More than 50 percent of business owners started their own business in order to earn large sums of money. This statement is FALSE.
What is Small Business Management?
The coordination of personnel and processes is referred to as small-business management. Small business management is different from that of large firms, whose management is frequently compelled to concentrate on raising shareholder value and stock prices. The way your firm is run and how you fit into that model depend on how you define business management. When a small business first starts, the proprietor frequently does all or the majority of the work. For instance, a novice house painter may estimate, manage the marketing, paint, and maintain the books before finally employing subcontractors and later staff. Small-enterprise management at this stage involves preparing the business for expansion, which may entail employing and managing workers as well as contractors like an accountant, webmaster, or lawyer.
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4. what possible solutions to this dispute might emerge from dialogue between suncal and its stakeholders?
The possible solutions which might emerge from dispute between SunCal and its stakeholders would be, possibly build condos on a large tract of land, and not allow them to damage integrity or views of the park.
SunCal is a real estate broker that would like to develop condos on landing near Disneyland. So the Walt Disney Company is against this development. The company did not want visitors to notice the real world around them while visiting a fantasyland resort, Disneyland.
So the stakeholders who oppose the SunCal development activity have the power in their hands in order to block the developer’s plans through a lawsuit.
Hence, the possible solutions which might emerge from this dispute would be to make housing primarily for Disney employees.
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In _____________, you accompany users to observe how they use a product or service in a real-life, day-to-day setting.
In Shadowing, you accompany users to observe how they use a product or service in a real-life, day-to-day setting.
This is further explained below.
What is Shadowing?Generally, On-the-job learning, career growth, and leadership development are the three main focuses of the work shadowing program.
It requires collaborating with another worker, who could be engaged on a different task at the time, might have something to impart, etc.
In conclusion, When you participate in Shadowing, you go along with people to see how they use a product or service in a context that is more realistic and day-to-day.
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In _____________, you accompany users to observe how they use a product or service in a real-life, day-to-day setting.
a. In-depth interviews
b. Shadowing
c. Ethnography
d. Customer profiling
e. Crowdsourcing
f. None of the above
Taking a discount of 50% off followed by a discount of 50% off results in a total discount of _____. a. 25% b. 50% c. 75% d. 100% please select the best answer from the choices provided a b c d
The correct option is C (75%). Taking a discount of 50% off followed by a discount of 50% off results in a total discount of 75%.
Discount means the reduction from the regular list price. A fixed amount of percentage is deducted from it.
Lets take an example. If a goods cost 100. The discount of 50% is given and followed by 50% off.
100 * 50% = 50.
After discount the price is 50.
Now, 50% off on 50.
so, 50 * 50% = 25.
The final cost is 25.
The discount in total provided is 75%. Therefore option C is correct.
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Answer: Option "C" 75%
Explanation: The correct option is C (75%). Taking a discount of 50% off followed by a discount of 50% off results in a total discount of 75%.
management information systems allow managers to build upon an organization’s existing strengths to create
An organization gains a competitive advantage when it is able to do any one item, process, function, or other activity more effectively and or efficiently than other organizations operating within the same industry segment or, in certain situations, throughout the whole industry.
This is further explained below.
What is a competitive advantage?Generally, The advantageous position that a firm strives to achieve in order to be more lucrative than its competitors is what is known as a competitive advantage.
In the world of business, a competitive advantage is a quality that enables a company to achieve a higher level of success than its rivals.
In conclusion, When an organization is able to perform any one item, process, function, or other activity more effectively and or efficiently than other organizations operating within the same industry segment or, in certain circumstances, throughout the entire industry, that organization gains a competitive advantage.
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Complete Question
management information systems allow managers to build upon an organization’s existing strengths to create
elastic demands.
competitive advantages.
SWOT analyses.
barriers to entry.
on january 1, 2021, the general ledger of grand finale fireworks includes the following account balances: accounts debit credit cash $ 42,700 accounts receivable 44,500 supplies 7,500 equipment 64,000 accumulated depreciation $ 9,000 accounts payable 14,600 common stock, $1 par value 10,000 additional paid-in capital 80,000 retained earnings 45,100 totals $ 158,700 $ 158,700 during january 2021, the following transactions occur: january 2 issue an additional 2,000 shares of $1 par value common stock for $40,000. january 9 provide services to customers on account, $14,300. january 10 purchase additional supplies on account, $4,900. january 12 purchase 1,000 shares of treasury stock for $18 per share. january 15 pay cash on accounts payable, $16,500. january 21 provide services to customers for cash, $49,100. january 22 receive cash on accounts receivable, $16,600. january 29 declare a cash dividend of $0.30 per share to all shares outstanding on january 29. the dividend is payable on february 15. (hint: grand finale fireworks had 10,000 shares outstanding on january 1, 2021, and dividends are not paid on treasury stock.) january 30 resell 600 shares of treasury stock for $20 per share. january 31 pay cash for salaries during january, $42,000. exercise 10-17 part 3 unpaid utilities for the month of january are $6,200. supplies at the end of january total $5,100. depreciation on the equipment for the month of january is calculated using the straightline method. at the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,000. accrued income taxes at the end of january are $2,000. 3. prepare an adjusted trial balance as of january 31, 2021.
Retained Earnings Dividend, to close the dividend account , $3,300.
Total liabilities and shareholders equitiy, $184,700.
What are grand finale fireworks?
A rush of sparkling mines, sizzling comets, glittering horsetails, and a final send-off of crimson lace that fills the sky are unleashed in the Grand Finale after ten separate bursts of colorful breaks with glitter create anticipation.
The artillery shell firework is the most popular of all time, and with good reason. The patented shells made by Excalibur Fireworks feature a maximum 60g charge and are renowned for their high quality, brilliant colors, and enormous, thundering breaks. Since their introduction more than ten years ago, these artillery shells have become popular.
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4.+what+is+the+level+of+sales+dollars+needed+for+legrand+to+earn+operating+income+of+10%+of+sales?
Total Contribution margin 69360
/ Sales revenue 277440
Contribution margin ratio 25%
Let the required sales dollar be $X
0.10X = (X-0.75X-58140)
0.10X = (0.25X-58140)
58140 = 0.15X
X = 58140/0.15= $387600
Level of Sales Dollars = $387600
“Contribution margin suggests you the aggregate quantity of revenue to be had after variable costs to cover fixed costs and provide income to the organization,” Knight says. you would possibly think of this as the part of income that allows offsetting constant prices.
The contribution margin is computed because the promoting rate is in line with the unit, minus the variable price per unit. also known as dollar contribution in keeping with the unit, the degree indicates how a particular product contributes to the overall earnings of the business enterprise.
The contribution margin ratio shows the employer what percent of sales profits might be to be had to cowl fixed fees, like workplace area. The higher a business enterprise's contribution margin is, the extra money it has to be had to cover the enterprise's constant expenses or overhead.
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which of the elements of this scenario represent a flow from a firm to a household? this could be a flow of dollars, inputs, or outputs. check all that apply.the car wash caroline receiv
The element of the scenario that represents a flow from a firm to a household is the car wash Beth receives and the $425 a week Andrew makes working for Spotless Car Wash.
What do you mean by the element of the scenario?
Elements of a scenario describe facets of fundamental circumstances. This contains both objective (statistics, data, and facts) and subjective (estimates, rumors, and opinions) information. Participants in the scenario-building process gather and organize the data collaboratively, resulting in a shared comprehension of the situations. A sequence of triggers, system responses, waiting periods, guard realizations, and assertions make up a scenario. Three components make up a scenario: The overarching background or comprehensive story, the circumstances that let players show that they can complete the exercise's objectives, and the technical information required to faithfully reflect scenario conditions and occurrences (including the event's date and time).
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customers at nordstrom’s stores choose to pay a higher price for their purchases because they believe they are better made, and they think nordstrom is constantly improving to provide them with better quality service and meet their expectations. based on these two factors alone, nordstrom is likely to have .
Based on these two factors alone, Nordstrom is likely to have a total quality management program.
Management is the administration of an corporation, whether or not it's far a commercial enterprise, a non-income company, or a government body. It's far the artwork and technology of dealing with sources of the business.
A management is a distinct technique inclusive of planning, setting up, actuating and controlling, utilizing in every each technological know-how and artwork, and accompanied so as to accomplish pre-decided targets.
Business management is the coordination and enterprise of enterprise activities. Enterprise managers oversee operations and help personnel reach their pinnacle productiveness ranges. A commercial enterprise supervisor may also supervise or educate new employees, assist a business attain its operational and economic targets.
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You run a company that uses all of the latest fire protection features and services available. what type of insurance would be the most beneficial to your bottom line?
If you run a company that uses all of the latest fire protection features and services available. The type of insurance that would be the most beneficial to your bottom line is: Mutual fire insurance.
What is insurance?Insurance can be defined as a coverage that help to costs or expenses in case of unforeseen or unexpected circumstance such as fire, accident etc.
Mutual fire insurance is an insurance that help to cover costs or expenses incurred or cost of damaged as a result of fire.
Therefore If you run a company that uses all of the latest fire protection features and services available. The type of insurance that would be the most beneficial to your bottom line is: Mutual fire insurance.
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To help prevent theft by the sales clerk, at the end of each day, the manager proves the cash by comparing the cash in the drawer against the cash register's record of cash sales. true false
The statement that "To help prevent theft by the sales clerk, at the end of each day, the manager proves the cash by comparing the cash in the drawer against the cash register's record of cash sales." is True.
Sales Clerk responsibilities include answering client questions and assisting customers to finalize their purchases with us. in the end, you will work directly with clients to assist them to locate items and help them with their purchases.
A sales clerk is someone who largely remains on the cash sign-in and jewelry people up, while salespeople are extra centered on the consumer revel in and feature more freedom and autonomy to work with customers on a deal. sales clerks are without a doubt going to be less expensive, however, a sales clerk has a higher upside in phrases of revenue.
A cash sale is a commercial enterprise transaction wherein the purchaser pays for items or offerings at the time of the acquisition. In a cash sale, the fee is instant. How the customer pays does not remember, as long as there may be a transfer of monies. it could be cash: The client counts the bills and cash and palms it over to the seller.
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True or false: the investment in human capital for lawyers is subject to post-investment hold-up.
The statement is False. The investment in human capital for lawyers is subject to post-investment hold-up.
A purchase made for the purpose of earning money or appreciating in capital value is known as an investment. When a capital or asset's value rises over time, this is referred to as appreciation. When someone buys something as an investment, they don't intend to utilise it right now to make money; instead, they plan to use the capital later to do so. An investment always entails the expenditure of some capital today (capital being defined as time, effort, money, or an asset) in the expectation of a future return that is greater than the initial investment. Aiming to generate income and build capital value over time, investing has these two objectives in mind. Any strategy for producing future capital might be referred to as an investment.
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The curve that shows the relationship between the sales price and quantity sold is called the:__________
The curve that shows the relationship between the sales price and quantity sold is called the: demand curve.
The call for a demand curve is a graphical representation of the relationship between the price of an excellent or carrier and the quantity demanded for a given time frame. In a standard representation, the rate will seem on the left vertical axis, the amount demanded on the horizontal axis.
A demand curve is a graph that shows the amount demanded at every rate. every now and then the demand curve is likewise referred to as a demanding agenda because it is a graphical illustration of the call for schedules.
The demand curve can be a critical device to apply while corporations make pricing decisions. this is because the call for a curve can show the price point where the purchaser responsiveness drops, as well as the fee point that elicits the very best demand.
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in 1933, john maynard keynes, the father of demand-side economics, wrote to fdr that his new deal approach made him "the trustee for those in every country who seek to mend the evils of our condition by reasoned experiment within the framework of the existing social system."
New Deal Approach by the trustee for those in every country who seek to mend the evils of our condition by reasoned experiment within the framework of the existing social system. left - right - unregulated
John Maynard Keynes developed the demand-side economic theory. His goal was to advise politicians and economists on how to settle and avoid an economic catastrophe.
To end the economic recession or Great Depression, Keynes believed that businesses needed to raise output while consumers required to spend more money and buy more goods and services.
Demand-side economics, sometimes known as Keynesian economics, advocates for government intervention to influence output and demand. Demand-side economics holds that government expenditure and tax cuts increase demand, hence stimulating the economy.
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in the body of a cover message, you should . group of answer choices demonstrate your qualifications and show how they fit the targeted job repeat the information presented on your résumé emphasize writer benefits because hiring officers want to know what appeals to you about this particular company explain why you need a job
In the body of a cover message, you should demonstrate your qualifications and show how they fit the targeted job.
The prerequisites a candidate must have in order to meet the criteria and succeed in a particular role are known as qualifications. In your business or profession, you normally acquire qualifications through experience, education, and training.
Qualifications are still crucial, even if your job goals don't include becoming a high-flying lawyer or a life-saving doctor. A qualification shows prospective employers that you have a certain level of expertise in a particular subject, even though it may only seem like a piece of paper.
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what is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in year 1, $6,980 in year 3, and $2,750 in year 4? the discount rate is 12.5 percent. multiple choice $86.87 $270.16 $68.20 $249.65 $371.02
Net present value of the project is $86.87.
Net present value is the series of cash flows occurring in different times. It can be calculated as = Present value of all yearly cash inflows after implementation of discount factor - initial investment
Here, in this, the discount factor is = 1 / (1 + rate) ^ years
Here,
Rate is 12.5%
Year = 0, 1, 2, 3, 4
Discount Factor:
For Year 1 = 1 / 1.125^1 = 0.8889
For Year 2 = 1 / 1.125^2 = 0.7901
For Year 3 = 1 / 1.125^3 = 0.7023
For Year 4 = 1 / 1.125^4 = 0.6243
Now, we calculate the present values of all cash flows = Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4
Putting all the values together :
=) $1,280 × 0.8889 + $0 × 0.7901 + $6,980 × 0.7023 + $2,750 × 0.6243
=) $1,137.778 + $0 + $4,902.277 + $1,716.811
=) $7,756.87
Net present value will be
= $7,756.87 - $7,670
= $86.87
Therefore, the present value of the project is $86.87
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at the end of the month, a company received a bill for newspaper advertising services, $400. the bill will be paid in 10 days. how would the transaction be recorded today?multiple choice
The transaction is recorded today as a Debit advertising expense of $400, and credit accounts payable of $400.
Advertising and marketing price is a tax-deductible value. while you get hold of a bill for advertising and advertising, debit your advertising fee and credit your bills payable account. whilst you pay the bill, you may contrary the access and debit debts payable and credit rating coins.
A enterprise transaction is an economic event with a third birthday celebration that is recorded in a employer's accounting device. one of these transaction desires to be measurable in cash. commercial enterprise transactions are: buying insurance from an insurer. purchasing for the inventory from a dealer.
Transactions are as follows Paying a provider for services rendered or goods introduced. Paying a supplier with cash and a be aware with the cause to attain possession of a assets formerly owned with the aid of the seller.
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the name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest.
The phrase used to express the amount of a cash flow or sequence of cash flows or a series of cash flows, would increase over time when compounded at a specific rate of interest. is "Future Value"
What is Future Value?
Future value is the value of a current asset at some time in the future based on an anticipated rate of growth (FV). The future value is important to investors and financial planners because they use it to estimate how much an investment made now will be worth in the future. Knowing the future worth enables investors to choose wisely based on their anticipated needs. However, external economic factors that reduce an asset's value, such inflation, could harm the asset's potential value in the future.
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Although abels manufacturing has facilities in several countries, management decisions that have company-wide implications are made within the home country. Abels manufacturing would be described as a ________.
Although abels has manufacturing facilities in multiple countries, management decisions affecting the company as a whole are made in the home country. Abels manufacturing would be described as a global company.
A global corporation is a company that operates internationally but keeps management and other decision-making local to the home country. The term "global" denotes the entire world, yet a global corporation is not required to operate globally. It is a company that conducts business in at least one country other than its own. There are many categories depending on their vast size, wide range of products, technical developments, marketing techniques, and extensive worldwide network of activities.
Global firms have a network of subsidiaries spread across many different countries that they use to extend their marketing and production activities. Their objective is to labour across several international boundaries and earn income in numerous different national currencies.
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Gina induces hugh to enter into a contract for the purchase of a condominium about which gina knowingly misrepresents a number of material features. when hugh discovers the truth, he can:_________
In a condition where Gina induces Hugh to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features, Hugh can rescind from entering into the contract on the basis of fraud when he discovers about the truth of Gina's wrongful intentions.
What is the significance of a fraud?A fraud can be referred to or considered as a situation that arises when either of the parties to a contract is unaware of the wrongful intentions of the other party at the time of entering into the contract.
Therefore, the significance regarding a fraud has been aforementioned.
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When united airlines considered putting pilots in its boardroom and when northwest airlines provided their workers an employee ownership system, they were?
When northwest airlines provided their workers an employee ownership system, they were making action statements as part of their planning. A circumstance in which a company's employees also own all or a portion of the company: Employee ownership is one of the characteristics that many investors consider when evaluating a firm.
The employee stock ownership plan (ESOP), a highly tax-advantaged arrangement in which employees ownership shares through a trust maintained by the company, is the most popular type of employee ownership in the U.S. Employee-owned businesses frequently experience higher productivity, greater profitability, and higher revenue. As long as employees are motivated.
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The collection of all possible alternatives for a decision, even those the buyers would not consider and might not even be aware of, is referred to as the?
'The collection of all possible alternatives for a decision, even those the buyers would not consider and might not even be aware of, is referred to as the universal set.
A universal set is a collection of all objects in a particular context or theory. All other sets within this frame represent subsets of the universal set indicated by italicized capital U. The objects themselves are known as elements or members of U.
In mathematics, a universal set is the set of all elements (usually numbers) without element repetition. By convention, the universal set is denoted by the symbol U and sometimes by V or ξ. In this lesson, we use U to represent the universal set.
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identify nad explain ways the director of D&F limited could respond to increased competition from farms which now grow fruit instead of vegetable
The director of D&F restrained may want to reply to improved opposition from farms that now grow fruit rather than vegetable due to the fact The needs being happy with the aid of D&F Ltd are to deliver the majority of fruits and coffee for shops which then will sell that to mass clients.
A farm is a plot of land that is used to develop vegetation and raise livestock, On our farm, we boost sheep and promote their wool. The word farm is also used as a verb to mean to work land to develop crops or to elevate animals.
A farm is a place of land where farm animals (animals) are raised and vegetation (flora) is grown for use as food, fiber, and gas. Those who own paintings on the farm are known as farmers. A farm commonly has homes wherein devices along with tractors and supplies are saved.
Proprietors of farmland these days are varied organizations. We divide them into two predominant classes: those who farm their land (proprietor-operators) and those who do no longer (non-farming landowners). Non-farming landowners are made up of personal, institutional, and public landowners.
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financial statements that show a column for the current year and the prior year are known as financial statements.
Financial statements that show a column for the current year and the prior year are known as comparative financial statements.
Economic statements are written information that brings the commercial enterprise sports and the economic performance of a business enterprise. monetary statements are often audited by means of government agencies, accountants, companies, and so forth. to make certain accuracy and for tax, financing, or investing functions.
Economic statements are formal information about the financial activities and position of a business, character, or other entity. applicable economic facts are supplied in an established manner and in a form that is simple to apprehend.
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The country of gevalia exported products totaling $86 billion last year. during the same year, gevalia imported products valued at $43 billion. gevalia has a(n) ________.
The country of Gevarria exported products worth a total of $86 billion last year. same year, gevalia imported products valued at $43 billion. gevalia has trade surplus of $43 billion
Import and Export:
Imports and exports are instruments of foreign trade. Foreign trade in goods and services – including imports, exports, and foreign trade balances – is shown disaggregated into goods and services. Total imports, exports, and foreign trade balances are presented as summaries of goods and services.
Export refers to the sale of goods and services from the home country to a foreign country. Importing means purchasing a foreign product and importing it into the home country. It is also divided into two types
Directly
Indirect
Each country is endowed with specific resources, assets, and skills. For example, some countries are rich in natural resources such as petroleum products, timber, fertile soils, precious metals and minerals, while others are deficient in these resources.
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[explain how firms that compete in the four different market structures determine profitability. use specific examples from the simulations or the textbook to support your claims.]
Profitability is the degree of an enterprise's income relative to its costs. companies that might be greater efficient will recognize extra income as a percent of their expenses than a less-efficient organization, which needs to spend greater to generate the same earnings.
One manner to determine profitability is to calculate the ratio of profits to other financial metrics, consisting of sales, belongings, or equity. not unusual profitability measures consist of the internet earnings margin, which is the ratio of net earnings to income, and gross profit margin, that's the ratio of gross earnings to income.
The success of any commercial enterprise relies upon its potential to always earn earnings. profit equals a company's revenues minus costs. earning earnings is essential to a business due to the fact profitability affects whether or not a corporation can secure financing from a bank, entice investors to fund its operations, and develop its enterprise.
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Which term refers to a strategy for separating programs and running them in their own virtual space?
Hardware virtualization or platform virtualization refers to a strategy for separating programs and running them in their own virtual space.
Hardware virtualization is the virtualization of computers as complete hardware systems, sure logical abstractions of their componentry, or only the functionality required to run various running structures.
Does hardware virtualization enhance performance?
No, it decreases overall performance. It is always faster to run code natively. We do virtualization for safety reasons generally, however additionally reliability (fewer transferring elements in every digital gadget).
Is it safe to turn on hardware virtualization?
You will not enhance safety by disabling hardware virtualization. as it calls for such high privileges to apply in the first location, any malware this is capable of use it's far already able to bypass any restrictions you set.
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moran steel started the year with total assets of $210,000 and total liabilities of $95,000. during the year, the business recorded $200,000 in revenues, $110,000 in expenses, and dividends of $45,000. stockholders' equity at the end of the year was
Stockholders' equity at the end of the year was ($210,000-$95,000) + ($200,000-$110,000) - $45,000 = $160,000. After the analysis of the assets and liabilities equity is $160,000.
More about Stockholders' equity:
The value of assets still accessible to shareholders after all obligations have been satisfied is known as shareholders' equity, sometimes known as shareholders' or owners' equity. It can be computed as the sum of a company's shares and retained earnings less treasury shares or alternatively as the firm's total assets less total liabilities.
The concept of stockholders' equity is crucial for determining how much money a company has kept on hand. A negative stockholders' equity position is a reliable sign of approaching bankruptcy, especially when it's accompanied with a substantial debt liabilities.
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a customer who perceives high levels of worries that their choice of service provider may not meet with the approval of family or friends.
A customer who perceives high levels of psychological risk worries that their choice of service provider may not meet with the approval of family or friends. Thus the correct option is C.
What is a Customer?A customer is referred to as an individual who purchases the product. He may or may not be the consumer. A consumer is referred to as an end user of any product. He is the person who utilized or consumes the goods.
A hazard's potential to cause psychological harm is known as psychological risk. A customer who senses significant psychological risk is concerned that their choice of service provider might not be well-received by their family members or social circle.
Therefore, option C is appropriate.
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The complete question is Probably
A customer who perceives high levels of _________ worries about when and how she will be able to find, evaluate and select a service provider.
A)time and effort cost
B)performance risk
C)psychological risk
D)social cost
E)financial cost
Correct Answer:
Ellen+now+has+$125.+how+much+would+she+have+after+8+years+if+she+leaves+it+invested+at+8.5%?
She have after 8 years if she leaves it invested at 8.5 % is $ 240.08.
Future value = Present value × [tex](1 + r)^{n}[/tex]
Where,
Present Value = $125
r = Rate of interest per period = 8.5% or 0.085
n = Number of periods = 8
So, Future Value
= $125 × ([tex]1.085 ^{8}[/tex])
= $125 × 1.920604
= $ 240.08
An investment is an asset or object acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the cost of an asset over the years. when an man or woman purchases a terrific as an investment, the reason is not to eat the best but instead to use it in the future to create wealth.
An investment corporation is a employer or accept as true with engaged in the business of investing pooled capital into financial securities. Investment groups can be privately or publicly owned, and that they interact in the management, sale, and advertising and marketing of funding products to the general public.
Disclaimer:- your question is not in a correct format, please see below for the correct question format.
Q. Ellen now has+$125.How much would she have after 8 years if she leaves it invested at 8.5%?
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You want to set-up a scholarship fund at San Jose State University, which pays a student $5,000/year, indefinitely. Assuming a discount rate of 4.25%, how much would you need today?
The amount required to set-up the scholarship fund today is $117,647.06
What is a perpetuity?
Perpetuity is an investment option that pays the same cash inflow every indefinitely, in other words, the scholarship fund in this case, is a perpetuity since it would pay $5,000 per year forever
PV(amount that is required today)=annual cash flow/discount rate
annual cash flow=$5,000
discount rate=4.25%
PV=$5,000/4.25%
PV=$117,647.06
In essence, using the present value formula of a perpetuity above, the amount needed today is $117,647.06 in order to pay $5,000 per year indefinitely
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