The option that shows the correct sequence of events from an initial shock to consumption and the resulting multiplier effects is B. Consumption declines, firms' revenue falls, labor demand shifts left, unemployment rises, and the multiplier effects continue their cycle.
What's consumption?Utilizing resources to fulfill present needs and desires is referred to as consumption. In contrast, investing entails making purchases in order to generate future income. A key concept in economics, consumption is also explored in many other social sciences.
Because one agent's spending is also another agent's income, the multiplier effect results. For instance, when a spending project generates new jobs, it adds to the circular flow of income and demand in the nation.
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Organization use marketing research to gather data about ___. (Select all that apply)
•New products they are considering
•their customers preferences
•their customers
•employees they want to hire
Answer:
•New products they are considering
•their customers preferences
•their customers
Explanation:
Market research entails collecting data from potential and existing customers. Researchers have to interact with customers through questionnaires or interviews. The objective is to seek their views, perceptions, or preferences regarding the company and its products. Market research may target to find out the viability of new products or customer tastes and preferences.
Data relating to the potential employees is not gathered through market research.
If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be:_________
If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be: an increase in assets and an increase in liabilities
What is accounting equation?
The accounting equation emphasizes that the assets of the company are all financed using its equity capital contributed by owners as well as liabilities, which are amounts borrowed from external parties.
In this case, purchase on credit means that the company indebted to an external party to the tune of $6,100 , in essence, its liabilities, claims on the company by external parties would increase, so also its assets because it has in its possession a new asset, equipment, to be precise.
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Difference between pharmacy and pharmacist ? it's important.
Answer:
a cist works in the pharmacy
Walid Inc. is a Canadian company, is preparing its financial statements for the fiscal year ended December 31, 2023. The following information has been gathered to calculate earnings per share.
- 50,000 options were issued in 2022, allowing the holder to buy one share at $100 for every option held. The options expire in March 2025.
- 480,000 common shares were outstanding on January 1, 2023.
- 100,000 of \$ 4 no par value non-cumulative preferred shares were outstanding throughout 2023.
- 100,000 of \$ 5 no par value cumulative convertible preferred shares were outstanding throughout 2023. The shares had been issued on January 1, 2021. No dividends had been declared and or paid on these shares in either 2021 or 2022 . The preferred shares are convertible at any time into one common share for every preferred share.
- $1,000,000 convertible bonds payable were arranged in 2021 due 2030 with a coupon rate of 4%. Each $1,000 bond payable can be converted into 5 common shares.
- 60,000 common shares were sold for \$150 per share on March 1, 2023.
- On September 1, Walid met contingency conditions that led to 90,000 new common shares issued on October 1.
- Net income was $6,000,000. There were no discounted operations in 2023.
- The company is subject to 30% income tax rate and average common share price in 2023 was $ 180.
- In December 2023, the company declared and paid the dividends to all preferred shareholders. - No dividends were declared or paid to common shareholders in 2023.
Required:
a. Calculate Walid's basic EPS for the year ended December 31, 2023.
b. Calculate Walid's diluted EPS for the year needed December 31, 2023.
To calculate Walid Inc.'s earnings per share (EPS) for the year ended December 31, 2023, we need to consider both basic EPS and diluted EPS. Here's how you can calculate them:
a. Basic EPS:
Basic EPS represents the earnings per common share without considering the impact of potential dilution.
Calculate the weighted average number of common shares outstanding:
Common shares outstanding on January 1, 2023: 480,000
Shares sold on March 1, 2023: 60,000
Shares issued on October 1, 2023: 90,000
Weighted average number of common shares = [(480,000 * 12) + (60,000 * 10) + (90,000 * 3)] / 12
Weighted average number of common shares = (5,760,000 + 600,000 + 270,000) / 12
Weighted average number of common shares = 6,630,000 / 12
Weighted average number of common shares = 552,500
Calculate basic EPS:
Net income: $6,000,000
Basic EPS = Net income / Weighted average number of common shares
Basic EPS = $6,000,000 / 552,500
Basic EPS = $10.85
b. Diluted EPS:
Diluted EPS takes into account the potential dilution from convertible securities, such as options, convertible preferred shares, and convertible bonds.
Calculate the diluted weighted average number of common shares:
Weighted average number of common shares: 552,500
Options:
Since the options were issued but not exercised, they are not included in the diluted EPS calculation.
Convertible Preferred Shares:
Preferred shares outstanding: 100,000
Convertible ratio: 1 common share for every preferred share
Convertible preferred shares = 100,000 * 1 = 100,000
Diluted weighted average number of common shares = Weighted average number of common shares + Convertible preferred shares
Diluted weighted average number of common shares = 552,500 + 100,000
Diluted weighted average number of common shares = 652,500
Calculate diluted EPS:
Diluted EPS = Net income / Diluted weighted average number of common shares
Diluted EPS = $6,000,000 / 652,500
Diluted EPS = $9.19
Therefore, Walid Inc.'s basic EPS for the year ended December 31, 2023, is $10.85, and the diluted EPS is $9.19.
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this is for you so i dont feel bad
You see Paul dealing with Susan, an upset employee from another department. Susan is complaining about something that your department was supposed to do but didn't. You are in a back room and have not been seen by Susan. Paul is obviously frustrated and unable to deal with Susan effectively. You should:
a. Walk up to the pair and attempt to change the conversation.
b. Introduce yourself to Susan and offer your assistance.
c. Ask your supervisor to offer some interpersonal skills training to Paul.
d. Tell Paul that Susan is needed by the supervisor to end the situation.
When property rights are well defined and markets are: competitive market equilibrium violates the conditions for economic efficiency.market equilibrium is consistent with economic efficiency.conditions necessary for economic efficiency no longer apply.quantity supplied will rarely equal the quantity demanded.
Complete Question:
When property rights are well defined and markets are competitive, the
Group of answer choices:
a. market equilibrium violates the conditions for economic efficiency.
b. market equilibrium is consistent with economic efficiency.
c. conditions necessary for economic efficiency no longer apply.
d. quantity supplied will rarely equal the quantity demanded.
Answer:
b. market equilibrium is consistent with economic efficiency.
Explanation:
A property right is the exclusive or sole authority which determines the legal ownership of resources and how these resources are to be used, whether by individuals or government.
Also, a competitive market is a type of market that comprises of numerous producers who compete with each other so as to satisfy or meet the material needs and wants of consumers at a specific period of time.
Hence, when property rights are well defined and markets are competitive, the market equilibrium is consistent with economic efficiency.
This ultimately implies that, when the ownership of resources are well defined and markets are competitive, all benefits from trade between the consumers and producers of goods and services has been maximized, and each units creating more benefit to the consumers than cost have been produced in the economy.
MAKE IT PAY: What was the last product that you purchased? Think for a minute about why you made the purchase. How did each of the marketing functions affect your decision? Ask yourself questions such as:• Why did you want the product?• Did the product’s brand impact your actions?• Did the product’s price influence you?• Where did you purchase the product?• How did you hear about the product?• Who helped you to make your purchase? Finally, after answering these questions, consider the following: How did the different marketing functions work together as a team to encourage you to make your purchase? *
Answer:
This may be something you must answer yourself. Lets say you just bought some really nice suede shoes. It's winter, and the suede is actually keeping your feet really warm unlike other shoes. Why'd you make the purchase? It was cold and you needed new shoes that would keep your feet warm, and maybe the reason you bought new shoes made out of a more rough material is because your older shoes were made out of canvas. How did the marketing functions affect your decision? Because suede is durable, and it also keeps your feet warm. Maybe the shoes were designed to be winter shoes, or maybe they were just suede skate shoes, and you know that suede keeps your feet warm. How come you wanted the product? Because your feet were cold in your old shoes, and you just needed new shoes!
Explanation:
i hope you understand what this question is asking you now.
a fixed cost that supports the operations of more than one segment, but is not traceable in whole or part to any one segment is a(n)
A fixed cost that supports the operations of more than one segment, but is not traceable in whole or part to any one segment is a common fixed cost.
A common fixed cost is a cost that supports the operations of more than one segment, but is not traceable in whole or part to any one segment.
These are costs which remain constant regardless of the level of output or sales volume. Examples of common fixed costs include rent, depreciation, insurance, executive salaries, etc.
Common fixed costs are not typically allocated to individual product lines because the costs do not change significantly when the production or sale of one product line increases or decreases. Therefore, the cost remains the same whether the product line is producing or not. Common fixed costs are typically deducted from the total sales figure to calculate the gross profit figure.
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Zorba owns property and gladly allows his friend, Young, to use it. To best protect Zorba's interest, he should give Young: __________.
A. An easement in gross
B. A right of way
C. An appurtenant easement
D. A license
Zorba owns property and has allowed his friend, Young, to use it. To protect Zorba's interest, he should give Young a license. The correct option is D.
What is an easement? An easement is a right granted to one person or entity to utilize another's property for a certain purpose. This gives a person or entity the right to utilize land that is not their own for a certain purpose. It can also be known as a right-of-way or right-of-entry.
An easement can be created in a variety of ways, such as through a deed, will, or contract. They may also be created by implication, necessity, or prescription. Appurtenant Easement When there are two parcels of land, and the right granted is tied to the use of the other parcel of land, it is known as an appurtenant easement.
An appurtenant easement is defined as a right of use that attaches to the land rather than to the individual who owns it. The easement is linked to the ownership of the land, and it remains with the land even if it is sold to another party. To create an appurtenant easement, there must be two adjoining parcels of land owned by two separate parties.
The person who owns the land must grant an easement to the neighboring parcel of land for a particular use. Easements in Gross An easement in gross is a right granted to a specific person or entity rather than to the land itself. It's a personal right that can be sold or transferred to others.
When a person or entity obtains an easement in gross, it does not attach to any particular land, and it does not go with the land if it is sold. As a result, if the person who holds the easement dies, the easement does not go to their heirs unless it is specified in a will or other legal documents.
License A license is the most flexible of the three types of easements. It's a personal right that grants an individual permission to use another's land for a certain reason, but it doesn't give them ownership or any property rights over the land. It can be revoked at any time, and it does not go with the land.
This means that if the owner of the land dies or sells it to someone else, the license does not transfer to the new owner. As a result, a license is the best option for Zorba to offer to his friend Young as it is the most flexible option, can be revoked at any time, and does not go with the land.
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Scranton Shipyards has $10 million in equity, $18 million in LT debt and $2 million in notes payable. Scranton Shipyards after-tax cost of capital is 8% and the tax rate is 40%. Sales are $15 million with depreciation of $3 million, cost of goods sold of 40% of sales and other operating costs of $1,500,000. Interest expense is $2,400,00 while common stock dividend is $1,000,000. a. Find NOPAT. b. What is Scranton's EVA?
To calculate NOPAT and EVA for Scranton Shipyards, we consider its financial information. Scranton Shipyards' NOPAT is $2,700,000, and its economic value added (EVA) is $300,000
a. To find NOPAT (net operating profit after tax), we calculate the operating profit before tax (EBIT) and subtract taxes. EBIT is obtained by subtracting depreciation, cost of goods sold, and other operating costs from sales:
EBIT = Sales - Depreciation - Cost of Goods Sold - Other Operating Costs
= $15,000,000 - $3,000,000 - 0.40($15,000,000) - $1,500,000
= $15,000,000 - $3,000,000 - $6,000,000 - $1,500,000
= $4,500,000
Next, we calculate taxes by multiplying EBIT by the tax rate:
Taxes = EBIT × Tax Rate
= $4,500,000 × 0.40
= $1,800,000
Finally, we find NOPAT by subtracting taxes from EBIT:
NOPAT = EBIT - Taxes
= $4,500,000 - $1,800,000
= $2,700,000
b. To calculate the economic value added (EVA), we deduct the cost of capital from NOPAT:
EVA = NOPAT - (Total Capital × Cost of Capital)
= $2,700,000 - [($10,000,000 + $18,000,000 + $2,000,000) × 0.08]
= $2,700,000 - ($30,000,000 × 0.08)
= $2,700,000 - $2,400,000
= $300,000
Therefore, Scranton Shipyards' NOPAT is $2,700,000, and its economic value added (EVA) is $300,000.
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bull's-eye, a regional discount retailer, carefully watches the operations of their best rivals. bull's-eye rates and compares their operations to the best in the market. this firm is involved in:
Discount retailer Bull's-Eye carefully monitors its operations and contrasts them with those of its main competitors. The company 1. outsources.
Why is it named the bullseye?The English archers' habit of attempting to shoot and arrow through a bull's eye socket to hone their skills and display them to others may be the reason why the target's center came to be known as the bull's eye.
What is the slang value of a bullseye?$50 is referred to as a "bull’s - eye" A "ton" is often defined as £100; for example, £400 would be referred to as 4 tons. Additionally, the terms "century" and "bill" are also employed to denote £100 (three bills would equal £300).
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CSI projects in South Africa that businesses use to support/uplift the local community
CSI projects in South Africa that businesses use to support/uplift the local community are :
Better school facilitiesSolving socio-economic problems. Better school facilitiesSome of the CSI initiative in South Africa are:
Global Reporting Initiative (GRI)OECD Guidelines for Multinational Enterprises.JSE Social Responsibility Index (SRI)What are the effect of the CSI projects in South Africa that businesses use to support/uplift the local community?It should be noted that CSI projects in South Africa help businesses toto support/uplift the local community in such a way that bring about the Improved quality of life.
They help in seeking solution to socio-economic problems which translate to improvement in the quality of life in communities.
They also bring about Better school facilities: Schools in poor communities receive better educational facilities.
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influences of Business environment,
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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the view held by arthur laffer and ronald reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied became known as
Supply side economics is the term for the idea put forth by Ronald Reagan and Arthur Laffer that lowering tax rates would encourage people to increase the amount of labor they provided.
Give an account on supply-side economics.The best strategies to encourage economic growth, according to supply-side economics, are to lower taxes, scale back regulations, and support free trade. Increasing supplies of products and services at reduced prices will benefit customers, and employment will rise, according to supply-side economics. The Laffer curve, a hypothesized correlation between taxation rates and government revenue, forms the cornerstone of supply-side economics. Although the precise threshold at which tax rates are considered "too high" is debatable, the Laffer curve predicts that when tax levels are too high, cutting tax rates will increase government income through faster economic development. The phrase "supply side economics" references to the theories of economists Arthur Laffer and Robert Mundell.
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need help on econ please and thank you
Answer:
1. Bonds
2. Property
3. Mutual Funds
4. Starting a business
Explanation:
Which reason best demonstrates why flexibility is important in IT work environment?
Answer:
Changing work environments require employees to adapt quickly to new technology
Explanation:
The _____ is a production period long enough for the firm to adjust the
quantities of all its ________, including capital.
Answer:
long run, productive resources
PLEASE HELP GUYS WRITE A TOPIC WITH AT LEAST 200 TO 300 WORDS ABOUT DOGS RESEACH AND RESTATE IT IN YOU OWN WORDS PLEASE I WILL GIVE YOU BRAINLEST!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Answer:
Did you know that dogs' noses are wet. Probably because of the fact that they drink water by licking and it may get on their nose or it's just wet. Dogs have feelings just like us humans do. They feel when something is wrong. They know when you happy and sad. Dog's are smart and listen very well if you train them. Dogs tend to lick us because that's their way of showing love. You know how us people just say I love you and show it well, since dogs can't talk they lick us and play around with us. Dogs also tend to stare at us which sometimes can be creepy but that's another way they show affection. Now if they don't know you then they will stare and bark because they need to absorb you and try to make sure you want to hurt their owner. Lastly, dogs can get jealous because they might see you with another do and think you're replacing them or they might see you with a baby and get jealous because they might feel not loved or cared for anymore so they expect all the love from you because they are attached and spoiled. Overall, dogs are loving and caring for little pets.
Answer:
Dog's are loving and caring kinda pets and tend to want all the attention
Explanation:
in which market would a producer buy the equipment and technology needed to manufacture bicycles?
Market resources would a producer buy the equipment and technology needed to manufacture bicycles.
What other names are given to the market system?
A market economy, usually referred to as a free market or free enterprise economy, is a system in which supply and demand governs economic decisions, including those pertaining to things like the prices of goods and services.
What is management of market resources?
The term "marketing resource management" (MRM) refers to a method of marketing administration that concentrates on the full pool of resources available to the marketing team, including personnel and financial resources. Management of production procedures, external vendors, and even digital asset management are all included.
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What is defined as a budget surplus? (1 point)
O Spending exceeds income.
OA spending necessity.
OA spending desire or luxury.
O Take-home pay exceeds spending.
Take-home pay or income exceeds spending is defined as a budget surplus.
When income surpasses expenditure, there is a budget surplus. Since people often have "savings" rather than a "budget surplus," which is a sign that a government's finances are being handled well, the word is frequently used to describe the financial situation of the government.
A budget excess might be put to use for a purchase, debt repayment, or retirement planning. If a community has a budget surplus, it could utilize that money to make renovations, such reviving a run-down park or downtown. There is a budget imbalance when expenses go beyond revenues. Similar to when someone spends more than they make and pays interest on a credit card debt, deficits require borrowing money and paying interest. When spending and revenue are equal, a budget is balanced.
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______________ is the process of taking a creative idea and turning it into a useful product, service, or method of operation.
A. Interpretive thinking
B. Opening a window of opportunity
C. Imagination
D. Creativity
E. Innovation
Answer:
innovation
Explanation:
Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation. Thus, option 'E' is the correct option.
What is innovation?The creation of more efficient goods, procedures, services, technology, works of art, or business models, which innovators then make available to consumers, governments, and society as a whole, is a common way that innovation occurs. Innovation and invention are closely related, but they are not the same thing. While some innovations call for a new invention, not all do. Innovation is more likely to involve the practical application of an invention (i.e., new/improved ability) to make a significant impact on a market or society.
When a technical or scientific problem needs to be solved, technological innovation frequently takes the form of an engineering solution. Exnovation is the reverse of innovation. Innovation generally differs from creativity in that it places more emphasis on the application of creative ideas in an economic context.
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Please help now its culinary
In general, what are the two main parts of a recipe?
equipment required and ways to duplicate recipe
the ingredients list and directions for what to do with them
the cooking temperatures and alternate ingredients
suggested timing and range of temperatures
The two main parts of a recipe include the ingredients list and directions for what to do with them (Option 3).
What is a culinary recipe?A culinary recipe can be defined as a sharply controlled mix of food ingredients in a sequentially ordered way in order to develop a unique food that may stimulate the taste of such ingredient combination.
The development of recipes represents one of the most important hallmarks of a given society living in a region and or country because food ingredient changes regarding the region and also taste preferences are distinct and shape a given society.
Therefore, with this data, we can see that a culinary recipe is based on the list of food ingredients that are mixed in an ordered and sequential manner in order to stimulate the taste, which is a culinary issue that characterizes a society.
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what is consumer's Equilibrium?
Answer:
\( \huge{ \red{A} \green{N} \blue{S} \orange{W} \pink{E} \red{R} \blue{:-}}\)
When consumers make choices about the quantity of goods and services to consume, it is presumed that their objective is to maximize total utility. In maximizing total utility, the consumer faces a number of constraints, the most important of which are the consumer's income and the prices of the goods and services that the consumer wishes to consume. The consumer's effort to maximize total utility, subject to these constraints, is referred to as the consumer's problem. The solution to the consumer's problem, which entails decisions about how much the consumer will consume of a number of goods and services, is referred to as consumer equilibrium.
4. Which of the following statements is true about debits?
a) Debits show an increase in what a company owns or a decrease in what it owes.
b) A debit to an asset account shows a decrease.
c) A debit to a liability account shows an increase.
d) Debits show a decrease in what a company owns or an increase in what it owes.
Answer:
I believe the answer is d
Fatima works in a bakery and earns $120 per week. Fatima’s grandfather has given her $5,000. Fatima is going to use this money to start her own business. She is going to make cakes for special occasions such as birthdays, weddings, and religious
festivals.
1. Give an example for each of the four factors of production Fatima will use in her new business.
2. What is the ‘opportunity cost’ to Fatima of her decision to start her own business?
3. Is Fatima’s business meeting consumer ‘needs’ or consumer ‘wants’? Justify your answer.
1). The four factors that would be involved in Fatima's bakery business would be:
Land or the place where she would prepare and pack the cakes. Labor who would be involved in the production of the cakes. Capital that would be invested to incur the costs of the production. Entrepreneurship is the 'art of employing innovation and risk-taking in the business for making profits.'2). The opportunity cost of Fatima's decision to run her own bakery business would be her weekly earning of $120 per week as it is the cost of the most valuable forgone opportunity.
3). Fatima's business would assist the customers in meeting their 'wants' as she assists them in fulfilling their special and personalized demands for cakes for their various occasions like weddings, festivals, or birthdays and not for regular meals.
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In a brief statement, in your own words, please describe why you are an ideal candidate for this position. (retail store)
(lengthy but not too lengthy)
In a retail store, a candidate will be considered as an ideal who has good and effctive communication skills with customer handling.
What is the retail store?Retail stores are referred to as brick-and-mortar stores where there are commodities present in small quantities and where there is direct interaction with customers takes place.
Retail sales often require dealing with consumers and developing connections with them, therefore an ideal candidate should be personable and outgoing so that he can interact with the customers and their queries.
Retail sales entail talking with customers, answering their inquiries, and addressing any issues they may have. Because retail sales can be fast-paced and unpredictable, an ideal candidate should have strong problem-solving abilities.
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When discussing choosing a Cunningham for the jury, Atticus says, “When you analyze it, there was little risk. There’s no difference between one man who’s going to convict and another man who’s going to convict, is there? There’s a faint difference between a man who’s going to convict and a man who’s a little disturbed in his mind, isn’t there?
Atticus says they're pοοr grοwers, but want tο get by οn their οwn. Hοwever, they pay in crοps because that's all they can dο, If they need tο hire peοple.
Atticus has nοthing against the Cunninghams, but Scοut dοes n’t knοw any better. She said tο Calpurnia, “ he ain’t cοmpany, Cal, he’s just a Cunningham.
”She alsο says that he lοοks like he was raised οn fish fοοd. After Scοut explained why she was frenetic at Walter, he tοld her tο put herself in his shοes. That yοu nοway really knοw a persοn unless yοu see the wοrld in their pοint οf view.
The Finches are analοgοus tο the Cunninghams because bοth families are cοnsidered pοοr because οf the Great Depressiοn, indeed thοugh the Cunninghams have lοwer. The are different because οf sοcial class.
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Which are direct employers for people working in the architecture and construction career pathway? check all that apply.
The state government, the federal government, the local government, and a private enterprise are the direct employers of persons who follow a career path in architecture and construction.
What is Architecture and construction pathways?
A structure's development, construction, and maintenance, whether it be a skyscraper or a motorway, are all handled by the complex cluster of subjects known as architecture and construction. Designing a complete neighborhood and installing security and fire alarms in individual buildings are both jobs in this sector. This field includes the planning and construction of structures as well as the maintenance of machinery that, once installed, becomes an essential component of the building.
Examples- of such machinery include plumbing, heating, central air conditioning, electrical wiring, lighting equipment, elevators, and escalators.
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People who pursue a career in design and construction work for the state government, the federal government, the local authority, and a private business.
What is the construction pathways for architecture?Architecture and construction is a broad field of study that is concerned with the design, building, and maintenance of various kinds of structures, including skyscrapers and highways. Jobs in this industry include planning an entire neighborhood and setting up security and fire alarms in specific structures. This profession involves both the design and building of structures as well as the upkeep of equipment that, once installed, forms a crucial part of the building.Piping, heating, air conditioning, electrical wiring, special lighting, elevators, and escalators are a few examples of this type of machinery.
Complete question:Which are direct employers for people working in the architecture and construction career pathway? check all that apply:the state government,the federal government,the local government,a private company
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Explain the role audit committee plays in the company
Answer:
The primary purpose of a company's audit committee is to provide oversight of the financial reporting process, the audit process, the company's system of internal controls and compliance with laws and regulations. ... As such, CPAs report directly to the audit committee, not management.
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