A sizable cleaning equipment facility run by Obed. He just asked for advice on how to make sure the atmosphere at his institution is positive. What advice would you give Obed.
What precisely does "organizational culture" mean?Organizational culture refers to a company's beliefs, goals, and attitudes as well as how they influence how its employees behave. The corporate culture of a company affects how customers or suppliers engage with that company.
What examples of organizations are there?Whether a for-profit or nonprofit corporation, the structure, ideals, psychology, and sociology of the organization are all included in the concept of organizational culture. Philosophy, beliefs, expectations, and experiences are only a few components of company culture.
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What are the main purposes of a budget select three?
Budget refers to the an estimate of income and expenditure for a future period. It helps in tracking expenses and following a plan.
A budget is a financial statement. It makes it easier to pay bills on time, build an emergency fund, and save for major expenses.
A budget can be referred to as a spending plan based on income and expenses. In other words, a budget is an estimate of how much money you'll make and spend over a certain period of time, such as a month or year. A budget is tool for financial stability.
There are three types of budgets. These are- a surplus budget, a balanced budget, and a deficit budget
Importance of Budget-
It is a forecast of income and expenditure .It is a tool for decision making. It is a means to monitor business performance.To know more about budget refer to-
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Correct question
What are the main purposes of a budget?
what applies technology to the activities in the order life cycle from inquiry to sale?
SCEM demand will skyrocket as more and more organizations begin to discover the benefits of real time supply chain monitoring. applies technology to the activities in the order life cycle from inquiry to sale.
Technology is the systematic, repeatable application of knowledge to the accomplishment of beneficial ends. The result of such an attempt is sometimes referred to as technology [1]. [2]: 117 [3] The use of technology is pervasive in many aspects of modern life, including science, business, communication, and transportation. Both tangible objects like tools or machinery and immaterial ones like software are considered technologies.As a result of countless technological advancements, society has evolved. The stone tool, which was used in the prehistoric age, is the oldest technology that is now known[4]. The adoption of fire followed, which contributed to the Ice Age proliferation of language and the human brain. [5] The invention of the wheel in the Bronze Age made it possible to move further.
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If the CPI was 108.00 in 1942 and is 336.96 today, then $10 in 1942 purchased the same amount of goods and services as a. $2.57 purchases today. b. $31.20 purchases today. c. $38.89 purchases today. d. $28.89 purchases today.
If the CPI was 108.00 in 1942 and is 336.96 today, then $10 in 1942 purchased the same amount of goods and services as $31.20 purchases today.
A consumer price index is a price index that measures the cost of a weighted average market basket of consumer products and services purchased by households. Variations in the measured CPI reflect changes in pricing over time. A CPI is a statistical estimate based on the prices of a sample of typical products whose prices are gathered on a regular basis.
Sub-indices and sub-sub-indices for various categories and sub-categories of products and services can be computed and aggregated to generate the overall index, with weights indicating their portions of the total consumer expenditures covered by the index. It is one of numerous price indexes calculated by most national statistics organizations.
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Problem 5-3A Part 2 2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
Accounts for cash, accounts payable, and allowance for uncollectible accounts should all receive transactions. Cash Accounts. The provision, also known as a bad debt reserve .
What does it mean to post transaction accounting?In accounting, the term "posting" describes the process of transferring a transaction entry from a journal to a general ledger, which houses all of a company's financial accounts. A ledger organises transactions by accounts, such as assets or liabilities, while a journal records items in a chronological order. All transactions are transferred from all Journals (transaction registers) to the Chart of Accounts through a process known as "post transactions" (General Ledger).
Moving one or more transactions from a module into a Journal is another definition of "posting." The general ledger must be filled out with specific accounting transactions before being posted. It entails gathering financial transactions from their current location in specialised ledgers and moving the data into the general ledger. Post each transaction from your journal to your general ledger to keep your records up to date.
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What is an important influence in desired service expectations?
The type of service that customers hope to receive is termed as desired service.
What is service expectations?Our findings imply that there are two levels of customer service expectations: desired and adequate. The level of service the client aspires to obtain is the desired service level.
It combines the customer's ideas of what "can be" and "should be." The level of service that the consumer thinks acceptable is considered adequate. Support Groups can outline the services they offer, how they deliver them, what determines the cost of those services, how they gauge success, and how they benefit the service user and university in Service Expectation Statements (SESs).
Service Expectation Reviews allow customers the chance to offer feedback on the services rendered, cooperatively negotiate service adjustments, and have services removed where they are no longer necessary.
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The entry to transfer a net loss to the owner's capital account would include a debit to
A) the owner's capital account and a credit to Cash.
B) the owner's drawing account and a credit to the owner's capital account.
C) Income Summary and a credit to the owner's capital account.
D) the owner's capital account and a credit to Income Summary.
A debit to (D) the owner's capital account and a credit to Income Summary make up the entry to transfer a net loss to the owner's capital account.
The Owners Capital Account is what?The equity account that appears on a company's balance sheet is called an owners capital account. It indicates the total ownership stakes that investors hold in a company. This account holds the owners' investment in the company as well as the net income it generates, which is then decreased by any draws made to the owners.
Only through the end of the prior fiscal year will the data in the owners capital account be fully current. The following transactions will be added to temporary accounts for the current year.
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If $1,120 is invested at an interest rate of 15% per year and is compounded continuously, how much will the investment be worth in 7 years
The worth of investment in 7 years will be $3,200.57.
we know that,
The equation to use to determine continuously compounded interest is
[tex]A= P(e)^{rt}[/tex]
where,
The final investment value is A.
P is the initial investment's principal.
The interest rate in decimal form is r.
There are t time periods.
The mathematical constant is called e.
we have,
[tex]t= 7 \:years\\r= 0.15\\P= $1,120\\[/tex]
Substitute in the formula above
[tex]A= $1,120(e)^{0.15*7}[/tex]
[tex]A= $3,200.57[/tex]
Therefore, The worth of investment in 7 years will be $3,200.57.
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Meg Whitman, former CEO of HP, stated that early in her career she gained credibility and displayed competence through her focus on Multiple choice question. creating a successful track record. giving great presentations. giving many large gifts. keeping conversations short.
A) Meg Whitman, the former CEO of HP, stated that her focus on building a successful track record helped her establish credibility early on and demonstrate competence.
What aids you in selecting each correct response on the fair test in communications?A method for assessing your communications is the FAIR test. It enables you to evaluate how effectively you have presented the facts; how effectively you have granted access to your reasons, logic, and data; how thoroughly you have investigated effects on stakeholders; and how respectfully you have behaved.
What are some of the reasons a business might ask employees to sign confidentiality agreements?You might ask your employees to sign an employee confidentiality agreement to prevent them from disclosing confidential information that could put your company's reputation at risk. Employee confidentiality agreements are used by businesses to safeguard innovative concepts, efficient procedures, distinctive goods, and customer data.
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What are the advantages and disadvantages of market economic system?
Benefits of a request frugality include increased effectiveness, product, and invention. Disadvantages include monopolies, no government intervention, poor working conditions, and severance.
Advantages A wide variety of quality goods and services will be produced as different enterprises will contend with satisfying consumer wants and making gains. Quality is assured to make sure that consumers buy from them. There's consumer sovereignty.
Command frugality advantages include low situations of inequality and severance and the common ideal of replacing profit as monopolies. Command frugality disadvantages include a lack of competition, leading to a lack of invention and effectiveness.
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What is opportunity cost long answer?
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them.
The value or advantage lost by selecting one activity over another is referred to as the opportunity cost in microeconomic theory. More specifically, it means that once you choose one activity, you can no longer choose another. The best activity is the one that, once opportunity costs are deducted, delivers the highest return in comparison to all other activities. For instance, if you possess a car that you use just for personal transportation, you are not permitted to rent it out, but if you do, you are not allowed to use it for personal transportation either. If the cost of transportation without a car is more than the cost of renting one,
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The following data has been gathered concerning a particular investment and conditions in the market. Risk free rate 4.5% Market return 11% Beta of investment 1.35 According to the Capital Asset Pricing Model, the required return for this investment is
(a) 8.8%.
(b) 12.9%.
(c) 13.3%.
(d) 14.9%
The risk-free rate is the interest a potential investor may get over a certain time period from a completely risk-free investment.
Which three methods of investing?There are three main options: fixed income, equities, and real estate (bonds). Each has unique hazards, chances, and tax laws. The earnings, interest, and rentals from a well-rounded portfolio may seem complicated, but they may be well worth the effort.
How do investments function?You deposit funds into an institution or fund with the intention of generating a profit in order to invest. Over time, investing may yield higher returns (which may also include more risk). For this reason, some people utilize investing to achieve long-term objectives like retirement.
Where
The Equity value is K.
The risk-free return rate is RF.
Bi is the currency's beta.
The Relationship Between the return from the Marketplace, or ERm,
Ke= 4.5% + 1.35(11% -4.5%) = 13.275%(C)
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According to the Capital Asset Pricing Model, the required return for this investment is 13.3%. (Option C)
How do investments function?You deposit funds into an institution or fund with the intention of generating a profit in order to invest. Over time, investing may yield higher returns (which may also include more risk). For this reason, some people utilize investing to achieve long-term objectives like retirement.
Where
The Equity value is K.
The risk-free return rate is RF.
Bi is the currency's beta.
The Relationship Between the return from the Marketplace, or ERm,
Ke= 4.5% + 1.35(11% -4.5%) = 13.275%(C)
Which three methods of investing?There are three main options: fixed income, equities, and real estate (bonds). Each has unique hazards, chances, and tax laws. The earnings, interest, and rentals from a well-rounded portfolio may seem complicated, but they may be well worth the effort.
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Serious question for the verified answers, do yall get paid to answer our questions?
Answer:
no, not if you are the community. somebody gets his answer verified then that just means his is the correct answer.
Explanation:
I have been verified
In computing the realized gain in a like-kind exchange, it is necessary to compare A) the fair market value of the assets received with the adjusted basis of the assets given up. B) the adjusted basis of the assets received with the fair market value of the assets given up. C) the fair market value of the assets received with the fair market value of the assets given up. D) the adjusted basis of the assets received with the adjusted basis of the assets given up.
The correct answer to the question is Option A- the fair market value of the assets received with the adjusted basis of the assets given up.
What is Fair market value?A product's fair market value, or FMV, is the price it would fetch on the open market if both parties were given a reasonable amount of time to complete the transaction, were acting in their own best interests, and were not under undue pressure.
Typically, the average of three or more homes that are comparable is used to determine the home's fair market value. A popular method for determining a home's fair market value, or the price a buyer is willing to pay in a given market, is the comps strategy.
The fair market value of a property is decided by both the buyer and the seller. The real estate transactions that take place within a community are looked at by the appraiser or assessor, who then determines the factors that influence the final sale prices.
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What is the outcome of enforcing contracts and property rights in a market system?
a. Increased economic activity
b. Decreased economic activity
c. No change or no effect on economic activity
d. An unpredictable but definite effect on economic activity
In a market system, more economic activity results from the enforcement of contracts and property rights.
What do you know about the economy?Economic activity is defined as the process of producing a certain good or service using resources such as labor, capital equipment, manufacturing processes, or intermediary items. An economic activity is therefore defined by the manufacturing process, resource input, and product output (goods or services).The term "activity" as used in this context can refer to a single simple task, like weaving, or it can refer to a large range of related sub-processes, each of which is stated in a different classification category. If the manufacturing process is configured as an integrated series of significant components within a single statistical unit, the entire combination is treated as one activity.
Thus, choice A is the best one.
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The spinners are spun and the values are added together, What is the probability the sum is equal to ... 9
The number of possibilities that can occur on spinner is 9. So that the probability of the sum is equal to nine is [tex]\frac{2}{9}[/tex].
Probability in mathematic generally can be defined as possibility. Probability is a branch of mathematics that deals with the occurrence of a random event. The value of probability is expressed from zero to one.
If two spinners are spun together, the probability that will occur are:
(2,1)(2,3)(2,5)(4,1)(4,3)(4,5)(6,1)(6,3)(6,5)The number of possibilities that can occur is 9. And the sum of the probability of two spinner if the values added together and equal to nine is 2, there are (6,3) and (5,4).
So that the probability of the sum is equal to nine is [tex]\frac{2}{9}[/tex].
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Fez enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Fez fails to make the purchase. Grain Farm's remedy is most likely
Based on the fact that Falz failed to make the purchase, Grain Farm most likely has the remedy of C ) Pay the difference between the contract price and market price.
What is a Grain farm to do?When a buyer (Falz) gets into an agreement to buy land or property and fails to do so, this falls under real estate and damage.
Under real estate and damage, the buyer would then have to pay the seller (Grain Farm) a remedy which would be the difference between the market price of the property and the contract price.
Options for this question include:
the amount that Faiz expected to invest in the breweryas a percentage of Faiz's unrealized profit.the difference between the contract and market prices of the land.nothing-Grain Farm still owns the land.To learn more about market price, click
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Which term best describes monies spent to minimize the impact that threats and unfavorable conditions have on a business
Money spent to reduce the impact that threats and unfavorable circumstances have on a business is best described by the term "risk management."
Economic activity goes through periods of boom and then fall during business cycles. Both the general welfare of society and the welfare of private enterprises are impacted by these developments. Changes in a broad economic measure, such as Real Gross Domestic Product, are generally examined to determine how business cycles have changed through time. Many macroeconomic indicators have widespread upswings and downswings, which are classic examples of business cycle fluctuations. Each expansion/recession episode's duration and intensity change over time. Usually, their periodicity lasts for two to ten years. As in, their mathematical methodology, which employs a Bayesian statistical paradigm, may really include such flexible knowledge about the frequency of business cycles.
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Blake Haddon, Cyrus Oldsmen, and Graham Piper work for Aragon Foods. They work long hours for which they have quite a bit of overtime. In the initial employment contract, which is in writing, the contract stated that each person would be paid an hourly rate of $15.00 and anything over 40 hours would be paid at time and a half. During the first two years of the contract, there were times when Blake, Cyrus, and Graham were not paid their overtime. However, two years after they all had started, Aragon Foods had each of the employees sign a new employment contract where they would work for a salary of $40,000. The contract expressly stated that they did not get overtime. Blake, Cyrus, and Graham want to sue for the overtime that they were never paid. What effect does the new contract have, if any, on the first employment agreement
Novation refers to a form of discharge by agreement. When a new contract replaces or substitutes the old contract between the parties to the contract with new obligations by discharging or extinguishing the previous contractual obligations.
Employment is a relationship among parties regulating the availability of paid exertions services. normally, based on a settlement, one birthday celebration, the organization, which is probably a company, a now not-for-income enterprise, a co-operative, or another entity, pays the alternative, the worker, in return for carrying out assigned paintings. employees work in go back for wages, which may be paid on the basis of an hourly price, piecework, or an annual salary, depending on the sort of work an employee does, the triumphing situations of the world, and the bargaining strength between the events.
Employees in a few sectors might also receive gratuities, bonus payments, or stock alternatives. In a few kinds of employment, employees might also acquire blessings in addition to price. Blessings may additionally consist of health insurance, housing, and disability insurance. Employment is typically ruled by way of employment laws, agencies, or criminal contracts.
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Christmas Tree Park, and Lumber Value enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Christmas Tree Park to Lumber Value. Under the Statute of Frauds, this contract is enforceable by
Under the Statute of Frauds, this contract is enforceable by none of the choices.
What Is the Statute of Frauds?A legal principle known as the statute of frauds mandates that some kinds of contracts be in writing. Land sales, deals involving items costing more than $500, and agreements lasting a year or longer are some of the contracts that are most frequently subject to the statute of frauds.
The statute of frauds is designed to stop fraud and other types of harm. Evidentiary and cautionary are common terms used to characterize these goals. The statute of frauds serves an evidential purpose by offering proof that a valid, binding contract is in place. Each party should be more focused, serious, and thoughtful when transacting as a result of the statute of fraud's cautionary purpose.
The statute of frauds was predominantly established in the United States as common law, or unwritten law. In most states, it has since been institutionalized by statutes. The defendant may bring up the statute of frauds as a defense in a breach of contract dispute if it is relevant because it is the plaintiff who has the burden of proof. It is the burden of the plaintiff to prove that a legal contract actually existed.
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A town has a total assessed valuation of $32,000,000 and exemptions of $7,000,000. What is the tax base
Taxes are essentially forced contributions from the populace to the government; in this case, the tax base is $25,000,000.
A tax base example is what?The whole dollar amount of taxable income, in the case of the personal income tax, or the total dollar value of real estate, in the case of the real property tax, are two examples of tax bases that are often measured as a dollar amount to which a tax rate is applied.
To expand the tax base, what does that mean?When a tax base grows, more people and companies are contributing to the expenses of maintaining the community. The proportion of taxes that fall on an individual decreases as the tax base expands as a result of higher sales.
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Do landlords look at credit score?
Answer:
the landlord or property manager may pull your credit as part of the screening process
Explanation:
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Suppose you normally work in the stock room and are not a trained retail associate. You are stocking new merchandise. A customer start
about it because no other retail employees can be seen. You are aware that one of the regular retail associates in that area is absent on leave due to illness, and the other is taking a lunch break outside the store.
Who are Retail Employees?A retail salesperson works in a store and sells books, automobiles, clothing, cosmetics, electronics, furniture, lumber, plants, shoes, and a wide range of other goods. They are also known as salespeople, retail clerks, or salespeople. In the United States, over 4.6 million retail salespeople are employed.
The majority of retail salespeople work in neat, well-lit stores. A lot of salespeople work nights and weekends.
What retail employees want—insights for increasing engagement and retention—reveals what makes retail workers tick. We discover that retail workers are among the most self-assured and are more likely than workers in other occupations to believe that their product or service is superior to that of their rivals. However, they are also the least likely of all industries to believe that their pay is competitive and are prepared to leave for a better offer. There are retail salespeople who work part-time.
Types of workers:
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What are the three 3 important questions that every nation has to answer because of the problems of scarcity?
The three fundamental questions are answered differently in every community, but the issues at their core—scarcity and resource distribution—are universal.
The concept of "scarcity" in economics "refers to the underlying reality that there are finite amounts of both human and nonhuman resources, and that even the best technological knowledge can only be employed to produce finite maximum amounts of each economic commodity." " If the conditions of scarcity didn't exist and "infinite amounts of every good could be manufactured or human desires totally supplied," there wouldn't be any economic goods, or relatively scarce products. Scarcity is the limited availability of an item or service that may be in high demand on the market or among the general population. Another facet of scarcity is one person's inability to buy products. The opposite of scarcity is abundance. Scarcity is important and essential in economic theory.
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What is the best definition of economic data brainly?
Economic data and statistics are information that explains the history and present state of the economy. Usually discovered in the form of a time-series that includes multiple time periods. Surveys of persons, businesses, and industries in a single economy or for the global economy can be used to collect data.
The social science of economics deals with the creation, exchange, and consumption of products and services. Economics is the study of how economies work as well as the behavior and interactions of economic actors. The study of microeconomics focuses on what are thought to be the fundamental components of the economy, such as the interactions that result from market and agent activity. Individual agents can represent a variety of clients, including homes, companies, buyers, and sellers. The study of the economy as a coexisting system of production, consumption, saving, and investment is known as macroeconomics. Additionally, it looks at the elements that have an impact on this system, including the use of labor, capital, and natural resources, currency inflation, economic expansion.
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Economic data is numerical information that provides insight into the performance and direction of various economic indicators such as inflation, employment, GDP and other statistics. Economic data is often graphed or visualized in order to make it easier to interpret, and can be used to inform business decisions and inform government policy.
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Kim Mathews, a retired school teacher, recently relocated to her old neighborhood. She called the trash collection company of her new neighborhood to enter her address but was dismayed to learn that they charged an extra $10 compared to the other companies in other areas. She complained to the company manager but was told that she had to either pay the bill or dispose the trash on her own. Kim had no other option but to pay the bill. Which of the following is the reason why Kim was treated so poorly by the company
There were no other companies offering this service besides the trash firm.
What is it called when a company compares itself to its competitors?Because high quality is ensured by competition, the consumer benefits. The buyer will choose based on quality if two businesses are offering comparable goods at comparable costs. A corporation has a market monopoly if it doesn't have any rivals. In a command economy, monopolies are typical (communism).
The level of rivalry between existing businesses is a measure of that level of competitiveness. Profits may be hampered by intense competition, which may result in price reductions, higher advertising costs, or investments in service/product innovation and enhancement.
We describe competitive benchmarking, how to conduct it, and why it is crucial. To start you and your business, read on today. Competitive benchmarking is comparing your business to a number of rivals using a predetermined set of parameters.
Therefore, the answer is there were no rival companies offering this service besides the trash firm.
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The response is that the trash company alone was the only one offering this service. Other than the trash company, there were no other businesses providing this service.
When a company compares itself to its rivals, what is it called?The consumer benefits because competition ensures high quality. If two businesses offer comparable goods at comparable prices, the buyer will choose based on quality. If there are no competitors in the market, a corporation has a market monopoly. Monopolies (communism) are typical in a command economy.
A measure of that level of competitiveness is the degree to which existing businesses compete with one another. Price reductions, higher advertising costs, or investments in service/product innovation and enhancement may all result from intense competition hurting profits. We explain what competitive benchmarking is, how to do it, and why it's so important. Read on to learn how to get your company off the ground. Using a predetermined set of parameters, you can compare your company to a number of rivals through competitive benchmarking.
Therefore, the response is that the trash company alone was the only one offering this service.
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When an owner uses resources they own in a business, that usage should be considered a. a direct cost b. an implicit cost c. not counted in economic profit calculations d. an explicit cost
an owner uses resources they own in a business, that usage should be considered an implicit cost.
What does implicit capital cost mean?Any cost that has already been incurred but hasn't been expressly stated or isn't being reported as a distinct expense is an implicit cost. It captures the opportunity value that arises when a company spends internal capital for a project without receiving a specific payment for resource utilization. Implicit costs include things like the decline in interest earnings on investments and the depreciation of equipment for capital projects. Intangible expenses are those that are difficult to quantify, such as the time that an owner devotes to the upkeep of a business rather than using it for other purposes.
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True or false: You should include either budget information or a time estimate in your content creation plan.
The given statement is true about the budget information or a time estimate in the content creation plan.
A budget is a calculating play, typically financial but not necessarily, for a specific time frame, typically one year or a month. A budget accounts for anticipated income and costs as well as future saving and spending. Individuals and businesses may both use budgeting to determine whether or not their predicted revenue and costs will allow them to continue operating. A budget that includes information on the projected value of sales and cost may be created for each fiscal year. This allows you to predict how the upcoming accounting period will probably conclude. The business's actual performance may be compared to the suggested strategy. Budgets are a quantitative way for businesses, governments, families, and other groups to articulate their strategic plans of action.
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If an owner of real property dies without leaving a will and with no legal heirs, what will generally happen to the property
If a person dies without any relatives from class 1 or class 2 heirs' list then the property is lapsed to the state Government.
Kinship is defined in anthropology as the network of social interactions that form an integral component of the lives of all humans in all civilizations, however its exact implications are sometimes challenged even within this subject.
Kinship can refer to both patterns of social connections and the study of patterns of social interactions in one or more human cultures. In the study of kinship, anthropology has produced a variety of related ideas and terminologies over time, including descent, descent group, lineage, affinity/affine, consanguinity/cognate, and fictive kinship.
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What might happen if an economy is unable to produce wanted goods and services people will go without them people will look elsewhere for them?
People may start looking elsewhere for them if an economy is unable to supply the desired products and services.
What may occur if a country's economy is unable to produce?People will shop elsewhere if an economy is unable to supply the desired goods and services. Customers will go where their want is satisfied if their desire is not met by the existing economy. An economy must thus create the goods and services that consumers want in order to satisfy their demand.Since society only has a certain amount of resources, it is unable to provide all the products and services that people desire.People may start looking elsewhere for them if an economy is unable to supply the desired products and services.To learn more about economy refer to:
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Answer:its B
Explanation: yes
Computing real exchange rates Consider a basket of consumer goods that costs $100 in the United States. The same basket of goods costs 300 in Malaysia. Holding constant the cost of the basket in each country, compute the real exchange rates that would result from the two nominal exchange rates in the following table. Cost of Basket in Cost of Basket in Nominal Exchange U.S. Malaysla Rate Real Exchange Rate (Dollars) (Ringgit) (Ringgit per dollar) (Baskets of Malaysian goods per basket of U.S goods) 100 300 4.50 100 300 12.00
The real exchange rate is 4. The real exchange rate shows how the price of a basket of goods abroad has changed over time in comparison to the price of the same basket at home.
What is Real Exchange Rate?The nominal exchange rate (e) divided by the price-to-price ratio (P/P*) between the two nations is the real exchange rate (RER). As a result, the RER is eP*/P. Consider Germany's situation in relation to the United States.
The current price that consumers and businesses will pay to purchase a foreign product using their home currencies is known as the real exchange rate. For instance, if the current U.S.-Britain exchange rate was $138 U.S. dollars for one pound, an American consumer would require $1.38 to purchase one pound's worth of goods.
After conversion into a foreign currency, the real rate indicates how much more or fewer goods and services can be purchased abroad for a given amount than on the domestic market. In practice, changes in the real exchange rate are more important than changes in its absolute level.
the Formula of the real exchange rate is;
Nominal Exchange Rate ×Price prevailing in foreign country / Price prevailing in the domestic country
4.5 * 100/300= 1.5
So, 1.5 baskets of Malaysian goods per basket of U.S. goods.
When the nominal exchange rate is 12 Ringgit per dollar, the real exchange rate = 12 * 100/300 =4
Thus, 4 Malaysian goods per American goods basket.
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