an investor purchased an xyz oct 50 call for a premium of 4. on the expiration date, xyz is selling for 46 and the investor closes the position at the option's intrinsic value. for tax purposes, the investor has
Answers
An investor paid a premium of 4 and bought a xyz oct 50 call. When xyz is trading for 46 on the expiration date, the investor closes the trade at the intrinsic value of the option. The investor has a $800 short-term capital gain for tax reasons.
The intrinsic value of a 50 call investor with the stock trading at 62 is 12 points (call-up rule).
That would amount to $1,200 in earnings for the call's owner.
The $400 cost is subtracted, leaving a $800 short-term capital gain.
A measure of an option's profitability based on the strike price and the market price of the underlying stock is called intrinsic value. The projected volatility of the underlying asset and the remaining time before the option expires determine time value. Investors should have a solid understanding of the variables affecting an option's value before entering the world of options trading. These include the price of the stock at the moment, its intrinsic worth, its remaining life or time value, volatility, interest rates, and any cash dividends that have been distributed.
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Related Questions
Which of the following best describes the objectives of the Monetary Policy?
a. controlling banks over our currencies
b. controlling household money in circulation
c. controlling the firm's money in circulation
d. managing or manipulating the money supply in the economy
Answers
Answer:
d. managing or manipulating the money supply in the economy
Explanation:
i feel like it's D
Answer:
d. managing or manipulating the money supply in the economy
An employee's take-home pay is equal to gross pay less all voluntary deductions.
a) true
b) false
Answers
The given statement exists false. Take-home pay for an employee is calculated as gross pay less all voluntary deductions. In general, all deductions from an employee's gross pay must comply with legal requirements. The employee's net pay serves as the basis for payroll taxes.
What is the difference between gross and net pay?
Before any deductions, your gross income is what you earn. Net pay is the amount of your paycheck that remains after deductions for taxes, health insurance, and other expenses.
Before taxes, benefits, and other payroll deductions are taken out of an employee's paycheck, that amount is known as their gross pay. Net pay, often known as take-home pay, is the amount that is left after all withholdings have been taken into account.
Amounts that an employee has chosen to have deducted from their gross salary are known as voluntary deductions. Examples include deductions for credit union membership, healthcare and/or other benefits, group life insurance, etc.
Take-home pay is the remaining income after taxes, benefits, and any additional contributions have been taken out of a paycheck. It is the difference between gross income and everything deducted from it.
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According to the video, what tasks are commonly performed by Farmworkers instead of by machines? Select three
options.
weeding
Opruning
preparing soil
transplanting
planting
Answers
Answer:
A: weeding
B: pruning
D: transplanting
Explanation:
trust me i just did it
enjoy :)
During the national convention, how many state delegates conduct business at sessions?
a. 250
b. 350
c. 475
d. 735
Answers
Out of the alternatives provided, it may be interpreted that about 475 state delegates conduct the business at sessions during the ongoing of the national convention. Therefore, the option C holds true.
The national convention is a big event that is held at regular intervals as per the policies maintained by the official bodies governing the same. According to the guidelines, about 475 state delegates are required to attend the business at sessions for this regular event. The national convention holds a greater significance.
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what occurs when the free market is not able to allocate resources and goods and services efficiently
Answers
Answer: Market failure
Explanation:
When the free market is not able to allocate resources and goods and services efficiently, this situation is referred to as market failure.
Market failure brings about disequilibrium in the market as the quantity supplied and the quantity demanded aren't in equilibrium anymore as there's market distortion. It takes place when the quantity of good. The distortion may be as a result of monopoly power.
Government actions taken to mange a country’s money supply are called ————-policy
Answers
Answer:
Government actions taken to mange a country’s money supply are called ——Monetary——-policy
Question
Government actions taken to mange a country’s money supply are called ————-policy
Answer
MonetaryExplanation
Monetary is a government actions that taken to manage a countries by supplying money.
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Kamal, Kamala, Krishna invert a sum of RS= 30,000 on a business in the ratio 2 : 3 : 5. Find the each of their investment.
Answers
Answer:
3000kamal
9000kamala
15000krishna
Explanation:
let the unknown investment be x
now
2x+3x+5x=30000
10x=30000x
x=30000/10
x=3000
again;
2x=2×3000=6000
3x=3×3000=9000
5x=5×3000=15000
wise it is correct
Answer:
Kamal
2×30000÷10 = 6000
Kamala
3×30000÷10= 9000
Krishna
5×30000÷ 10= 15000
Explanation:
Kamal _ RS = 6000
Kamala _RS =9000
Krishna _RS=1,5000
After settling a legal dispute, Frank must chose one of two settlement
payment options. He can either receive an immediate lump sum payment of
$250,000, or he can receive an installment payment package with annual
payments of $25,500 spread out over a span of 10 years. Which would likely
be more beneficial to him, and why?
A. The installment package would be better because it would prevent
him from spending all of his money immediately.
B. The immediate payment would be better because it is more
money overall.
C. The immediate payment would be better because he could use the
money immediately to invest it in a safe, low return account.
D. The installment package would be better because he'll have more
money in 10 years than with the lump sum.
Answers
After settling a legal dispute, Frank must choose The immediate payment of $250,000, because it would be better as he could use the money immediately to invest it in a safe, low-return account. Therefore, option C is the correct option.
What is investing?
Investing or investment is a financial term. It is both a tool and a source to generate wealth and income. Investment means putting the money in respect of an object, as the value of the objects differs with time so the value of the money will also differ accordingly. This fact about investment makes it both, risky and profit-making at the same time.
Thus, after a legal dispute is resolved, Frank must select the $250,000 immediate payment because it would be preferable because he could use the money right away to invest it in a secure, low-return account. As a result, choice C is the best one.
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TERM to assume the role of an HR Professional. You are functioning as a Training and Development Executive at a Financial Institution. The Customer Service Manager has informed you that the Client Suggestion box is overloaded with complaints of poor customer service. There are seven employees in this department. This must be rectified immediately. You are tasked with Planning a Three Day Training and Development Seminar. And creating a proposal and itinerary for this Seminar to be presented to Management for approval. You must include the following. . A summarized review of the Employee qualifications to identify if the issue lies with lack of experience.
Answers
As the Training and Development Executive at a Financial Institution, the following are the things that you must include in the proposal and itinerary for the seminar to be presented to management for approval:
A summary review of employee qualifications should be done to identify whether the issue lies with a lack of experience or not. This will give a clear idea of whether the employees are not able to handle the customer complaints due to the lack of skills and experience or some other reason. If the issue is lack of experience, then training can be provided on how to handle different types of customers and their complaints. This will help them to respond to the customer complaints in a better way and provide a good customer experience.
During the training and development seminar, the following topics should be covered:
Effective Communication Skills: This will include training on how to communicate with the customers effectively and how to handle difficult customers. They should be trained to listen to the customer complaints patiently and respond in a polite and professional manner.
Product and Process Knowledge: They should be trained on the products and services that are being offered by the financial institution. This will help them to provide accurate information to the customers and handle their queries effectively.
Customer Service Skills: They should be trained on how to provide good customer service. This will include topics like how to handle complaints, how to apologize to customers, and how to deal with angry customers. They should be trained to empathize with the customers and provide solutions that will meet their needs.
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Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. true false
Answers
Strategic Sourcing is an integrated approach of finding and sourcing the most reliable and valuable suppliers so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace.
Strategic sourcing requires collaboration and communication with internal stakeholders and suppliers to ensure all requirements are met. It’s a long-term procurement strategy that takes into account several factors, such as supplier performance, quality, cost, delivery time, risks, and innovation.
By using strategic sourcing, organizations can reduce their procurement costs, increase their competitiveness in the marketplace, and achieve long-term business objectives. This approach also helps organizations to mitigate supply chain risks, ensure business continuity, and maintain their reputation.
In conclusion, the statement "Strategic Sourcing is a comprehensive approach for locating and sourcing key suppliers, so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace" is true.
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Select the correct answer.
Which equation is the correct fundamental accounting equation?
OA owner's equity = liabilities -assets
OB.
assets liabilities - owner's equity
=
OC. assets = liabilities + owner's equity
O D.
assets + liabilities = owner's equity
Answers
Answer:
Assets=liabilities+owner's equity
what are some advantages and disadvantages of top-down versus bottom-up investing styles?
Answers
Top-down and bottom-up are two distinct investment approaches. Top-down involves analyzing macroeconomic trends and identifying broad investment themes, while bottom-up focuses on individual stocks and companies.
One advantage of top-down investing is that it allows investors to capture broader market trends and potentially benefit from economic growth. However, this approach can be less precise and may overlook individual stock opportunities.On the other hand, the main advantage of bottom-up investing is the ability to identify undervalued stocks and individual companies with strong fundamentals. This approach can be more precise but may miss out on broader market trends.
A disadvantage of bottom-up investing is that it can be time-consuming and require a lot of research to identify individual stocks. Top-down investing, on the other hand, can be more efficient but may lead to investments that are not well-suited for an individual's risk tolerance or investment goals.Ultimately, both top-down and bottom-up investing can be effective strategies, and the choice between them depends on an investor's goals and risk tolerance.
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what is true of home-based businesses?
Answers
Home-based businesses are businesses that are operated from the owner's home. They are becoming increasingly popular due to the rise of the internet and the ability to conduct business online.
Here are some key characteristics that are generally true of home-based businesses:
Low overhead costs: One of the biggest advantages of a home-based business is that the owner can save on overhead costs such as rent, utilities, and commuting expenses.
Flexible work hours: Home-based business owners have the flexibility to set their own work schedule, which can be especially useful for those who need to balance work with family or other obligations.
Potential tax benefits: Depending on the tax laws in their country, home-based business owners may be eligible for tax deductions on expenses such as home office space and equipment.
Limited space and resources: Home-based businesses may have limited space and resources compared to businesses that operate in commercial spaces. This can be a disadvantage for businesses that require a lot of inventory or equipment.
Possible zoning and legal restrictions: Home-based businesses may be subject to zoning and legal restrictions in their local area, so it is important to research and comply with any applicable laws and regulations.
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The table below shows the total costs faced by Allura's Little Robotics Company for different quantities of Good S sold Quantity Total Cost 0 $100 1 $136 2 $180 3 $228 4 $280 5 $336 6 $396 7 $4608 $528 9 $600 10 $680 Allura's Little Robotics Company sells Good Sin a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $62 per unit. (a) Calculate the average fixed cost of producing 2 units. Show your work. (b) Identify the profit-maximizing quantity, Explain using marginal analysis (c) Calculate the economic profit at the profit-maximizing quantity you identified in part (b). Show your work (d) Based on your answer to part (c), will the number of firms in the industry increase, decrease, or stay the same in the long run? Explain. (e) Based on your answer to part (c), will the market price increase, decrease, or stay the same in the long run? Explain. (f) The income elasticity of demand for Good Sis -0.5, and the cross price elasticity of demand for toy robots with respect to the price Good Sis 0.8. Based on your answer to part (e), what will happen to the demand for toy robots? Explain (g) Now assume that the market in which Allura's Little Robotics Company operates is in long-run equilibrium at a price of $65 per unit. (h) Suppose shipping costs per order for Allura's Little Robotics Company decrease. Will the profit-maximizing quantity of Good S for Allura's Little Robotics Company increase, decrease, or stay the same in the short run? Explain. (i) instead suppose the government imposes a price ceiling of $60 on the market for Good S. Will total economic surplus in the market for Good Sincrease, decrease, or stay the same in the short run as a result of the price ceiling? Explain.
Answers
(a) Average fixed cost of producing 2 units = $50
(b) When the quantity is 6, the marginal cost is $66 and the marginal revenue is $62. This is the profit-maximizing quantity.
(c) Economic profit = $372 - $396 = -$24
What is fixed cost?
(a) To calculate the average fixed cost of producing 2 units, we need to find the total fixed cost first. Looking at the table, we can see that when the quantity is 0, the total cost is $100. This is the total fixed cost. Therefore, the average fixed cost of producing 2 units is:
Average fixed cost = Total fixed cost / Quantity
Average fixed cost = $100 / 2 = $50
What is profit?
(b) The profit-maximizing quantity is where marginal cost equals marginal revenue. From the table, we can calculate the marginal cost and marginal revenue for each quantity. When the quantity is 6, the marginal cost is $66 and the marginal revenue is $62. This is the profit-maximizing quantity.
What is Economic profit ?
(c) To calculate the economic profit at the profit-maximizing quantity of 6 units, we need to subtract the total cost from the total revenue. At a quantity of 6 units, the total revenue is $372 ($62 x 6). The total cost is $396. Therefore, the economic profit is:
Economic profit = Total revenue - Total cost
Economic profit = $372 - $396 = -$24
(d) Based on the negative economic profit, Allura's Little Robotics Company is making losses. This will discourage new firms from entering the market in the long run, so the number of firms in the industry will stay the same.
(e) Based on the negative economic profit, the market price will decrease in the long run as firms leave the industry or reduce their output.
(f) If the price of Good S decreases in the long run due to the negative economic profit, the demand for toy robots will increase due to the positive cross-price elasticity of demand. However, the income elasticity of demand for Good S is negative, indicating that Good S is an inferior good. This means that as consumers' incomes increase, their demand for Good S will decrease, which may offset the increase in demand for toy robots.
(g) At a price of $65 per unit in the long-run equilibrium, the market is in a state of balance where the quantity supplied equals the quantity demanded. All firms are earning zero economic profit.
(h) If shipping costs per order decrease, the variable cost of producing Good S decreases. This will result in a decrease in marginal cost, causing the profit-maximizing quantity to increase in the short run.
(i) If the government imposes a price ceiling of $60, the price will be below the market equilibrium price of $65. This will result in excess demand, causing a shortage of Good S in the market. As a result, total economic surplus in the market will decrease in the short run due to a deadweight loss caused by the price ceiling.
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A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.
Answers
A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts is known as a small business.
Small businesses may be sole proprietorships, partnerships, or corporations, and they may operate in almost any industry.
A sole proprietorship is a business run by a single individual. The individual owner assumes all of the company's responsibilities and receives all of the company's profits. As a result, they are responsible for all of the business's debts and financial obligations.A partnership is an enterprise that is owned and operated by a group of two or more people. The owners share responsibilities and risks, and they may have different roles in the company. Profits are split among the partners according to the terms of the partnership agreement.A corporation is a legal entity that is independent of its owners. It is created by a group of individuals who wish to engage in a specific business activity. The corporation may issue shares of stock, and it is governed by a board of directors. A corporation can raise money by selling stock, and it is subject to a variety of rules and regulations established by federal and state governments.You can learn more about small business at
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ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. During the year ABC Ltd sold 40% of its investments being held in the beginning of period at a profit of Rs 16,800. Determine cash flow from investing activities.
Answers
ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. the cash flow from investing activities was Rs 44,000.
What are investing activities.?Generally, Investing activities are actions taken by a business or individual to acquire or dispose of assets in order to increase their wealth. These activities can include the purchase of stocks, bonds, mutual funds, real estate, or other types of investments. Investing activities are typically undertaken with the goal of generating income or capital appreciation over time.
To determine the cash flow from investing activities, we need to calculate the amount of cash that ABC Ltd received from selling its investments.
The investment at the beginning of the period was Rs 68,000. If 40% of this investment was sold, then the amount sold was 40/100 * Rs 68,000 = Rs 27,200.
The profit from the sale of these investments was Rs 16,800, so the total cash received from the sale was Rs 27,200 + Rs 16,800 = Rs 44,000.
Therefore, the cash flow from investing activities was Rs 44,000.
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Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
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Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
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l
∨
Explanation:
Here's the picture and I hope this helped!
Have a nice day!
Describe the goal of a good financial manager according to you?
Answers
Answer:
Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization. Financial managers typically: ... Help management make financial decisions.
James is a sales agent who is sponsored by best realty, and he is a member of the a-1 team. what must be done to ensure that james can use the team name in advertising?
Answers
His broker must register the team name that complies with the new regulations with TREC before he may use it in advertising.
What is a team name?The term "team name" refers to a name that is employed by one or more license holders that are sponsored by or connected to the same broker but are not the broker's actual name or an assumed business name.Team or group must be at the end of team names. Terms in team names that suggest the club is providing brokerage services independently of the broker are prohibited. Brokerage, corporation, and associates are a some of the forbidden words. As long as the team name ends with the words team or group, the phrases realty or real estate are permissible in the team name.What is TREC?The governmental entity in charge of overseeing real estate practices in the state of Texas is called the Texas Real Estate Commission. The organization's main office is located in Austin at 1700 North Congress. TREC is made up of nine people who the governor appoints with the support of the Texas Senate.Learn more about TREC here:
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A county three-lane highway that will stretch about 20 miles is being built in Lee Town. This highway is paid for by
A. National government funds
B. State government bonds
C.municipal bonds
D. Commodities
Answers
Answer:
B
Explanation:
Because the goverment is shareing the bonds
Answer:
xip mon lo
Explanation:
ok ok ok ok ok ok
Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
Answers
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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You are a marketing manager for IJ DAC, an insurer operating in the Irish market, which underwrites
professional indemnity insurance. It distributes its products through insurance brokers. IJ DAC has a
wide range of professional indemnity insurance products for specific professions. Due to stagnating sales, IJ DAC has decided that it needs to sell professional indemnity insurance
through an additional distribution method or channel. A) Identify, with justification, the most appropriate additional distribution method or channel for IJ
DAC. (4 marks)
b) Recommend two actions that IJ DAC should take to maximise the benefit of the additional
distribution method or channel, identified in (a) abov
Answers
a) The most appropriate additional distribution method or channel for IJ DAC would be online platforms or digital channels.
Justification: Online platforms and digital channels offer several advantages for insurance distribution in the current market landscape. Firstly, they provide a wide reach and accessibility to potential customers, allowing IJ DAC to tap into a larger customer base beyond traditional broker networks. Online platforms also enable customers to research, compare, and purchase insurance products conveniently, making it more convenient and efficient for them to obtain professional indemnity insurance.
b) To maximize the benefit of the additional distribution method or channel (online platforms/digital channels), IJ DAC should take the following actions:
Optimize Online Presence and User Experience: IJ DAC should invest in building a user-friendly and informative website or online platform that showcases their professional indemnity insurance products. This includes providing clear product information, easy-to-use quote and purchase processes, and responsive customer support. Optimizing the online presence and user experience will enhance customer engagement and increase the likelihood of conversions.
Digital Marketing and Customer Engagement: IJ DAC should implement targeted digital marketing strategies to raise awareness of their professional indemnity insurance offerings. This can include search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, and content marketing. By engaging with potential customers through various digital channels, IJ DAC can generate leads and foster relationships with their target audience. Regularly providing valuable content and updates can help position IJ DAC as a trusted authority in professional indemnity insurance.
By implementing these actions, IJ DAC can leverage online platforms or digital channels effectively, attracting a broader customer base and boosting sales of their professional indemnity insurance products.
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What are the other options to insurance
Answers
Medical Cost Sharing Programs. ...
Health Savings Accounts. ...
Medical Services Discount Cards. ...
High-Deductible Policies.
Globalization has affected developed countries by encouraging new products. providing a solid consumer base. turning their focus to providing services. increasing employment for unskilled workers.
Answers
Answer:
C
Explanation:
Edge 2022
Globalization has affected developed countries by turning their focus to providing services. Thus, the third option is correct.
What is globalization?Globalization is a phrase used to describe how trade and technology have connected and interdependent the world. Globalization encompasses the economic and societal developments that have resulted as well.
More jobs in nations where jobs are required are a byproduct of globalization, which can benefit the national economy and result in a greater standard of life. As the standard of living rose, more poor children quit employment and went to school.
Therefore, the primary focus of globalization is to provide services.
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you can blank/what your tax liability through proper financial planning
Answers
Answer:
Hsdinabdkeakabeeisbsbdjhsuq
What scholar suggests that the only responsibility businesses have to society is to increase profits?
Answers
This month marks the 50th anniversary of the publication of Milton Friedman's seminal essay, "The Social Responsibility of Business Is To Increase Its Profits," in the New York Times Magazine. The piece is still divisive today as it was fifty years ago.
The 1976 Nobel Memorial Prize in Economic Sciences was awarded to American economist and statistician Milton Friedman for his work on consumer analysis, monetary history and theory, and the complexity of stabilization policy.
Friedman's public policy theories are built on two fundamental tenets: 1) policies typically have unexpected consequences, thus economists should focus on results, not intentions; and 2) voluntary interactions between consumers and businesses frequently generate results superior to those crafted by government edict.
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in order to maximize utility, a consumer should allocate money income so that
Answers
In order to maximize utility, a consumer should allocate money income in a way that achieves the highest level of satisfaction or benefit.
To allocate money income efficiently, a consumer should consider the following: Budgeting: Determine the total amount of money available for spending and allocate it among different categories such as food, housing, transportation, entertainment, and savings. Assessing preferences: Understand personal preferences and priorities in terms of goods and services. Identify which items or experiences provide the most satisfaction or utility.
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A ________ rate means the value of the currency is fixed relative to a reference currency and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate.
Answers
Answer:
it'll be the currency rate
I don´t get it plzz help me
Answers
According to project globe, which category of leadership behavior refers to the extent to which leaders are nonautocratic and involve others in making decisions?
Answers
According to the Project GLOBE, the category of leadership behavior which refers to the extent to which leaders are nonautocratic and involve others in making decisions is referred to as participative.
The Project GLOBE study helps the leaders in order to understand the role of culture in leadership. By understanding one's culture, as well as that of others, it brings awareness of different perceptions of leadership.
In this study, the participative style is a leadership style which tends to seeks and include others in the leadership process. Therefore, this participative style lacks autocratic rule.
Hence, the project GLOBE also known as the Global Leadership and Organizational Behavior Effectiveness Project.
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