what is the theory of liquidity preference? how does it help explain the downward slope of the aggregate demand curve

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Answer 1

The theory of liquidity preference was developed by John Maynard Keynes.

It explains that people hold money for three reasons: transactional, precautionary, and speculative.

The speculative motive is the most important for understanding how liquidity preference affects the aggregate demand curve. The speculative motive is the desire to hold money as a store of value.

When interest rates are high, people are more likely to invest in bonds, which offer a higher rate of return than holding money. As a result, the demand for money falls.

When interest rates are low, people are less likely to invest in bonds because they offer a lower rate of return. As a result, the demand for money increases.

The demand for money affects the money market, which in turn affects the interest rate. The downward slope of the aggregate demand curve can be explained by the relationship between interest rates and investment.

When interest rates are high, investment is low. When interest rates are low, investment is high. Investment is a component of aggregate demand, so when investment is low, aggregate demand is low.

When investment is high, aggregate demand is high. Therefore, the aggregate demand curve is downward sloping.

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Answer 2

The Theory of Liquidity Preference states that, when people have a choice between holding money and holding bonds, they will generally prefer to hold money, resulting in a downward sloping aggregate demand curve.

In other words, people are more likely to keep their money liquid (in the form of cash) than to invest in long-term bonds, meaning that the demand for bonds is lower than for money, resulting in a lower overall demand for goods and services.

This in turn results in a downward sloping aggregate demand curve, as people have a lower incentive to purchase goods and services as the price increases.

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clara has been employed by abc corp for 20 years. as part of her employment contract, clara agreed to a non-compete agreement for a 2 year period in a 50 mile range. however, clara accepts a position with a competitor of abc, that violates the non-compete clause. abc corp isn't interested in damages. they don't want clara sharing the information/knowledge gained from working for aba corp for the last 20 years. abc corp's best remedy would be:

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ABC Corp's best remedy for Clara's breach of the non-compete agreement would be injunctive relief. What is injunctive relief? Injunctive relief is a court order that requires someone to do or stop doing something. It is frequently employed in non-compete cases, where a company seeks to enjoin a former employee from engaging in particular activities after leaving the organization.

ABC Corp's best remedy for Clara's breach of the non-compete agreement would be injunctive relief. What is an employment contract? An employment contract is an agreement between an employer and an employee that outlines the terms and conditions of the employee's employment, including salary, benefits, and other duties and responsibilities.

Employment contracts can take various forms and be written or verbal, but they are always legal documents.

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organizations use a process known as blank to decide which applicants will or will not be allowed into the organization. multiple choice question. generalizability reliability personnel selection criterion-related validation

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Organizations use a process known as C: "personnel selection" to decide which applicants will or will not be allowed into the organization.

Personnel selection is a process that involves identifying, attracting, screening, and hiring qualified individuals for job openings in an organization. It is a critical function of human resource management and is aimed at ensuring that the organization hires the right people with the right skills, knowledge, and abilities to perform the job. The process typically involves various methods such as interviews, assessments, reference checks, and background checks to evaluate the candidates' suitability for the role.

Personnel selection aims to identify the most qualified and capable candidates who can contribute to the organization's success and align with its culture and values. A well-executed personnel selection process can lead to improved job performance, employee engagement, and retention.

Thus, C: "personnel selection" is the correct answer.

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your grandfather placed $4,000 in a trust fund for you. in 10 years, the fund will be worth $8,000. what is the rate of return on the trust fund (compounded annually)?

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The rate of return on the trust fund, compounded annually, is approximately 1.99%, given an initial investment of $4,000 and a final value of $8,000 after 10 years.

To calculate the rate of return, we can use the formula for compound interest:

[tex]FV = PV(1+r)^n[/tex]

Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of compounding periods. Rearranging the formula to solve for r, we get:

r = [tex](FV/PV)^{\frac{1}{n} } -1[/tex]

Substituting the given values, we get:

r = [tex](8000/4000)^{\frac{1}{10} } -1[/tex]r = 0.0199

Which simplifies to approximately 0.0199 or 1.99% when rounded to two decimal places. Therefore, the rate of return on the trust fund is approximately 1.99%, compounded annually.

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What is the efficient outcome in Coase Theorem?

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the Coase Theorem expresses that "if exchange an externality is conceivable and there are no transaction costs, dealing will prompt an efficient result no matter what the underlying portion of property rights."

The Coase Theorem contends that under the right circumstances gatherings to an argument about property rights will actually want to arrange a financially ideal arrangement, no matter what the underlying circulation of the property rights.

The Coase Theorem offers a possibly useful method for contemplating how to best determine conflicts between contending businesses or other financial purposes of restricted resources.

For the Coase Theorem to apply fully, the states of efficient, serious markets, and above all zero transaction costs, should happen.

In reality, it is uncommon that perfect financial circumstances exist, improving the Coase Theorem fit to make sense of why inefficiencies exist rather than a method for settling debates.

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sales variable expenses contribution margin fixed expenses net operating income $20,000 12,000 8,000 6.000 $ 2,000 required: (answer each question independently and always refer to the original data unless instructed otherwise.) 1. what is the contribution margin per unit? 2. what is the contribution margin ratio?

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Answer : 1) The Contribution Margin per unit is difference in Sales per Unit and Variable Expenses per Unit. 2) The Contribution Margin Ratio is the ratio of the contribution margin to the sales revenue.

The Contribution Margin per unit can be calculated as follows: Contribution Margin per Unit = Sales per Unit - Variable Expenses per Unit Given that the sales are $20,000 and variable expenses are $12,000, the contribution margin can be calculated as:Contribution Margin = Sales - Variable Expenses= $20,000 - $12,000= $8,000Contribution Margin per Unit = Contribution Margin / Number of Units Produced= $8,000 / Number of Units Produced

The Contribution Margin Ratio is the ratio of the contribution margin to the sales revenue. The contribution margin ratio can be calculated using the following formula: Contribution Margin Ratio = Contribution Margin / SalesGiven that the sales are $20,000 and the contribution margin is $8,000, the contribution margin ratio can be calculated as follows: Contribution Margin Ratio = Contribution Margin / Sales= $8,000 / $20,000= 0.4 or 40%

The contribution margin ratio indicates the percentage of each sales dollar that is available to cover the fixed costs and provide profit. The higher the contribution margin ratio, the better it is for the company as it means a larger proportion of the sales revenue is available to cover the fixed costs and generate profit.

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an excise tax on apples... a. leads sellers to supply less apples at every price. b. leads buyers to demand more apples at every price. c. leads sellers to supply more apples at every price. d. causes the supply curve to shift to the right.

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The correct answer is A. An excise tax on apples leads sellers to supply less apples at every price.

An excise tax is a specific type of tax applied to the production or sale of a particular good, in this case apples. An excise tax increases the cost to produce or purchase a good, which leads to a decrease in supply.

When a tax is imposed on a good, the supply curve shifts to the left. This shift in the supply curve means that the quantity supplied of the good decreases at each price point. This shift in the supply curve also leads to an increase in the equilibrium price, as the quantity demanded at the original equilibrium price is now greater than the new quantity supplied. In conclusion, an excise tax on apples leads sellers to supply less apples at every price, as the shift in the supply curve reduces the quantity supplied at each price point. This shift in the supply curve causes the equilibrium price to increase.

So, The correct answer is A.

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one of disney's resources is the use of fairy tale themes in the creation of new movies. if disney chooses to continue with this strategy, why might disney's ultimate ability to create value for the corporation from this resource be limited? a. fairy tales are a tangible resource with a limited supply. b. fairy tales are not necessarily rare, difficult to imitate, or nonsubstitutable. c. the cost to buy the rights to use the fairy tales may outweigh the benefits they provide. d. as an intangible resource, fairy tales, by definition, have a limited value.

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We can see that if Disney chooses to continue with this strategy, Disney's ultimate ability to create value for the corporation from this resource be limited because: B. fairy tales are not necessarily rare, difficult to imitate, or nonsubstitutable.

What is fairy tale?

A fairy tale is a type of folktale or fable that typically features mythical creatures, magical elements, and/or enchanting settings. Fairy tales often revolve around a central conflict or problem that is resolved by the end of the story through the actions of the protagonist(s).

While fairy tale themes can be a valuable resource for Disney, they are not necessarily rare or difficult to imitate by other competitors. This means that other companies can also use fairy tale themes in their movies, limiting Disney's ability to create a competitive advantage and unique value for the corporation from this resource.

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when firms accumulate inventory, actual inventory investment is . multiple choice question. positive negative unchanged

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When firms accumulate inventory, actual inventory investment is positive.

Inventory investment is the value of the adjustment to a company's inventory in a specific period. A firm's inventory investment is calculated by subtracting the amount of inventory it sold from the amount of inventory it produced in a given time period. A positive inventory investment, as the name implies, indicates that the company has accumulated more inventory than it has sold. A negative inventory investment indicates that the company has sold more inventory than it has produced or bought. When firms accumulate inventory, the actual inventory investment is positive. It's critical for businesses to maintain track of their inventory investment since it can be a significant expenditure for the company. A negative inventory investment may indicate that the firm has liquidated inventory for a price that is less than its original cost.

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Fill in the blank: ____ are more concerned with how training may affect the attainment of financial goals for the particular units they supervise.

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Managers are more concerned with how training may affect the attainment of financial goals for the particular units they supervise. Managers are the individuals in the company who make decisions, allocate resources, and direct the activities of others towards the attainment of targets.

Financial goals are specific, measurable, and achievable financial targets set by a business, corporation, or individual. Financial goals can be short-term, such as managing daily expenses, or long-term, such as retiring comfortably. Financial goals must be connected to the business's mission and vision. Managers must also assess the training's financial impact on the company, including return on investment (ROI), and overall effectiveness.

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problem 2: given a particular minimum t on, we can get as high a duty cycle resolution as we want just by increasing t pwm. do we pay any performance price for this?

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In order to maintain high performance, the PWM signal frequency should be carefully tuned.

Whats the performance price

The performance price is that the reaction time of the PWM output could be decreased by increasing the resolution of the duty cycle resolution.

To achieve a high duty cycle resolution, we must increase the frequency of the PWM signal, which will reduce the duration of each cycle.

The frequency of the PWM signal is inversely proportional to the pulse duration, as shown in the formula:

1 / (2 × π × R × C)

In this situation, R is the resistance and C is the capacitance of the capacitor that determines the PWM frequency.

The PWM signal frequency determines the response time of the circuit that it is driving, therefore if the frequency is too high, the response time may be too low, which may negatively impact performance.

Thus, in order to maintain high performance, the PWM signal frequency should be carefully tuned.

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select all the correct answers. what were two effects of the lack of representation of the third estate in the estates-general?

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The lack of representation of the Third Estate in the Estates-General had two major effects. it caused the Third Estate to become increasingly angry and it led to an unequal taxation system

First, it caused the Third Estate to become increasingly angry and frustrated over the lack of power they had in their government. This anger was expressed in the National Assembly and ultimately led to the French Revolution.

Second, it led to an unequal taxation system. The Third Estate was forced to pay more taxes than the other two estates, which led to an increasing sense of unfairness and resentment.

This increased tension between the different estates and ultimately resulted in the collapse of the Ancien Régime.

In summary, the lack of representation of the Third Estate in the Estates-General had two major effects. It caused the Third Estate to become increasingly angry and frustrated, leading to the French Revolution.

It also led to an unequal taxation system which caused resentment and tension between the different estates and resulted in the collapse of the Ancien Régime.

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energy is a component of many of our consumer products. how many total gallons of gasoline might be in your closet from 15 or more pairs of blue jeans alone?

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There could be 50 gallons of gasoline in  consumer products your closet from only 15 or more pairs of blue jeans.

How do developed and developing nations' levels of energy consumption compare? Why?

Energy consumption is typically higher in developing nations than in wealthy nations. When compared to nations that are currently creating those networks, nations without reliable electricity or a modern transportation network typically utilize less energy.

How is energy consumption per person determined?

The methodology used to get average power per person was as follows: Electric energy per person [in watt-hour] = Total population electricity consumption [in kW-h/yr] * 1,000 /population.

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a flat portion of a long-run average total cost curve where costs neither increase nor decrease as output changes in the long-run is the result of

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A flat portion of a long-run average total cost curve where costs neither increase nor decrease as output changes in the long-run is the result of constant returns to scale.

What is the long-run average total cost curve?

A curve representing the connection between output and long-run average total cost in a competitive market, demonstrating how a company's long-run average total cost varies as output varies is referred to as the long-run average total cost curve. It's shaped like a U.

The flat portion of a long-run average total cost curve is the result of constant returns to scale. The concept of returns to scale refers to the impact of increasing or decreasing the scale of production on a firm's output over time. There are three types of returns to scale.

They are described in the following section:Constant returns to scale Increasing returns to scale Decreasing returns to scale When the scale of manufacturing grows, a constant returns to scale state occurs, which implies that output increases by the same proportion as the scale of production, resulting in constant average cost.

It implies that long-run average total cost neither increases nor decreases as output changes in the long-run. That is why it is a flat section of the curve.

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you receive a credit card application from abc bank offering an introductory rate of 0.5% per years, compounded monthly for the first six months, increasing thereafter to 18.5% compounded monthly. assuming you transfer 7000 dollars from your existing credit card and make no subsequent payments. how much interest you will owe at the end of the first year

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The total compound interest amount that the individual owes at the end of the first year can be calculated as follows: We know the following information from the problem: Amount transferred to the new credit card: $7,000 Introductory rate for the first six months: 0.5% compounded monthly Interest rate after six months: 18.5% compounded monthly

The formula for calculating interest when compounding is done monthly can be expressed as A=P(1+r/n)^(nt), where A is the amount owed, P is the principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years.

We can find the interest amount for the first six months by using the above formula with the given values. A=P(1+r/n)^(nt)A = $7,000(1+0.005/12)^(6*12/12)A = $7,025.58 Therefore, the interest amount for the first six months is $25.58.

Now we can find the interest amount for the remaining six months using the same formula. A=P(1+r/n)^(nt)A = $7,025.58(1+0.185/12)^(6*12/12)A = $8,807.18

Therefore, the interest amount for the remaining six months is $1,782.60.The total interest amount owed at the end of the first year can be found by adding the interest amounts for the first six months and the remaining six months.$25.58 + $1,782.60 = $1,808.18 Therefore, the individual will owe $1,808.18 in interest at the end of the first year.

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how does vertical integration or horizontal integration impact the strategic direction of an organization?

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Vertical integration or horizontal integration can significantly affect the strategic direction of an organization, as both are important parts of the overall supply chain management.

Vertical integration is the process of expanding a company's production and distribution process to include more operations, while horizontal integration is the process of expanding a company's supply chain by forming new partnerships. Both can lead to increased efficiency and cost savings, as well as increased market share, which can all influence the organization's strategic direction.

Vertical Integration Impacts the strategic direction of an organization by allowing the company to control the supply chain. A company that vertically integrates will have a higher degree of control over the production process.

Horizontal Integration Impacts the strategic direction of an organization by enabling the company to increase its market share. Horizontal integration allows the organization to broaden its product line, acquire new customers, and compete more effectively with rivals.

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which approach to estimating project time and cost is usually completed by upper management? multiple choice question.

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The approach to estimating project time and cost that is usually completed by upper management is Top-down estimation (option A).

This approach involves setting an overall goal and timeline and then breaking it down into smaller, achievable tasks. It is commonly used by upper management because it allows them to gain an understanding of the overall scope of the project.

It is a relatively simple and efficient way to gain an understanding of the overall scope of the project. Upper management can use this approach to get a better understanding of the complexities of the project and how much time and resources will be needed to complete it.

Here's the full task:

Which approach to estimating project time and cost is usually completed by upper management?

Multiple choice question:

A. Top-down estimationB. Bottom-up estimationC. Agile estimationD. Earned value analysis

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the asked yield for a $10,000 face amount treasury bill 36 days from maturity is quoted as .032%. what will you pay to buy the bill now?

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the person will pay $9,997 for the Treasury bill now.

Treasury Bills are government issued notes that mature in one year or less than one year. A Treasury Bill has a minimum face value of $1,000 and in increments of $1,000.The formula to find the Treasury bill price is :

TBill Price = 100 – (Discount rate × TBill Term ÷ 360)

So, the price of a Treasury bill that has a face value of $10,000 and has 36 days left to maturity would be: Discount rate = 0.032% = 0.00032TBill Term = 36 daysPrice = 100 – (0.00032 × 36 ÷ 360) = 99.968 or 99.97 (rounded off)The price of the treasury bill would be 99.97. Therefore, the person will pay $9,997 for the Treasury bill now.

Answer: $9,997

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american airlines prices coach seats on its airline flights at different prices depending on demand and capacity. this is known as

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American Airlines prices coach seats on its flights based on a dynamic pricing system.

This system takes into account demand, capacity, and other factors when setting the prices of tickets. This type of pricing is known as "yield management," where airlines adjust ticket prices in order to maximize profit.

Yield management works by pricing tickets at different levels depending on the amount of demand, allowing the airline to fill more seats and increase revenue.

When demand is low, the airline will offer lower prices to attract more customers. When demand is high, prices are raised to take advantage of the high demand. This system allows airlines to make the most of their available seating and revenue.

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one reason markets may fail to provide the optimal quantity of public goods is the problem of group of answer choices economic integration. free riders. nondiscrimination. determining what the public wants. diminishing returns.

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The problem of free riders is one reason why markets may fail to provide the optimal quantity of public goods. Free riders are people who consume public goods without contributing to their production or funding. This reduces the incentives for suppliers to produce the public good in an optimal quantity.

Free riders are able to consume public goods without contributing to their production or funding, which reduces the incentive for suppliers to produce the public good in an optimal quantity. Without sufficient incentives, suppliers may not produce enough of the public good to meet the optimal quantity. This means that the quantity of the public good supplied may be lower than the optimal quantity, leading to a market failure.

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customer relationship management involves managing all aspects of a customer's relationship with an organization. true false

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"Customer relationship management involves managing all aspects of a customer's relationship with an organization" is True as the Customer Relationship Management (CRM) involves managing all aspects of a customer's relationship with an organization.

This includes customer acquisition, customer service, marketing, sales, and retention. By utilizing CRM tools, companies can track customer interactions and responses, segment customers, manage campaigns, and identify potential opportunities.

With CRM, companies can build stronger relationships with their customers and improve their overall customer experience. This helps to foster brand loyalty and leads to increased sales and profits.

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a profit pool is defined as the total revenue in an industry at all points along the industry supply chain. group startstrue or falsetrue, unselectedfalse, unselected

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A profit pool is defined as the total revenue in an industry at all points along the industry supply chain. This statement is True.

What is a profit pool?

A profit pool refers to the total revenue in an industry, including all supply chain points. As a result, when a company expands into a market, it must first evaluate the size and attractiveness of that market's profit pool.

The profit pool is a new method of assessing an industry's attractiveness. It divides the industry into its various value chain activities and estimates the earnings potential at each stage, including raw materials, component production, assembly, marketing, and after-sales support.

To create a profit pool, first, identify the value chain segments that the company is interested in. Second, evaluate the total revenue generated at each level. Third, estimate the operating costs associated with each level. Finally, calculate the profits earned at each level of the value chain.

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in monopolistic competition, each firm uses the demand curve and the marginal revenue curve to establish output and price. in monopoly, the firm uses the demand curve and the marginal revenue curve to establish output and price. multiple choice question. individual; market market; individual

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Monopolistic competition is a form of imperfect competition in which many producers sell products that are differentiated from one another. The concept of a monopolistic market implies that the firms involved in it have some degree of power to establish the price and output of their product.In monopolistic competition, each firm uses the individual demand curve and the marginal revenue curve to establish output and price.

The demand curve of the individual firm is downward sloping, implying that the higher the price of the product, the lower the quantity demanded. Marginal revenue, on the other hand, is the additional revenue obtained by selling one extra unit of output.

The firm in a monopoly, on the other hand, uses the market demand curve and the marginal revenue curve to determine output and price.The marginal revenue curve, like the demand curve, is downward sloping in a monopoly. An individual firm in monopolistic competition has no influence over the market price because there are numerous producers producing slightly different products.

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Financial markets facilitate the transfer of excess funds from those who have them to those who need them.In the following table, determine whether each financial market participant is a surplus unit or deficit unit.Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not want to part with any of thefirm's equity. In this case, Green Network Energy would likely issue _____ securities to obtain the funding. Which of the following are ways that Green Network Energy could obtain funds to finance the expansion of its operations, given its stated preferencein the previous question? Check all that apply.• Issue corporate bonds• Issue common stocks• Issue commercial paper• Issue preferred stocks

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Green Network Energy could obtain funds to finance the expansion of its operations by issuing corporate bonds, commercial paper, and preferred stocks.

Corporate bonds are debt securities issued by corporations to finance their operations and growth. The company typically pays a fixed rate of interest on the bonds and must repay the principal when the bond matures. Commercial paper is an unsecured debt instrument issued by corporations to finance short-term needs. It is usually only issued for a period of 9 months or less.

Preferred stocks are securities that give shareholders a fixed dividend and preference over common stockholders in the case of liquidation. In addition, preferred stocks are typically less volatile than common stocks. As Green Network Energy stated they don't want to part with any of their equity, they could raise funds by issuing the above mentioned securities.

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the selection, development, and maintenance of supply sources is associated with which procurement objective?

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The selection, development, and maintenance of supply sources is associated with the procurement objective of "supplier management".

Supplier management is a strategic approach to managing the relationships with suppliers to achieve the desired business objectives. It involves identifying, selecting, developing, and maintaining a reliable supply base that can provide the required goods or services on time, at the right quality, and at a reasonable cost.

The selection of supply sources involves identifying potential suppliers who can meet the company's requirements and evaluating them based on criteria such as price, quality, delivery, and reliability. The development of supply sources involves working with suppliers to improve their capabilities and performance, such as providing training, technical assistance, or incentives to achieve better quality or faster delivery.

The maintenance of supply sources involves managing the ongoing relationship with suppliers to ensure that they continue to meet the company's requirements and deliver value over time.

Effective supplier management can help companies to reduce costs, mitigate risks, improve quality, and enhance innovation. It is a critical component of procurement that can help companies to achieve their strategic objectives and gain a competitive advantage in the market.

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on may 1, widdle corporation issued 10,000 shares of its $10 par common stock to saddles for a tract of land. the stock had a fair market value of $15 per share on this date. according to saddles' last property tax record, the land was valued at $82,000. what amount should widdle record as an increase in paid-in capital? a.$50,000 b.$82,000 c.$18,000 d.$32,000

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Widdle Corporation should record an increase in paid-in capital of $50,000 on May 1, when it issued 10,000 shares of its $10 par common stock to Saddles in exchange for a tract of land. The correct answer is A - $50,000

The total value of the stock issued was calculated by multiplying the number of shares by the fair market value of the stock, $15 per share. This comes to a total of $150,000. The fair market value of the land, as per Saddles’ last property tax record, was $82,000. The difference between the total value of the stock issued and the fair market value of the land is $50,000 and this should be recorded as an increase in paid-in capital.

In other words, Widdle Corporation paid for the land by issuing 10,000 shares of its common stock, valued at $15 per share. The total value of the stock was $150,000, while the land’s fair market value was $82,000, so the difference of $50,000 is the amount that should be recorded as an increase in paid-in capital.

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a designated amount of time and money to account for parts of the project that cannot be predicted such as major disruptions in the project caused by a hurricane. this is known as a(n)

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A designated amount of time and money to account for parts of the project that cannot be predicted such as major disruptions in the project caused by a hurricane is known as a contingency reserve.

A contingency reserve is a part of the project budget that is set aside to cover unexpected events or circumstances that may arise during the course of the project. These events may include unforeseen delays, disruptions, or changes to the project scope that could impact the project's timeline or budget.

Contingency reserve is important because it allows project managers to plan for the unexpected and mitigate risks. It provides a safety net to cover any unexpected costs or delays and helps ensure that the project can still be completed on time and within budget even if unexpected events occur.

The amount of contingency reserve needed for a project will depend on the nature of the project and the potential risks involved. A project with a higher level of risk may require a larger contingency reserve to ensure that the project can still be completed successfully in the face of unexpected events.

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question 1: how should insurance markets work? options discussed in class completely private insurance markets universal public insurance compulsory insurance employer-sponsored insurance means-tested health insurance

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In the following question, Insurance markets can work in several ways. There is completely private insurance, which is when insurance is provided through a private, for-profit entity and individuals must purchase the insurance themselves.

Among the various conditions given, There is also universal public insurance, which is when the government provides and subsidizes healthcare for everyone. Compulsory insurance is when everyone must purchase insurance, usually through their employer. Employer-sponsored insurance is when employers provide healthcare to their employees. Lastly, there is means-tested health insurance, which is when insurance is provided to those that meet certain criteria, such as income level.

Insurance markets can work in several ways. There is completely private insurance, which is when insurance is provided through a private, for-profit entity and individuals must purchase the insurance themselves.

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cullumber enterprises has a total asset turnover of 2.1 and a net profit margin of 7.9%. if its equity multiplier is 1.20, what is the roe for cullumber enterprises? (round answer to 2 decimal places, e.g. 12.25%.)

Answers

Cullumber Enterprises' Return on Equity (ROE) is 19.91%.

The return on equity is a metric used to determine how profitable a company is in comparison to its equity. ROE can also be viewed as a return on assets less liabilities because shareholder's equity can be computed by adding up all assets and deducting all liabilities.

The return on equity (ROE) formula is:

ROE = Net Profit Margin x Total Asset Turnover x Equity Multiplier

Plugging in the given values, we have:

ROE = 0.079 x 2.1 x 1.20

ROE = 0.19908 or 19.91% (rounded to 2 decimal places)

Therefore, the ROE for Cullumber Enterprises is 19.91%.

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your study partner is confused by the upward-sloping short-run aggregate supply curve and the vertical long-run aggregate supply curve. how would you explain this? the short-run aggregate supply curve slopes upward because many production costs, particularly can be taken as . the long-run aggregate supply is vertical because all prices, including nominal wages, are fully in the long-run.

Answers

The short-run aggregate supply curve slopes upward because many production costs, particularly can be taken as such.

This means that when the demand for goods and services in the economy increases, businesses will produce more in the short run, but this will come at an increasing cost as resources become scarce. This is reflected in the upward slope of the short-run aggregate supply curve.
The long-run aggregate supply curve is vertical because all prices, including nominal wages, are fully in the long-run. This means that when there is an increase in demand for goods and services in the economy, businesses will be able to produce more without facing increasing costs because they will be able to increase the number of workers and other resources that they use. This is reflected in the vertical slope of the long-run aggregate supply curve.
In summary, the difference between the upward-sloping short-run aggregate supply curve and the vertical long-run aggregate supply curve is due to the fact that in the short run, businesses face increasing costs as they produce more, while in the long run, businesses are able to increase production without facing increasing costs. This is reflected in the shape of the two curves.

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if you sell televisions for $250 each, and you have fixed costs of $60,000 and unit variable costs of $50, what is your break-even point?

Answers

The break-even point is 1,200 televisions.

To calculate the break-even point, we need to determine the level of sales at which total revenue equals total cost. Total revenue is simply the price per unit times the quantity sold, or $250Q, where Q is the number of televisions sold. Total cost is the sum of fixed costs and variable costs, or $60,000 + $50Q.

Setting these two expressions equal to each other, we get:

$250Q = $60,000 + $50Q

Solving for Q, we find:

$200Q = $60,000

Q = 300

Therefore, the break-even point is 300 televisions. This means that if the company sells fewer than 300 televisions, it will not be able to cover its costs and will incur a loss.

If it sells more than 300 televisions, it will generate a profit. In this case, the company can cover its fixed costs and earn a profit by selling 1,200 televisions ($250 x 1,200 = $300,000), which is the break-even quantity.

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