Which would likely be the most crucial factor to take into account while opening a checking or share draft account?
the resiliency of the union or bank where you're opening an account.
What benefits are offered to you in exchange for opening an account?
the rate of interest. simple access to my money The transactions' ability to be tracked the future potential of applying for credit
How much interest is currently being paid on the money that is still in the account?
2,01% in a High Rate account and 1,90% at a Regular Rate
What are their certificates of deposit's (CDs) terms and interest rates?
The duration might range from 1 day to 2160 days.
6 months to 6 years: $500 minimum deposit; 0.60% APY to 2.35% APY; Goldman Sachs Bank USA.
BrioDirect offers rates between 0.05% and 2.05% APR for terms of 30 days to 5 years; a $500 opening deposit is required.
0.60% APY to 1.60% APY; no minimum deposit required; Capital One; 6 months to 5 years.
What costs are associated with using and maintaining the account?
the $4–$5 maintenance cost each month.
The charge for international withdrawals. (Each bank's policy varies)
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Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates a social cost of approximately $150 per battery. Please shift the appropriate curve or curves to reflect this social cost.
According to neoclassical economics, the social cost of a transaction is the sum of the private costs connected with it as well as the costs that consumers endure as a result of being exposed to it but not paying or being charged for it. It stands for the total of both internal and external costs.
Explain about the social cost?Social costs include both private costs and any additional costs to society that emerge from the production or consumption of a good or service.
Situations where the actors engaged develop a reciprocal relationship with the target of the damage lead to social costs. A and B are two agents who are in a relationship where "both parties produce the damage." Damage to A must be done in order to prevent damage to B. Both parties incur expenses.
The entire cost to society is the social cost. It comprises both internal and external expenses. An illustration of driving to work gasoline payment costs (personal cost) Costs associated with more traffic (external cost)
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Dave receives a salary of $200 a week plus a commission of 10% of his weekly sales. an equation y = m x b represents dave’s weekly earnings. the y-intercept is dave’s base salary. the slope of the line is his commission. write an equation representing dave’s weekly earnings. a. y = negative 0.1 x minus 200 b. y = 0.1 x minus 200 c. y = negative 0.1 x 200 d. y = 0.1 x 200
Weekly earnings, y = 0.1x + 200,
Slope = 0.1,
y-intercept = 200
Step-by-step explanation:
Given,
The original salary = $ 200,
Commission percentage on the sale = 10%,
If Dave sold x units,
Thus, the amount of commission for x units sale = 10% of x,= 0.1x
Then, the total earnings = commission for x units + original salary
⇒ y = 0.1x + 200,
∵ the slope of the line y = MX + c is m,
So, the slope = 0.1,
For y-intercept, x = 0,
⇒ y = 200
Thus, the y-intercept is 200.
Price, moreover known as earnings commission, is a fee given to personnel based on the profits they make. Create invoices without spending a dime with SumUp Invoices. The charge is often calculated as a percentage of the fee of a sale.
A income commission is the number of coins that a person gets based on their work. It typically pertains to an income function wherein the character earns a percentage of every sale they make. At times, they may earn this extra money further than their normal income or wages.
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three weeks ago, you purchased a june $47.50 put option on wiggins, incorporated, stock at an option price of $.60 per share. the market price of the stock three weeks ago was $47.20. today, the stock is selling at $48.10 per share. what is the intrinsic value of your put contract?
The intrinsic value of your put contract of the stock selling is zero.
A value determined using simplified assumptions is typically referred to as an asset's intrinsic value. For instance, the intrinsic value of an option is determined by the underlying instrument's present market value, but it disregards the time value of money and potential future variations. If an option is in the money, it is considered to have inherent value.
When not in the black, it has no intrinsic value. This metric is determined using an intricate financial model or an objective computation. The intrinsic value of an asset is distinct from its present market value. The model combines the stock's current per-share book value with its discounted residual income to determine the stock's intrinsic value.
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on january 15, nifty company sells merchandise on account to martinez associates for $5,000 with terms 3/10, n/30. on january 20, martinez returns merchandise worth $1,000 to nifty. on january 24, payment is received from martinez for the balance due. what is the amount of cash received assuming the discount is taken?
Nifty had received a $2,000 debt from Martinez. The $400 in goods was then returned to Nifty after 5 days. Martinez currently owes $1,600.
What is return?
The money gained or lost on an investment over time is referred to as a come back, also known as a financial return.
The nominal change in the dollar value of a investment placed above a white time can be used to express a return. The ratio of financial gain to investment can be used to calculate a return as a percentage. Returns can also be shown as net results (after costs, taxes, and inflation) or as gross returns, which only take the price change into account. Even a 401(k) investment is part of it. A exact meaning of return seems to be situational and dependent just on financial data input used to measure it, as prudent investors are aware.
When payment is made on the 24th, which falls within the 10-day discount period, Martinez is entitled to take 3% of the debt, which works out to $48 ($1,600 x 0.03).
Martinez pays $1,600 and receives $48 in cash, for a total of $1,552.
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allie's only source of income for the year is wages from a part-time job of $9,000. she is not married and has one dependent child. allie has no tax liability and she had no income tax withheld by her employer. what is the amount of allie's earned income credit?
The amount of Allie's earned income credit is $3,060 even though she has no tax liability and no withholdings.
She will receive a refund of $3,060 ($9,000 x .34) even though she has no tax liability and no withholdings.
The Earned Income Tax Credit (EITC) is a refundable tax credit for low-income families, but you must meet certain requirements.
A single mother with one child is eligible if she meets the following criteria:
must have at least one dollar in earned income (wages and salaries only)
must make less than $41,094 per year in investment income investment income must be less than $3,600 single filer
You and your child must have lived in the United States for at least six months.
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demmert manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $5,500; remodeling of offices, $22,100; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,100; addition of a security system to the manufacturing facility, $25,100. how should demmert account for each of these expenditures?
During a specific accounting period, a corporation keeps track of its daily spending in expense accounts.
These accounts are formed for each new period after existing for a predetermined amount of time, such as a month, quarter, or year.
The account for each of the expenditures will be as follows -
Annual maintenance on its equipment = $5,500 - Expensed ( This is a normal maintenance bill on equipment and can be entirely expensed in the year it occurs.)
Remodelling of offices = $22,100 - Capitalised and depreciated - ( This is a part of the transformation process and should be capitalised and depreciated accordingly.)
Rearrangement of the shipping and receiving area = $35,100 - Capitalised and depreciated (Since this is a rearrangement, it will increase efficiency, it should be capitalised and depreciated.)
Addition of a security system = $25,100 - Capitalised and depreciated ( Since this is an addition of an asset, it should be capitalised and depreciated.)
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product x: revenue $15.00 variable cost $2.50 product y: revenue $25.00 variable cost $10.00 total fixed costs $50,000 what is the operating income, assuming actual sales total 150,000 units, and the sales mix is two units of product x and one unit of product y?
Operating income is $1,950,000 if actual sales total 150,000 units, and the sales mix is two units of product x and one unit of product y.
Since the sales mix is 2 to 1 for X and Y respectively, product X has 2/3 of the sales and product Y has 1/3 of the sales.
Product X Product Y Total
Sales units 100,000 50,000 150,000
Revenue $1,500,000 $1,250,000 $2,750,000
Var. costs $250,000 $500,000 $750,000
Fixed costs= $50,000
Operating income = Revenue-Fixed costs-Var. costs
Operating income = $2,750,000- $50,000 - $750,000
Operating income = $1,950,000
When a firm manufactures more than one product, its percentage of sales is used to determine units sold based on the sales mix of each product.
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given: department a 8,000 sq. ft., department b 5,000 sq. ft., and department c 6,000 sq. ft. the percent of overhead expense applied to department c to the nearest whole percent will be:
The percent of overhead expense applied to department c to the nearest whole percent is 32%.
The percent of overhead expense of department C is the proportion or the share of department C;s occupation compared to total.
Total area = department A + department B + department C
= 8,000 + 5,000 + 6,000
= 19,000 square feet
Percent of overhead expense of department C
= area of department C / total area x 100%
= 6000/19,000 x 100% = 32% ( to the nearest whole percent)
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a company reported $100,000 in sales and $80,000 in variable costs at the breakeven point of 200 units. if the company sells 201 units, net profit will be blank . multiple choice question. $500 $200 $100 $400
If the company sells 201 units, net profit will be $100
Explain net profit.A company's net profit is calculated after operational expenses, taxes, interest, and depreciation are all deducted from its total revenues. The term is also known as "net earnings" or "net income" and is frequently referred to as a company's "bottom line."
Simply said, profit is the portion of a company's income that is left over after expenses. However, net profit, which is a single number that indicates a certain kind of profit, is more precisely defined. The most well-known bottom line on a company's financial statement is its net profit, often known as net income.
Total revenue - total expenses = net profit
The net profit margin is a measure of net profit (net income) as a proportion of sales for the business. In other terms, the ratio of a company's net income to revenues is known as its net profit margin. Although it can also be written as a decimal, the net profit margin is commonly expressed as a percentage.
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television commercials for halo laundry detergent are aired several times a day, on various cable networks, throughout the year. advertisers of halo believe that this will serve as a constant reminder of the brand to the consumers. media planners of halo are likely to be using a(n) scheduling method.
Media planners of halo are likely to be using a continuity scheduling method.
What is continuity marketing?A way of offering consumers products or services that focuses on direct marketing and lasts forever is known as continuity marketing. This relationship, also known as auto-replenishment, lasts until the client notifies the marketer that they no longer want it. The basic idea is that a buyer places an initial order, either online or through a mail order offer. This original product typically has a steep discount and serves as a loss leader. A further shipment will be sent to the customer within the specified time frame. After that, further supplies would keep coming at regular intervals. The marketer will make the decision on the client's behalf based on the customer's prior selections if the customer has not specified the specific product they wish to acquire.
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an entity has two long-term construction contracts, one of which qualifies for revenue recognition over time and the other which does not (and so requires revenue recognition upon completion of the contract). for either of these two contracts, what account would be debited when preparing the journal entry to record billings? qualifies does not qualify a. billings cash b. construction receivable construction receivable c. cash billings d. constructions in progress construction in progress
Construction Receivable is still owed to you when you have finished a task or rendered a service but have not yet been paid for it. Accounts receivable records the cash "to be received" (AR).
Receivable refers to the fact that the payment has not yet been realized. This implies that a credit line must have been made available to the clients by the business. Typically, the business accepts payment in cash and on credit for its products and services.
Trade accounts receivable notes and other receivables are the three main categories that makeup receivables. Credit managers and controllers in the construction and building material supply businesses should refer to this Accounts Receivable Management resource.
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this year, jong paid $3,000 of interest on a qualified education loan. jong files married filing jointly and reports modified agi of $157,000. what is jong's deduction for interest expense on an educational loan?
If this year, jong paid $3,000 of interest on a qualified education loan. jong files married filing jointly and reports modified agi of $157,000. jong's deduction for interest expense on an educational loan is: $1,075.
What is educational loan?Educational loan can be defined as a a loan given to student that are unable to pay for the tuition fee in which the student is expected to pay back the loan at within a stipulated period of time.
First step is to find the 2019 phase-out percentage
2019 phase-out percentage = [$157,000 - $140,000] ÷ $30,000
2019 phase-out percentage = $17,000 ÷ $30,000
2019 phase-out percentage = 57%
Now let determine the deduction for interest expenses
= 57%; maximum = $2,500 × (1 − 57%)
= $2,500 × 43%
= $1,075
Therefore we can conclude that $1075 is the deduction for interest expenses.
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in order for market segmentation to be effective, market segments must be large enough for a firm to make a profit by serving them. this means that segments must be multiple choice measurable. differentiable. substantial. accessible. actionable.
In order for market segmentation to be effective, market segments must be large enough for a firm to make a profit by serving them. this means that segments must be measurable.
Market segmentation is the technique of dividing a wide patron or commercial enterprise market, typically which includes existing and capability customers, into sub-corporations of customers primarily based on a few kind of shared traits.
Marketplace segmentation is a manner groups use to interrupt their capacity clients into distinctive sections. This allows the employer to allocate the ideal useful resource to every character section which lets in for greater accurate concentrated on across a spread of advertising campaigns.
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Cassandra worked 20 hours last week at an hourly rate of $12 per hour. she paid $55 in taxes. the amount she keeps is called her: question 2 options: a. gross profit b. net pay c. gross pay d. net profit
The amount she keeps is called her gross pay.The promised salary is typically stated as the gross pay in job advertisements. This amount, which does not include any immediate or long-term incentives or bonuses, is sometimes referred to as your base salary.
Is a salary net or gross?The promised salary is typically stated as the gross pay in job advertisements. This amount, which does not include any immediate or long-term incentives or bonuses, is sometimes referred to as your base salary. Your net pay is what's left over after taxes and other withholdings have been deducted from your gross compensation.Before taxes, benefits, and other payroll deductions are taken out of an employee's paycheck, that amount is known as their gross pay. Net pay, often known as take-home pay, is the amount that is left after all withholdings have been taken into account. The promised salary is typically stated as the gross income in job advertisements. This amount, which does not include any immediate or long-term incentives or bonuses, is sometimes referred to as your base salary.To learn more about gross pay refer to:
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talia is the sales rep for atv communication systems. she wants to bid on the rfp issued by state university for distance learning technology. talia knows she will need to provide the university with detailed information, demonstrations of the firm's technology, and training sessions for faculty and students. she will also need to build relationships and learn about the key members of the university's buying center. the type of buying situation is best described as a(n)
Talia is a sales representative for ATV communication systems. She also has to build relationships and learn about key members of the University Mall. The nature of the purchase situation is best described as a new purchase.
A communication system or communication system is a collection of individual telecommunication networks, transmission systems, repeaters, substations and terminals, usually interconnected and capable of working together to form an integrated whole.
As mentioned earlier, the purpose of a communication system is to carry message signals from a source to a destination at a distance from the source. 1 is a block diagram of a communication system; FIG. The system consists of three basic components: transmitter, channel and receiver.
A communication system is a system that describes the exchange of information between two points. The process of sending and receiving information is called communication.
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which financial statement elements (components) are reported in the income statement? multiple choice question. cash flow from operating, investing, and financing activities retained earnings and dividends assets and liabilities revenue and expenses
Financial statement elements that are recorded in income statement are revenues and expenses.
One of the three crucial financial statements used to represent a company's financial performance throughout a certain fiscal period is the income statement. The balance sheet and the statement of cash flows are the other two significant statements.
The revenue, expenditures, gains, and losses suffered by a business over a specific time period are the key themes of the income statement. An income statement, also referred to as the profit and loss (P&L) statement, offers vital information about a company's performance, the effectiveness of its management, underachieving industries, and its performance when compared to peers within the same industry.
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the workers in herzberg's studies found which three factors of the job environment were not motivators for them? sense of achievement job security friendly supervisors pay earned recognition
Success, recognition and responsibility are motivational factors. Salary and safety belong to the Hygiene factors category. Both motivational and hygiene factors are part of Herzberg's two-factor theory.
The hygiene factor refers to the features associated with occupational accidents. People will not be satisfied or dissatisfied after the problems have been properly resolved. Then you need to focus on the factors that lead to success, satisfaction, such as achievement, recognition and responsibility, if you want to inspire your team. "Hygienic factors" are what Herzberg believed to be the main causes of unhappiness. Get rid of them Determinants of satisfaction Factors influencing dissatisfaction with results Recognition of the project itself Responsibility Progress Growth Company practices Supervision Relationship with supervisor and peers Situation at work Achievements Salary status Security Herzberg argues that the elements that contribute to job happiness are "distinct and distinct from those , which contribute to job dissatisfaction.” So while trying to eliminate unsatisfactory working conditions may bring peace of mind, performance may not necessarily improve.
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eople buy insurance: a. to insure against poor health. b. because of externalities. c. because they are risk averse. d. to defer consumption. e. to maximize their welfare.
Aversion to risk is the main reason why people purchase insurance.
What is an aversion to risk?Risk avoidance is the propensity to do so. A risk-averse investor is one who favors capital preservation over the possibility of earning a higher-than-average return. Price volatility in investing equals risk. Investing in a risky asset can either make you wealthy or eat up your savings. A cautious investment will increase gradually over time. More stability equates to low risk.
A low-risk investment ensures a respectable, if unspectacular, return with an essentially zero percent chance of losing any of the initial investment. In most cases, the return on a low-risk investment will eventually match or slightly exceed the rate of inflation. Money could be made or lost on a high-risk investment. Risk seeking can be contrasted with being risk averse.
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products in the of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth. multiple choice question. introduction decline growth maturity
Products in the decline of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth.
Finance is defined as money management and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting. There are three major types of finance: (1) personal, (2) corporate, and (3) public/government. Finance is a broad term that describes activities related to banking, leverage or debt, credit, capital markets, funds, and investments. At its core, finance describes the process of managing money and raising the funds you need.
Historically, The Wall Street Journal has been one of the most respected and trusted sources of financial information. are essential in any economic system as they allow businesses to buy products that are out of immediate reach. In other words, financing is a method of using the time value of money (TVM) to allocate expected future cash flows to projects that start today.
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there was an extensive black market (illegal market) for many consumer products in the united states during world war ii. a likely explanation of the black market is that: group of answer choices gasoline rationing greatly restricted civilians from driving to stores. goods were not subject to price controls. the prices of goods were artificially held down by price controls. black markets were legal during the war.
A likely explanation of the black market is that the prices of goods were artificially held down by price controls
The economic dynamics of supply and demand frequently thwart most attempts to control prices for any appreciable amount of time. When supply and demand are balanced and prices are set by business in a free market, prices fluctuate. Government-imposed price limits may result in surplus supply or demand, depending on whether they are set at a ceiling or a floor. This may therefore result in scarcities and black markets.
Amid the shortages experienced during World War II and the Holocaust, many people relied on the black market to obtain food and other necessary items illegally. The black market facilitated resistance and survival, but it also provided opportunities for people to enrich themselves at the expense of others in need.
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if assets are $100 million, liabilities are $30 million, and shareholders' equity is $70 million, what is the net book value (net worth) of the company?
70 million is the answer .
How is net worth of a company calculated?
Knowing a company's market worth is one thing, but by itself, it could not provide a whole picture of the company's value. This is particularly true for sectors that need substantial expenditures in property, machinery, and other expensive or valuable assets. In light of this, it's crucial to comprehend how to determine the net value of those assets. The process for determining a company's net value is actually rather simple:
Net worth is the sum of all assets less all liabilities.
The method used to determine one's personal net worth is the same as this one, which is also known as "shareholders' equity." This straightforward method effectively determines what would remain when a firm is liquidated and sold and how much of it would be distributed to each stakeholder.
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flex company just paid total dividends of $600,000 and reported additions to retained earnings of $1,800,000. the company has 525,000 shares of stock outstanding and a benchmark pe of 15.4 times. what stock price would you consider appropriate?
The stock price you would consider appropriate is $70.40
Earnings per share = (Dividend + addition to retained earnings) / Total number of shares
Earnings per share = (600000 + 1800000) / 525000
EPS = 4.571428571
PE ratio = Stock price / EPS
15.4 = Stock price / 4.571428571
Stock price = 15.4 x 4.571428571
Stock price = $70.4
A stock is a protection that represents a fractional possession in a business enterprise. when you buy a corporation's inventory, you are purchasing a small piece of that business enterprise, known as a share. investors purchase shares in businesses they think will cross up in fee. stocks constitute possession in a publicly traded agency. when you purchase a enterprise's stock, you grow to be part-proprietor of that corporation. for example, if a agency has one hundred,000 shares, and also you purchase 1,000 of them, you personal 1% of the employer.
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Which of the following roles is the active head of the company?
A.
COO
B.
CEO
C.
CFO
D.
President
Answer:
CEO
Explanation:
CEO is the Chief Executive Officer who manages all the other C-Level officers like COO, CFO.
Answer: Ceo
Explanation:
:)
if for some reason americans desired to increase their purchases of foreign assets, then other things the same a. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign currency would rise. b. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign currency would fall. c. both the real exchange rate and the quantity of dollars exchanged in the market for foreign currency would fall. d. both the real exchange rate and the quantity of dollars exchanged in the market for foreign currency would rise.
If for some reason Americans desired to increase their purchases of foreign assets, then other things the same d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.
What is exchange rate?The rate at which one currency will be exchanged for another is known as the exchange rate.The majority of exchange rates are characterized as floating and fluctuate in response to market supply and demand.Some exchange rates are set or linked to the value of the currency of a particular nation.Exchange rate fluctuations have an impact on businesses by altering the cost of supplies imported from other nations and the demand for their goods among clients abroad.To learn more about exchange rate visit:
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jean is an employee of fast pizza, a pizza delivery business. while driving to deliver a pizza for fast pizza, jean accidentally hits another car. the driver of the other car, named angela, files a lawsuit against fast pizza to recover the damage to her vehicle. this is an example of:
The above situation is an example of vicarious liability.
A supervisory party (like an employer) may be held liable for the wrongdoing of a junior or associate (like an employee) if there is a direct connection between the two. This is known as vicarious liability. This idea might be relevant in an incident involving a person delivering food. One of the responsibilities they have to their job is driving. Employers may be held vicariously accountable for accidents that happen while executing work-related responsibilities. Hence, Angela can file a lawsuit against Fast Pizza company to recover the damage costs for her car.
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condominiums usually require a monthly fee for various services. at $320 a month, how much would a homeowner pay over a period of 7 years for living in this housing facility?
$26880 , A condominium is a type of ownership arrangement in which a single building is divided into a number of different units, each of which is separately owned, and which are surrounded by jointly held common areas.
What is condominiums?
A condominium is a type of ownership arrangement in which a single building is divided into a number of different units, each of which is separately owned, and which are surrounded by jointly held common areas. The phrase can be used to describe both the entire structure or complex and each individual unit therein.
320*12=3840
3840*7=$26880
A condo, often known as a condominium, is a type of housing or residential complex that consists of distinct units, each of which is owned by a different person. A condo is rented directly from the condominium owner when it is rented.
Ownership is the main distinction between a condo and an apartment. Apartments are characterized as rented homes, frequently found in larger residential buildings. Condos are similar to apartments in structure and are typically apartments within larger residential buildings, but condos are owned rather than rented.
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a low cost strategy leads to higher profits by group of answer choices offering the customer products with more features. adding unique features to products. charging a higher price than competitors. the cost savings that firms achieve.
Due to the cost savings that businesses realize, low cost strategies result in better profitability. Hence the appropriate choice of option would be option (d).
Give a brief account on Cost Of Production (COP).All expenses a company incurred while producing a good or providing a service is regarded as cost of production (COP).
When a company adjusts production levels in response to predicted profits or losses, long-term costs mount. The costs of providing a good or service are determined by a variety of factors, including labor, land, and goods, and do not include any fixed manufacturing costs. When a company produces the most products at the lowest cost and with the biggest volume, a long-term cost is sustainably sustained. These expenses are impacted by a variety of factors, including firm growth or contraction, adjustments to the volume of production, and market exit or entry.
Real-time cost monitoring is possible during the production process. Only revenue and variable expenses have an effect on these costs. With variable costs and the production rate, short-run costs rise and fall. One of the finest methods to achieve excellent long-run costs and a company's overall goals is by managing short-term expenses.
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modeling real life you have $25 to purchase apps on your cell phone. each app that you want costs $3.99. describe the numbers of apps you can purchase.
6 apps .
There are a total of six apps available for purchase.
Explain unitary method?The unitary method is the method in which we first find the value of one unit and then the value of the required number of units.The unitary method technique for solving problems that involves first determining the value of a single unit and then multiplying that value by the required value.Here it is given that :
Total amount = $25.
Per app costs = $3.99.
As a result, a large number of apps can be purchased.
= 25/3.99
= 6.2656
= 6 apps .
As a result, six apps are available for purchase.
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in which type of marketing channel are multiple segments owned by the parent company? multiple choice question. unified horizontal marketing system corporate vertical marketing system conventional marketing channel independent marketing channel
Marketing channels are owned by the parent company in some segments corporate vertical marketing system.
A parent company, also known as a holding company, is a company that has subsidiaries wholly or partially owned by another company controlled by the parent company.
Like a parent company, a holding company has control over other companies. Unlike parent companies, holding companies do not have their own day-to-day operations and exist solely to own or hold subsidiaries.
In the corporate world, a subsidiary is a company that belongs to another company, usually called a parent company or holding company. The parent company retains control of the subsidiary. That is, the parent company owns or controls more than half of its shares.
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mark has decided to start a business! his dream is finally coming true. as mark explores the world of business formation he takes into account a few things: 1. he has enough money to start the business 2. he doesn't like complicated paperwork and having to hold annual meetings 3. the business he is starting is low risk 4. he doesn't plan on hiring any employees 5. he is not worried about making any profit for the first few years. based on this information, what type of business would be best for mark to form?
The business which is best for Mark is a Sole proprietorship
These enterprises are owned by a single person, who is also in charge of overseeing daily operations. A sole proprietorship is responsible for holding all of the company's resources and any profits. They also accept full accountability for all of their commitments and debts. This option has the least complicated, fuss-free construction available. The owner is qualified to receive all business profits.
A sole proprietorship is simple to run and reasonably simple to set up. One person owns the business, hence that person also makes all choices. Thus Mark will own the business and the decisions can be made without meetings or votes. He will also earn all the profits generated and will have unlimited liability for losses or debts. The lack of excessive paperwork and the ability to choose the personnel are further benefits.
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