The criterion that is not required for a person to be considered unemployed is "an individual should have been previously employed." The correct option is an individual should have been previously employed.
To be considered unemployed, a person needs to meet the following two main criteria:
1. An individual should not have a job but should be available for work: This means that the person is currently without a job and is able and willing to work if they find a suitable opportunity.
2. An individual should have been actively seeking work in the previous four weeks: This implies that the person has made efforts to find a job during the last month, such as applying for jobs, attending interviews, or contacting potential employers.
While browsing online employment openings can be a part of the job search process, it is not a mandatory criterion to be considered unemployed. The key factor is that the individual has made genuine efforts to find work in the previous four weeks.
In summary, being previously employed is not a requirement for a person to be classified as unemployed. The two main criteria are not having a job while being available for work and actively seeking work in the past month. The correct option is an individual should have been previously employed.
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at the end of the month, brown co.'s petty cash fund contains $4 in cash and receipts for postage of $50 and delivery expenses of $46. it started out with $100 in the fund at the beginning of the month. brown co.'s journal entry to replenish the fund would include which of the following? multiple choice question. cash is credited for $96. cash is debited for $96. petty cash is credited for $96. petty cash is debited for $96.
The journal entry to replenish Brown Co.'s petty cash fund at the end of the month would include the following: Petty cash is debited for $96.
The reason for this is because the petty cash fund started out with $100, and the remaining cash on hand at the end of the month is $4, indicating that $96 was spent on postage and delivery expenses.
Therefore, to bring the petty cash fund back to its original balance of $100, $96 needs to be reimbursed.
Petty cash is a current asset account that represents a small amount of cash kept on hand to cover minor expenses that are not worth writing a check for.
The journal entry to replenish the petty cash fund is important for maintaining accurate financial records&ensuring that all expenses are properly recorded&accounted for in the company's financial statements.
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Answer: Cash is credited for $96
Explanation:
Cash is credited, not debited
what should occur is the focus of . question 18 options: a) predictive analytics b) prescriptive analytics c) descriptive analytics d) forecasting analytics
a)Predictive analytics occur is the focus question 18 options.
There are 3 kinds of analytics that organizations use to pressure their selection-making; descriptive analytics, which informs us what has already occurred; predictive analytics, which displays us what could manifest, and eventually, prescriptive analytics, which tell us what needs to happen in the future.
which type of predictive analytics here
Predictive analytics attempts to quantify the impact of future choices in an effort to advocate feasible outcomes before the selections are really made.
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Which of the following can a grocery store change in the long run?
A. the number of shelves, employees, and parking spaces in the parking lot
B. the type of grocery carts, magazine racks, and produce displays
C. the store location, sign on the storefront, and advertising on the media
D. all of the above
Answer:
I believe all of the above
Explanation:
went with what came to mind if its wrong very sorry.
A grocery store change, in the long run, is all of the above. Thus the correct option is D.
What is the importance of change?In order to remain in competition an organization needs to work on bringing change and innovation in the process as well as a product that helps them in achieving higher revenue by following trends and preferences.
If an organization adopts change frequently it shows its flexibility to cope with the demands of the market in order to meet the level of satisfaction of customers.
A grocery store that is planning to grow may eventually affect the number of shelves, staff, and parking places in the lot which helps in better services to their customers.
The design of the fruit displays, magazine racks, and grocery trolleys as well as the store's location, storefront sign, and media advertising can all help to increase sales and draw in more customers.
Therefore, option D is appropriate.
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Select all the correct answers. which two sentences describe characteristics of a partnership? the owners are free from personal liability. the owners pool their resources to raise capital. the owners in a partnership are called members. the business benefits because owners can share responsibilities.
The two sentences that describe the characteristics of a partnership are:
the owners pool their resources to raise capital.
the business benefits because owners can share responsibilities.
A partnership is a group of two or more persons who work together to conduct business or engage in commerce. Each individual provides something—cash, goods, labor, or skills and shares in the company's gains and losses.
An official written document outlining the type of partnership and the specifics of the arrangement, signed by all parties, is typically used to confirm a business partnership. A business partnership typically starts with a verbal agreement between the business partners to form a new business or share an existing business
The five characteristics of partnership are:
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Which is the best description of a balance sheet? (1 point)
Answer: the balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. Balance sheets can be used with other important financial statements to conduct fundamental analysis or calculate financial ratios.
What do you think of the business meeting being held at the opening of the film? How foes it differ from business meetings in america? Discuss at least 2 differences
Answer:
Business meeting is held in virtual meeting rooms or in conference rooms.
Explanation:
Business meeting should not held at the opening of the because no issue can be discussed at that time properly. Business meeting should be held at proper time and at proper place where no interference of anyone happens during meeting. In America, business meeting held in a conference rooms or in virtual meeting rooms where people from other countries also take part in the meeting through online.
What is the key to successful investing?
- Make sure you know what your investing in (DYOR)
- Invest only money your willing to lose
- Learn from others and learn strategies
Jake becomes extremely bored with hauling blankets to market over and over, and he misses getting to herd and shear the sheep.
The drawback is that Jake is experiencing job dissatisfaction and is no longer finding fulfillment in his current role of hauling blankets to market. This may lead to decreased motivation and productivity, as well as potential long-term effects such as burnout or resignation.
In addition, if Jake is not happy with his job, he may become disengaged from his work and less invested in the success of the company. This can have negative impacts on team morale and overall organizational performance.
Furthermore, if Jake is highly skilled in herding and shearing sheep, his talents may be underutilized in his current role. This could result in lost opportunities for the company to leverage his strengths and improve their operations.
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Complete Question : Jake becomes extremely bored with hauling blankets to market over and over, and he misses getting to herd and shear the sheep. Mention the drawback in this scenario.
The Malaysian ringgit has depreciated sharply against the US Dollar and the Singapore Dollar over the past few months.
A. Give your analysis on the depreciation of the Ringgit based on the balance of payments data of Q4 2021 and Q1 2022.
B. Explain the implications on Malaysia's foreign trade.
Notes:
1. You can refer to Malaysia's balance of payments data from the www.bnm.gov.my page in the "Rates and Statistics" column under the heading "Monthly Highlights and Statistcis", especially table 3.6.
2. The answer is to use your knowledge of money inflows and outflows, and the demand and supply of foreign currency in determining the exchange rate.
A. To analyze the depreciation of the Ringgit against the US Dollar and the Singapore Dollar, we can look at the balance of payments data for Q4 2021 and Q1 2022. Specifically, we need to examine the capital and financial account, as well as the current account.
4. Investor Confidence: The depreciation of the currency may affect investor sentiment and confidence in Malaysia's economy. Foreign investors may view the depreciation negatively, leading to reduced foreign direct investment or portfolio inflows. It's important to note that the implications can vary depending on several factors, including the overall economic conditions, the competitiveness of Malaysian industries, and global market dynamics. A comprehensive analysis of the balance of payments data and other economic indicators would provide a more detailed understanding of the situation.
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WACC will increase if the firm raises more funds that can be
supported by retained earnings.
(a) True
(b) False
The statement "WACC will increase if the firm raises more funds that can be supported by retained earnings" is true. This is because the cost of equity is usually higher than the cost of debt. Moreover, when the company raises more funds, it would increase the risk of bankruptcy, which leads to an increase in the cost of debt.
WACC (weighted average cost of capital) is a metric that represents the average cost of capital for a company. WACC is computed by combining the cost of equity and the cost of debt for the company.
The cost of debt is usually less than the cost of equity because the company is obliged to pay its creditors back before it pays its shareholders. Therefore, the risk of investing in debt is lesser than that of investing in equity.
When a company raises more funds, the risk of default and bankruptcy increases. As a result, the cost of debt would increase, thus increasing the WACC. Thus, it is true that the WACC will increase if the firm raises more funds that can be supported by retained earnings.
In conclusion, it is safe to say that the firm should always make a judicious decision while raising funds. The company should have a perfect balance of funds raised from equity and retained earnings to reduce the overall WACC.
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why
is there need for JFET if BJT can be biased?
There is a need for Junction Field-Effect Transistors (JFETs) despite the biasing capability of Bipolar Junction Transistors (BJTs) due to the distinct advantages offered by JFETs in certain applications.
JFETs provide high input impedance, low noise operation, and can be used in situations where voltage amplification is required. They are particularly suitable for applications involving high-frequency signals, low-power consumption, and voltage-controlled operation.
While BJTs are widely used for amplification and switching applications, JFETs offer several advantages that make them desirable in specific scenarios. One key advantage is the high input impedance of JFETs, which allows them to be used in applications where a high impedance signal source needs to be connected to a low impedance load. This characteristic makes JFETs well-suited for amplifier stages where signal degradation and loading effects need to be minimized.
Another advantage of JFETs is their low noise operation. JFETs exhibit lower noise levels compared to BJTs, making them suitable for applications that require high signal fidelity, such as audio amplification and low-noise preamplifiers. The inherent simplicity of JFET circuits also contributes to their low noise performance.
Furthermore, JFETs are ideal for voltage-controlled operation. Unlike BJTs, which require a current to be injected into the base terminal for biasing, JFETs are voltage-controlled devices. This characteristic makes them suitable for applications where precise voltage control is necessary, such as in oscillators, voltage regulators, and certain types of amplifiers.
Additionally, JFETs are well-suited for high-frequency applications. Due to their intrinsic construction, JFETs exhibit excellent high-frequency response, making them suitable for radio frequency (RF) amplification, mixers, and other high-frequency circuits. Their low capacitance and parasitic effects enable JFETs to operate efficiently at high frequencies.
In summary, while BJTs provide biasing capabilities and are versatile devices, JFETs offer distinct advantages in terms of high input impedance, low noise operation, voltage-controlled operation, and suitability for high-frequency applications. These unique characteristics make JFETs indispensable in various electronic circuits and applications, where their specific advantages outweigh those offered by BJTs.
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Organizations can utilize web-based technologies to support proprietary, internal communications by implementing a(n) __________.
Organizations can utilize web-based technologies to support proprietary, internal communications by implementing a(n) intranet.
What are intranet?An intranet is a private network contained within an enterprise that is used to securely share company information and computing resources among employees. An intranet can also be used for working in groups and teleconferences. Intranets encourage communication within an organization.What are the advantages of an intranet?
Some potential benefits of using an intranet include the following:
improved communication, information sharing and collaboration within a business;simplified records management;streamlined tracking of requests;a testing environment for new ideas before they are implemented on a company's webpage;improved corporate culture that focuses on employees and encourages participation and interactionTo learn about intranet, refer: https://brainly.com/question/19339846?referrer=searchResults
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The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of?
The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of financial accounting.
This is further explained below.
What is financial accounting.?Generally, The branch of accounting known as financial accounting is concerned with the summarization, analysis, and reporting of financial transactions that are tied to a company or organization. This requires the creation of public financial statements that are accessible to the general public.
In conclusion, The objective of financial accounting is the creation of financial accounts for users who are not affiliated with the business. These users include creditors, unions, and suppliers, amongst others.
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The securities and exchange commission is responsible for ______. multiple choice question. preparing a prospectus regulating various stock exchanges ensuring companies are tax compliant listing stock transactions on the nyse
Answer:
regulating various stock exchanges
Explanation:
refer to the data below. the firm's labor supply curve a) such that it does not intersect the labor demand curve. b) upsloping. c) perfectly inelastic. d) perfectly elastic.
The firm's labor supply curve can be either upsloping, perfectly inelastic, or perfectly elastic, but it cannot be such that it does not intersect the labor demand curve.
The firm's labor supply curve represents the relationship between the quantity of labor the firm is willing to supply and the wage rate offered by the firm. It can take different shapes depending on various factors.
a) If the firm's labor supply curve does not intersect the labor demand curve, it would mean that the firm is not willing to supply any amount of labor at any wage rate. However, this scenario is unlikely as firms generally require labor to produce goods or services.
b) An upsloping labor supply curve implies that as the wage rate increases, the firm is willing to supply more labor. This is a typical relationship where individuals respond positively to higher wages and are motivated to work more.
c) A perfectly inelastic labor supply curve means that the firm is willing to supply a fixed quantity of labor regardless of the wage rate. In other words, the firm's labor supply does not change in response to changes in wages.
d) A perfectly elastic labor supply curve indicates that the firm can hire any quantity of labor at a given wage rate. In this case, the firm can easily attract and hire workers at any wage level.
In conclusion, the firm's labor supply curve can be upsloping, perfectly inelastic, or perfectly elastic. However, it cannot be such that it does not intersect the labor demand curve, as firms require labor to operate and produce goods or services.
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What is a small business according to the SBA?
It uses firm income (from $1 million including over $40 millions) and employment to define small businesses (from 100 to 1,500 employees).
SBA stands for what in a small business?Its U.S. Small Business Agency (SBA) supports Americans in establishing successful enterprises and fostering their growth. For instance, a roofing company is considered a small business by the SBA if their yearly sales are $16.5 million or less. A small business is described as a company that employs a small number of people, usually less than 500, and runs separately from bigger organisations. A sole proprietor or a small group of owners often run and own small firms, which are usually privately owned and operated.
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When U. S. Preident Donald Trump impoed tariff on imported teel, Charmaine wa working a a project manager for a U. S. -baed contruction company. Charmaine’ company had to pay more for the teel they imported from China, which decreaed the overall profit on ome of their bigget build. After a few month, her company decided to raie the price of material for all future build to offet thoe extra cot. In thi cae, who ended up paying for the tariff?
The Trump tariffs are a set of American tariffs enacted during the administration of Donald Trump in an effort to close the trade deficit by reorienting American trade policy away toward bilateral trade partnerships over multilateral free trade agreements.
What is called imported?Anything acquired outside of the country of origin is considered an import. Both imports and exports are a part of global trade. A country has a trade imbalance if the value of the its imported exceeds than value of its exports. An import is any product that is produced overseas and brought into another country. For instance, if a Belgian company manufactures chocolate and sells it in the US, that would be considered an import from the American point of view.
Why is import used?With the use of a single phrase, Java's import statement makes it simple to take all of the classes that are visible to a program and specify them under a package. Since the programmer does not have to write the complete class definition, it is quite advantageous. As a result, it makes the program easier to read. Additionally, imports broaden the range of options available to consumers and contribute to cheap pricing, increasing their purchasing power. Additionally, imports give American firms high-quality inputs that assist enterprises and their American workers establish or maintain high levels of competitiveness in both domestic and international marketplaces.
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4. determine the 4-day s ma for the io-consecutive-day closing prices for wal-mart stores inc. listed below.
What is the Simple Moving Average (SMA)?The simple moving average (SMA) is a calculation that is commonly used in technical analysis.
It takes a number of the most recent closing prices, adds them together, and then divides by the number of days in that period to provide a single average value. The formula to calculate the simple moving average is: MA = (P1 + P2 + P3 + ... + PN) / NWhere, P1, P2,..., PN are the closing prices of N periods.The given consecutive-day closing prices of Wal-Mart Stores Inc are:$98, $99, $98, $99, $97, $98, $97, $97, $100, $101To calculate the 4-day SMA, we will use the last four closing prices, which are:$97, $97, $100, $101Now, we will add these closing prices and divide the sum by 4 to get the 4-day SMA. Thus,4-day SMA = ( $97 + $97 + $100 + $101 ) / 4= $99.25, rounded to two decimal places Therefore, the 4-day SMA for the 10 consecutive day closing prices for Wal-Mart Stores Inc is $99.29.
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Peeta owns a bakery. She has already gathered and examined the checks, credit card receipts, sales slips, and other related evidence concerning specific transactions. She has also recorded each financial transaction in a journal and transferred that information into a ledger. What must Peeta do at the end of the accounting period
At the end of the accounting period, Peeta B) must prepare a trial balance.
After recording the transactions in a journal and transferring them to a ledger, the various balances must then be put into a trial balance to see if the debits of the business are equal to the credits as this would signify that the books of the company are balanced.
This first Trial balance is called the Unadjusted Trial balance which will then have to be tested to ensure that there are no errors in the financial statement and if there are, the journals and the balances will then be adjusted accordingly.
The Trial balance is therefore hugely important to be compiled at the end of the accounting period as it ensures balance in the books.
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In 2022, Bubba's Bait Shop reports net income of $550. The company began the year with 120 shares of $1 par common stock. On September 1st, 2022, the company repurchased 30 shares. What was the company's reported earnings per share in 2022? (rounded to nearest penny)
The company's reported earnings per share in 2022 can be calculated by dividing the total net income of the company by the weighted average number of common shares outstanding during the year.The company began the year with 120 shares of $1 par common stock.
On September 1st, 2022, the company repurchased 30 shares. Hence, the total number of common shares outstanding during the year can be calculated as follows:Common shares outstanding on January 1st, 2022 = 120Common shares outstanding from September 1st, 2022 to December 31st, 2022 = 120 - 30 = 90Weighted average number of common shares outstanding during the year = (120 x 8/12) + (90 x 4/12) = 80 + 30 = 110
Therefore, the earnings per share in 2022 can be calculated as follows:Earnings per share = Net income / Weighted average number of common shares outstandingEarnings per share = $550 / 110Earnings per share = $5.00 (rounded to nearest penny)Therefore, the company's reported earnings per share in 2022 is $5.00 (rounded to nearest penny).
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loan amortization and ear you want to buy a car, and a local bank will lend you $40,000. the loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. what will be the monthly loan payment? what will be the loan’s ear?
The monthly loan payment will be approximately $791.79, and the loan's Effective Annual Rate (EAR) will be approximately 8.31%.
To calculate the monthly loan payment, we can use the formula for loan amortization:
Loan Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)\(^n\)
where, n= number of months.
Given the information:
Loan Amount = $40,000
Nominal Interest Rate = 8% (0.08 per year)
Number of Months = 60
First, we need to convert the nominal interest rate to a monthly interest rate:
Monthly Interest Rate = Nominal Interest Rate / 12 = 0.08 / 12 = 0.00667
Substituting the values into the formula, we get:
Loan Payment = \((40,000 * 0.00667) / (1 - (1 + 0.00667)^(-60))\)
Using a financial calculator or spreadsheet, the monthly loan payment is approximately $791.79.
To calculate the Effective Annual Rate (EAR), we can use the formula:
EAR = (1 + Monthly Interest Rate)¹²⁻¹
Substituting the monthly interest rate:
EAR = (1 + 0.00667)¹²⁻¹
Using a calculator, the EAR is approximately 8.31%.
Therefore, the monthly loan payment will be approximately $791.79, and the loan's Effective Annual Rate (EAR) will be approximately 8.31%.
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Ralph is a purchase manager in a manufacturing business. He is about to buy raw materials to manufacture a new product. To begin, he thinks he must first consider the target market. What can Ralph do to carry out this task?
A. Visit trade shows and network with other producers
B. Refer to trade magazines and begin meeting up with top notch suppliers
C. Produce a small quantity, sell it, and assess the reactions of customers
D. Explore the demographics, such as age and locations, of his potential customers.
Answer:
d
Explanation:
took it
Answer:
D
Explanation:
correct on plato
Use the sum-of-year depreciation method to calculate the depreciation for the
following scenario. Company XYZ bought a new machine for $100,000 and
expects the machine will last for 10 years.
Answer:
20%
Explanation:
How to Calculate Straight Line Depreciation
The straight line calculation steps are:
Determine the cost of the asset.
Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount.
Determine the useful life of the asset.
Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount.
Straight Line Example
Company A purchases a machine for $100,000 with an estimated salvage value of $20,000 and a useful life of 5 years.
The straight line depreciation for the machine would be calculated as follows:
Cost of the asset: $100,000
Cost of the asset – Estimated salvage value: $100,000 – $20,000 = $80,000 total depreciable cost
Useful life of the asset: 5 years
Divide step (2) by step (3): $80,000 / 5 years = $16,000 annual depreciation amount
Therefore, Company A would depreciate the machine at the amount of $16,000 annually for 5 years.
The depreciation rate can also be calculated if the annual depreciation amount is known. The depreciation rate is the annual depreciation amount / total depreciable cost. In this case, the machine has a straight-line depreciation rate of $16,000 / $80,000 = 20%.
If the price of the share grows as the company grows, how does buying shares in a company benefit an investor?.
Answer:
An investor will be able to sell these shares for a higher price and make a profit.
Explanation:
This is because the investor can sell the share for a higher price as people see the company is doing well.
Jellico Sdn Bhd's projected operating income (based on sales of 450,000 units) for the coming
year is as follows:
Sales
Variable cost
Contribution margin
Fixed cost
Operating income
Total (RM)
11,700,000
8,190,000
3,510,000
2.254.200
1,255,800
Required:
al Compute the variable cost per unit, contribution margin per unit, contribution margin
ratio, break even in units and break even in RM.
The variable cost per unit for Jellico Sdn Bhd is RM18.20, the contribution margin per unit is RM7.80, the contribution margin ratio is 30%, the break-even point in units is 288,333 units, and the break-even point in RM is RM5,238,750.
To calculate the variable cost per unit, divide the total variable cost (RM8,190,000) by the number of units (450,000). Therefore, the variable cost per unit is RM18.20.
The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. In this case, it is RM26 (RM26 - RM18.20), resulting in a contribution margin per unit of RM7.80.
The contribution margin ratio is the contribution margin per unit divided by the selling price per unit, expressed as a percentage. In this case, it is 30% (RM7.80 / RM26).
To calculate the break-even point in units, divide the fixed cost (RM2,254,200) by the contribution margin per unit (RM7.80). This gives us the break-even point of approximately 288,333 units.
To calculate the break-even point in RM, multiply the break-even point in units (288,333) by the selling price per unit (RM26). This results in a break-even point of approximately RM5,238,750.
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Quizlet What is the term for international financial flows that originate with non-governmental entities, such as individuals, private charities, or private firms such as banks or multinational enterprises
The term for international financial flows that originate with non-governmental entities, such as individuals, private charities, or private firms such as banks or multinational enterprises is known as private capital flows.
Private capital flows refer to the transfer of funds between private entities in different countries. These funds are often used for investment purposes, such as investing in foreign businesses or purchasing assets in foreign countries.
Private capital flows can have significant impacts on both the source and recipient countries. For the source country, private capital flows can provide new investment opportunities and access to foreign markets. This can lead to economic growth, job creation, and increased competitiveness.
However, private capital flows can also pose risks, such as the potential for capital flight or sudden stops in investment.
For the recipient country, private capital flows can provide access to much-needed investment funds, which can be used for infrastructure projects, social programs, or economic development initiatives. However, private capital flows can also pose risks, such as the potential for currency volatility or debt crises.
Overall, private capital flows play an important role in the global economy, facilitating investment and economic growth. However, it is important for countries to carefully manage these flows to mitigate potential risks and maximize their benefits.
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What is advertising??
Answer:
the activity or profession of producing advertisements for commercial products or services.
Explanation:
Answer:
the activity or profession of producing advertisements for commercial products or services.
"movie audiences are receptive to advertising"
advertisements collectively.
"despite being instructed to take the signs down, he says he has no intention of removing the advertising"
Explanation:
dvertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.
HRM Asignment
a) Introduction, Background Information or Synopsis
– briefly introduce the primary focus of your document, then summarize your case, identifying only those factors which have a direct bearing on your analysis
b) Problem Analysis and Implications (Primary and Secondary Problems)
– what are the problems or issues (categorize as primary or secondary). Primary problems are root causes, while secondary problems are symptoms of the problems
– asking why a certain problem is occurring will get you to the root problem. Who is involved with each problem or issue? What is their role or responsibility with respect to the issue? How can they resolve it? How can they make it worse?
HRM (Human Resource Management) is the function that a company uses to manage its human resources, such as recruiting, hiring, developing, and retaining employees.
The main objective of this report is to identify and discuss the primary and secondary issues associated with HRM and evaluate the factors that contribute to it. It will be evaluated to see how the problems can be tackled and the implications on the performance of the organization. Problem Analysis and Implications (Primary and Secondary Problems)HRM is responsible for attracting, retaining, and developing employees who help to execute the company's goals. However, primary and secondary issues that have an impact on HRM and employee performance can arise. High absenteeism and staff turnover rates, as well as a lack of diversity and inclusion policies, which are a consequence of inadequate HRM policies.
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pine corporation provides $1,000 of services on account with terms 2/10, n/30. if the customer takes the discount and pays within 10 days, pine will receive
Pine corporation provides $1,000 of services on account with terms 2/10, n/30. if the customer takes the discount and pays within 10 days, pine will receive 980.
Services (business), an aggregation of a service engagement with one or more services acts between two or more service systems creating service outcomesService (economics), the non-material equivalent of a good in economics and marketing, within a service–product continuumService economy, which increases the integration of services in other sectors of the economyService sector, the traditional tertiary sector of the economy,
discounts, allowances, and lower base prices for products and services. Discounting is a financial technique that allows a debtor to provide a creditor the right to postpone payment. Delay discounting is the reduction in perceived value of receiving a good later than when it is initially desired.
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Ken Iwig is the president, founder, and majority owner of Olathe Medical Corporation, an emerging medical technology products company. Olathe is in dire need of additional capital to keep operating and to bring several promising products to final development, testing, and production. Ken, as owner of 51% of the outstanding stock, manages the company's operations. He places heavy emphasis on research and development and on long-term growth. The other principal stockholder is Barb Lowery who, as a nonemployee investor, owns 40% of the stock. Barb would like to deemphasize the R&D functions and emphasize the marketing function, to maximize short-run sales and profits from existing products. She believes this strategy would raise the market price of Olathe's stock.
All of Ken's personal capital and borrowing power is tied up in his 51% stock ownership. He knows that any offering of additional shares of stock will dilute his controlling interest because he won't be able to participate in such an issuance. But, Barb has money and would likely buy enough shares to gain control of Olathe. She then would dictate the company's future direction, even if it meant replacing Ken as president and CEO.
The company already has considerable debt. Raising additional debt will be costly, will adversely affect Olathe's credit rating, and will increase the company's reported losses due to the growth in interest expense. Barb and the other minority stockholders express opposition to the assumption of additional debt, fearing the company will be pushed to the brink of bankruptcy. Wanting to maintain his control and to preserve the direction of "his" company, Ken is doing everything to avoid a stock issuance. He is contemplating a large issuance of bonds, even if it means the bonds are issued with a high effective-interest rate.
Instructions:
(a) Who are the stakeholders in this situation?
(b) What are the ethical issues in this case?
(c) What would you do if you were Ken?
The stakeholders are Ken Iwig. The ethical issues include conflict of interest, the duty of care, transparency, and disclosure, and fair treatment of minority shareholders. Ken should prioritize the long-term interests of the company and stakeholders, evaluate options, and ensure fair treatment of minority shareholders. If consensus cannot be reached, selling his majority ownership stake may be considered.
(a) The stakeholders in this situation are Ken Iwig, the president, founder, and majority owner of Olathe Medical Corporation, who is in control of the company's operations and wants to maintain his control and preserve the direction of "his" company.
Barb Lowery, the other principal stockholder, wants to deemphasize the R&D functions and emphasize the marketing function, to maximize short-run sales and profits from existing products.
The minority stockholders are opposed to the assumption of additional debt and fear the company will be pushed to the brink of bankruptcy.
The company, Olathe Medical Corporation, is in dire need of additional capital to keep operating and to bring several promising products to final development, testing, and production.
(b) The ethical issues, in this case, are Conflict of interest: Ken's personal interests as the majority owner of Olathe Medical Corporation may conflict with the interests of other stakeholders, such as Barb and the minority stockholders.
Duty of care: Ken has a duty to act in the best interests of the company and its stakeholders, which may involve making difficult decisions, such as raising additional capital or pursuing a different direction for the company.
Transparency and disclosure: Ken should disclose the potential risks and benefits of different options to all stakeholders and allow them to make informed decisions.
Fair treatment of minority shareholders: Ken should ensure that the minority shareholders are treated fairly and not unduly prejudiced by any decisions he makes.
(c) If Ken were in this situation, he should consider the long-term interests of the company and its stakeholders, rather than his own personal interests as the majority owner.
He should evaluate the potential risks and benefits of different options, such as raising additional capital through a bond issuance or pursuing a different direction for the company.
He should also ensure that the minority shareholders are treated fairly and not unduly prejudiced by any decisions he makes. If he is unable to reach a consensus with the other stakeholders, he may need to consider selling his majority ownership stake in the company to a third party who can bring a different perspective and direction to the company.
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