The amount of centralization, the range of management, and the chain of command within an organization are determined by the subordinates who report to each manager.
The number of employees who directly answer to a management is referred to as?The phrase "span of control," which is sometimes known as "span of management," is used in business management, particularly in relation to human resource management. A supervisor's direct reports or number of subordinates are referred to by this phrase.How many workers in a corporation report to a supervisor is referred to as the span of control.The number of subordinates that a supervisor or manager in an organization can effectively and efficiently oversee is referred to as the Span of Control. It usually has one of two widths: narrow or wide, which results in an organizational structure that is either flatter or more hierarchical.To learn more about Span of control refer to:
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4444Here, you need to make a point why is it so hard to spot bubbles. Your analysis in this part should revolve around the following question: how can we spot a bubble if we are not sure about the fundamental value of an asset
Spotting bubbles in financial markets can be challenging because it requires accurately assessing the fundamental value of an asset.
A bubble occurs when the price of an asset deviates significantly from its intrinsic value, driven by speculative buying and positive feedback loops. However, determining the intrinsic value of an asset is often subjective and involves predicting future cash flows, discount rates, and market conditions, which are prone to uncertainties and errors.
In the absence of a clear understanding of an asset's fundamental value, market participants rely on various indicators and metrics to identify potential bubbles. These can include excessive price-to-earnings ratios, rapid price increases, high levels of market speculation, and excessive optimism among investors. However, these indicators alone may not provide a definitive signal of a bubble as they can also be influenced by other factors such as market sentiment and investor behavior.
Moreover, bubbles can persist for extended periods, fueled by herd mentality and the fear of missing out. As a result, it becomes challenging to differentiate between a sustainable price increase driven by genuine market factors and an unsustainable bubble.
In conclusion, spotting bubbles is difficult because it requires accurately determining the fundamental value of an asset, which is inherently uncertain. While various indicators and metrics can provide clues, their reliability is limited, and bubbles can continue to inflate before eventually bursting.
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In three to four sentences, explain how wage discrimination results in unequal pay and how can this be corrected??!
Answer:
Well some people bosses of a business can discriminate people in many ways skin tone height anything honestly. It results in unequal pay because sometimes a boss will pay someone who has a specific skin tone more money then someone else who has the opposite skin tone. That's unequal pay and it can be corrected by making people aware of what there doing or protesting and boycotting the places that do this.
Answer:
Women are paid less because they have less potential in the eye of an employer. Although race or gender have nothing to do with work ethic, it takes a toll on minorities regardless. This can be corrected by paying employees based on the work they have done, rather than the work they might do.
Explanation:
a company supply chain is a set of interdependent organizations that help make a product service available for use or consumption by the consumer or business user.
The statement "a company supply chain is a set of interdependent organizations that help make a product service available for use or consumption by the consumer or business user" is correct.
A company's supply chain refers to the network of interdependent organizations, activities, resources, and technologies involved in the production, procurement, transformation, and delivery of a product or service to the end consumer or business user.
The supply chain encompasses various stages and functions, starting from the acquisition of raw materials and components, through production or manufacturing processes, all the way to the distribution and delivery of the final product or service. It involves coordination and collaboration among suppliers, manufacturers, distributors, logistics providers, retailers, and other entities involved in the value chain.
Each organization within the supply chain plays a crucial role in ensuring the smooth flow of goods, services, and information to meet customer demands efficiently. Key activities within the supply chain may include procurement, inventory management, production planning, transportation, warehousing, and customer service.
Efficient supply chain management is essential for companies to optimize costs, improve productivity, enhance customer satisfaction, and gain a competitive advantage in the marketplace. It involves strategic decision-making, coordination, and integration of various processes and stakeholders to achieve effective supply chain operations.
Overall, the company's supply chain is a vital aspect of its business operations, enabling the availability and accessibility of products or services to meet customer needs and expectations.
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assume that consumers in an economy only purchase two products, tablets and sushi. The following table provides the quantities purchased in the base year, 2007, and prices in 2007 and 2018. you learn next year (2019) that the cpi is 178. what is the inflation rate between 2018 and 2019? a 6.7%b 9.1%c 3.4%d 5.2%
The inflation rate between 2018 and 2019 is 147.2%.
How to find the inflation rateTo calculate the inflation rate between 2018 and 2019, we first need to calculate the CPI for 2018.
CPI for 2018 = (Price of Tablets in 2018 x Quantity of Tablets in 2007) + (Price of Sushi in 2018 x Quantity of Sushi in 2007) / (Price of Tablets in 2007 x Quantity of Tablets in 2007) + (Price of Sushi in 2007 x Quantity of Sushi in 2007)
CPI for 2018 = ($600 x 50) + ($20 x 100) / ($500 x 50) + ($15 x 100) = 1.1
Next, we can use the formula for calculating inflation rate:
Inflation rate = (CPI in 2019 - CPI in 2018) / CPI in 2018 x 100%
Given that CPI in 2019 is 178, we can plug in the numbers:
Inflation rate = (178 - 1.1) / 1.1 x 100%
Inflation rate = 161.9 / 1.1 x 100%
Inflation rate = 147.18%
Rounded to one decimal point, the inflation rate between 2018 and 2019 is 147.2%.
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Global Petroleum negotiated a deal with Saudi Arabia in which Global Petroleum would build several refineries in Saudi Arabia and receive oil as partial payment over a 20-year period. This is an example of
Considering the situation described above, when Global Petroleum negotiated a deal with Saudi Arabia, this is an example of Bartering.
What is a Bartering?Bartering is a transaction agreement whereby both parties agree to pay with goods or services without using money.
Therefore, in this situation, when Global Petroleum negotiated with Saudi Arabia to receive oil as partial payment over 20 years. This is an example of Bartering.
Hence, in this case, it is concluded that the correct answer is Bartering.
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Which of the following will only be executed if the order's price conditions are met?A tradeA limit orderAn unlimited orderA spread
The following will only be executed if the order's price conditions are met A trade, option A.
Barter was an early form of trade in which goods and services were exchanged directly for other goods and services, without the use of money. Modern traders typically negotiate using a medium of exchange, like money. Consequently, buying and earning can be separated. The creation of money, as well as the letter of credit, non-physical money, paper money, and other forms of money, greatly facilitated trade. Bilateral trade involves two or more traders, whereas multilateral trade involves more than two or two traders.
The predominant form of economic activity in which individuals and groups concentrate on a small aspect of production but use their output in trades for other products and needs is known as specialization and the division of labor. Trade exists between regions because different regions may have a comparative advantage (perceived or real) in the production of some trade-able commodity, such as the production of natural resources that are scarce or limited elsewhere. According to one modern perspective, trade exists because of specialization and the division of labor.
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HELP
State the minimum monthly income and hourly wage per worker needed to cover monthly expenses for the family you used in part a. Then explain how to calculate the hourly wage based on the monthly income and state the hourly wage. Assume that each full-time worker works four 40-hour work weeks per month, and each part-time worker works two 40-hour weeks per month.
chart:
Housing = $938
Food = $598
Child Care = $769
Transportation = $1,042
Health Care = $699
Other Necessities = $620
Taxes = $741
Answer:
Full-time worker minimum monthly income = US$ 7,846.40, Part-time worker minimum monthly income = US$ 7,846.40, Full-time worker hourly wage = US$ 49.04
Explanation:
4. What competitive structure features pricing that is determined entirely through the laws of supply and demand and requires t
Moderate competition
Perfect competition
Monopolistic competition
Direct competition
Pricing is not determined by supply and demand forces in monopolistic competition. Companies set the prices for their distinctly different yet similarly priced items. The answer is option (c).
What is monopolistic competition?When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition develops. A monopolistic competitive economy has minimal entry requirements, and actions made by any one business do not immediately impact those of its rivals.
Consider a market system where there are many businesses and free enterprise entrance and exit, but the goods these businesses produce are not uniform. A market structure like this is referred to as monopolistic competition.
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You buy a 20-year bond with a coupon rate of 9.2% that has a yield to maturity of 10.2%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 11.2%. what is your return over the 6 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Rate of return :
You buy a 20-year bond with a coupon rate of 9.2% that has a yield to maturity of 10.2%. Six months later, the yield to maturity is 11.2%. The Rate of return is: -2.15%.
The rate of return can be calculated by using the following formula:
Return on investment = [(Ending value of investment – Initial value of investment) ÷ Initial value of investment] × 100
The initial value of the investment is the price you pay to buy the bond. Therefore, it is $1000.
The ending value of the bond can be calculated as follows: Calculate the present value of the bond when the yield to maturity is 11.2% using the present value of an annuity formula.
The coupon rate is 9.2%, so the coupon payment is:=
$1000 × 0.092 ÷ 2 =$46
The bond is a 20-year bond that pays a coupon semi-annually, so the number of periods is 20 × 2 = 40.
The present value of the annuity can be calculated using the formula,
PV Annuity = C × [(1 − (1 + r / n)-n× t)/(r/n)],
where: C = Coupon payment r = rate of interest n = number of payments in a year t = time period
PV Annuity = $46 × [(1 − (1 + 0.112 / 2)-40×0.5)/(0.112/2)]
= $46 × 13.798
=$635.31.
The present value of the face value is:
$1000 ÷ (1 + 0.112 / 2)20 × 2= $306.91
The ending value of the bond when the yield to maturity is 11.2% is:
$635.31 + $306.91 = $942.22
Return = (Ending value of investment – Initial value of investment) ÷ Initial value of investment
Return = ($942.22 - $1000) ÷ $1000
Return = -0.0578 = -5.78%
The rate of return for the six months is 2 times the return calculated above.
Rate of return for 6 months = -5.78% ÷ 2 = -2.89% ≈ -2.15% (rounded to 2 decimal places).
Therefore, the return over the six months is -2.15%.
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Persistance pays off.
Answer:
yes
Explanation:
yes because most of the. work hard in doing there jobs
All of the following are key organizational data in the fulfillment process except Purchasing organization Distribution Channel Storage location Sales organization
All of the following are key organizational data in the fulfillment process except Storage location. Thus option (C) is correct.
What is a Organizational data?
Organizational data describes an institution's key traits, internal structures and procedures and corporate players' actions in various socio-economic circumstances.
Data organization is the act of sorting relevant data into several categories and structuring them. The samples of the categories are part of this raw data. One example of data structuring is the arrangement of student grades across several disciplines.
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Has the Cannabis Act changed the way we view Cannabis in
Canada?
Yes, the Cannabis Act has changed the way we view cannabis in Canada. The Cannabis Act was introduced in Canada in 2018, and it legalizes recreational cannabis use across the country.
The legalization of cannabis has created a significant shift in how Canadians view cannabis. Canadians have a more positive view of cannabis, and the stigma around cannabis has reduced, which has made people more open to discussing its use. The Cannabis Act has also helped to regulate the cannabis industry, ensuring that the quality of the product is consistent, and that consumers are aware of the risks and potential side effects of using cannabis. The Act also prohibits the sale of cannabis to minors, and it provides penalties for those who violate the regulations.Overall, the Cannabis Act has been a significant step towards changing the way we view cannabis in Canada. It has reduced the stigma around cannabis and created a more positive view of the substance. The Act has also helped to regulate the industry, ensuring that consumers have access to safe and high-quality products. The legalization of cannabis has been a positive move for Canada, and it will continue to have an impact on the country in the years to come.For more questions on risks
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Which change should she make in her outline?
O change step 2 to “click the format tab”
O change step 3 to “open chart title dialog box “
O change step 4 to “type in the chart title”
O change step 5 to “add the chart title”
Answer:
A
Explanation:
Answer:
B
Explanation:
What is a 401 (k) retirement plan? I NEED HELP:(
Answer:
-an employer sponsored retirement plan that allows a worker to save for retirement while deffering income taxes on the saved money or earnings until withdrawal.
Explanation:
just cause homie
A 401(k) retirement plan is a retirement plan sponsored by the employer where he or she deducts a small percentage of the gross pay of the employee.
What is the significance of the 401(k) retirement plan?A 401(k) retirement plan can be referred to or considered as a plan where the employer contributes a fixed and a small proportion from the gross pay of the employee until the time he or she serves to the company of the employer.
An employee is free from paying any kind of taxation amount over the monies he or she has saved in a 401(k) retirement plan. However, the taxation is not a liability only until the employee makes a withdrawal.
Therefore, the significance regarding a 401(k) retirement plan has been aforementioned.
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Question on Audit & Assurance
Question 1)
The firm of Bureck & Co, where you work as an audit senior, is a Chartered Certified Accountants. After the senior on the engagement falls ill, you are temporarily appointed as audit senior to the audit of Sultana Co, a scaffolding supplier to the construction industry. Currently, you and the junior members of your audit team are analysing the audit files and discussing the audit as it nears completion for the year ending 30 September 2021 for Sultana Co. The draught financial accounts of Sultana Co. show revenues of £12.5 million, a net profit of £400,000, and total assets of £78 million.
After going through the audit files, you've discovered the following information.
Cherry Co, a major customer with whom Sultana Co has several substantial contracts, declared bankruptcy after the end of the year. Efforts to wind down the business have already begun. There are administrators who believe that the corporation can pay about 25 percent of the debt to Sultana Co. This customer has a trade receivable of £300,000 on Sultana Co's financial statement. The audit's management has also been questioned by a member of the audit team who is a junior. The following is what the junior said.
‘Prior to being assigned to the audit team of Sultana Co., I had only worked on two other projects' Despite my expectations, there was no pre-audit meeting where the partner and other senior auditors would discuss the audit. Another problem is that a senior audit manager has been in charge while the audit manager has been on vacation for three weeks and has been replaced. As a result of this, the senior could not always be contacted.'
"I was tasked with auditing the goodwill resulting from an acquisition made during the year." I also participated in the inventory audit and count, which was quite complicated because Sultana Co has a substantial amount of ongoing projects. I endeavoured to be as helpful as possible during the count and assisted the client's staff in counting a portion of the raw materials. As I had participated in the inventory count, the audit senior requested that I question the finance director about the adequacy of the provision against inventory, which the senior felt was grossly understated.
'Finally, we discovered that we were out of time to complete our audit procedures. As a means of saving time, the audit senior advised that we reduce the sample sizes used in our tests. When conducting audit sampling, he also suggested that we select items that would be easy when carrying out audit sampling'
Required:
a) comment on the issues to be taken into consideration as well as an explanation of the audit evidence you can expect to find when reviewing Cherry Co's trade receivable file is required. (6marks)
(b) Analyze the issues of the audit junior on the audit management of Sultana Co. (14 marks)
a) The issues include the impact of Cherry Co's bankruptcy, recoverability of the outstanding amount, and the need for impairment provision
b) While concerns involve the absence of a pre-audit meeting, challenges in contacting the senior audit manager, limited experience of the junior, and suggestions to reduce sample sizes and select easy items during audit sampling.
How should the review of Cherry Co's trade receivable file be approached considering bankruptcy, recovery rate, and provision?Furthermore, what concerns are raised by the audit junior regarding the audit management of Sultana Co?When reviewing Cherry Co's trade receivable file, several factors need to be taken into consideration.
Firstly, the bankruptcy of Cherry Co raises concerns about the collectability of the trade receivable. The estimated recovery rate of 25 percent provided by the administrators should be assessed for reasonableness and its impact on the financial statements evaluated.
Secondly, the adequacy of the provision for doubtful debts needs to be examined. Given the uncertain nature of the receivable, it is important to assess whether the provision reflects the potential credit losses accurately.
The audit team should review the supporting documentation, correspondence with Cherry Co, and assess any subsequent events that may affect the collectability of the debt. This review will provide the necessary audit evidence to evaluate the recoverability of the trade receivable.
Additionally, discussions with the administrators can provide valuable information regarding the financial status of Cherry Co and the likelihood of recovery. The auditor may need to consult legal opinions and expert advice to evaluate the recoverability of the debt accurately. Based on this assessment, appropriate adjustments and provisions should be made to reflect the potential loss arising from Cherry Co's bankruptcy.
The concerns raised by the audit junior regarding the audit management of Sultana Co highlight several issues that need to be analyzed. Firstly, the absence of a pre-audit meeting where the partner and senior auditors discuss the audit raises questions about the adequacy of planning and coordination.
This lack of communication can hinder the efficient execution of the audit and compromise the quality of the work performed. Secondly, the prolonged absence of the audit manager and the challenges in contacting the senior audit manager raise concerns about the availability and accessibility of key personnel for guidance and supervision during the audit.
In analyzing these issues, it is essential to assess whether proper planning, supervision, and delegation of responsibilities were in place, and whether the assigned personnel had the necessary competence and experience.
Additionally, it is crucial to evaluate the impact of these issues on the audit's overall effectiveness, the reliability of the audit evidence obtained, and the accuracy of the financial statements.
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c. if during the year total liabilities increased by $20,000 and total stockholders' equity increased by $30,000, what are the end-of-year total assets?
All of a person's or entity's possessions are included in their total assets. Assets are items with monetary value that a business owner employs over time to generate profits.
If the owner is a business, the balance sheet of the corporation will show these assets, which are frequently included in accounting records.
Right Answer: Option D with an increase of $50,000.
Explanation:
The accounting formula reads: Liabilities plus Equity. Assets
Liabilities grow by $30,000, but assets expand by $20,000 each.
In order for the estimate to be accurate, the asset increase must total $50,000 ($30,000 + $20,000).
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if rice is an inferior good, a decrease in income will cause the equilibrium price of rice to rise. group of answer choices false true
The true fact based on the statement on question is shift the demand curve for rice to the right.
What is the cause of the equilibrium price?With everything else remaining the same, an increase in demand will result in a rise in the equilibrium price and an increase in supply. Reduced demand will result in a drop in the equilibrium price and a reduction in supply. If the demand curve shifts to the left, the quantity demanded could either fall or rise (shifting rightward). The new equilibrium will be at a lower quantity and price if the demand curve shifts left. The new equilibrium will have higher quantity and price if the demand curve moves right.
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hich occurs during digestion?
The mouth only allows for physical digestion.
The mouth only allows for chemical digestion.
Chemical digestion prepares the food for physical digestion.
Physical digestion prepares the food for chemical digestion.
Answer:
Digestion can be either chemical or physical - physical digestion occurs when you chew food in your mouth (mastication) or chemical when it is broken down in the stomach (via HCl), just to give a few examples. There are many examples of both chemical and physical digestion.
Explanation:
"drawing relevant examples from the extract, discuss
the leadership qualities of Steve Jobs and bring out how his
leadership embodies the nature and elements of leadership
Steve Jobs, the co-founder of Apple Inc., exhibited remarkable leadership qualities that contributed to his success and the transformation of Apple into one of the world's most valuable companies.
Firstly, Jobs demonstrated a visionary leadership style. He had a clear and compelling vision of creating innovative products that would revolutionize industries. For instance, his vision of a user-friendly personal computer led to the development of the Macintosh.Secondly, Jobs possessed strong passion and charisma. He had a relentless drive to pursue excellence and inspire others to share his vision. His charisma and persuasive communication skills motivated employees and stakeholders His leadership embodied several key elements.
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In a few sentences, explain what it means to be
financially responsible.
Answer:
Being financially responsible means you are earning more than you are spending. You should also create a budget to track income and expenses, and do what you can to always pay bills on time.
A company would use the ccai assessment to evaluate multiple choice job performance for global assignments. cross-cultural adaptability. personality predispositions. decision making ability.
A company would use the CCAI assessment to evaluate the job performance for global assignments.
What is job performance?The way a person performs their job will reveal whether they do it properly or not. Industrial and organizational psychology, a subfield of human resources management, comprises the academic study of job performance. Performance is a key element in determining a business' success and outcomes. This distinguishes it from more general notions like organizational performance or national performance because these variables are of a higher degree. In the sales sector, a certain dollar amount earned from the sale of something is seen as a successful outcome. Employee behavior will determine whether or not revenue is earned. When the person performs well in his sales role, more merchandise might be moved. Performance effectiveness follows performance, in that order. Performance and efficacy can be separated because they are different from one another.
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why is rationing sometimes good
Answer:
I got you gurl, becuase you could potentially change how it fits some places or put the good face facing forward, or if it was your pillow, to have the best sleep on the cold side, you never know everthing has its advantages, btw im supposed to do my hwk rn and i got bored so i dediced to be a good person and snoop around for some good questions to answer!!
freshman- doing biology hwk!
good luck ~ hope this helps!!
Explanation:
yall, life is goood!
Answer:
Rationing is the practice of controlling the distribution of a good or service in order to cope with scarcity.Explanation:
Hope It Helps
Give four examples of why the project manager would need to
adjust/ change the project budget during the project?
As the project manager, there are various situations where one may need to adjust or change the project budget during the project. Some of these situations include Changes in project scope, Unforeseen risks and issues, Inflation, and Changes in market dynamics.
Changes in project scope: Changes in project scope that impact the project deliverables or timeline can have a significant effect on the project budget. For example, if a client requests additional features to be added to a software product, the project manager may need to increase the budget to accommodate the changes.Unforeseen risks and issues: During a project, unforeseen risks and issues may arise, which were not identified during the planning phase. The project manager may need to adjust the budget to cater for the cost of addressing these issues. For instance, if there are delays due to bad weather conditions, additional expenses may be incurred to speed up the project.Inflation can also affect the project budget, especially if it is a long-term project. The project manager may need to adjust the budget to account for any changes in the cost of resources. For instance, if there is an increase in the cost of raw materials, the project manager may need to increase the budget to accommodate the changes.Changes in the market dynamics: Market dynamics, such as competition, market trends, and customer preferences, can also impact the project budget. The project manager may need to adjust the budget to stay competitive or to meet customer requirements. For example, if a new technology is introduced, the project manager may need to allocate more resources to the project to incorporate the new technology.You can learn more about the project budget at: https://brainly.com/question/31509321
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Rudolph made a good-faith effort to develop a new product, but the attempt failed. What should Rudolph's employer do?
A)talk to Rudolph about what he learned and discuss what he might do next
B)demote Rudolph for failing to succeed at the project
C)fire Rudolph for failing to succeed at the project
D)ignore the entire situation to keep from discouraging Rudolph's initiative
E)transfer Rudolph to a job with requirements that better fit his skill set
Rudolph made a good-faith effort to develop a new product, but the attempt failed. In this situation, Rudolph's employer should choose option A) talk to Rudolph about what he learned and discuss what he might do next. So, the correct option is A.
It is important for employers to recognize and encourage employees who take initiative and make efforts to develop new products or ideas, even if they don't always succeed. By discussing with Rudolph what he learned from the failed attempt, his employer can help him identify areas for improvement and potentially even help him come up with a new plan for a successful product.
Demoting or firing Rudolph would only discourage future initiative and innovation, and ignoring the situation would not provide any guidance for Rudolph's development. Option E) transferring Rudolph to a job with requirements that better fit his skill set may also be a good option, as it allows Rudolph to continue contributing to the company in a capacity that better aligns with his strengths and abilities.
Therefore, the correct answer to the given question is option A. talk to Rudolph about what he learned and discuss what he might do next.
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Which of the following parts of a business plan include the cash flow projection and profit and loss projection?
Which statement best summarizes the law of demand ?
A. Sellers only supply goods that are in high demand from buyers.
B. Buyers are more likely to buy a products that is supplied in large quantities.
C. Sellers can easily substitute a product in high demand with another product.
S. Buyers are more interested in purchasing products as those products decline in price.
Thank you :)
Buyers are more likely to buy a product that is supplied in large quantities.
What is the law of demand?The law of demand states that the quantity purchased varies inversely with the price. In other phrases, the better the rate, the lower the quantity demanded.
What are the types of demand?Individual and Market DemandOrganization and Industry DemandAutonomous and Derived DemandDemand for Perishable and Durable GoodsShort-term and Long-term DemandLearn more about the law of demand here https://brainly.com/question/24019366
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What’s the answer???
Answer:
I am not sure but I think it would be B right?
Explanation:
Because she already has $10 to go to the movie right, so she would use that 10 dollars to go to the movie with her friend?
Does the Way Your Classroom Is Decorated Affect Your Learning?
To perform a typical backtesting of a quantitative signal in the Russell 3000 stock Universe over the last 20 years ones does not need to have data from stocks that are not currently part of the Russell 3000 index.
A. True
B. False
B. False. To perform a typical backtesting of a quantitative signal in the Russell 3000 stock universe over the last 20 years, it is necessary to have data from stocks that are not currently part of the Russell 3000 index.
The Russell 3000 index is dynamic, as it is updated annually to reflect changes in market capitalization, new stock listings, and delistings. As a result, the composition of the index changes over time, and to properly backtest a strategy over a 20-year period, you need to account for these changes in the stock universe.
Ignoring stocks that were once part of the index but are no longer included could lead to biased results, as it may overlook potential investment opportunities or risks that were present in the past. Moreover, it is essential to use survivorship bias-free data to ensure the backtesting results accurately represent the performance of the quantitative signal.
In conclusion, to perform a robust backtesting of a quantitative signal in the Russell 3000 stock universe over the last 20 years, it is crucial to include data from stocks that are not currently part of the index to accurately account for historical changes and avoid biases in the results.
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katrina is a manager at company xyz. due to the financial fallout from covid-19, she is unable to offer the usual annual christmas bonus to her employees. she begins to selectively gather information that supports her decision, such as that her employees have been under-performing the past few weeks and needing more time off work. this represents which decision-making bias?
The decision-making bias that Katrina is demonstrating is called the confirmation bias.
Confirmation bias is a tendency to seek out information that confirms one's pre-existing beliefs or hypotheses while ignoring information that contradicts them. In Katrina's case, she has already made the decision to not offer the usual annual Christmas bonus due to financial difficulties caused by COVID-19. Therefore, she is selectively gathering information that supports her decision, such as the under-performance of her employees and their need for more time off work, while disregarding any information that might suggest that her employees deserve the bonus or that the financial situation might not be as dire as she thinks. This bias can be dangerous because it can lead to poor decision-making and can prevent individuals from considering all available options and information.
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