In a small business that is seeking to innovate in its products and services as well as its internal processes, a manager is more likely to focus on the decisional role of entrepreneur and less likely to emphasize the informational roles of monitor and disseminator.
Small businesses must innovate to succeed. Businesses become more competitive as a result of innovation, which also improves their ability to exploit new business possibilities. Though it isn't necessary, innovation is frequently thought of as a formal and challenging process. A fancy phrase for improvement and creativity is innovation. For instance, you engage in innovation when you develop better packaging, locate a supplier who will give you a better price, or test out a fresh marketing concept.
Innovation won't just happen. You must invest time and energy into creative ventures. There are a few methods you can employ to guarantee that you make the time to create. You may allot yourself an hour per week to think and use your imagination.
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The marketing mix element that describes what a buyer exchanges with a seller in order to obtain a product is known as?
The marketing mix element that describes what a buyer exchanges with a seller in order to obtain a product is known as Globalization
The marketing mix is what?The term "marketing mix" refers to a group of procedures, or techniques, that a business use to sell its goods or services. Price, Product, Promotion, and Place are the 4Ps that make up a conventional marketing mix.
How does the global marketing mix work?An increasingly interdependent and integrated global economy is combined with the promotion and sale of goods and services through global marketing. It renders the businesses stateless and without boundaries.The 4Ps of marketing—product, pricing, place and promotion—present numerous difficulties when used in international marketing. We look at each P separately to try to identify any problems that may be associated with it.The product and service mix is one of the key components for today's global marketer. It is astounding how many different products and services are in demand in the age of globalization.To know more about Globalization visit:
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Windswept, incorporated, has 250 million shares of stock outstanding. its price-earnings ratio for 2021 is 15. what is the market price per share of stock?
The market price per share of stock is $45.00
What is the market price per share of stock?
The market price per share of stock for Windswept, incorporated can be determined based on its price-earnings ratio and the earnings per share since the price-earnings means the market price divided by earnings per share
price-earnings ratio= market price per share of stock/earnings per share
price-earnings ratio=15
market price per share of stock=unknown(assume is MP)
earnings per share=net income/stock outstanding
net income=$751 million
stock outstanding=250 million
earnings per share=$751 million/250 million
earnings per share=$3.00
15=MP/$3.00
MP=15*$3.00
MP=market price per share of stock=$45.00
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Full question:
Use the following information to answer this question.
Windswept, Inc. 2021 Income Statement
($ in millions)
Net sales $ 8,750
Cost of goods sold 7,300
Depreciation 305
Earnings before interest and taxes $ 1,145
Interest paid 72
Taxable income $ 1,073
Taxes 322
Net income $ 751
Windswept, Inc. 2016 and 2017 Balance Sheets
($ in millions)
2016 2017
Cash $ 150 $ 165
Accounts payable $ 1,190 $ 1,367
Accounts rec. 920 730
Long-term debt 950 1,128
Inventory 1,520 1,530 Common stock 3,210 2,900
Total $ 2,590 $ 2,425 Retained earnings 460 710
Net fixed assets 3,220 3,680
Total assets $ 5,810 $ 6,105 Total liab. & equity $ 5,810 $ 6,105
Windswept, Inc., has 250 million shares of stock outstanding. Its price-earnings ratio for 2021 is 15. What is the market price per share of stock?
Long margin account market value: $80,000 debit balance: $30,000 if the customer buys $80,000 of listed stocks and sells $20,000 of listed stocks on the same day, the customer must deposit?
Long margin account market value, The customer must deposit C. $20,000.
Long margin account market value = $80,000
debit balance = $30,000
customer buys = $80,000 of listed stocks
sells $20,000 of listed stocks on the same day
Hence, the customer must deposit C. $20,000.
Long margin way borrowing money from a brokerage company that allows you to carry out trades. when trading on margin, investors first deposit coins that then serves as collateral for the loan after which pay ongoing interest bills on the money they borrow.
Long not unusual stock on margin is a play that can be run across all time frames. however, it has a tendency to be run as a shorter-term change, as it involves paying hobby on money borrowed from your broker.
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Disclaimer:- your question is incomplete, please see below for the complete question.
Long Margin Account
Market Value: $80,000
Debit Balance: $30,000
If the customer buys $80,000 of listed stocks and sells $20,000 of listed stocks on the same day, the customer must deposit:
A. 0
B. $10,000
C. $20,000
D. $30,000
In your opinion, what has been the overall effect of capitalism (free market enterprise) on american democracy?
The two ideas conflict in numerous ways. Alternatively, a minor quarrel.
As a result, democracy has frequently suffered as free market capitalism has grown throughout history. Free market principles have decreased while collective Democratic values have increased.
An economic system called free market capitalism recognizes that some people will succeed and others won't. Bad ideas will be ignored and dismissed, while those with creativity and business savvy will be recognized.
How is the American democratic republic characterized?
The American democratic republic is characterized by its people coming together to address shared issues while reserving the right to private property and notions of liberty.
The New Deal is typically interpreted as a retreat from the free market and an expansion of American democracy as a whole. Right now, robust collective Democracy and free market capitalism are engaged in conflict. Which idea will win will be determined only with time.
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As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether.
As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether "shareholder goals are truly being achieved by managers in the long run".
What is agency theory?The important connections between principals and their relative agents are explained by the idea of agency theory. The principal, in the most basic sense, is someone who heavily relies on an agent to carry out specified financial decisions and transactions with potentially variable results.
There may be a variety of conflicts or disagreements due to the principal's reliance on the agent to make the best choice. Such links are explored in agency theory.
In terms of business, the principal is regarded as a shareholder, but the agent is seen as an executive of the company. Despite appearances, there is a close relationship between firm management and shareholders. The positions of each of them are significantly impacted by the other's activities.
The "agency dilemma" or "agency problem" are other names for agency theory.
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Organizations use ___________________ hold to preserve all forms of relevant information when litigation is reasonably anticipated.
Legal hold is a procedure used during data capture to preserve all relevant information in its various forms when litigation is reasonably anticipated.
What is litigation?Bringing a matter before a court of law is known as litigation. In the event that the parties to a disagreement are unable to come to an amicable resolution, they will each present their respective arguments to the court for decision. It is a general term that refers to a drawn-out and occasionally challenging process. The steps in the litigation procedure will be broken down in this article. The standing orders of judges and the regional regulations of each court serve as supplements to these. In the event that a dispute cannot be resolved amicably, the parties will each present their separate cases to the court for judgement.
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A construction company has 12 workers who are paid minimum wage. the company wants to reduce costs because there is less work. which action is an available and effective option from the perspective of the business? have the workers work more quickly hire workers who are not as skilled reduce the amount workers are paid select several workers to be laid off
If a construction company has 12 workers who are paid minimum wage. and the company wants to reduce costs because there is less work. The action is an available and effective option from the perspective of the business is: Select several workers to be laid off.
What is cost reduction?Cost reduction can be defined as the process of cutting down expenses so as to save more money and this tend to occur when expenses is higher than revenue.
To reduce cost the best option is for the company to select or choose several workers to be laid off.
Therefore the action is an available and effective option from the perspective of the business is: Select several workers to be laid off.
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Answer: Select several workers to be laid off.
Explanation: Took the test, got it right.
What are some financial intermediaries that are not formally organized or regulated as investment companies but serve similar functions?
Financial intermediaries like commingled funds, hedge funds, and real estate investment trusts carry out comparable tasks even though they are not formally set up or subject to the same regulations as investment companies.
A commercial bank, investment bank, mutual fund, or pension fund are examples of organizations that serve as the middleman between two parties in a financial transaction. Consumers as a whole gain from financial intermediaries' safety, liquidity, and economies of scale in the banking and asset management industries. Disintermediation is significantly less of a concern in other areas of finance, such as banking and insurance, even though it does threaten to abolish the financial intermediary in other areas, such as investing.
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placed an order for office supplies costing $2,000. supplier intends to deliver later in the month. purchased equipment that cost $30,000; paid $10,000 cash and signed a promissory note to pay $20,000 in one month. negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company’s checking account. hired a new finance manager on the last day of the month. received an investment of $10,000 cash from the company’s owners in exchange for issuing common shares. supplies [ordered in (a)] were received, along with a bill for $2,000.
The indication of the amount, accounts, and directions of effects of the transaction are given below for all the transactions on the radio station's accounting equation which include paying $10,000 cash and signing a promissory note to pay $20,000 in one month.
The accounts along with the amount and the direction of effect of the transactions is as follows:
No journal entry requiredDr: Equipment $30,00 Cr: Cash $10,000 & Note Payable (short term) $20,000Dr: Cash $5,000 Cr: Note Payable (short-term) $5,000No journal entry requiredDr: Cash $10,000 Cr: Contributed Capital $10,000Dr: Supplies $2,000 Cr: Accounts Payable $2,000Hence, the amount, accounts, and directions of the effects of the transaction are given above.
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a perfectly market is one in which well-informed, price-taking buyers and sellers easily trade a standardized good or service.
A perfect market is one in which well-informed, charge-taking buyers and dealers easily trade a standardized proper or carrier or which any units of it have the identical capabilities and are interchangeable. bear in mind a market this is in equilibrium.
A good is a tangible or physical product that a person will buy, tangible which means something you may contact, and service is while you pay for talent. A carrier is some thing intangible, which cannot be bodily touched or stored.
consumers and sellers are fee-takers. this option follows from the assumption of an identical appropriate and many customers and dealers so no customer or supplier can influence the fee. No barriers to entry, so in the lengthy-run firms can freely input or exit the market on every occasion corporations are figuring out profits or losses.
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coo, scott lawton, discusses barcelona’s philosophy on allowing restaurant managers to make their own decisions. they hire and train managers that they believe have the "creativity and brain power" to be successful. scott is performing a(n
Scott Lawton discusses Barcelona's philosophy of allowing restaurant managers to make their own decisions. they hire and train managers that they believe have the "creativity and brain power" to be successful. Scott is performing a(n) Scott is performing an interpersonal role.
This is further explained below.
What is an interpersonal role.?Generally, In this instance, Scott is taking on the role of a leader, and he is selecting competent managers and then training them to ensure that they do their jobs in the most effective way possible.
Therefore, we might say that he is playing an interpersonal role.
In conclusion, The connections that a manager has to have with other people are referred to as their interpersonal roles. Figurehead, leader, and liaison are the three different jobs that fall under this category.
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inaccurate can lead to excess and/or shortages throughout the organization and the supply chain.
Inaccurate information can lead to excess or shortage throughout the organization and the supply chain as minor fluctuations in forecasting can results in shortage or excess inventory for the distributors, manufacturers and suppliers.
Inventory should not be excess and not have shortage too because excess creates cost for the organization such as cost of storing, cost of carrying whereas shortage cannot fulfil the demand of the customers which results in decrease in company's goodwill.
Therefore supply chain management should be adequate which works effectively and efficiently.
In the earlier times, people cannot predict the correct information which results in fluctuations but in today's time with the help of technology, internet accurate information can be collected and communicated to the respective users.
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Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is.
If a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is: 1.6 bushels of squash.
Opportunity costUsing this formula
Opportunity cost= bushels of squash/bushels of tomatoes
Let plug in the formula
Opportunity cost=8/5
Opportunity cost=1.6 bushels of squash
Therefore If a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is: 1.6 bushels of squash.
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Why are systems for collaboration and social business so important, and what technologies do they use?
Systems for collaboration and social business is important for globalization. Collaboration and Social business enhance the innovation or the productivity of the business.
It also enhances the quality as well as the customer service.
Technologies which are used by the systems for collaboration and social business include, email or wikis or the virtual meetings.
Virtual worlds, cyberlockers, collab platforms, MS sharepoint and social networking sites are also included in the technologies which are used by the systems.
Social business is a business which is aimed at addressing a social cause. The investments which are made by the investors is entirely with a vision of contributing to the social welfare only and not for the profit entirely.
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What+is+the+current+value+of+a+zero-coupon+bond+that+pays+a+face+value+of+$1,000+at+maturity+in+11+years+if+the+appropriate+discount+rate+is+12%
Current Value of Zero Coupon bond is $287.47.
Maturity amount =$1000
Number of Years to maturity =11 years
Discounting rate =12% Current Value of Zero Coupon Bond = Maturity amount × Present value factor at 11 years at 12%
Present value factor at 11 years at 12% =0.28747
Current Value of Zero Coupon bond =$1000 × 0.28747 =$287.47
Current Value is a method of accounting primarily based on the value of changing property on the costs that would be paid now, rather than at the charges they had been at first bought for contemporary value accounting can yield outcomes which might be materially different from traditional accounting based totally on historical fees.
The fair fee of the inventory is a subjective time period calculated the usage of the current financial statements, marketplace position, and feasible increase fee from a set of metrics. In comparison, the market fee is the cutting-edge percentage price at which the inventory or asset is traded.
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most managers are engaged in passive scanning; however, they fail to turn their scanning activities into meaningful organizational . dynamism learning inertia scale structures
Most managers are engaged in passive scanning; however, they fail to turn their scanning activities into meaningful organizational Learning.
A successful training program will have significant advantages. Alternately, ineffective training may work against the objectives of the company. Training frequently fail in businesses, regardless of the size of the organization, for a number of reasons.
The following are the most common barriers to Organizational learning & training program:
1. Program Focus vs Organizational Focus- Employee focus is on completing the program or project, not on organizational development.
2. Limited resource- Many companies reduce their training and development budgets when the economy is bad.
3. Resistance to change- People who have been used to a certain method of operating for a long time tend to avoid trying something new. They do not wish to adopt new skills or procedures.
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caleb is not a professional gambler, but he does like to play slot machines and purchase lottery tickets from time to time. during the year, he won $2,000 while playing slots at lucky casino. caleb kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings, his losses at the casino totaled $2,350. he also has records showing he spent an additional $200 for lottery tickets without winning anything. if caleb itemizes his deductions, how much can he claim for gambling losses on schedule a, itemized deductions?
If he won $2,000 while playing slots at lucky casino and kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings. The amount he can claim for gambling losses on schedule a, itemized deductions is: $2,000.
Itemized deductionA person can tend to deduct their gambling losses when they itemize their deductions on Schedule A and as well kept a record of their winnings and losses.
Since caleb kept all record of his winnings and losses which in turn means that the amount of losses that can be deducted should not be higher than the amount of gambling winning he reported.
This means that caleb yearly losses will be deductible only up to the amount of his winnings which is $2,000.
Therefore If he won $2,000 while playing slots at lucky casino and kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings. The amount he can claim for gambling losses on schedule a, itemized deductions is: $2,000.
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classify each cost as being either variable or fixed with respect to the number of units produced and sold. also classify each cost as either a period or a product cost.
Linearly correlated to production level is the variation in variable costs. However, variable costs are constant across when expressed on a per-unit basis.
The effort to categorize costs as constant or variable is to be able to control costs, but he can still think of this fixed cost on a per-unit basis. Revenue per unit / (Variable costs per unit / Fixed costs).
The amount of products produced as well as other factors affect unit costs. Regardless of the manufacturing or sales level, fixed costs still exist. Costs known as "variables" are expenses that alter as a company's output of a good or service changes.
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100 pts please help me :(
Give your opinion about college loan forgiveness plan recently announced by President Biden? Written opinion MUST BE your original thought (not copied/plagiarized).
The college loan forgiveness plan that was recently announced by President Biden was a good plan that will help to alleviate those who are unable to repay their loans.
What is a college loan forgiveness plan?This refers to an additional features added to a loan repayment to help those who are less privileged. The college loan forgiveness plan is only attributed to the College loan which were used to pay school fee, hostel fee and other expenses during the course of learning.
In United States, the current students and borrowers who have federally held undergraduate, graduate that were distributed on or before June 30 are eligible for the forgiveness plan.
In order to qualify for Biden's student loan forgiveness plan, borrowers must earn under $125,000 in annual income or $250,000 if they are married. Therefore, the college loan forgiveness plan that was recently announced by President Biden was a good plan that will help to alleviate those who are unable to repay their loans.
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The competitive dimension that deals with getting the product to the customer when promised is?
The competitive dimension that deals with getting the product to the customer when promised are delivery reliability.
What are the dimensions of competitive advantage?In benefit of industry, the dimension of competitive advantage is more straightforward which comprises of cost, adaptability, delivery, and quality. Competitive advantage must be continually upgraded in arrange to the bargaining value of company can be sustainable , it is commonly called economical competition advantage.
The competitive dimensions of operations are cost, item quality and reliability, conveyance speed, delivery reliability, adapting with request alter, adaptability, and unused item presentation speed.
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In alphabetical filing, which name would appear first?
a. pipeline coastal group
b. pip pipes and plumbing services
c. pipe and drains co.
d. pipe fitters & plumbers services
In alphabetical filing, b. pip pipes and plumbing services
A service is an " act or use for which a patron, company, or government is inclined to pay." Examples consist of work carried out by barbers, medical doctors, lawyers, mechanics, banks, insurance groups, and so on. Public services are those that society as a whole can pay for.
Offerings are intangible monetary sports that require private interaction between the patron and the provider provider on the time of transport of the offerings. services need not contain any form of production or sale of products and are in particular supplied so one can satisfy individuals' wishes.
Services are varied in 3 agencies; business offerings, social services and personal services.
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Many company employees work from home on a full-time basis. what technology do they commonly use to communicate securely with the organization's network?
Those who do get technology with mild-to-moderate COVID-19 will likely remain infectious no longer than 10 days after symptoms begin. Individuals with severe-to-critical illness stemming from a COVID infection likely aren't infectious 20 days after symptoms first began.
Technology is the application of scientific knowledge to the practical aims of human life or, as it is sometimes phrased, to the change and manipulation of the human environment.7 days.
The definition of technology is the application of scientific knowledge for practical purposes or applications. The technology uses scientific principles and applies them to change the environment in which humans live. Technology can also use scientific principles to advance industry or other human constructions.
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Over the past 30 years technological advances have reduced the cost of computer chips. how do you think this hass affected the market for omputers?
A product's demand is influenced by the cost of its alternatives and complements.
Demand for a product and the cost of an alternative directly correlate. An inverse relationship exists between a product's demand and the cost of its replacement.
In economics, the relationship between the quantity of a good or service that producers want to sell at different prices and the quantity that consumers want to buy is known as supply and demand.
It serves as the primary model for determining prices in economic theory. The interaction of supply and demand in a market determines the price of a good.
The cost of manufacturing computer chips will decrease if chips are less expensive. Both the supply of computers and the number of computers purchased will therefore increase.
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project x has an initial cost of $20,000 and a cash inflow of $25,000 in year 3. project y costs $40,700 and has cash flows of $12,000, $25,000, and $10,000 in years 1 to 3, respectively. the discount rate is 6 percent and the projects are mutually exclusive. based on the individual project's irrs you should accept project ; based on npv you should accept project ; the final decision should be to accept project . multiple choice y; y; y y; x; x x; y; y x; x; x y; x: y
Project X has a $20,000 start-up cost and a $25,000 cash inflow in year 3. Project Y has a $40,700 cost and generates cash flows of $12,000, $25,000, and $10,000 over the course of its first three years. The projects are mutually exclusive, and the discount rate is 6%. You should approve the project in the end based on the irrs and npv of each individual project as well as your own assessment of those factors. X;Y:Y.
Start-up costs are the costs a business spent or incurred to establish an active trade or business, or to research establishing or acquiring an active trade or business. Start-up costs are sums paid or expended in connection with a current profitable activity that is intended to generate money prior to the activity becoming a fully operational trade or business. Equipment, incorporation fees, insurance, wages, and taxes are just a few of the startup costs. Although startup costs will differ depending on your business's industry and type, an expense for one firm might not be applicable to another. It helps you effectively launch your firm and maintain profitability after your doors are open to understand your expenses and how you will manage them.
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labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
The reason unemployment tend to change when the level of output changes is because: B) Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
What is an unemployment rate?An unemployment rate can be defined as a measure or percentage of the total labor force in a country (economy), who are unemployed but are actively seeking to be gainfully employed by the employers of labor.
The four factors of production.In Economics, there are four (4) factors of production and these include the following:
LandCapital resourcesEntrepreneurshipLaborIn conclusion, the reason unemployment usually change when the level of output (production) changes is simply because labor is considered as an input in the production process, and if output falls, employers would certainly need only fewer workers (employees) to make it, so the level of employment falls.
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Complete Question:
Why does unemployment tend to change when the level of output changes?
A)Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output.
B)Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
C)When output rises, persons are more interested in buying, and will work more to earn the income to buy things.
D)Persons face the option of buying or working, so that when they do more of one, the other necessarily falls.
E)When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment.
the managers of a car-detailing shop have decided to utilize the hawthorne effect to increase productivity, which means using cameras to film employees at work in order to isolate the parts of a job.
Answer: False
Explanation:
The change in the behaviour of participants when they are aware that they are being observed is called Hawthorne effect. It can be defined as increase in output in response to being watched.
The term emerged with Hawthorne studies that tested the impact of various working condition variables on the productivity of the employees. Although experts do not believe that there was any Hawthorne effect in Hawthorne studies.
Hawthornian studies began around 1924 at the western Electric plant in Illinois, Chicago.
According to mcclelland, the extent to which people have strong desires to perform challenging tasks and to meet personal standards of excellence is known as _____.
According to McClelland, the extent to which people have strong desires to perform challenging tasks and to meet personal standards of excellence is known as the need for achievement. According to McClelland's Human Motivation Theory, each person is driven by one of three needs: the need for power, affiliation, or achievement.
We acquire these motivators through our culture and life experiences; they are not inherently present in us. Achievers enjoy finding solutions and achievement objectives. Need theory, commonly referred to as the "Three Wants Theory," was put out by psychologist David McClelland as a motivational model that aims to explain how people's actions in a managerial setting.
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drag the items to classify each event as movement along the demand curve or a demand curve shift. the good is fertilizer for flowering plants.
Movement Along Demand Curve: The fertilizer becomes cheaper; the fertilizer becomes more expensive.
Factors That cause shift in demand curve: Chicken manure, a substitute for fertilizer, becomes more expensive, Roses become cheaper.
A demand curve is a graphical depiction of the correlation between commodity and their price, and the way the graph alters as their values change.
Movement along the Demand Curve is caused by commodity price fluctuations. This has an additional impact on the quantity demanded. All other variables remain static. In this case, the graph keeps moving along the Y-axis whereas the price is projected against it. The other axis, moreover, stays unchanged. So, in this scenario, a significantly raise in price lessens Demand, while a decline in price increases Demand.
A shift in the demand curve takes place if any other factor besides of price fluctuate. It may be owing to the quantity, income level, or a variety of other variables underlying the Demand Curve. Also, the price can alter as a result of this. This causes a shift to the left or right in the Demand Curve.
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factors that affect the weighted average cost of capital include all of the following except: market interest rates. the firm's debt/equity mix. the firm's business risk. market risk aversion. the firm's income tax rate.
When the Fed hikes interest rates, the risk-free rate immediately increases, which raises the company's WACC. Other external factors that can affect WACC include corporate tax rates, economic conditions, and market conditions.
What is tax rates?An individual or business gets taxed at a certain percentage, which is called a tax rate. The United States employs a progressive tax rate system, where the amount of tax levied rises as taxable income for an individual or company increases. This system is used by both the federal government and several states. The amount of money collected from taxpayers with higher incomes is larger when there is a progressive tax rate.
An individual or business gets taxed at a certain percentage, which is called a tax rate.
In the United States, taxes are levied at a progressive rate, which means that the more money you earn, the higher the tax rate will be.
Due to the marginal tax rate structure used in the United States, taxpayers actually pay a lower effective tax rate.
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the inverse demand function of a group of consumers for a given type of widgets is given by the following expression: π
The inverse demand function of a group of consumers for a given type of widgets is given by the following expression:
[tex]\pi=-10q+2000[/tex]
What is meant by the inverse demand function?
Inverse demand functions is the basis of strategic pricing. However, to calculate a profit- or sales-optimal price, the inverse demand function must be combined with the sales and profit function. As the inverse demand function of a market is often not known in practice. It is also one of the qualitative methods such as expert estimates.
In other words, an inverse demand function can be described by the equation:
x = a + b * p,
where a represents the prohibitive price, that is, the price at which the sales quantity is zero.
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The inverse demand function of a group of consumers for a given type of widgets is π=− 10 q+ 2000 [$/unit].
What is inverse demand function?The inverse demand function, or x = x, in pricing theory, describes the functional relationship between a price p and the amount that can be sold at this price (p).
The opposite of a demand function is a demand function's inverse.
The demand function that appears in the renowned Marshallian Scissors diagram is the inverse demand function.
Because the independent variable is plotted on the y-axis and the dependent variable is plotted on the x-axis by economists, the function has this form.
Price is a function of quantity sought in the inverted demand curve.
Therefore, demand is represented by a horizontal axis and price is represented by a vertical axis.
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