In a franchise agreement, the right to produce and market the franchisor's product or service is granted to the franchisee.
Explain about the franchising?In a legal arrangement known as franchising, a licensor (franchisor) and a licensee (franchisee) share the right to use the licensor's name and mode of operation in order to sell goods and services to consumers.
Franchising offers entrepreneurs and small business owners the ability to manage their own operations with the assistance and support of a larger organization with a formula for success. It also enables larger firms to expand out and flourish.
Commercial franchising was initially created to enable employees or journeymen to launch their own businesses with backing from the franchisors. In England and other parts of Europe, where the Crown controlled land and gave the church and other influential parties the right to manage it, franchising was practised.
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7 circumstances where its appropriate to adopt peer performance appraisal method
The peer performance appraisal method can be appropriate in various circumstances where the input and perspectives of colleagues hold value. Here are seven circumstances where it is suitable to adopt peer performance appraisal:
1. Team-based Environment: In organizations that emphasize teamwork and collaboration, peer performance appraisal can provide valuable insights into an individual's contributions to the team's success.
2. Role Similarity: When employees have similar roles or work in similar positions, peers can provide meaningful feedback on each other's performance based on their firsthand experience and understanding of the job requirements.
3. Development and Learning: Peer appraisal can be beneficial for employees who are focused on personal and professional growth. Peers can provide constructive feedback, identify areas for improvement, and suggest development opportunities.
4. Cross-Functional Collaboration: In organizations with cross-functional teams or projects, peer appraisal allows individuals from different departments or disciplines to evaluate each other's performance, promoting a holistic view of contributions and collaboration.
5. Flat Organizational Structure: In flatter organizational structures, where hierarchy is minimized, peer appraisal can be effective in fostering a culture of shared responsibility and mutual accountability.
6. Continuous Feedback Culture: Organizations that value continuous feedback and ongoing performance discussions can leverage peer appraisal as a regular feedback mechanism to enhance communication and drive performance improvement.
7. Fairness and Objectivity: Peer appraisal can contribute to fairness and objectivity in the performance evaluation process by incorporating multiple perspectives and reducing biases that might arise from relying solely on managerial evaluations.
It is important to note that the effectiveness of the peer performance appraisal method relies on well-defined evaluation criteria, clear guidelines, training for evaluators, and a supportive organizational culture that promotes constructive feedback and collaboration.
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Difference between administrative management theory and beuracratic management theory
Answer:
Difference between administrative theory and bureaucracy
Explanation:
The Scientific Theory is based on using data and human strengths to increase output, while the Bureaucratic management style focuses on hierarchies and tight job roles. Regardless of the organization, the goals remain the same across the board. Every organization strives to minimize costs, while maximizing output.
Chapter 25 DIFFERENTIAL ANALYSIS, PRODUCT PRICING,AND ACTIVITY-BASED COSTING
Chapter 25 of Managerial Accounting is about differential analysis, product pricing, and activity-based costing. Differential analysis is the study of costs and revenues of different alternatives to help make decisions.
Managers use differential analysis to decide whether or not they should accept a special order, make or buy, sell or process further, or repair or replace equipment. In differential analysis, managers calculate the incremental revenue and incremental cost of each alternative.
If incremental revenue is greater than incremental cost, managers will choose the alternative with the higher profit. On the other hand, if incremental cost is greater than incremental revenue, managers will reject the alternative.
Product pricing is a critical issue for any business. Managers must determine the price that will make a profit while being competitive with other companies. In setting product prices, managers need to consider the cost structure of the product, competitors' prices, and customer demand.
Activity-based costing (ABC) is a costing method that allocates costs based on the activities involved in making a product or delivering a service. ABC helps managers to identify the true cost of products and services.
Managers can use ABC to make better decisions about pricing, product mix, and cost control. ABC provides a more accurate picture of the cost of each product than traditional costing methods.
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Most insurance policies set an amount of money that a person has to pay
before the insurance company will cover any further costs. This money is
called the
A. deductible
B. liability
O C. premium
O D. title
The amount that a person has to pay before their insurance company then covers further costs is called an A. Deductible.
What is an insurance deductible?On an annual basis, an insurance company sets an amount that a person who is covered has to pay before they access their medical insurance payout.
This amount varies per individual and per policy but is generally higher for more risky clients.
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Design Thinking is the discipline of developing solutions to create significant
value for clients by keeping end user experience at its core.
True or False?
What can Lena do to avoid the risk of having short supplies in times of need?
Lena works in an artificial jewelry-manufacturing unit. It is a family run business, and they have been depending on a single supplier for years.
As Lena is a proactive person, she can avoid the risk of being in short supplies of raw material by keeping a _______ supplier for every one main supplier.
Answer:
Backup
Explanation:
Answer:
Backup
Explanation:
Correct on Plato
After the stomach food passes through
Answer:
After food enters your stomach, the stomach muscles mix the food and liquid with digestive juices. The stomach slowly empties its contents, called chyme, into your small intestine. Small intestine.
Explanation:
Pd 4(A) Set 2 iz Question 7 (1 point) When investing in individual stocks, you should expect that... O a Stock prices for a company are relatively easy to predict d GRADES Next Page Back Unforeseen company events can have a dramatic impact on the stock price for a company You will have an informational edge by reading an article about a company you want to invest in Stock prices for an individual stock will be more stable over the long-term than prices for a diversified index fund S ✓ Sub Question 7 of 19 |
An investor should carefully consider their risk tolerance and investment goals before deciding whether to invest in individual stocks or index funds.
When investing in individual stocks, you should expect that unforeseen company events can have a dramatic impact on the stock price for a company. This is because the company's stock price reflects not only the company's current financial situation but also investors' expectations for the company's future performance.Unforeseen company events such as changes in leadership, new competitors, or regulatory changes can cause investors to reassess their expectations for the company's future performance, which can lead to fluctuations in the stock price.An investor should not expect that stock prices for a company are relatively easy to predict. This is because stock prices are influenced by a variety of factors, including company financial performance, economic conditions, market trends, investor sentiment, and geopolitical events. While some investors may try to predict stock prices using technical analysis or fundamental analysis, it is important to recognize that these methods have limitations and cannot guarantee accurate predictions.An investor can gain an informational edge by reading an article about a company they want to invest in. Reading articles about a company can provide valuable insights into the company's financial situation, growth prospects, and risks. However, it is important to recognize that reading articles is only one part of the investment process and should be supplemented by other sources of information, such as financial statements, analyst reports, and market data.An investor should not expect that stock prices for an individual stock will be more stable over the long-term than prices for a diversified index fund. In fact, individual stocks are generally more volatile than index funds because they are more susceptible to company-specific risks. By contrast, index funds are diversified across multiple companies and sectors, which can help to reduce overall portfolio risk.
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A clothing eCommerce comapny has an Average Order Value of $65. It costs the company $35 to produce the clothes in the average order and $15 to ship it to the customer. What is the Average Order's Gross Profit? * $65 $50 $30 $15
Previous question
The average order's gross profit for the ecommerce company is $15. The Option D is correct.
What is the calculation for the gross profit?To calculate the average order's gross profit, we will subtract the total cost of producing and shipping the clothes from the revenue generated by the order.
Revenue generated by the order is $65.
The total cost of producing and shipping the clothes is:
= $35 + $15
= $50.
The gross profit of the average order is:
= $65 - $50
= $15.
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SBA a business from any of the THREE sectors and conduct a research using newspaper clips, business articles, any business magazines, News 24 and a other business websites to answer the following Research (Part A) for your Select a business business questions. (Collect FIVE resources) must be NB After choosing the sector you able to motivate your answer then provide picture/ newspaper article of the business -You must identify challenges experienced by the business and classify those challenges according to the three Business Environments and state the extent of control.
Selecting a business from one of the three sectors, conducting research using newspaper clips, business articles, any business magazines, News 24, and other business websites to answer research (Part A) questions. This article will discuss the challenges faced by the business and classify them based on the three business environments. The business selected for this research is Sasol, which belongs to the primary sector. Sasol is an integrated energy and chemicals firm with operations in over 30 countries and more than 30,000 employees. It mines coal and convert it into synthetic fuels and chemical feedstock. Sasol operates in a challenging environment, and it faces many challenges. However, in this research, we will discuss the most important challenges faced by Sasol. The following are the difficulties Sasol faces: Environmental challenges: Sasol is a large company, and it emits greenhouse gases, which affect the environment. Furthermore, environmental regulations have become more stringent, which is a significant challenge for the company. Sasol must adhere to environmental regulations, which will impact its operations. Sasol must also protect its reputation, which is critical to its success. Sasol should be proactive in responding to environmental challenges by investing in renewable energy and ensuring that it adheres to environmental regulations. Economic challenges: Sasol faces economic challenges, including fluctuating oil prices, currency volatility, and rising operating costs. These issues are beyond the company's control, and they can have a significant impact on Sasol's financial performance. Sasol must adapt to economic changes by diversifying its revenue streams and improving its operational efficiency. Social challenges: Sasol faces social challenges such as workforce diversity, employee engagement, and community relations. Sasol must address these challenges by fostering a diverse and inclusive culture, promoting employee engagement, and engaging with the community. Sasol must also ensure that its business practices align with the expectations of its stakeholders, including customers, employees, and investors. In conclusion, Sasol faces many challenges, which can be classified into three categories: environmental, economic, and social. Sasol has limited control over some of these challenges, but it must be proactive in responding to them to ensure its long-term success.
A business that you can select for this analysis is the importation of cars into a country. Some challenges that may affect the importation of cars include import duties and trade agreements between nations.
What are business challenges?Business challenges refer to those problems that are encountered by entrepreneurs who want to go into any area of trade. For those into the importation of cars and other such items, excessive import duties might be limiting to them.
They may also experieice trade agreements sbetween nations and rising forex that amy not be favorable for trade.
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Steve Wilson is given a $200 budget to prepare a five-course meal. If the main course costs $80 to prepare, what fraction of the budget was used for the main course?
In addition to the UFMIP (up-front mortgage insurance premium), the owner-occupant borrower who decides to use an FHA mortgage loan will normally pay an additional annual mortgage insurance premium (MIP) that depends on the loan-to-value ratio and the term of the loan. As of 2019, the MIP ranged from ____________ percentage of the average annual loan balance
As of 2019, the MIP ranged from 0.8 percent to 1.05 percent of the average annual loan balance.
This is usually based on the MIP on a 30-year loan range. Alternatively, the MIP ranges between $800 to $1,050 for every $100,000 borrowed.
The exact amount of MIP to be paid by borrowers depends on the actual amount borrowed and the down payment or equity made.
MIP stands for Mortgage insurance premiums which the Federal Housing Administration mortgage borrowers pay.
Hence, in this case, it is concluded that the correct answer is 0.8 percent to 1.05 percent.
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Which costs are variable costs?
A. Rent
B. Machinery
C. Raw material
D. Marketing
E. Monthly salary
Answer:
its b
Explanation:
Answer:
B. Machinery
Explanation:
McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn a margin of at least 30 percent, it will be dropped. The margin is computed as product gross profit divided by reported product cost.Manufacturing overhead for year 1 totaled $799,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following:
Chairs DesksSales revenue $1,240,000 $2,286,900Direct materials 587,000 830,000Direct labor 150,000 320,000Required:a-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks.Profit marginChairs ?%Desks ?%a-2. Which of the two products should be dropped?ChairsDesksb. Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $680,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 2? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place.)Estimated margin for desks- Year 2 ?%
Answer:
McNulty, Inc.
Chairs Desks
1. Margin on cost 25% 35%
2. Chairs should be dropped.
3. Margin for desks in Year 2 = 25%
Explanation:
a) Data and Calculations:
Expected margin = 30% = Gross profit/Product cost
Manufacturing overhead $799,000
Chairs Desks
Sales revenue $1,240,000 $2,286,900
Direct materials 587,000 830,000
Direct labor 150,000 320,000
Overhead 255,000 544,000
Product costs $992,000 $1,694,000
Gross profit $248,000 $592,900
Margin on cost 25% 35%
Expected margin 30% 30%
Expected Margin for desks in Year 2:
Desks
Sales revenue $2,286,900
Direct materials 830,000
Direct labor 320,000
Overhead 680,000
Product costs $1,830,000
Gross profit $456,900
Margin on cost 25%
Expected margin 30%
McNulty's new CFO has made a bad decision. Should the desks be eliminated also? Decisions involving overhead costs should not be made lightly. Detailed and precise information about the overhead costs should be obtained before a decision is taken on product elimination. This case demonstrates the reason for not taking a hasty decision on an issue like this.
PLEASE HELP, WILL GIVE BRAINLIEST
1. The industrial wood planers currently valued at $58,000 each were purchased two years ago for $65,000 each. The company plans to keep them for six more years. Jasmine uses the straight-line method to determine the depreciation for these machines. Be sure to follow FASB
a. What is the salvage value of each planner, and how is this amount determined? (2 points)
The salvage value of each planner is $23,000 and this is derived by first calculating the depreciation amount which is then deducted from Original cost of the asset.
How do we calculate our salvage value?The salvage value of each industrial wood planer is the estimated value of the machine at the end of its useful life, after it has been fully depreciated. It is determined by subtracting the accumulated depreciation from the original cost of the asset.
In Jasmine's case, using the straight-line method of depreciation, the annual depreciation for each machine is calculated as follows:
$65,000 - $58,000 = $7,000 (depreciation per year)
The company plans to keep the machines for six more years, so the total amount of accumulated depreciation would be:
$7,000 x 6 = $42,000
Therefore, the estimated salvage value of each industrial wood planer would be:
= $65,000 - $42,000
= $23,000
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Ted Paulson needed money to pay for unexpected medical bills. To obtain $12,300, he decided to sell some of his shares in the
Ridgemoor Capital Appreciation Fund. When he called the investment company, he was told that the following fees would be charged
to sell his B shares:
Ridgemoor Capital Appreciation Fund Fees
First year
6 percent withdrawal fee
Second year
5 percent withdrawal fee
Third year
4 percent withdrawal fee
Fourth year
3 percent withdrawal fee
Fifth year
2 percent withdrawal fee
If he has owned the fund for 5 months and withdraws $12,300 to pay medical bills, what is the amount of the contingent deferred sales
load?
Amount of the contingent deferred sales load
Answer:
61500
Explanation:
I multiplied 12300 by 5 and got 61500 for the total for 5 month
Price a 2-yr 4% semiannual coupon bond with a par value of $1000 and the yield to maturity (discount rate) is 4.51% per annum.
Round the answer to the nearest 2 decimal points. If your answer is $12.345, enter "12.35" in the answer box.
The price of the 2-year 4% semiannual coupon bond with a par value of $1000 and a yield to maturity of 4.51% per annum is approximately $932.08 (rounded to the nearest 2 decimal points).
To price a 2-year 4% semiannual coupon bond with a par value of $1000 and a yield to maturity of 4.51% per annum, we can use the formula for the present value of a bond. The bond pays semiannual coupons, so we need to calculate the present value of each coupon payment and the present value of the par value at maturity.
Using the given values:
Coupon payment = $20
Yield to maturity = 4.51% per annum
Number of coupon payments per year = 2
Par value = $1000
Number of periods until the coupon payment = 1 (for each semiannual coupon payment)
PV of coupon payment = $20 / (1 + (4.51% / 2))^1 + $20 / (1 + (4.51% / 2))^2
PV of coupon payment = $19.14 + $18.36
PV of coupon payment = $37.50
PV of par value = $1000 / (1 + (4.51% / 2))^4
PV of par value = $894.58
Bond price = PV of coupon payments + PV of par value
Bond price = $37.50 + $894.58
Bond price = $932.08
Therefore, the price of the 2-year 4% semiannual coupon bond with a par value of $1000 and a yield to maturity of 4.51% per annum is approximately $932.08 (rounded to the nearest 2 decimal points).
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Explain how each of the following events would affect the equilibrium price and quantity of new textbooks. (Explain which curve(s) would shift and in which direction(s).)
The events that would affect the equilibrium price and quantity of new textbooks include changes in production costs, shifts in student enrollment, changes in government policies etc.
How do these events impact the equilibrium price and quantity?The changes in production costs will shift the supply curve of new textbooks. If production costs increase, the supply curve would shift to the left resulting in decrease in the equilibrium quantity and an increase in the equilibrium price.
But if production costs decrease, the supply curve would shift to the right leading to an increase in the equilibrium quantity and a decrease in the equilibrium price of new textbooks.
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What kind of cost is described by buying the goods and services an average person needs?
A. quality cost
B. cost of business
C. cost of living
D. opportunity cost
Answer:
The answer is C
Explanation:
What is an alternative plan?
A) Deadline
B) Plan
C) Inventory
D) Contingency Plan
Explanation
alternative plan means a plan of reorganization (other than the Plan) that does not include Investor and/or funds managed by Investor as the sole new money underwriter.
ANSWER
PLAN
MARK AS BRAINLIEST PLEASE
You are a medical records clerk working in the HCM department of a major hospital in your area. You over hear a co-worker on the phone stating that they have found a phone number and address of a patient and it appears to be a personal call. Explain the laws that may have been violated in the discussion background. Support your answer with evidence.
In the scenario described, it appears that a co-worker may have violated patient privacy laws by accessing and disclosing personal information for personal purposes.
As a medical records clerk, maintaining patient confidentiality and adhering to privacy laws is of utmost importance. The laws that may have been violated in this situation include:
1. Health Insurance Portability and Accountability Act (HIPAA): HIPAA is a federal law in the United States that protects the privacy and security of patients' health information. It prohibits unauthorized access, use, and disclosure of individually identifiable health information. The unauthorized use of a patient's phone number and address for personal reasons without a legitimate work-related purpose would likely violate HIPAA.
2. Confidentiality Laws: Many jurisdictions have laws that protect patient confidentiality and require healthcare professionals to maintain the privacy of patient information. These laws are in place to ensure that patients' personal information is not disclosed without their consent or a legally valid reason. Sharing a patient's phone number and address without a legitimate professional reason could be a breach of these confidentiality laws.
3. Professional Code of Ethics: Healthcare professionals, including medical records clerks, are bound by professional codes of ethics that require them to protect patient privacy and maintain the confidentiality of medical information. Violating these ethical obligations can result in disciplinary action and damage the trust between healthcare providers and patients.
It is important to note that the specific laws and regulations may vary depending on the jurisdiction. However, the general principles of patient privacy and confidentiality remain consistent. It is crucial for healthcare professionals to be aware of and comply with these laws to protect patient privacy and maintain the integrity of the healthcare system.
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Budgeting Quick Check
Define autonomous consumption (1 point)
Autonomous consumption is the amount that a person must spend on basic needs (such as food and
housing) regardless of his or her income.
Autonomous consumption is the amount that a person chooses to spend over the costs of his or her basic
needs, such as food and housing
Autonomous consumption is the amount that a person spends on himself or herself and does not include any
shared expenses, such as the cost of housing if other people also live in the dwelling
Autonomous consumption is the amount that a person spends on other people and does not include any
expenses that are spent solely for oneself, such as food or luxury items
Option A. Autonomous consumption is the amount that a person chooses to spend over the costs of his or her basic needs, such as food and housing.
What is autonomous consumption?The costs that consumers must incur even when they have no extra money to spend are referred to as autonomous consumption. No matter how much money or income a customer has available at any particular time, some things must be bought. Paying for these needs can cause a consumer who is strapped for cash to borrow money or use money they had been saving.
Paying for necessities when a consumer is strapped for cash can force them to borrow money or use money they had been saving.
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Which of the following best describes perfect communication
Answers:
a.
Perfect communication happens often.
b.
Perfect communication occurs when a transmitted thought or idea is received and understood exactly as it was envisioned by the sender.
c.
Perfect communication is more of a theoretical concept than reality.
d.
Both answer b and c describe perfect communication.
Answer:
B describes perfect communication. It is the most understandable.
What are the basic rights within a private enterprise system?
Answer:
The right to private property: In the private enterprise system individuals have the right to buy, own, use, and sell the property as they see fit. This right of ownership includes land, buildings, equipment, and intangible property such as inventions.
Explanation:
If increasing the number of goods produced is one way to increase
productivity, what is the other way to increase productivity?
Productivity refers to the measure of output per unit of input over a given period of time. A company’s productivity level is a crucial factor in determining its profitability. Productivity can be increased in different ways, including increasing the number of goods produced and reducing waste. These are the two ways to increase productivity. Therefore, the answer to the question is reducing waste.
Another way to increase productivity is to improve efficiency. Efficiency is a measure of how well inputs are converted into outputs. Improving efficiency means reducing the amount of time, effort, and resources needed to produce a certain output. A company can improve its efficiency in various ways, including using better technology, improving its production processes, and training employees to work more effectively. Increasing productivity is critical for the growth of any business. Productivity can be increased by implementing a wide range of strategies. Reducing waste is one way to increase productivity, while improving efficiency is another way. Both of these strategies help companies to achieve their goals by producing more goods in less time. In conclusion, companies need to explore ways to improve their productivity levels continually. This will help them to increase their profitability, grow their business, and remain competitive in the market.
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The Reverend Petros receives an annual salary of 51,000 as full-time minister this includes 5000 designated as a rental allowance River and Pedro is not exempt from employment tax how much must he include figuring that income for self-employed tax
If the Reverend Petros receives an annual salary of 51,000 as full-time minister that includes 5000 designated as a rental allowance. The amount that must be include figuring that income for self-employed tax is : $51,000.
What is annual salary?Annual salary can be defined as the amount a person earn as salary per year.
On the other hand self employed tax can be defined as the tax a person that is solely working for his/her self without working for any other person remit to the government.
Therefore the amount that must be include figuring that income for self-employed tax is the amount of $51,000.
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Do you believe that the citizenship process is fair? Why or why not?
Answer: no, because the way African Americans are being treated is horrible and the way cops think that they can just pop someone out of nowhere and have no consequences is brutal and lose their badge for it is cruel and how blacks can't get good jobs or good pay like "noncolored" people is horrible and how people want to come to the US for a better life but get punished for coming so do i think citizenship process is fair no i do not
QUESTION 4: PROGRESS REPORT On the 20th of April 2023, The campus manager, Mr Manoto, requested the secretary in the SRC office, to compile a report on the progress of the revival day planning. In your report tasks that are completed are invitations for special guests and booking of live performers; the task committee is still busy with finalizing the design of the banners and T-shirt and sports bottle printing. Due to overspending on budget, you still have not booked catering and security for the day. Your report must be in memo format.
A sample memo based on the given question prompt is given below:
The MemoMemorandum
To: Mr. Manoto, Campus Manager
From: SRC Office Secretary
Date: April 20th, 2023
Subject: Progress update for Revival Day planning
Esteemed Mr. Manoto,
Please find below a status report detailing advancements made in the preparations of the upcoming Revival Day ceremony. We have accomplished issuing invitations to prominent guests and securing prominent musical acts. Our committees are putting the finishing touches to banner design, T-shirt outfits, as well as customizing sport water bottles.
Conversely, budgetary concerns impede us from booking security or catering caterers essential for event operations. However, we are investigating ways to cut expenses while still delivering quality service. We will be prompt with updates about progress made through these alternative strategies.
Thank you for your kind ownership in this venture; rest assured that our team is steadfastly dedicated to ensuring an excellent Revival Day rally session.
Yours faithfully,
[Your name]
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120. Assume that the bid rate for Australian dollar $.60 [.9650] while the ask rate is $.61 [.9811] at Bank A. Also assume that the bid rate for the Australian dollar is $.62 [.9972] while the ask rate is $.625 [1.0052] at Bank B. What would be your profit if you have $100,000 and you execute locational arbitrage
Answer:
$1,639.3
Explanation:
Calculation to determine What would be your profit if you have $100,000 and you execute locational arbitrage
Profit=$100,000-($100,000/$.61)*$.62
Profit = $100,000-(A$163,934.4*$.62)
Profit = $100,000-$101,639,3.
Profit =$1,639.3
Therefore What would be your profit if you have $100,000 and you execute locational arbitrage will be $1,639.3
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the bank's net interest income for the current year
Answer:
the bank net interest income for the current year is $140,000
Explanation:
The computation of the bank net interest income for the current year is shown below:
= (Interest earning assets × Interest rate earned)-(Interest bearing liabilities × Interest rate rate)
= $5,000,000 × 6% - $4,000,000 × 4%
=$300,000 - $160,000
= $140,000
Hence, the bank net interest income for the current year is $140,000