We need three pieces of information to calculate convexity:
(1) The price of the bond is currently (P0)
(2) The price of the bond if the YTM increases by 100 basis points (P+)
(3) The price of the bond if the YTM decreases by 100 basis points (P-)
\(Price = Coupon * \frac{1-(1/(1+r)t)}{r} + \frac{Face value}{(1+r)t} \\P0 = 66 * \frac{1-(1/1.084)7)}{0.084} + \frac{1000}{(1.084)7} = 907.55\\P+ = 66 * \frac{1-(1/1.094)7}{0.094} + \frac{1000}{(1.094)7} = 860.95\\P- = 66 * \frac{1-(1/(1.074)7}{0.074} + \frac{1000}{(1.074)7} = 957.48\\\)
Now we can compute convexity. Note that the change in the yield (Delta y) was 100 basis points.
\(Convexity =\frac{P++ P- - 2 * P0 }{2* P0 *(△y)2 } \\Convexity = \frac{860.95 + 956.48 - (2 * 907.55)}{2 * 907.55 * (0.01)2 } = 12.84\)
The curve in the relationship between bond prices and bond yields is measured by convexity. Convexity illustrates how a bond's duration alters when the interest rate does. A bond is considered to have negative convexity if its duration rises as yields do.
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Using the data, calculate the percentage change in quantity demanded following a £3 increase in the price
of salt pipes. You are advised to show your working,
Answer:
idk sry
Explanation:
How could having the very best location in the mall have actually hurt your store?
Answer:
Because space is usually limited, these locations are often good choices for smaller or specialty stores
Since there is typically a shortage of space, these locations are frequently ideal for smaller or niche stores.
What are the factor of choosing retail shop ?Examine the products you sell; some will need particular kinds of settings. Would customers classify your establishment as a retail center,
a speciality shop, or a convenience store.
Easy access is necessary for convenience products so that customers can buy them fast. Consumers generally are interested in these products. Because convenience goods may be priced differently from other businesses on the property, a mall may not be the best place to sell them.
Convenience stores near the routes that people take for their everyday journeys may draw customers. This could entail taking up space on or near a transit hub or along a busy street.
When picking a state or city to put your store Before making a final choice, thoroughly investigate the region and store. Read the local papers and talk to other nearby small businesses. Obtain location statistics from the library or chamber of commerce in your area.
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one advantage of opening a franchise is that you do not have to do all the logistics planning yourself. (True or False)
The statement "One advantage of opening a franchise is that you do not have to do all the logistics planning yourself" is false.
What is a franchise?One advantage of opening a franchise is that the franchisee can rely on the franchisor's established business model, brand recognition, and support network.
The franchisor typically provides training, marketing materials, and ongoing support to help the franchisee run the business successfully. This means that the franchisee does not have to do all the logistics planning and other aspects of starting a business from scratch.
Therefore, the statement is false.
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Moon Associates have obtained the needed capital to not only keep the company running but expand its Renewal by Andersen line through a mortgage loan? If so, how long could such a loan be financed?
Moon Associates is considering expanding its Renewal by Andersen line through a mortgage loan. If the company has secured the required capital through a mortgage loan, then it is highly likely that the company will have to finance this loan for a long duration.
A mortgage loan is a type of loan that is used to finance the purchase of a property or building. The loan is usually secured against the property that it is financing. The length of time that a mortgage loan can be financed for is usually determined by the terms of the loan agreement, the amount of money being borrowed, and the interest rate that is charged.
The length of time that a mortgage loan can be financed for can vary from lender to lender, but in general, mortgage loans can be financed for up to 30 years. However, some lenders may offer shorter or longer repayment terms depending on the borrower's creditworthiness and other factors. In some cases, borrowers may be able to finance a mortgage loan for more than 30 years, but this is less common.
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Sean just bought new headphones for $50. Later that day, sean sees a friend who said they got the same headphones for $30. Sean assumes that these cheaper headphones must be knockoffs. Which logical fallacy is sean suffering from in this example?.
False arguments that at first glance seem plausible but are in fact erroneous are known as logical fallacies. In this instance, Sean commits the Anchoring logical error.
The required details for Anchoring in given paragraph
A behavioral finance heuristic known as "anchoring" outlines how people make judgments about securities in the future by unconsciously using irrelevant information, like the price at which they bought them, as a permanent reference point. As a result, if an item's indicated sticker price is $100 as opposed to $50, consumers are more inclined to estimate its value higher.
When negotiating for contracts, pricing, or salaries, anchoring can be a powerful tactic. Studies have shown that choosing an anchor point at the beginning of a negotiation might have a greater impact on the result.
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To be a kindergarten teacher do you need university
michael is assisting michelle and johnathan in their formation of a corporation by helping them arrange for the necessary capital, financing, and licenses. in this case, michael is a corporate .
In given case, Michael is a corporate promoter, as he is assisting Michelle and Johnathan in their formation of a corporation.
Describe the role of a corporate promoter.A corporate promoter is a business or individual who handles the preliminary work necessary for a company's development, such as its promotion, incorporation, and float, and actively seeks out investors for the company, typically at the time of the latter's formation. A promoter would take the actions necessary to incorporate the business endeavor.
A promoter is a person who takes the initiative to form or organize a business, or is the founder or organizer of a corporation or business enterprise in terms of corporate law. The word is typically used in reference to incorporation. Promoters often have a duty of absolute good faith to not deceive any potential investors and to provide all pertinent information about the company's operations.
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Best Coffee Enterprises is dealing in a variety of coffee like Expresso, Cappuccino, and Caffe latte etc. It has several outlets in the city. It has a good financial standing and enjoys a good reputation in the market. It purchases high-quality coffee beans from Global Traders and pays them at a future date. Briefly explain the source of finance given by Global Traders to Best Coffee Enterprises.
Different sources of finance exist operated by various companies. Global Traders exist offering Trade Credit as a source of finance to the Best Coffee enterprises. Trade credit exists as a business-to-business (B2B) arrangement in which a customer can buy goods without spending cash up front, and delivering the supplier at the latest scheduled date.
What are the features of trade credit?It exists referred to as the payment holds authorized by the creditor for a specified period for their raw material.It exists usually comprehended as an instant source of finance.It usually occurs in B2B businesses where the payees exist and desired to pay within their established deadline.Trade credit exists as a business-to-business (B2B) arrangement in which a consumer can buy goods without spending cash up front, and paying the supplier at a later scheduled date. Usually, companies that work with trade credits will give customers 30, 60, or 90 days to pay, with the transaction recorded through an invoice.
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Your older sister is planning on saving money by paying her bills, spending money on fun, and then saving whatever is leftover. Why is this not the best option for saving her money?
Answer:
spend money on bills first then food then save the leftover money for later
What does indigenous technology mean?
Answer: I hope this is helpful mark brainlist if right then no if wrong
Explanation:
Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.Technologies employed by the native inhabitants of a country and which constitute an important part of its cultural heritage and should therefore be protected against exploitation by industrialized countries; the problem of indigenous knowledge has been discussed during the Rio Conference but it does not receive much ...Types of indigenous technology in India are; (i) Generic Drugs. (ii) Thorium based Nuclear Reactors. (iii) Plastic RoadsIndigenous Technology is created within a sensory environment that builds on our sense of relationship, meaning, balance, feeling, memory and place as well as sight, sound, smell, taste and touchIndigenization is the process by which Indigenous ways of knowing, being, doing and relating are incorporated into educational, organizational, cultural and social structures of the institution.One example of Indigenous Technologies in action today can be witnessed in differential approaches to medicine. Medical technologies in the Western Scientific sense of the term might conjure images of biomedical research labs, electromagnetic monitors or imaging systems such as CT or MRI scans.Indigenous technology is used by the native inhabitants of a country or region and it constitutes an important part of its cultural heritage. Characteristically, indigenous technologies: Are recognized as animate, imbued with the breath of life and they live in form and function.
You are working in a local retail company. The company has expanded in the last three years and the company has hired many new employees in various departments in the company. Currently, the CEO is making all the decisions for the company, including in buying products. As a manager there, you are trying to convince him that he needs to delegate and buying decisions can be made better as a committee.
Explain to him two main advantages that will convince him that the buying decision is better as a group.
As a manager at a local retail company, there are two main advantages to convince the CEO that buying decisions are better made as a group:
1. Diverse Perspectives: By involving a committee in buying decisions, the CEO can benefit from a wider range of perspectives and expertise. Each member of the committee can bring unique insights based on their departmental knowledge and experience.
For example, the finance department can provide insights on budget considerations, while the marketing department can offer insights on consumer preferences. This diversity of perspectives helps in making well-rounded and informed decisions.
2. Reduced Bias and Improved Decision-making: When decisions are made solely by the CEO, there is a risk of personal bias influencing the outcome. By involving a committee, the decision-making process becomes more objective and transparent. The committee members can challenge each other's assumptions and opinions, leading to more thoughtful and balanced decisions.
Additionally, a committee can conduct thorough research and analysis, considering different options and potential risks, leading to more informed and effective buying decisions.
Overall, involving a committee in buying decisions at the retail company can provide the CEO with diverse perspectives and reduce bias, leading to more informed and effective decision-making. By leveraging the collective knowledge and expertise of the committee members, the company can make better choices that align with its overall goals and objectives.
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If management operates to maximize the firm's profits, this will also maximize the market value of stockholders' wealth.
a. True
b. False
Answer:
b. False
Explanation:
The shareholder wealth could be maximized when there is a rise in the stock price as when the stock price rises, it automatically rised the value of the firm and the net worth also
Therefore in the given situation, in case when the firm wants to maximise its profits so it not necessary to increased the market value
Therefore the given statement is false
Oscar is doing research for a report on workplace safety at construction sites. To conduct his research, he's using keywords on the website of the Occupational Safety and Health Administration (OSHA). Which keywords will help him find information that's relevant to his topic?
Answer:
Occupation Safety, Health issues, Safety, Hazards, etc
Explanation:
These are the words that are associated with the main subject of the research. This will enable Oscar to access the valuable information from the website. Furthermore, the references quoted in the research report of the organization data and in-text citations, help further to be more specific about the subject and access valuable reports.
Oscar is advised to search keywords such as occupation, safety, health, hazards to ensure that he finds the website of Occupational Safety and Health Administration.
What is a website?A set of web pages, which are accessible over the internet under a single domain name, is known as a website. Search engine optimization uses keywords to display the relevant sites, which may be helpful.
Hence, the significance of a website is aforementioned.
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two preliminary steps to be taken before a risk assessment begins are defining the assessment and reviewing previous findings. T/F?
True. Before conducting a risk assessment, it is important to take two preliminary steps: defining the assessment and reviewing previous findings.
Defining the assessment involves establishing the scope, objectives, and boundaries of the risk assessment. This step helps ensure that the assessment focuses on the relevant areas and provides clarity on what risks will be evaluated. Defining the assessment also includes identifying the stakeholders involved, determining the resources needed, and establishing the timeline for the assessment.
Reviewing previous findings is crucial to build upon existing knowledge and avoid duplication of efforts. This step involves examining any previous risk assessments or related studies conducted within the organization or industry. Reviewing previous findings helps identify potential risks that have already been identified and evaluated, as well as any risk mitigation measures that have been implemented. It also helps determine if there are gaps in the previous assessments that need to be addressed in the current assessment.
By taking these preliminary steps, organizations can ensure that the risk assessment is focused, comprehensive, and builds upon existing knowledge and insights. This enhances the effectiveness of the risk assessment process and contributes to informed decision-making and risk management strategies.
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Consider a 12-months futures contract on silver. Assume no income and that it costs $X per ounce per year to store silver, with payment $X being made at the end of the year. The spot price is $35.5 per ounce and the risk free rate is 5% per annum for all maturities, based on continuous compounding. The futures price of the 12-month futures contract on silver is $41 per ounce. Assume that no arbitrage Futures-Spot parity with storage costs holds. The storage cost per ounce per year ($X) is, a $1.53 b. $1.401 c. $3.68 d. $3.50 e. S2.15
The storage cost per ounce per year ($X) is $3.68.
What is the value of the storage cost per ounce per year in this scenario?Based on the given information, we can determine the storage cost per ounce per year ($X) by applying the Futures-Spot parity with storage costs. According to the parity, the cost of storing the underlying asset (in this case, silver) should be reflected in the price difference between the spot price and the futures price. By considering the risk-free rate and the storage cost, we can calculate the storage cost per ounce per year.
Using the formula for the Futures-Spot parity, we have:
Futures Price = Spot Price * e^((r - c) * T)
where r is the risk-free rate, c is the storage cost per ounce per year, and T is the time to maturity. Plugging in the given values, we can solve for c:
$41 = $35.5 * e^((0.05 - c) * 1)
Simplifying the equation, we find that e^(0.05 - c) = 41/35.5. Taking the natural logarithm of both sides, we obtain 0.05 - c = ln(41/35.5). Solving for c, we find that c ≈ 0.05 - ln(41/35.5) ≈ 0.05 - 0.107 = 0.057 = $3.68.
Therefore, the storage cost per ounce per year is approximately $3.68.
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The following selected data relate to the major cost categories experienced by Silver and company
The appropriate costs in each column in which blanks appear (some blanks can be $0) is $78000.
Direct labor per units (at 2000 Units + at 3000 units ) = ( 120000 + 150000 ) / ( 2000 + 3000 )
Direct labor per units = 270000 / 5000 = $54 per units
Direct labor Total Cost (at 4000 units) = $54 * 4000 = $216000.
Factory supervision ( use high low method )
B = ( Cost highest level of activities - cost lowest level of activity ) / ( highest level of activities - lowest level of activity )
B = ( 66000 - 54000 ) / ( 3000 - 2000 )
B = 12000 / 1000 = $12
Variable portion of factory super vision = $12.
Y = a + bx
A = y - bx
Fixed portion = 66000 - 12 * 3000
Fixed portion = 66000 - 36000 = $30000.
Total cost ( at 4000 units ) = 30000 + 12 * 4000 = 30000 + 48000
Total cost ( at 4000 units ) = $78000
Appropriate costs refer to expenses that are reasonable and justifiable in relation to a particular situation or context. What is considered appropriate may vary depending on the circumstances, industry, and cultural norms. Appropriate costs may refer to expenses that are necessary for basic needs such as food, housing, and healthcare. Other expenses such as entertainment and luxury items may be considered appropriate based on an individual's financial situation and priorities.
It is important to note that appropriate costs should be distinguished from unnecessary or excessive costs. When making financial decisions, it is crucial to evaluate the cost-benefit analysis of each expense and prioritize spending based on needs and goals. Appropriate costs are subjective and depend on various factors. It is essential to consider the context and purpose of the expense before determining whether it is appropriate or not.
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Complete Question:-
Relevant Range and High-Low Method The following selected data relate to the major cost categories experienced by Silver & Company at varying levels of operating volumes. Assuming that all operating volume relevant range, calculate the appropriate costs in each column in which blanks appear (some blanks can be $0):
Among the key management skills, which do you think is the most important skill that a manager should possess?
Answer:
Good communication
Explanation:
Having good communication skills is probably the most important skill of all for managers to have. Unless you can properly communicate with those you supervise, the rest of the skills really won't matter.
Today the right to peaceably assemble is equated with the right of free speech and with freedom of the press. These rights and freedoms became merged
a. when Congress passed a law doing so.
b. when the states amended the Constitution to do so.
c. when a new constitutional convention was held.
d. by precedent.
e. by practice.
Often, the theoretically correct, or rational, policy is not enacted because
a. administrators lack the discretion to adopt rational policies.
b. bureaucrats, as humans, behave irrationally.
c. administrative rules hinder consideration of all options.
d. the policy will result in too much job loss.
e. the 'right' policy is politically unacceptable.
The American Bar Association's role in screening candidates for the federal bench was defined by
a. national law.
b. custom.
c. the Constitution.
d. the Judiciary Act of 1946.
e. the Supreme Court.
For many years, when government turned its attention to a major problem, its usual approach was to
a. create a coalition of business and citizen groups.
b. assign the problem to an existing agency with a minimum of disruption of routine.
c. delay action until sufficient staff and resources became available.
d. create a new agency or bureau.
e. create a study of the problem.
Today the right to peaceably assemble is equated with the right of free speech and with freedom of the press. These rights and freedoms became merged when Congress passed a law doing so.
No law may be passed by Congress that establishes a certain religion, forbids its practice, limits press or speech freedom, or restricts the ability of the public to peacefully assemble and petition the government for redress of grievances. Unless a similar proposal is currently being examined in that chamber, if it is approved, it advances to the other chamber. If neither chamber approves it, the measure is dead. If a legislation receives the support of both the House and the Senate, it is sent to the President.
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Purchasing & Inventory Control Math Quiz
QUESTION 1 of 10: You begin the week with 30 units of orange juice. You purchase 50 units. Your ending inventory for the week is 30 units.
How many units did you sell?
0000
a) 5
b) 15
c) 49
d) 50
Towards the end, 50 units had been sold.(option d)
How would you define inventory?The items and supplies that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities. All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. Example: Only the paper will be regarded as inventory if a paper vendor utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset.
Inventory sold = 30 + 50 - 30 = 50.
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Countries the government controls the mos
activities:
• health
education
defence
• public transport
water supply
. electricity supply.
Activity 2.4
For each of the examples of key industries or activities listed above, suggest three possible
reasons why the government of a country might decide to own and control that industry or
service.
Answer:
health education defense
a method for managing pollution in which a limit is placed on emissions and businesses or countries can by and sell emissions allowances
The policy's reaction establishes a cap-and-trade emissions standard that lowers outflows, In a cap-and-trade system.
It is a market tool wherein a government sets a "limit" or cut-off on the total amount of ozone-harming compounds that may be released. Producers of ozone-depleting substances would be required to pay for each considerable amount of carbon dioxide or carbon dioxide equivalent1 that they emit under such a strategy. For instance, those from power plants, by establishing a market and setting a limit on contamination. Limiting outflows and charging for them is the best environmental solution, both ecologically and financially. Cap-and-trade is a technique for achieving both. The policy's reaction establishes a cap-and-trade emissions standard that lowers outflows, The public authority establishes an outflows cap and distributes a number of emanation stipends in accordance with that cap under a cap-and-exchange structure.
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assuming a 21 percent tax rate, compute the after-tax cost of the following business expenditures: required: $14,200 cost of a survey capitalized to land. $44,750 research and experimental expenditure. $23,000 advertising cost. $120,000 cost of grading land used in a nonfarming business. $120,000 cost of grading land used in a farming business. (for all requirements, round your intermediate computations to the nearest whole dollar amount.)
The cost of grading land used in both nonfarming and farming businesses is $120,000, with a tax savings of $25,200, resulting in an after-tax cost of $94,800 for both cases.
The research and experimental expenditure is $44,750. Multiply the cost by the tax rate to find the tax savings: $44,750 * 0.21 = $9,382. The after-tax cost is $44,750 - $9,382 = $35,368. 3. The advertising cost is $23,000. Calculate the tax savings: $23,000 * 0.21 = $4,830. The after-tax cost is $23,000 - $4,830 = $18,170. 4. For the cost of grading land used in a nonfarming business, which is $120,000, multiply by the tax rate: $120,000 * 0.21 = $25,200. The after-tax cost is $120,000 - $25,200 = $94,800. 5. The cost of grading land used in a farming business is also $120,000. Calculate the tax savings: $120,000 * 0.21 = $25,200. The after-tax cost is $120,000 - $25,200 = $94,800.
In summary, the after-tax costs are as follows: 1. $11,218 for the survey. 2. $35,368 for the research and experimental expenditure. 3. $18,170 for advertising. 4. $94,800 for grading land in a nonfarming business. 5. $94,800 for grading land in a farming business. The research and experimental expenditure of $44,750 has a tax savings of $9,382, resulting in an after-tax cost of $35,368. Similarly, the advertising cost of $23,000 has a tax savings of $4,830, resulting in an after-tax cost of $18,170.
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assume the marginal propensity to consume out of disposable income is 0.8 and that the government taxes all income at a constant rate of 30%. if gross income increases by $100, consumption will initially increase by assume the marginal propensity to consume out of disposable income is 0.8 and that the government taxes all income at a constant rate of 30%. if gross income increases by $100, consumption will initially increase by $56. $70. $100. $80.
The marginal propensity to Consumption will initially increase by 80% of $70, which is $56. The correct answer is $56.
The marginal propensity to consume out of disposable income is 0.8, which means that for every additional dollar of disposable income, 80 cents will be spent on consumption.
Disposable income is equal to gross income minus taxes. If the government taxes all income at a constant rate of 30%, then disposable income is equal to 70% of gross income.
So, if gross income increases by $100, disposable income increases by 70% of $100, which is $70.
Therefore, consumption will initially increase by 80% of $70, which is $56.
Hence, the correct answer is $56.
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Compare and contrast a global marketing manager’s skills,
abilities, and experiences with those of a foreign entry manager
and a local marketing manager. Provide 20 differences.
A global marketing manager, foreign entry manager, and local marketing manager each have distinct skills, abilities, and experiences that set them apart in their roles.
1. Scope of Responsibility: A global marketing manager is responsible for overseeing marketing strategies and campaigns on a global scale, while a foreign entry manager focuses specifically on entering new foreign markets, and a local marketing manager focuses on marketing within a specific local market.
2. Cultural Knowledge: A global marketing manager requires a deep understanding of various cultures and their impact on consumer behavior worldwide. A foreign entry manager needs in-depth knowledge of the specific foreign market's culture, while a local marketing manager possesses in-depth knowledge of the local market's culture.
3. Language Skills: A global marketing manager may need to be proficient in multiple languages to effectively communicate and connect with diverse audiences. A foreign entry manager typically needs fluency in the language of the specific foreign market, while a local marketing manager primarily relies on the local language.
4. Market Research: A global marketing manager conducts extensive market research on a global scale to identify trends and opportunities. A foreign entry manager focuses on researching the specific foreign market they are entering, while a local marketing manager concentrates on gathering insights within their local market.
5. Adaptability: A global marketing manager must be highly adaptable to different market conditions, consumer preferences, and regulatory environments across multiple countries. A foreign entry manager must adapt to the specific foreign market's dynamics, while a local marketing manager adapts to the local market's nuances.
6. Strategic Planning: A global marketing manager develops global marketing strategies aligned with overall business objectives. A foreign entry manager creates market entry strategies tailored to the specific foreign market, while a local marketing manager develops marketing strategies for the local market.
7. Cross-Cultural Communication: A global marketing manager facilitates effective communication and collaboration among diverse teams across different countries and cultures. A foreign entry manager navigates communication challenges within the foreign market, while a local marketing manager focuses on local communication channels.
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Libby is a trainee accountant and has prepared a balance sheet for the accounting year. She valued all the assets of the company at their current
market price. Which accounting principle did she fail to comply with?
А. historical cost
B. accruals
C. matching
D. business entity
E. realization
Why do we need to carefully plan the operations of the business?
Answer:
hi nhi pata bhai soery. long
go grub’s customer complaints have increased because its drivers often get lost when attempting deliveries, which means that the deliveries arrived late. the drivers have resisted using gps systems, claiming they know their territories, but managers are now encouraging them to look for the best solution to the increased level of customer complaints. go grub is in the ________ stage of lewin’s change model.
The stage of lewin’s change model that the manager of go rub is considering when their customers were complaining about late delivery from the driver is unfreezing stage.
Kurt Lewin change model can be regarded as a model that contains a three steps which are,;
unfreezing
changing
refreezing.
This model stressed that to move toward the new, desired level of behavior, there there should be a perception that change is required.Therefore, in case of go grubs, they are in freezing stage .
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the principal of a mortgage loan is the
a. down payment minus the closing costs minus the purchase price
b. purchase price plus the closing costs minus the down payment
c. down payment plus the closing costs plus the down payment
d. purchase price minus the closing costs minus the down payment
The down payment less the closing charges less the purchase price is the mortgage loan's principle.
What does a mortgage look like in its simplest form?When you enter into a mortgage with a lender, you give the lender the right to seize the property if they are unable to make the loan amount back plus the interest. You might be able to get a mortgage loan that will enable you buy a new house using the worth of the an existing home as security.
Why do individuals use mortgages?Mortgage loans assist people in financing the purchase of real estate by taking a small portion of the property's overall worth as payment. How Do Mortgages Work A mortgage is a loan used to pay for the upkeep of a home, piece of land, or other kinds of rental properties.
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what are some of the logistics supply chain issues that glc should consider?
GLC should consider several logistics supply chain issues to ensure an efficient and effective supply chain. Some of these issues include:
1. Transportation: GLC should consider the most cost-effective and efficient transportation modes to move products from one location to another. This could involve assessing the transportation infrastructure, choosing between air, road, rail, or sea, and optimizing routes to minimize delivery time and cost.
2. Inventory management: GLC should ensure that the right amount of inventory is available at the right time to avoid stockouts or overstocking. They should also consider factors such as demand forecasting, storage, and handling costs to optimize inventory levels.
3. Warehousing: GLC should assess their warehousing needs to ensure that products are stored and handled efficiently. This could involve selecting the right warehouse location, ensuring that the warehouse is equipped with the necessary facilities, and implementing efficient storage and handling systems.
4. Information technology: GLC should consider adopting technology such as enterprise resource planning (ERP) systems, transportation management systems (TMS), or warehouse management systems (WMS) to optimize their logistics supply chain. These systems can help manage inventory, track shipments, and provide real-time visibility into the supply chain.
5. Risk management: GLC should consider potential risks such as supply chain disruptions, product damage or loss, or natural disasters, and implement risk management strategies to mitigate these risks. This could involve developing contingency plans, insurance, or partnering with multiple suppliers.
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Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Desired ending inventory levels are 25% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
The budgeted purchases of inventory in February Year 2 would be $90,000.To determine the budgeted purchases of inventory in February Year 2, we need to calculate the projected cost of goods sold (COGS) for March Year 2, as it will be used to calculate the desired ending inventory for that month.
Given that the desired ending inventory levels are 25% of the following month's projected COGS, we can start by calculating the projected COGS for March Year 2. We'll use the information provided for December Year 1 and the first quarter of Year 2.
Let's assume that the COGS for December Year 1 was $100,000. Based on that, the projected COGS for January Year 2 would be $100,000 as well. The desired ending inventory for January Year 2 would be 25% of $100,000, which is $25,000.
Moving on to the first quarter of Year 2, if we assume that the COGS for January Year 2 was $120,000, then the projected COGS for February Year 2 would also be $120,000. Therefore, the desired ending inventory for February Year 2 would be 25% of $120,000, which is $30,000.
Finally, to calculate the budgeted purchases of inventory for February Year 2, we need to subtract the desired ending inventory for February Year 2 from the projected COGS for February Year 2. In this case, it would be $120,000 - $30,000 = $90,000. Therefore, the budgeted purchases of inventory in February Year 2 would be $90,000.
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