detection stops dishonest people from conducting fictitious financial or other transactions. It is a crucial component of monitoring fraud. Any company's financial stability, as well as its reputation and brand, can be harmed by fraud.
Companies that distort financial information or omit crucial information from public statements commit financial statement and disclosure fraud. Publicly traded businesses notify the general public of significant occurrences through press releases and SEC filings (SEC).
Therefore, option D is correct.
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Rayman Automobiles, an automobile manufacturing company, was founded in 1912. The company primarily focused on creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase its output and lower the prices of its products. As a result, automobiles became an affordable commodity. In the context of the history of American business, Rayman Automobiles was most likely founded during the _____.
Answer:
Production Era
Explanation:
American business history is always described using five eras that was experienced; "Industrial Revolution, the Entrepreneurship Era, the Production Era, the Marketing Era, and the Relationship Era." Rayman Automobiles was founded in the production era because of the characteristics it showed, which are similar to those in the production era. In the Production era, business were most concerned with the achievement of improving the efficiencies of their production process. This period also promoted job specialization, thereby ensuring an increase in productivity and a corresponding reduction in prices and costs.
Rayman Automobiles, founded in 1912, improved its manufacturing processes to increase output and lower costs, reflective of trends during the Technological Revolution period of the Industrial Revolution. This period, marked by advancements in manufacturing and production, made products like automobiles affordable to the mass market, similar to what other companies like Ford were doing at the time.
Explanation:Rayman Automobiles, an automobile manufacturing company founded in 1912, primarily focused on creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase its output and lower the prices of its products, making automobiles an affordable commodity for the general public. This pattern of increased production efficiency and lower cost goods is characteristic of the Industrial Revolution.
The Industrial Revolution, specifically the second phase often referred to as the Technological Revolution, occurred between the late 19th and early 20th centuries — a timeframe which aligns with the founding date of Rayman Automobiles. During this period, there were significant advancements in manufacturing and production technologies, leading to increased output and more affordable products.
Much like what happened with Rayman Automobiles, these advancements allowed for mass production and market expansion, as products became more affordable to the general public. Similar to other companies of the time, such as Ford, the focus was to produce an affordable and reliable product for the mass market. Hence, in the context of the history of American business, Rayman Automobiles was most likely founded during the Technological Revolution phase of the Industrial Revolution.
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Fifty people were asked to respond to a survey question regarding how frequently they used their credit card. The categories they were asked to choose from are given below: 1) Infrequently 2) Sometimes 3) Frequently. qualitative neither
Complete Question: Classify the following data. Indicate whether the data is quantitative or quantitative, Gender is an example of which type of data here, discrete, continuous, or neither and indicate the level of measurement for the data. Fifty people were asked to respond to a survey question regarding how frequently they used their credit card. The categories they were asked to choose from are given below: Infrequently Sometimes Frequently. 1). Are these data quantitative or quantitative? 2). Are these data discrete or continuous or Neither ?3). What is the highest level of measurement the data possesses? Nominal, Ordinal, Interval, or Ratio
Answer: is the data is Qualitative, the data is neither (data not shown) discrete nor continuous, and finally the the level of measurement of data is ordinal. Lastly
1). What is Quantitative and Qualitative data: Quantitative data includes large groups of people usually in hundreds or thousands, collecting data by structured questionnaire technique that consists of forced choice and closed ended questions. While on the other hand, Qualitative data includes small group and conduct the research in the form of in-person or focus groups, phone interviews and detailed surveys. Qualitative technique is more precise and in depth kind of technique.
2). The option is neither, which means gender (male or female) is not specified. Insufficient information is given of the people's gender.
Continuous data ( data that can be divided and reduced to more precise level for example measurements)Discrete data ( this form of data includes integers, which means the count cannot be made more accurate for example counts)3). Level of measurement of data: There are four types of data levels of measurements namely;
NominalOrdinalIntervalRatioOrdinal level of measurement: In an ordinal level of measurement, data is specified in order form which means the ordinal level of measurement shows an ordering of the measurements. For example, In a class of 20 students, the student who got the highest marks in the exam stood 1st rank in the class then the student who got second highest marks stood 2nd rank in the class and so on. The students got their ranks order wise according to the marks they obtained.
The question involves a survey where participants reported their credit card usage frequency. It exemplifies the collection and classification of ordinal data, a type of qualitative data, in statistics.
Explanation:The question is about data collection and classification in statistics, a branch of mathematics. Fifty people responded to a survey. Specifically, they answered a question about how often they use their credit cards.
The possible responses - 'Infrequently', 'Sometimes', and 'Frequently' - illustrate an example of ordinal data, which is a type of qualitative data. In ordinal data, categories can be ranked or have a particular order. In this instance, 'Infrequently' can be considered as least frequent while 'Frequently' as most frequent.
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Emma and Anna went to the market to buy 25 fruits. Emma bought a few apples which cost $2 each, and Anna bought some oranges which cost $3 each. If their combined total is $60, how many oranges did Anna get? 5 10 15 20 25
Answer:
Emma and Anna went to the market to buy 25 fruits. Emma bought a few apples which cost $2 each, and Anna bought some oranges which cost $3 each. If their combined total is $60, how many oranges did Anna get?
10
Explanation:
if Emma bought 15 apples at 2$ each= 15 X 2= $30
then Anna bought 10 oranges at 3$ each= 10 X 3= $30
$30+$30= $60
The accumulation of several contiguous properties under one ownership, thus creating a large parcel of proportionate greater value, involves:
depreciation
plottage
corner influence
zoning value
plottage
Answer:
Plottage
Explanation:
Plottage is a value increase achieved by the amalgamation of conterminous or contiguous land into one piece under one ownership. The effect of such combination is that it produces a value that will be much greater than the sum of the value of the individual land.
The very process involved in the combination is referred to as assemblage. sometimes the word assemblage is used loosely to mean plottage.
In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. In the same light, if the:________
In a free-market economic system, consumers have the power to decide whether or not to purchase a product based on their perceived value of it. If they deem the price to be too high for the value received, they are likely to avoid buying it.
In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. This is because in a free-market system, consumers have the freedom to make purchasing decisions based on their own perceived value of a product. If they feel that the price is too high, they may choose to wait for a price drop or consider purchasing a different, more affordable option.
For example, if a consumer sees a state-of-the-art smartphone priced at $1,500 but feels that the features and benefits of the phone do not justify the high price, they may choose not to buy it. Instead, they might opt for a smartphone with similar features but at a lower price point, or wait for the price to decrease.
In summary, in a free-market economic system, consumers have the power to decide whether or not to purchase a product based on their perceived value of it. If they deem the price to be too high for the value received, they are likely to avoid buying it.
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Final answer:
In a free-market economic system, prices influenced by supply and demand can be misinterpreted by consumers when using price as an indicator of quality, especially in markets with imperfect information. This can lead to unexpected market behavior that deviates from the standard demand and supply model. Over time, the market adjusts as information spreads and consumers become more informed about the true value of products.
Explanation:
In a free-market economic system, the interaction of supply and demand determines the prices of products and services. However, when consumers perceive the price of a product as a signal of its quality, this can disrupt the typical market behavior. For instance, a used car dealer who lowers prices to increase sales may inadvertently signal to consumers that the cars are of low quality, deterring rather than attracting buyers. Conversely, increasing prices might create an impression of higher quality, potentially increasing demand. This phenomenon, which contradicts the basic demand and supply model, illustrates the complexities of a market with imperfect information.
Consumers' buying habits are influenced by their subjective valuations, and they are likely to adjust their purchasing decisions as better and more cost-effective options become available or as their personal circumstances change. Ultimately, the natural limits of price perception come into play, and excessively high prices will reduce demand, while very low prices may increase it, once consumers recognize the actual value of the products. Over time, information asymmetry diminishes as information spreads, helping to correct market distortions caused by misinterpretations of price signals.
The tendency to search for information consistent with our preconceptions is called: A. functional fixedness B. the representativeness heuristic C. the availability heuristic D. confirmation bias
Answer:
D, confirmation bias
Explanation:
Confirmation bias is a form of cognitive bias that is defined as the tendency to interpret ,search, recall an information that confirms one's previous personal belief.
For example, if you suspect that a friend of yours is a thief after some things went missing a few times after he left you place and then someone else tells you he is also suspecting that same friend of being a thief, your confidence bias immediately connects both situations and then you believe your friend is a thief.
I hope this helps.
Confirmation bias is the tendency to seek or favor information that validates our pre-existing beliefs, leading to a skewed interpretation and recall of information.
Explanation:The tendency to search for information consistent with our preconceptions is called confirmation bias. This cognitive bias refers to our inclination to favor, interpret, and recall information that supports our existing beliefs. For example, if you believe that cats are not friendly, you may more likely recall instances where a cat behaved unfriendly than those where a cat was friendly, even if these instances were equal in number. This happens because the information supporting your belief that 'cats are unfriendly' gets more priority and is more easily remembered.
In comparison, functional fixedness refers to viewing objects as only working in a particular way, the representativeness heuristic involves stereotyping based on a perceived category, and the availability heuristic involves making conclusions based on easily remembered or readily available instances.
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The Allegheny Valley Power Company common stock has a beta of 0.80. Assume the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 16%, determine the cost of equity capital for the firm (using the CAPM).
a. 14.1%b. 7.6%c. 6.5%d. 13.0%
Answer:
correct option is a. 14.1%
Explanation:
given data
beta = 0.80
current risk-free rate = 6.5%
expected return = 16%
solution
we get here cost of equity capital that is express as
cost of equity capital = current risk-free rate + beta ( expected return - current risk-free rate ) ...........................1
put here value ans we will get cost of equity capital
cost of equity capital = 6.5% + 0.8 (16% - 6.5% )
solve it we get
cost of equity capital = 14.1%
so correct option is a. 14.1%
An issuer decides to call in an outstanding bond issue under the terms detailed in the bond resolution because interest rates have dropped substantially after issuance. This type of call is a(n):________.
Answer:
An optional Call
Explanation:
Callable Bond
Callable bond represents an instrument of debt where the issuer issues the instrument reserving the right to make a return of the principal of investors including the stoppage of interest payments before the date of maturity of the bond.
Organisations would usually issue bonds as callable when either to meet unexpected obligations like pay off other debts, fund expansions or when they sense that opportunities may arise in the future for them to get other forms of financing at lower interest rates.
For bonds to be callable the terms must be clearly stated in the bond's offering.
Optional Call
In optional call, the issuer reserves the right to call the bonds to take advantage of present circumstances such as significant drop in interest rates (as stated in the question). However, the terms detailed in the bond resolution will allow the bondholders to receive a premium to par as compensation for their loss of interest payments on the called bond.
Furthermore, a period of time must usually pass before the issuer can use the optional call.
U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is not one of those reasons?
a. Passage of favorable trade agreements
b. Development of new transportation and information technology
c. An increase in underdeveloped countries
d. Maturing domestic markets
Answer:
C
Explanation:
An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky