Answer:
This is called "tailgating" or "piggybacking".
the purchase ofo inventory- typical with internet based businesses- onlu after a sale is made is called a
The purchase of inventory that is typical with internet-based businesses, which is only made after a sale is made, is referred to as a drop shipping model. The Drop shipping model refers to an internet-based retail business that does not hold its inventory physically. Instead, when a customer places an order for a product, the retailer forwards the request to the product supplier, who then ships the product directly to the customer.
In this case, the retailer does not manage any inventory; instead, they only act as intermediaries between the customer and the supplier. The process begins when a customer places an order through the retailer's website. The retailer forwards the request to the supplier, who prepares and sends the item directly to the customer, bypassing the retailer altogether.
The retailer, on the other hand, obtains payment from the customer, takes their cut, and forwards the balance to the supplier, who is responsible for shipping the item. The drop shipping model has a few advantages. For starters, retailers do not need to invest in the purchase of inventory to sell their items. The supplier manages the stock, allowing retailers to concentrate on sales and marketing activities.
The retailer is also not required to spend money on renting or buying warehouse space to store inventory. It allows companies to start their e-commerce business with minimal upfront expenses. It is a perfect model for small enterprises that are just starting or businesses looking to expand their product offerings without significant investment. However, drop shipping has some drawbacks.
For example, retailers may have little control over the shipping process and product quality, which could result in customer dissatisfaction. They also run the risk of being unable to satisfy an order, as a supplier may be out of stock or unwilling to fulfil an order. As a result, before using the drop shipping model, it is critical to investigate the supplier and conduct due diligence to ensure that the products and services they provide meet the company's standards.
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g if the consumer price index increases from 129 to 153 then in percentage terms you would like to have a cost of living adjustment equal to how much? enter a number rounded to two decimal places.
You would like a cost of living adjustment of 18.60 in percentage terms if the consumer price index rises from 129 to 153.
What is the consumer price index's cost of living index number?The Consumer Price Index is a measure of the general level of prices in an economy (CPI). The CPI is a collection of goods and services that are regularly bought. The CPI keeps track of price changes for a basket of products and services as well as changes in a country's currency's purchasing power.
How is the CPI adjustment determined?The CPI in any given year is calculated by dividing the price of the market basket in year t by the price of the same market basket in the base year. In 1984, the CPI was calculated by multiplying $75 by 100 and dividing it by 75. As the CPI is only an index number, 1984 is used as the base year for indexing it to 100 in this case. Hence, prices have risen by 28% over those 20 years.
((153-129)/129)*100 = 18.60
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A condominium community has a swimming pool, tennis courts, and a biking trail. These facilities are MOST likely owned by the
A) unity owners in the form of percentage undivided interests.
B) condominium board.
C) unit owners in the
The facilities like swimming pool, tennis courts, and biking trails, in a condominium community are most likely owned by the condominium board. Thus, the correct answer is option B.
A condominium community is a type of real estate property where individual units are owned by different people, and the common areas are jointly owned. A condominium is similar to an apartment building, but each unit is owned by the individual, unlike an apartment, where all units are owned by a single entity. Individuals who own a unit in a condominium community are called unit owners. The common areas of the community, such as the swimming pool, gym, tennis courts, and gardens, are jointly owned by all unit owners. They share the cost of maintenance and repairs of these areas through the payment of dues.
The condominium board is responsible for the maintenance and management of the property. The board is elected by the unit owners and consists of a group of volunteers who work together to manage the community. They are responsible for making decisions regarding maintenance and repairs of the common areas, enforcing the rules and regulations, and collecting the dues from the unit owners. They also work to ensure that the property is well-maintained and that the unit owners are satisfied with the services provided.
In conclusion, the facilities in a condominium community such as the swimming pool, tennis courts, and biking trails are most likely owned by the condominium board. Option B is correct.
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blue origins is a privately funded company started by amazon ceo, jeff bezos, that plans to offer space tourism. it uses a(n) strategy.
The company Blue Origin is a privately funded company started by Amazon CEO Jeff Bezos, has a strategy in place to achieve this goal, which is to develop reusable launch vehicles (RLV) that are safe, reliable, and affordable.
The RLVs will be launched from spaceports and will be able to take passengers to and from the edge of space. Blue Origin plans to use the funds raised from ticket sales to help fund future research and development for their RLVs.
Additionally, Blue Origin has plans to use their RLVs to provide other services such as satellite launches, cargo transportation, and in-space manufacturing. With their strategy in place, Blue Origin has the potential to become a leader in space exploration and tourism.
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discuss the process of further defining project scope, going from information in a project charter to preliminary scope statement, project scope statement, wbs etc.
The process of further defining project scope include reviewing the project charter, developing a preliminary scope statement and project scope statement, creating a WBS, validating the scope, and controlling the scope.
The process of further defining project scope involves going from the information in a project charter to a preliminary scope statement, project scope statement, WBS, etc. The following steps are involved in the process of further defining project scope:
1. Review the project charter: Reviewing the project charter will provide more information about the project's scope, objectives, and deliverables.
2. Create a preliminary scope statement: This statement will define the project's objectives and deliverables. The preliminary scope statement is the starting point for developing the project scope statement.
3. Develop a project scope statement: The project scope statement is a more detailed version of the preliminary scope statement. It should include the project's goals, objectives, deliverables, constraints, and assumptions.
4. Create a WBS: The Work Breakdown Structure (WBS) is a visual representation of the project's scope. It identifies all of the work required to complete the project.
5. Validate the scope: It is essential to validate the project's scope with stakeholders to ensure that the project is on track and meets the stakeholders' expectations.
6. Control the scope: Scope control is essential for keeping the project on track. It involves monitoring the project's scope and making adjustments when necessary to ensure that the project is completed within the agreed-upon scope.
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grandpa puts $50,000 into a bank account for you earning 4% compounded monthly. how much will you have in the account after 4 years if you don't make grandpa mad enough to take the money back before then?
If your grandpa has put $50,000 into a bank account for you earning 4% interest compounded monthly, after 4 years, you will have $67,977.48 in the account.
For calculation, first you need to calculate the total interest earned over the four years. To do this, you need to calculate the monthly interest rate by dividing 4% (0.04) by 12 to get 0.003333.
This number is multiplied by the $50,000 to get the monthly interest of $166.67. This monthly interest is then multiplied by 48 (the total number of months in 4 years) to get the total interest earned of $7,977.48.
To calculate the total amount in the account after 4 years, you add the initial investment of $50,000 with the total interest earned of $7,977.48 to get the grand total of $67,977.48.
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based on the static theory, what should the managers attempt to maximize and minimize while developing capital structure policy?
The static theory of capital structure suggests that a company's capital structure should be based on the minimization of the cost of capital while attempting to maximize the market value of the company's equity.
The cost of capital is reduced when more debt is added to the capital structure, however the risk of default rises with increasing debt. Therefore, managers must strike a balance between increasing debt and the associated cost of capital versus the risk of default.
The objective of a firm's capital structure policy should be to find the optimal debt-to-equity ratio, or the balance between debt and equity that maximizes the market value of the firm.
This optimal capital structure will result in the lowest cost of capital for the firm, as it reduces the cost of debt financing and provides access to less expensive sources of capital.
In terms of minimizing, the main thing to minimize is the risk of default. This can be done by managing the firm's debt-to-equity ratio and avoiding taking on too much debt. Taking on too much debt increases the cost of debt financing, as well as the likelihood of default.
Managers must also keep in mind the tax implications of their capital structure decisions, as debt financing is generally tax-deductible, thus resulting in a tax savings for the firm.
In summary, the static theory of capital structure suggests that managers should aim to maximize the market value of the firm's equity by finding the optimal debt-to-equity ratio and minimizing the risk of default, all while keeping in mind the tax implications of their decisions.
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certain advertising media are forbidden by government edict to accept some advertising materials. such restrictions are most prevalent in
Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in television and radio advertising.
What is advertising media?
Advertising media refers to the different types of communication channels used to advertise or promote a product, service, or brand. Advertising media come in various formats, including print ads, broadcast ads, online ads, outdoor ads, and direct mail.
What is the government's role in advertising?
The government's role in advertising is to regulate and monitor advertising activities to ensure that they are truthful, ethical, and legal. The government has the power to impose restrictions on certain advertising media to protect consumers from misleading or harmful advertisements.
For example, the government may prohibit certain types of advertising on television and radio, such as tobacco, alcohol, and prescription drugs. The purpose of such restrictions is to safeguard public health and prevent the promotion of potentially harmful products to vulnerable populations, such as children and teenagers.So, certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in television and radio advertising.
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if an economy is in a recession, and the government increases its spending to bring the economy back to its long-run equilibrium, the long-run level of output will:
If an economy is in a recession, and the government increases its spending to bring the economy back to its long-run equilibrium, the long-run level of output will increase.
A recession is a period of economic decline, characterized by a decline in real output and a rise in unemployment. When an economy is in a recession, the government can use expansionary fiscal policy to increase spending and increase aggregate demand. In the short run, this will lead to an increase in output and employment. However, in the long run, the economy will return to its natural rate of output.
The natural rate of output is the level of output that the economy produces when all factors of production are fully employed. If the government increases spending to bring the economy back to its long-run equilibrium, the long-run level of output will increase. The increase in government spending will increase aggregate demand, which will lead to an increase in output and employment.
However, if the increase in government spending is not accompanied by an increase in taxes or a reduction in other government spending, it may lead to inflation. Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.
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an industry will have an increasing long run supply curve when an increase in market demand is met by a smaller increase in market supply. true or false
True.The long-run supply curve refers to a graphical representation of the behavior of firms in an industry as output increases over a period of time long enough for the firms to make all their necessary production changes.
The long-run supply curve is normally horizontal or upward-sloping. It might be worth noting that the long-run supply curve is never sloping downward (or backward).In the event of a market demand increase, the cost and price of the product will increase, thus increasing the production level, which in turn causes the supply curve to shift to the right, resulting in a new equilibrium.
If the market demand for a product rises, the industry will expand production in the long run to satisfy the demand for that product. This implies that when there is an increase in market demand and a smaller increase in market supply, the long-run supply curve for an industry will grow. Market supply is the overall quantity of a good or service that firms are willing and able to sell at a particular price level in a market during a particular period, holding all other factors constant.
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there are a significant number of differences between sport marketing and regular marketing, though both use the four ps. name and explain three differences.
There are several differences between sport marketing and regular marketing, even though both use the four PS, which are audience, tactics, and goals.
The Explanation to EachAudience: The primary audience for sport marketing is usually younger and more diverse than a typical marketing audience.Tactics: The tactics used in sport marketing often involve creating an emotional connection with the fans, while regular marketing tactics are more focused on generating sales.Goals: Sport marketing is often used to build brand awareness, while regular marketing has the goal of generating sales or increasing market share.Sport marketing is unique in that fans have an emotional attachment to their favorite teams and players, making it necessary to appeal to emotions and experiences rather than just product features. Experiential marketing, such as game-day activities and fan events, is crucial for creating a memorable experience for fans. Sponsorships and partnerships are also crucial for generating revenue in sport marketing, as they provide a way for teams to generate income and increase brand recognition through association with popular brands and athletes.
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many major media organizations attempt to self-regulate and ensure ethical practice by hiring individuals to deal with readers, viewers, or listeners who have a complaint to report. such individuals are known as:
Many major media organizations attempt to self-regulate and ensure ethical practice by hiring individuals to deal with readers, viewers, or listeners who have a complaint to report. Such individuals are known as ombudsmen.
An ombudsman is an impartial individual who is responsible for investigating and settling complaints made by consumers or the public in general. They investigate complaints that have not been resolved by the organization and work with the parties involved to achieve a resolution. Ombudsmen are usually appointed by institutions or organizations such as newspapers, broadcasters, and government departments to provide a service to the public. The purpose of hiring an ombudsman is to maintain a high level of accountability and professionalism among media companies.
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In the ________ type of retailing, customers usually find their own goods, although they can ask salespeople for assistance.A) self-service B) self-selection C) full-serviceD) limited service E) limited-selection
In the self-service type of retailing, customers usually find their own goods, although they can ask salespeople for assistance.
The term self-service refers to a retail model in which customers serve themselves, with no assistance from salespeople. In this type of retailing, customers are typically responsible for finding their own goods, selecting them, and then bringing them to the checkout counter for purchase.While salespeople are available in a self-service retail environment, their role is typically limited to answering questions and providing assistance when requested by customers. This model of retailing is often found in large stores such as supermarkets, where customers are expected to find their own products and navigate the aisles themselves.In contrast, full-service retailing typically involves salespeople who are available to help customers with their purchases. In this type of retailing, salespeople may provide advice, make recommendations, and even help customers select products. Examples of full-service retailing include high-end department stores and luxury boutiques.Limited-service and limited-selection retailing are two other models that are also worth mentioning. Limited-service retailing involves a level of service that falls somewhere between self-service and full-service, while limited-selection retailing refers to a model in which only a limited range of products is available for purchase.Self-service (A) retailing involves minimal interaction with sales staff and may include vending machines or self-checkout options. Overall, self-selection retailing provides customers with the freedom to explore and select products while still having the option to seek assistance from salespeople if needed.
In the self-selection (B) type of retailing, customers usually find their own goods, although they can ask salespeople for assistance. This approach allows customers to browse and choose products at their own pace and according to their preferences. It is commonly seen in various retail establishments, such as supermarkets, department stores, and clothing shops.
This type of retailing is different from full-service (C) and limited service (D) retailing, where salespeople play a more active role in assisting customers with their purchases. In contrast, limited-selection (E) retailing focuses on offering a smaller variety of products.
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goods that are scarce, for which the quantity desired of something exceeds the amount available at zero price, are refered to as
Goods that are scarce, for which the quantity desired exceeds the amount available at zero price, are referred to as economic scarcity.
This is because resources are limited in comparison to the unlimited wants and needs of consumers. In other words, economic scarcity occurs when there are more wants and needs for a product or service than there is a supply to satisfy the demand. Scarcity means that the available resources are insufficient to meet the needs of the population, so it is necessary to make a choice between the options available. This choice usually involves using resources in an efficient way, such as trading or sharing.
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currently, rangel accessories sells 42,600 handbags annually at an average price of $149 each. it is considering adding a lower-priced line of handbags that sell for $79 each. the firm estimates it can sell 21,000 of the lower-priced handbags but expects to sell 7,200 fewer of the higher-priced handbags by doing so. what is the amount of annual sales that should be used when evaluating the addition of the lower-priced handbags?
The amount of annual sales that should be used when evaluating the addition of the lower-priced handbags is $6,936,600.
Annual sales refer to the total revenue generated by a company over a year. In the case of Rangel Accessories, their current annual sales are calculated by multiplying the number of handbags sold annually (42,600) by the average price of each handbag ($149).
Annual Sales = Number of Handbags Sold x Price per Handbag
Annual Sales = 42,600 x $149
Annual Sales = $6,333,400
To calculate the new annual sales figure, we need to adjust the previous annual sales calculation to account for the new sales mix. The new sales mix means that the company will sell 42,600 - 7,200 = 35,400 higher-priced handbags.
New Annual Sales = (Number of Lower-priced Handbags Sold x Price per Handbag) + (Number of Higher-priced Handbags Sold x Price per Handbag)
New Annual Sales = (21,000 x $79) + (35,400 x $149)
New Annual Sales = $1,659,000 + $5,277,600
New Annual Sales = $6,936,600
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the cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is:
The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is activity-based costing (ABC).
ABC is a cost accounting method that helps identify activities that cause costs and then assigns those costs to products or services.
ABC helps companies allocate resources more effectively by taking into account all activities that contribute to a product's or service's cost. ABC also helps identify cost drivers, or activities that consume the most resources, and make more accurate decisions about pricing and investments.
With ABC, companies can better understand the true cost of their products or services and make more informed decisions about their investments and production processes.
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if income is 4,800, consumption is 3,500, government purchases is 1,000, and taxes minus transfers are 800, public saving is:
Public saving is equal to national saving minus private saving.
National saving is equal to income minus consumption.
In this case, national saving would be 4,800 - 3,500 = 1,300.
Private saving is equal to consumption minus government purchases minus taxes minus transfers.
In this case, private saving would be 3,500 - 1,000 - 800
= 700.
Public saving is equal to national saving minus private saving.
Thus, public saving is 1,300 - 700 = 400.
Public saving is a measure of the amount of income that is not used for consumption or investment. It is calculated by subtracting private saving from national saving.
National saving is equal to total income minus total consumption. Private saving is calculated by subtracting government purchases, taxes, and transfers from total consumption.
In this example, national saving was calculated to be 1,300, and private saving was calculated to be 700.
Thus, public saving is equal to 1,300 - 700 = 400.
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what is it about repetitive processes that make them appropriate for products in the maturity phase of their life cycle?
The main reason why repetitive processes are appropriate for products in the maturity phase of their life cycle is that it allows for cost savings and quality control.
Repetitive processes allow businesses to streamline their production, reducing the amount of labor and resources needed. Additionally, by implementing a standardized process, businesses can guarantee the same quality of product over multiple production cycles.
This helps keep costs down, as businesses can use the same resources and techniques for multiple production cycles, and it also increases the consistency and predictability of the production process.
Repetitive processes also allow for greater quality control, as businesses can detect any potential problems early on, thus reducing the chance of costly repairs and product recalls. Finally, it also helps increase efficiency, as businesses can reuse existing resources instead of investing in new ones.
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kaia's firm took its distinctive competencies and used those when expanding into foreign markets. this provided them with the same firm-specific advantage it had in its original location. which strategic alternative for international business is kaia's firm using?
Kaia's firm took its distinctive competencies and used those when expanding into foreign markets. this provided them with the same firm-specific advantage it had in its original location. The firm is using the strategy of internationalization.
Internationalization is the process of taking a company's distinctive competencies, such as its unique products, processes, and services, and using them to enter and compete in foreign markets. This can provide the same competitive advantage to a firm as it had in its original location.
Internationalization is the process of taking a company's distinctive competencies and using them to enter and compete in foreign markets. Kaia's firm has taken its distinctive competencies and used them when expanding into foreign markets. This provides them with the same firm-specific advantage they had in its original location. Therefore, Kaia's firm is using the strategy of internationalization.
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an enterprise resource planning system has which of the following advantages over multiple independent functional systems?
An ERP system integrates all core business processes such as Improved integration of data and processes, Increased complexity and difficulty of use, Reduced efficiency due to centralization, Lower overall costs and Limited functionality and customization options.
This results in improved operational efficiency and reduced costs. Additionally, an ERP system provides a single source of data, meaning that it can provide a complete picture of the company’s operations. This data can be used to help companies identify potential issues and opportunities. Furthermore, an ERP system allows companies to access real-time information, enabling them to make decisions quickly. Finally, an ERP system provides a platform for collaboration, meaning that all members of an organization can work together to achieve their goals.
In conclusion, an enterprise resource planning system provides a number of advantages over multiple independent functional systems, including Improved integration of data and processes, Increased complexity and difficulty of use, Reduced efficiency due to centralization, Lower overall costs and Limited functionality and customization options.
an enterprise resource planning system has which of the following advantages over multiple independent functional systems?
A. Improved integration of data and processes
B. Increased complexity and difficulty of use
C. Reduced efficiency due to centralization
D. Lower overall costs
E. Limited functionality and customization options.
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explain why an increase in government spending will lead to more total spending than a decrease in taxes
An Expenditure is an item that requires, as payment, the exodus of plutocrat or property in general to another person. homes save part of the duty break.
An increase in government spending leads to advanced total spending than a duty cut of the same quantum because homes save part of the duty cut.
The duty rate is lower than the expenditure rate. Indeed, an increase in aggregate spending will increase real GDP and an increase in levies will drop real GDP.
Expenditure is defined as spending time, energy, or plutocrat on commodity. In economics, it means plutocrat spent on the purchase of goods or services.
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which trait reflects an individual difference in consumers' propensity to be biased against the purchase of foreign products?
Trait that reflects an individual difference in consumers' propensity to be biased against the purchase of foreign products is Ethnocentrism.
Ethnocentrism is the trait that reflects an individual difference in consumers' propensity to be biased against the purchase of foreign products. It is the tendency to believe that one's culture, customs, and traditions are superior to others, which can lead to negative attitudes towards other cultures, products, and services.
Ethnocentrism affects consumer behavior as it can lead to a preference for domestic products and a reluctance to buy foreign products. This can impact international trade and the success of foreign businesses in domestic markets.
In order to overcome the effects of ethnocentrism, companies need to implement strategies that promote understanding and appreciation of different cultures, such as culturally sensitive advertising and localizing products to suit the needs of different markets.
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the main advantages of virtual teams include: group of answer choices increased potential for communication problems. improved work/life balance for team members. increasing the dependence on technology to accomplish work. isolating team members.
Improved work/life balance for team members and more opportunities for communication are benefits of virtual teams. Increased reliance on technology and team members' isolation are drawbacks.
Virtual teams allow members to work from anywhere, reducing the need for commuting and allowing for more flexibility in scheduling. An enhanced work/life balance may result from this. Also, using various online technologies, virtual teams may interact more quickly, which can promote better cooperation and problem-solving.
Virtual teams, however, also significantly rely on technology, which can be a drawback if technical problems occur or if team members lack the essential skills to use the tools efficiently. Additionally, virtual teams may confront the difficulty of feeling distant from one other, leading to isolation and potentially harming team chemistry.
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which one of the following best illustrates erosion as it relates to a snack stand located on the beach? q10b a) providing free ice and condiments for customers b) repairing the canopy over the snack stand because of wind damage c) selling fewer cookies because ice cream was added to the menu d) offering french fries but not onion rings e) losing sales due to bad weather
The best answer that illustrates erosion as it relates to a snack stand located on the beach is b) repairing the canopy over the snack stand because of wind damage. the correct option is b.
Wind damage can cause erosion, which can be seen in this situation as damage to the canopy of the snack stand. Erosion is the geological process in which earthen materials are worn away and transported by natural forces such as wind or water.
A similar process, weathering, breaks down or dissolves rock, but does not involve movement.Damaging winds are often called “straight-line” winds to differentiate the damage they cause from tornado damage. Strong thunderstorm winds can come from a number of different processes.
Most thunderstorm winds that cause damage at the ground are a result of outflow generated by a thunderstorm downdraft.
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Which of the following would you find in the introduction section of a report, but not in the introduction section of a proposal?A) Background or statement of the problemB) SolutionC) ScopeD) PurposeE) Report organization
Background or statement of the problem would you find in the introduction section of a report, but not in the introduction section of a proposal. (A)
In the introduction section of a report, you would typically find background information or a statement of the problem to provide context. In a proposal, the introduction focuses on the proposed solution, purpose, scope, and organization.
The background or statement of the problem is more relevant to a report as it sets the context for the analysis, findings, and recommendations that follow.
A proposal's introduction, on the other hand, is more centered on convincing the reader about the viability of the proposed solution and its benefits, rather than delving into the details of the problem itself.
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Assume that an Enterprise Fund contributed $85,000 to the General Fund for operations. The money is not intended to be a loan. Which of the following statements is true?
Select one:
a. The Enterprise Fund will report capital contributions of $85,000.
b. The Enterprise Fund will report expenses of $85,000.
c. The Enterprise Fund will report other financing uses of $85,000
d. The Enterprise Fund will report advances of $85,000.
e. The Enterprise Fund will report transfers out of $85,000.
The correct option is (A) The Enterprise Fund will report transfers out of $85,000.
What is an enterprise fund?Corporate funds are considered best practice for promoting and sustaining the long-term financial sustainability of water, wastewater, and stormwater activities. A corporate fund is a separate accounting and financial reporting mechanism in which income and expenditure are segregated in a fund whose financial statements are separate from all other government activities. The corporate fund identifies the total direct and indirect costs of providing services, as well as the revenue sources and amounts supporting services for which fees are charged in exchange for services. Direct costs typically consist of budgeted and allocated labor costs, expenses, and capital expenditures.
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what is net profit? select one: a. operating profit less interest, taxes, and depreciation b. cogs less operating expenses c. gross sales minus net sales d. a measurement of the liquidity of the firm e. net sales minus the cost of goods sold
Net profit is the total amount of money that a business has earned after subtracting all expenses, taxes, and costs associated with running the business. It is calculated by subtracting the total expenses from the total income.
In other words, it is the money that remains after all the costs associated with running the business have been accounted for. The formula for calculating net profit is: Net Profit = Total Income – Total Expenses. Net profit is also known as net income or bottom line. It is an important metric for businesses as it helps them understand their financial health. Net profit is also a key indicator for investors, as it helps them evaluate the performance of a business over time.
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suppose you work for a company that manufactures electronics. the development analysts estimate that 2% of their flagship product will fail within 2 years of the purchase date, with a replacement cost of $ 1700. a newly hired associate at the company proposes to charge $ 29 for a 2 year warranty. a. compute the expected value of this proposal. let x be the amount profited or lost (by the company) on the warranties and p(x) is the probability. b. interpret the expected value in complete sentences. (see example 4.3 in the textbook for an example of this) c. write your review of the proposal and address it to vp of marketing and promotions. include the following in your essay: would the proposal benefit the company? why or why not? include the new proposed cost, new expected value, interpretation of the new expected value, and explanation of how the new cost was chosen.
A. The expected value of this proposal is EV = -$13.14. This means that on average the company will lose $13.14 for every customer that purchases the warranty.
B. The expected value of the proposal is a measure of the average profit or loss for the company for each customer that purchases the warranty.
If the expected value is negative, the company will lose money on the warranties. In this case, the expected value is negative, so on average the company will lose $13.14 for each customer that purchases the warranty.
C. The proposed cost of $29 for a 2-year warranty is not beneficial to the company. This is because the expected value of the proposal is negative ($-13.14), meaning on average the company will lose money on the warranties.
The cost of $29 was chosen as it covers the cost of replacement ($1700) but does not provide enough profit for the company. Therefore, it would not be a beneficial proposal for the company.
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1. in defending against the strict liability claims, what arguments can seaside make about the elements of injury and proximate cause (elements 4 and 5 above)? 2. in defending against the strict liability claims, what arguments can seaside make about whether the tuna was defective or unreasonably dangerous (elements 1 and 3 above) because of the mercury content? 3. in defending against the strict liability claims, what arguments can seaside make about whether the tuna was defective or unreasonably dangerous (elements 1 and 3 above) because of the lack of a warning about mercury? 4. if the elements above are proved, can easyshop be held liable on a strict product liability claim even though they had no control over the packing or labeling of the tuna?
In defending against the strict liability claims, Seaside can make the following arguments: Arguments about the elements of injury and proximate cause: Seaside can argue that the injury was not caused by the mercury in the tuna, but by some other factor.
The plaintiff may have been exposed to mercury from other sources, which caused the injury. In such a case, Seaside cannot be held strictly liable for the injury.Argument about whether the tuna was defective or unreasonably dangerous: Seaside can argue that the tuna was not defective or unreasonably dangerous due to the mercury content. Mercury is naturally present in tuna, and Seaside had no way of knowing the exact amount of mercury in the tuna. Moreover, the level of mercury in the tuna was not high enough to pose a significant risk to human health. Therefore, Seaside cannot be held strictly liable for selling a defective product due to the mercury content.Arguments about whether the tuna was defective or unreasonably dangerous because of the lack of warning: Seaside can argue that the plaintiff was aware of the risks associated with consuming tuna and did not rely on Seaside to provide warnings. The plaintiff was expected to exercise reasonable care in deciding what to eat. Therefore, Seaside cannot be held strictly liable for not providing warnings about the mercury content.If the elements above are proved, easyshop can be held liable on a strict product liability claim even though they had no control over the packing or labeling of the tuna. This is because they were part of the chain of distribution of the product and benefited financially from its sale.
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you are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50) and has a beta of 0.9. The risk-free rate is 4.2%, and the market risk premium is 6%. Justus currently sells for $38.00 a share, and its dividend is expected to grow at some constant rate, g.
Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?
The market believes that the stock price will be $44.08 at the end of 3 years. The expected dividend of the Justus Corporation at the end of the year is $1.50 per share.
We can use the dividend discount model to find the stock price which is as follows:
P0 = D1 / (r - g), where P0 is the current stock price, D1 is the dividend paid after the end of the year, r is the required rate of return on the stocks, g is the growth rate of the dividend. Now, let's calculate the required rate of return (r) as follows:
r = Rf + beta × (Rm - Rf)
r = 4.2% + 0.9 × 6%
r = 9.6%
Therefore, the stock price is: P0 = $1.50 / (9.6% - g)
If we assume that the expected dividend will grow at a constant rate (g), then we can use the formula for the present value of growing perpetuity as follows:
PV = C / (r - g), where PV is the present value of the perpetuity, C is the annual cash flow, r is the discount rate, g is the growth rate.
Putting the values in the above formula we have:
$38 = $1.50 / (9.6% - g)
At the end of 3 years, the expected stock price can be calculated as:
P3 = D4 / (r - g), where D4 is the expected dividend paid after 3 years
Putting the values in the above formula, we get:
P3 = $1.50 × (1 + g)^3 / (9.6% - g)
To find the value of g, we can use the dividend growth model as follows:
P0 = D1 / (r - g)
Dividing both sides by D1 and rearranging, we get:
g = (D1 / P0) + r
Putting the values in the above formula, we get:
g = ($1.50 / $38.00) + 9.6%, g = 13.16%
Now, we can put the value of g in the formula for P3 as:
P3 = $1.50 × (1 + 13.16%)^3 / (9.6% - 13.16%)
P3 = $1.50 × 1.4604 / (-3.56%)
P3 = $44.08
Therefore, the market believes that the stock price will be $44.08 at the end of 3 years.
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