The right answer is c, as a $10,000, 12%, 5 years paper that pays interest semi-annually would sell for more than its face value if the market interest rate were 10%.
Higher face value—what does that mean?It discusses how much it costs to buy shares in a corporation. A company can do something similar by issuing bonds to acquire capital or cash. The worth which is listed on ordinary shares, digital documentation, and books is referred to as face value, also referred to as the prime rate.
What message does an item's face convey?The share price stated in the issuing company's charter represents the current market value of a share of stock. The bare minimum in which each stakeholder is obligated to contribute.
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Laurel contributed equipment worth $200,000, purchased 10 months ago for $250,000 cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a 15 percent profits and capital interest in the LLC. Laurel agreed to guarantee all $15,000 of Sand Creek’s accounts payable, but she did not guarantee any portion of the $100,000 nonrecourse mortgage securing Sand Creek’s office building. Other than the accounts payable and mortgage, Sand Creek does not owe any debts to other creditors.a. What is Laurel’s initial tax basis in her LLC interest?
b. Laurel’s holding period in the partnership interest begins the day the LLC interest is acquired. True or False?c. What is Sand Creek’s initial basis in the contributed property?
d. What is Sand Creek’s holding period in the contributed property?
Answer: See explanation
Explanation:
a. What is Laurel’s initial tax basis in her LLC interest?
This will be the addition of the $250,000 basis for the equipment, accounts payable of $15,000 and also the $15,000 (15% × $100,000). This will be:
= $250,000 + $15,000 + $15,000
= $280,000
b. True.
Laurel’s holding period in the partnership interest begins the day the LLC interest is acquired. This is due to the fact that the asset contributed isn't a section 1232 asset. The reason for this is due to the fact that the asset was used for a year or less.
c. Sand Creek’s initial basis in the contributed property is $250,000.
d. Ten months.
Sand Creek’s holding period in the contributed property will be 10 months.
Which of the following is NOT a type of decision described in the segment?
Contingent decision
"Why" decision
"Whether" decision
"Which" decision Thing
Among the listed decisions, contingent decisions are not a type of decisions described in the segment since they are decisions already made
What is decision-making?Decisions making are choices that are made among different choices that are placed before an individual.
Some of the decision styles that are crucial to an individual or business include:
DirectiveAnalytical ConceptualBehavioralAmong the listed decisions, contingent decisions are not a type of decisions described in the segment since they are decisions already made but on hold pending the occurrence of a certain event or occurrence.
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Describe two ways you can demonstrate desirable qualities on the job.
Answer:
Leadership
Even in entry-level positions, most employers look for evidence of leadership qualities. Successful companies need self-starters who are not afraid to take responsibility.
Teamwork
Many occupations require to work efficiently with others on work on projects or towards a common goal.
Communication and Interpersonal Skills
According to recruiters, the ability to communicate effectively with others and get along with a variety of different types of personalities are two of the most desirable qualities in job candidates.
Analytical Skills
The ability to recognize problems, distill and define the pertinent issues, and determine and propose effective solutions is invaluable to any employer.
Dependability and a Strong Work Ethic
Employers want reliable employees so candidates should demonstrate dependability, responsibility, and consistency in their job performance.
Maturity and a Professional Attitude
Even new hires should demonstrate poise, maturity and professionalism.
Adaptability and Flexibility
Employers need to know that the people they hire can expand and change as their companies do.
Good Personality
At the interview stage, you possess the qualifications necessary for the job. It comes down to whose personality fits better with the culture of the company.
Related Work Experience
Previous employment in part-time jobs and internships is highly desired by employers.
Initiative and Motivation
Signs of initiative are very compelling for the interviewer. The ideal employee knows when to take action without prodding by management.
Creativity and Intelligence
People who are constantly thinking of new ways to accomplish tasks make excellent job candidates.
Strong Grades
Recruiters often use GPA as a way of screening job candidates. If your academics are less than exemplary, use the interview to demonstrate your knowledge and skills
Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a:.
If the long-run demand for oranges is the same as the short-run demand, a binding price ceiling will result in a shortage that is larger in the long run than in the short run.
What is a binding price ceiling?
A binding price ceiling is when the government or an agency of the government sets the maximum price for a product below the the equilibrium price.
In the long run, as a result of the binding price ceiling, there would be a decrease in the supply of oranges. If the demand in the long run and short run is the same, there would be a shortage.
Here is the complete question:
Because it takes many years before newly planted orange trees bear fruit, the supply curve in the short run is almost vertical. In the long run, farmers can decide whether to plant oranges on their land, to plant something else, or to sell their land altogether. Therefore, the long-run supply of oranges is much more price sensitive than the short-run supply of oranges.
Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a:.
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List 10 effective methods used to maintain employment.
Answer:
I don’t know that I would call them methods - a better word might be behaviors. And I don’t know if I can come up with ten.
Never be late for work and never leave early to go home. If you must leave early (or you know you’ll be coming in late the next day) be sure to tell your boss first.Dress appropriately and respectfully for the job. Always start the day wearing clean clothes.Be respectful of your bossDo every assignment to the best of your ability. When you are finished, let your boss know and ask what you can do next rather than waiting to be told (unless you know what to do next).Don’t whine or complain about the work assigned to youTry to constantly learn more about your job and apply what you learn to do your job betterDon’t badmouth your fellow employees (unless specifically asked by your boss)When it doesn’t severely impact your work, try to help out your fellow employees if they need it - especially the newer onesKeep your work area organizedDon’t be afraid to make constructive, non-critical suggestions to your fellow employees or even your boss, but be sure the suggestions are well-researched and carefully thought outIf the unemployment rate is 6 percent and the number of employed is 188 million, then the labor force equals what in millions?
a. 11.28
b. 176.72
c. 188
d. 200
If the unemployment rate is 6 percent and the number of employed is 188 million, then the labor force equals 200 million in millions. The correct option is d.
The labor force includes both employed and unemployed individuals who are capable of working within a specific region or country. It is the sum of the number of people who are employed and the number of people who are unemployed.
Labor force = Number of employed + Number of unemployed
If the unemployment rate is 6 percent, then the employment rate is 94 percent. The number of unemployed can be calculated by multiplying the total labor force by the unemployment rate. Therefore:
Number of unemployed = Unemployment rate × Labor force
Putting the values: Number of employed = 188 million, Unemployment rate = 6%
Number of unemployed = 0.06 × Labor force
Total labor force = Number of employed + Number of unemployed= 188 million + 0.06 × Labor force
Since the employment rate is 94 percent, the number of unemployed is 6 percent of the total labor force.0.06 × Labor force = 0.06 × Total labor force
Therefore,
Total labor force = Number of employed + Number of unemployed= 188 million + 0.06 × Labor force= 188 million + 0.06 × Total labor force= (1 + 0.06) × Total labor force= 1.06 × Total labor force
If the number of employed is 188 million, then the total labor force is:
Total labor force = Number of employed ÷ Employment rate
Total labor force = 188 ÷ 0.94
Total labor force = 200 million
Therefore, the labor force equals 200 million in millions.
Option (d) is correct.
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Under a contractionary taxation policy, the government can reduce the deficit by
A) increasing taxes.
B) reducing taxes.
C) increasing spending.
D) increasing inflation.
The Answer is A) increasing taxes.
Answer:
c
Explanation:
not sure but I tried may best tho
Answer:
A) increasing taxes.
Explanation:
On their website Oars+Alps divides their men's grooming products into deodorant, sunscreen, skin tare, body care, and hair care. These categories likely represent the of Oars+Alps. Product line depth Product line breadth Product life cycle Product hierarchy
Answer : Product line breadth.
Explanation : Oars+Alps divides their men's grooming products into deodorant, sunscreen, skin care, body care, and hair care, which is most likely to represent product line breadth, which is defined as the number of product lines a company produces.
A product line is a group of products that share common characteristics, are marketed together, and sold as a bundle.
Product line breadth is concerned with the number of product lines a company produces. Oars+Alps has a wide range of product lines, making it a prime example of a company with a high product line breadth.Product line depth is concerned with the number of products within a product line.
A product line with a high product line depth, for example, might have several types of deodorant, such as roll-on, stick, and spray, as well as several different fragrances. Oars+Alps, on the other hand, has a moderate product line depth, with a few options for each product.
Product life cycle refers to the stages that a product goes through, from introduction to decline, and ultimately obsolescence.
Product hierarchy refers to the different levels of a product, from the basic product to augmented products and finally to potential products.
Oars+Alps's website divides their men's grooming products into five categories: deodorant, sunscreen, skin care, body care, and hair care, which likely represent the company's product line breadth. Therefore, the company is characterized by having a wide range of product lines with a moderate product line depth.
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What societal force was in place in mainstream American culture until the 1960s that resulted in separation of people along racial and other lines
Answer:
segregation
Explanation:
There was a societal force that was in place in mainstream American culture until the 1960s. This societal force was segregation that resulted in the separation of people along racial and other lines.
The United States remains a segregated society in respect of housing patterns and church membership despite all the legal changes that have taken place since the 1960s.
Which best describes the business, management, and administration career cluster?
Answer:
are careers that are focused on running businesses.
Explanation:
The Business, Management, and Administration career cluster includes business skills essential to efficient, productive operations for any company (Administrative and information support, Business analysis, Business, financial management and accounting, Human resources, Management..) The Business, Management, and Administration career cluster is best described with the following: These are careers that are focused on running businesses.
Correct answer: A
Estimating the market value of real estate is complicated by the unique characteristics of real estate markets. In contrast to stock markets, real estate markets are characterized by all of the following except.
In contrast to stock markets, real estate markets are characterized by all of the following except: Market prices are revealed almost instantaneously to prospective buyers.
What is market price?Market price is the price at which stock or an asset are being sold or buy in the market at a particular period of time.
It is important to note that In real estate markets, market prices are not revealed almost instantaneously to potential buyers due to its unique characteristics unlike stock market where the buyers are aware of the market price almost instantaneously.
Inconclusion In contrast to stock markets, real estate markets are characterized by all of the following except: Market prices are revealed almost instantaneously to prospective buyers.
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How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
Lamda Lighting has a beginning receivables balance on July 1st of $712. Sales for July through October are $656, $598, $574, and $603, respectively. The accounts receivable period is 60 days. How much did the firm collect in the month of October? Assume a 360-day year.
Amount = -$612.60, To calculate the amount collected in the month of October, we need to determine the change in accounts receivable during that period.
Given:
Beginning receivables balance on July 1st = $712
Sales for July, August, September, and October = $656, $598, $574, and $603, respectively
Accounts receivable period = 60 days
First, let's calculate the average daily sales during the period:
Average daily sales = (Sales for July + August + September + October) / Number of days in the period
Number of days in the period = 4 months * 30 days per month = 120 days
Average daily sales = ($656 + $598 + $574 + $603) / 120 = $2431 / 120 = $20.26 (rounded to two decimal places)
Next, we need to calculate the change in accounts receivable from July 1st to the end of October:
Change in accounts receivable = Average daily sales * Accounts receivable period
Change in accounts receivable = $20.26 * 60 = $1215.60
To determine the amount collected in October, we subtract the change in accounts receivable from the total sales in October:
Amount collected in October = Sales in October - Change in accounts receivable
Amount collected in October = $603 - $1215.60 = -$612.60
The negative value indicates that the firm did not collect enough to cover the increase in accounts receivable during the period.
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Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E\&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E\&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E\&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E\&P at year-end and Bonnie is unrelated to Clyde. (Do not round intermediate calculations.
To determine whether a particular redemption of stock qualifies for sale or exchange treatment, it is necessary to determine the transaction's tax consequences. Stock redemptions are classified as either complete liquidations or partial liquidations, and each classification has its tax implications.
For the stock redemption to be classified as a sale or exchange, the following conditions must be met:It must be a complete redemption, i.e., it must completely cancel the shareholder's entire interest.The shares must be redeemed by the corporation.The redemption must not be by an essentially equivalent redemption.The redemption must not be a distribution in lieu of money.In this case, Getaway Corporation has $29,000 in E&P at year-end. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. The following redemption scenarios have been evaluated to determine whether or not they qualify for sale and exchange treatment. A. Redemption of 10 shares of Bonnie's shares for $3,000Bonnie's basis in the shares is $4,400/60 shares = $73.33 per share. As a result, Bonnie's recognized gain is $73.33 per share - $300 per share = $226.67 per share. The redemption does not qualify for sale or exchange treatment since it is not a complete redemption.b. Redemption of 25 shares of Bonnie's shares for $6,000 Bonnie's basis in the shares is $4,400/60 shares = $73.33 per share. As a result, Bonnie's recognized gain is $73.33 per share - $240 per share = $166.67 per share. The redemption qualifies for sale or exchange treatment since it is a complete redemption and there is no relationship between Clyde and Bonnie.c. Redemption of 8 shares of Clyde's shares for $3,500 Clyde's basis in the shares is $13,500/40 shares = $337.50 per share. As a result, Clyde's recognized gain is $337.50 per share - $437.50 per share = $100 per share. The redemption does not qualify for sale or exchange treatment since it is not a complete redemption.
When the ownership percentage of the stock does not change as a result of the redemption, partial liquidations occur. As a result, when a corporation redeems its stock in a partial liquidation, the transaction is treated as a sale or exchange of property. In order to qualify for sale or exchange treatment, the redemption must satisfy one of three requirements.First, the redemption must be a complete redemption that results in the shareholder's complete termination of interest. Second, the redemption must be substantially proportionate, meaning that the percentage ownership interest of each shareholder who redeems shares remains the same after the redemption as it was before the redemption. Third, the redemption must be a partial liquidation. If any of these circumstances are met, the transaction will be treated as a sale or exchange, and the shareholder will recognize a gain or loss based on the difference between the redemption price and the shareholder's basis in the shares.
Getaway Corporation's stock redemption will qualify for sale and exchange treatment if it meets certain conditions. It must be a complete redemption or substantially proportionate, and it must not be a distribution in lieu of money or an essentially equivalent redemption. When a corporation redeems its stock in a partial liquidation, the transaction is treated as a sale or exchange of property. The transaction's tax consequences are determined based on whether it is a complete liquidation or a partial liquidation, and each classification has its tax implications.
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Graphical information can be useful in
a.
Math only
c.
Science only
b.
Social Studies only
d.
All subjects
Answer:
d all subjects
Explanation:
think its right sorry if its wrong
The answer fam is..........D) All subjects
you hire another worker to produce pizza in your pizza restaurant. the number of pizzas per hour you can produce goes from 60 to 90. you then hire another worker, and the number of pizzas you can produce per hour goes from 90 to 110. when you hired this last worker, you encountered...
When you hired the last worker, you encountered an increase in productivity. By hiring the last worker, the number of pizzas you can produce per hour went from 90 to 110, indicating that productivity increased.
When you hire another worker to produce pizza in your pizza restaurant and the number of pizzas per hour you can produce goes from 60 to 90, you are experiencing increasing returns to scale.
Returns to scale refers to the rate at which output increases as a function of all factors of production increasing. The concept examines the effects on output due to an increase in production inputs, such as physical capital and labor. There are three types of returns to scale: increasing returns to scale, constant returns to scale and diminishing returns to scale.
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do females like when being proposed? or which way? to make it official.
Answer:
yes few like few not .
sometimes it's even worst
A company's managers should almost always give serious consideration to making significant adjustments in its camera/drone strategies and competitive approaches when
Such significant adjustments should be made when: All or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor expected EPS, ROE, and stock price appreciation targets.
Camera Strategies and Competitive ApproachesIt is noteworthy to know that, a company's management should always give serious consideration to creating significant adjustments in its camera strategies and competitive approaches when all or most of its competitors are inclined towards the copycat competitive approaches. Hence, making it difficult for any of such companies to capture sales volumes and revenues large enough to earn profits large enough to satisfy investor expected return on investment.
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describe how net profit of a business is calculated?
Answer:
u must work out the total cost and variable cost and add them up, then you must count all your sales and figure out ur revenue. then u do ur total revenue minus ur total costs
mark as brainliest
The formula to calculate profit is: Total Revenue - Total Expenses = Profit. Profit is determined by subtracting direct and indirect costs from all sales earned. Direct costs can include purchases like materials and staff wages. Indirect costs are also called overhead costs, like rent and utilities.
For businesses, profit is often calculated by profit margin formula:follow me nice business
who is the end lender in a mortgage broker transaction
In a mortgage broker transaction, the end lender is the financial institution or lender that provides the actual mortgage loan to the borrower.
The mortgage broker acts as an intermediary between the borrower and the end lender. The role of the mortgage broker is to connect borrowers with potential lenders and assist in the loan application process. Mortgage brokers work with multiple lenders, including banks, credit unions, and other financial institutions. They help borrowers find suitable loan options, submit the loan application, and negotiate terms on behalf of the borrower.
Once the borrower's loan application is approved, the mortgage broker facilitates the loan closing process. At this stage, the end lender provides the funds directly to the borrower to complete the home purchase or refinance the existing mortgage. The end lender becomes the legal lender of the mortgage and holds the mortgage note.
It's important to note that the mortgage broker does not typically provide the loan funds themselves but acts as an intermediary between the borrower and the end lender. The end lender assumes the financial risk and is responsible for disbursing the loan proceeds and managing the borrower's mortgage throughout its term.
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What effects did the 2008 economic crisis have on wealth and income inequality in the United States and Canada? ► View Available Hint(s) O Both wealth and income inequality have become more pronounced in both countries since 2008. O The crisis resulted in a smaller gap between the rich and poor. O Both countries responded by increasing taxes on the wealthy and increasing welfare benefits to the poor, thus reducing the gap. O The medium income for whites and blacks declined but increased for Canada's indigenous. O Canada responded to the crisis by redistributing wealth more evenly among its citizens, but the United States did not.
The 2008 economic crisis increased wealth and income inequality in both the United States and Canada.
The crisis had a profound effect on the distribution of wealth and income, particularly in the United States, where the top 1% saw their share of national income increase dramatically while the middle class and poor saw their incomes decline. The crisis also had a disproportionate impact on black and Hispanic communities, who were more likely to lose their homes and jobs than white Americans. In Canada, the crisis led to an increase in poverty rates and a decline in living standards for many families, but the government responded by increasing social welfare spending and redistributing wealth more evenly among its citizens. Despite these efforts, however, income inequality remains a significant issue in both countries, highlighting the need for ongoing policy interventions to address this growing problem.
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Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, consumer surplus will be.
Based on the demand and supply curves, the price, and the units bought and sold, the producer surplus would be $18.
This can be calculated as:
= Area of producer surplus
= (Length x Width) + 0.5 x (Base x Height)
Solving gives:
= ( 6 x ( 4 - 2)) + (0.5 x ( 6 x 2))
= 12 + 6
= $18
Producer surplus measures the gain to dealers of taking part in a marketplace. it's far measured as the quantity a dealer is paid minus the fee of production. For a character sale, producer surplus is measured as the difference between the market charge and the fee of manufacturing, as shown on the supply curve.
The customer surplus refers to the difference between what a client is inclined to pay and what they paid for a product. The producer surplus is the difference between the marketplace fee and the lowest fee a producer is willing to just accept to produce a great.
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Which of the following combines a cooktop and oven into one appliance?
Answer:
A freestanding range, great for both large and small kitchens, combines a cooktop and oven into one versatile appliance. Whether you're baking, roasting, boiling or frying, a range lets you do it all.
What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives
Answer:b
Explanation:
Thomas Is a financial advisor to a committee seeking to revive the value of the national currency, which has grown weak. He has to suggest a
point on which the nation should focus in order to strengthen Its currency. Which trade element should Thomas suggest as a focus?
Thomas should suggest that the nation focus on ______
Answer:
exports of their country
Explanation:
From the question we are informed about Thomas who Is a financial advisor to a committee seeking to revive the value of the national currency, which has grown weak. He has to suggest a
point on which the nation should focus in order to strengthen Its currency. In this case the trade element should Thomas suggest as a focus is that
the nation focus on exports of their country. Whenever a country increases her export, there will be rise in demand for local currency and this will strengthen the local currency power.
Which of the following itemized deductions are not limited based on a percentage of a taxpayer's AGI?
a. Medical and dental expenses
b. Personal casualty and theft losses
c. Investment interest expense
d. Unreimbursed employee business expenses
The correct answer is: a. Medical and dental expenses
Medical and dental expenses are not limited based on a percentage of a taxpayer's Adjusted Gross Income (AGI). Taxpayers can deduct qualified medical and dental expenses that exceed a certain threshold (currently 7.5% of AGI for most taxpayers) without any further limitation based on their income. This means that the full amount of qualifying medical and dental expenses can be deducted regardless of the taxpayer's AGI.
On the other hand, options b, c, and d are subject to limitations based on a percentage of a taxpayer's AGI. Personal casualty and theft losses are limited to the amount that exceeds 10% of AGI, investment interest expense is limited to the amount of investment income, and unreimbursed employee business expenses are subject to the 2% of AGI threshold, meaning only the amount that exceeds 2% of AGI can be deducted.
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27. Many organizations do not have a formal trouble reporting system. Why do you think this is the case?
Many organizations may not have a formal trouble reporting system for several reasons. One primary factor could be a lack of awareness regarding the benefits of such a system. Organizations might underestimate the importance of tracking and resolving issues in a systematic manner, which could lead to inefficiencies and dissatisfaction among employees and stakeholders.
Another reason could be the perceived complexity and cost associated with implementing a formal trouble reporting system. Organizations might assume that setting up such a system requires significant resources, both in terms of time and financial investment. This perception might discourage them from establishing a systematic approach to handling issues. Additionally, some organizations may rely on informal methods of reporting trouble, such as personal communication or ad hoc meetings, believing that these are sufficient for addressing problems. In reality, these methods may not be as effective as a formal system in terms of providing transparency, accountability, and traceability. Lastly, organizational culture and resistance to change could also play a role. Employees and management might be accustomed to existing processes and resistant to adopting new systems, especially if they believe that current methods are working well.
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What can be a benefit of using interviews to select employees to hire?
A. Insights from employees' examples
B. Accurate prediction of honesty
C. Good measurement of intelligence
D. Errors from employee bias
Answer:
B. Accurate prediction of honesty
Explanation:
Interviews are one of the most effective tools that human resource managers use to determine if a candidate is a match or not for a specific job. Flexibility is the key word here. That allows both the candidate and the interviewer, the possibility of understanding what are the skills needed for a certain job and if the candidate possesses them. When someone answers a test, you can tell if the candidate knows about the subject or not, but when he/she is interviewed, you can ask for more detail and examples that help clarify the candidate's ideas, expectations and capabilities. E.g. a candidate states that he/she knows how to use WordPress very well, and the interviewer can ask him/her about specific tasks to verify if that is true.
Answer:
A. Insights from employees’ examples
Explanation:
Just took the quiz.
There are two firms, an incumbent (I) and an entrant (E). They compete on price with product differentiation. Initially, we consider the case where each has a demand curve.
qi = 1 - Pi + Pj, i, j € {I, E}.
Neither firm has any costs of production (MC=0). Thus, each firm maximizes
Ti = Pi(qi) = Pi(1 – Pi +P;), i, j € {I, E}.
a. Find the best response functions in the static price-setting game.
b. Find Nash Equilibrium prices.
a. The best response function will be \($$P_j = \frac{1 + P_i}{2}$$\).
b. The Nash Equilibrium prices are \($P_i = P_j = \frac{2}{3}$\).
a.
To find the best response functions for each firm, we need to determine each firm's optimal price given the price of its competitor. We can start by finding the marginal revenue (MR) for each firm, which is the derivative of its total revenue (TR) with respect to its own price\(($P_i$)\):
\($$MR_i = \frac{dTR_i}{dP_i} = 1 - 2P_i + P_j$$\)
Setting \($MR_i$\) equal to zero and solving for \($P_i$\), we get:
\($$P_i = \frac{1 + P_j}{2}$$\)
This is the best response function for firm \($i$\). We can find the best response function for firm \($j$\) in a similar way, giving us:
\($$P_j = \frac{1 + P_i}{2}$$\)
b.
To find the Nash Equilibrium prices, we need to find the prices at which neither firm has an incentive to deviate from its best response given the price of its competitor.
This occurs when each firm's best response is also its optimal price given its competitor's price. Setting
\($P_i = (1 - P_i + P_j)$\) and
\($P_j = (1 - P_j + P_i)$\),
we can solve for the equilibrium prices:
\($$P_i = \frac{2}{3}$$\)
\($$P_j = \frac{2}{3}$$\)
Therefore, the Nash Equilibrium prices are\($P_i = P_j = \frac{2}{3}$\). This means that each firm charges a price of \($\frac{2}{3}$\) and neither firm has an incentive to deviate from this price given the price of its competitor.
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11-M.2 MASTERY PROBLEM (Review of Chapters 9, 10, and 11), p.
340
Journalizing and posting transactions
Journalizing is the systematic filing of transactions in the right journals. Every incident is documented with double-entry is corresponded in an opposite entry as well.
Journalizing transactionsOnce one's firm earns or spends money, post the transaction in at least two different accounts – a debit and a credit account. This is called the double-entry method.
Posting transaction is the transferring of the data one has recorded in journaling to ledger accounts
Therefore, the two concepts are as defined above.
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