which factor is the most widely accepted measure of economic growth over time? increases in the available labor supply declines in real interest rates increases in real gdp per capita inflation

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Answer 1

A widely accepted measure of economic growth over time is real GDP per capita. (third option)

What is economic growth?

Economic growth is when the gross domestic product of an economy increases over the passage of time. Gross domestic product is the total value of all the final goods and services that a country produces.

Real GDP per capita is the ratio of real GDP and the population of that country. Real GDP per capita is used to determine the standard of living of a country. Real GDP is the GDP that has been adjusted for inflation. Inflation might lead to the appearance of growth of the gross domestic product even if there is no increase in the amount of final goods produced.

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Related Questions

a detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period is called a(n) budget

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Merchandise Purchases Budget is a detailed plan used by a merchandising company. The budgeted sales and the intended ending inventory may be added together, and the initial inventory can be subtracted to get this answer.

What is Merchandise Purchases Budget ?

The process of creating a budget for a service or merchandising company is comparable to that used by manufacturers. A service or retail business won't have a budget for manufacturing or direct materials, and it's possible that it won't have one for direct labour or overhead.

The main distinction is that even when we don't have a budget for production or material purchases, we still need to know how much inventory we should acquire for a merchandiser.

The quantity of goods that a business must acquire during each budgetary period is specified in a procurement budget. The amount specified in the budget is the amount required to guarantee that there is enough inventory on hand to fulfil product requests from customers.

The budget for purchasing might be as straightforward as just matching the precise number of units anticipated to be sold within the budget period. However, there are a few extra factors to take into account that could make the budget for purchases much more difficult.

Purchasing merchandise from producers to sell on their behalf is a crucial aspect of retail management that entails retailers finding the products they need.

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multiple choice question which statement in true about business relationships in supply chains? multiple choice question. they are always close working partnerships. they must be between divisions of the same firm. they are based on meeting each other's needs. they must be between independent entities.

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relationships in supply chains are based on meeting each other's needs.

A supply chain is a network made up of all the individuals, organizations, enterprises, assets, tasks, and technical developments involved in the manufacture and distribution of an item. A complete supply chain is included, from the transfer of raw materials from the supplier to the production to the last delivery to the customer. Supply chain activities include, among others, designing, farming, manufacturing, packaging, and transportation.

Anything can travel without incident thanks to supply chain management, even goods, and any unanticipated natural disaster. Global logistics management is the responsibility of supply chain managers. With skilled supply chain management, managers can promptly spot problems or interruptions in the smooth transportation of goods.

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The multiplier is 5​ and, as a result of a change in​ expenditure, equilibrium expenditure and real gdp change by​ $200 billion. What was the initial change in autonomous​ expenditure?.

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Autonomous expenditures are those portions of an economy's total spending that are unaffected by that economy's actual level of revenue. This type of expense is seen as automatic and required both at the public and private levels.

Explain about the autonomous expenditure?

Simply put, autonomous expenditures are those that must be made regardless of income. When income is at zero, it is the amount that a person or the government must spend in order to survive.

Autonomous expenditures are those that are unaffected by the real level of revenue in the economy. The majority of external factors that affect autonomous spending include trade policy, political unpredictability, interest rates, etc.

Because of the multiplier effect, a change in autonomous expenditure will result in a considerably bigger overall change in real GDP. That expenditure's final effect on real GDP will be far more significant.

Hence the initial change in autonomous expenditure is $40

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What is the keyboard shortcut you can use to update a selected table of contents?

Question 3 options:

F9


F10


F11

Answers

The "F9"+Fn is the keyboard shortcut that we can use to update a selected table of content.

What is the use of F9 function?

On a computer, the F9 key is a key found at the top of almost all keyboards. It is often used to open the Mission Control on an Apple computer and also has other uses depending on the computer and program.

We can use this function by opening the program that uses the key and press F9. If the key has an icon on the key, it does indicates the key has a secondary function. In other to use the secondary function, we will press and hold down the Fn key and while continuing to hold the key, press F9.

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a company purchases a truck and records the cost in an asset account. that cost is gradually moved into an expense account as the truck benefits the company over several accounting periods. this process is referred to as

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When a business buys a truck, the cost is added to the asset account. As the truck brings value to the business over numerous accounting periods, that cost is gradually transferred into an expenditure account. Depreciation is the name given to this process.

An asset loses value over time as a result of use, damage from use, or obsolescence. Depreciation is the measurement for this decline. Depreciation, or the decline in value of an asset, can also result from other factors, such as unfavorable market conditions, etc.

An example of depreciation: If a firm buys a delivery truck for Rs. 100,000 and expects to use it for 5 years, the company may depreciate the asset as a depreciation charge of next five years, pay Rs. 20,000 annually.

The income statement for practically every business includes depreciation. Since it is recorded as an expense, it should be taken into consideration anytime an item is calculated for year-end tax purposes or to assess whether it is still viable for liquidation.

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What are the two main things that job design treats and considers when planning?

Answers

Answer: Hope this helps.

Explanation:

Job design is a process that companies use to create a new job or add duties to an existing job. This allows a company to more easily reach its goals by having more employees perform more tasks within the organization. Job design may involve developing a new position or simply adjusting the set of tasks that a current position encompasses.

Good job design accommodates employees’ mental and physical characteristics by paying attention to:

muscular energy such as work/rest schedules or pace of work, and

mental energy, such as boring versus complicated tasks.

allows for employee input; this means employees should have the option to vary activities according to personal needs, work habits, and the circumstances in the workplace,

gives an employee a sense of accomplishment,

if marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what would happen to the company over time?

Answers

The company would begin to commence more risky opportunities over time.

This is due to the possibility that a single corporate hurdle rate used to assess investment opportunities may not be reliable. Choosing an incorrect risk premium might be a concern in the hurdle rate calculation.

What is risk in investment?

Any investment-related uncertainty that has the potential to have a negative influence on your financial well-being is referred to be a risk.

For instance, market conditions could influence the value of your investment to increase or decrease (market risk).

What are the types of investment risk?

Common types of investment risk are:

Business risk. Default risk. Inflation risk. Liquidity risk. Opportunity risk. Unsystematic risk.

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hp, inc., sells surplus, refurbished, or closeout computer merchandise at its hpauction website to many buyers who bid competitively against one another. this is an example of a(n)

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The statement above is an example of a traditional auction. It is because they sell it by bidding to many buyers.

Auction is the process of buying and selling goods or services which are then sold to the bidder at the highest price. There are several types of auction variations, depending on the minimum bidding limit, the duration of the auction, and how the winner of this auction is determined. Usually the auction is carried out by coming to the auction place, carrying out administrative processes, and participating in the auction at the location by raising a hand or showing the number of the auction participant. Along with the development of technology, now auctions can also be done digitally.

The auction has 2 functions, namely

Private Functions. The private function is formed because the auction brings together buyers and sellers. The relationship between buyers and sellers is only related in this economic activity.Public Function. This public function is formed when the auction becomes an instrument in the general task of government by the state apparatus.

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what groups of contacts are most valuable as advisors for student-owned startups? select all that apply. group of answer choices employers from internships faculty classmates

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A productive team in the workplace is one that is focused on outcomes. Your startup needs a team of individuals that are truly unconventional thinkers. These professionals ought to be prepared to offer answers that you as an entrepreneur as a person cannot.

What position in a startup is most crucial?

The visionary is a common term used to describe the chief executive officer (CEO) of a business. the pack's ringleader the person who decides. Their talent consists in having ambitious goals and having a strong sense of what the business can accomplish in the future. A productive team in the workplace is one that is focused on outcomes. Your startup needs a team of individuals that are truly unconventional thinkers. These professionals ought to be prepared to offer answers that you as an entrepreneur as a person cannot. Bad leadership, poor planning, failing to differentiate a product or service from those already on the market, disregarding client demands, and failing to learn from mistakes are all common issues with startups.

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xyz company goes public at a public offering price of $31. several days later, the stock has increased to $43. if the underwriters decides to exercise the greenshoe clause, what price will investors pay for those shares?

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The amount investors will pay is $31.

What is Greenshoe clause ?

An initial public offering (IPO) greenshoe option permits the consortium of investment banks to purchase and offer for sale 15% more shares at the same offering price than the issuing firm initially intended to sell. If there is greater than expected demand for shares and the stock is trading above the offering price on the secondary market, the clause comes into play. The syndicate does not exercise its option for additional shares if there is insufficient demand and the stock price drops below the offering price.

The Green Shoe Company, which was the first to agree to sell more shares when it went public in, gave its name to this contract clause, which may be used for up to 30 days following the IPO.

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Question 5 of 10
The initial amount you borrow in a loan is called the ____
A. collateral
B. simple interest
C. loan term
D. principal

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The initial amount you borrow in a loan is called the principal.

What is a loan?

A loan is described as money that is borrowed from another person or any financial institution. It is important to mention that the loan can also be in the form of material goods, or any property. However, the repayment of a loan includes payment along with interest.

The amount borrowed in a loan is the original sum of money, and that money is called the principal. This is the amount along with the added interest that a borrower has to repay.

It can be concluded that the initial amount you borrow in a loan is called the principal.

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Answer:

D. principal

Explanation:

question innovations in shipping and the growth of commercial networks were most directly related to which of the following other developments of the first half of the nineteenth century? responses a decrease in the availability of jobs for recent immigrants a decrease in the availability of jobs for recent immigrants an increase in the number of americans moving west of the appalachian mountains an increase in the number of americans moving west of the appalachian mountains the spread of industrialization to most cities in the south the spread of industrialization to most cities in the south an increase in the production in the home of goods used by families

Answers

The other development of first half of nineteenth century is -- An increase in the number of Americans moving west of the Appalachian Mountains

What's a commercial network?

Commercial  networks are large networks, and the large difference between home networks and large commercial networks is the size. Commercial networks make use of analogous protocols, networking topology, and services as their lower relatives, home networks do.

Spread of industrialization :

The Spread of  Industrial Revolution first began in Great Britain in the 18th century with the invention of the brume machine, an invention which would soon change the world. Industrial spread fleetly to other countries which handed them with new technologies constructed by artificial period formulators.

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as noted in your text, one of the biggest problems facing companies today is the aging workforce. more and more people are nearing or at retirement age, and companies are struggling to find workers who can take their places. what are some of the tactics companies might use to handle this problem? check all that apply. redesign jobs so they are more easily done by older employees. pay older employees more so they will continue to keep working. work to hire immigrants, who are typically younger than current residents of a country. use robots in place of human workers.

Answers

Sometimes recruiters and recruiting managers mistakenly feel that older workers are less progressive, less able to master new skills, or have unrealistic compensation expectations. However, age disparity is a notable problem that prevents some workers from comprehending their goal or forces them out completely.

Explain about the aging workforce affect the business?

A more senior workforce increases the chance that companies will lose important personnel to illness or death, which might have an impact on customer retention, vendor relationships, operational efficiency, and even company secrets or financial data.

To aid employees in striking a better balance between their obligations at work and at home, employers should provide flexible work arrangements like job sharing, flexible scheduling, part-time employment, the opportunity to work from home, and other types of reduced work hours.

Physical and mental decline with age: As employees get older, they're more prone to experience health problems. Conflict between older and younger employees. Performance problems associated with novel methods of operation and a resistance to change on the part of senior employees

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which of the following would decrease the supply of sugar? group of answer choices the price of artificial sweeteners rises dramatically. the demand for sugar increases. a technological advance lowers the cost of producing sugar. the tariff (tax) on imported sugar increases.

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Decrease the supply of sugar the tariff (tax) on imported sugar increases.

What is supply?
Supply in economics refers to the amount of a commodity that firms, producers, labourers, financial asset providers, or other economic agents have willing and able to deliver to the market or to an individual. Supply can be in the form of manufactured items, labour time, raw resources, or any other rare or valued item. Supply is frequently graphed as a supply curve, with the unit price on the vertical axis and the quantity delivered as a function of price on the horizontal axis. This reversal of the dependent and independent variable's typical positions is an undesirable but standard convention.

The supply curve might be for a single vendor or for the marketplace as a whole, with the quantity given by all sellers added up.

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critter sitters paid $100 for the monthly cell phone bill. which two accounts are impacted by this transaction? cash and owner's capital cash and communications expense owner's capital and communications expense cash and accounts payable

Answers

The two accounts affected by the cash sales transaction in Critter Sitters Animal Care's books are B. Cash and Sales, and C.

What effects do cash sales transactions have on accounting?

The selling company will debit its cash account and credit its service revenue or sales revenue account when a consumer pays for goods or services.

The accounting consequence for the paying client is a credit to the cash account and a negative to purchases, costs, or inventory.

Given each company transaction, these debit and credit entries are consistent with the double-entry accounting method and the accounting equation, which stipulates that assets are equal to liabilities and equity.

Critters Transaction Analysis: Cash $ Sales $

The cash account of Critters Sitters Animal Care should be debited, and the sales income account should be credited.

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oints are figured on the: group of answer choices amount of the new loan. the selling price of the property. amount of commission. all of the answers are correct.

Answers

On the total amount of the new loan, points are calculated. Each New Lender's part of the New Loan will be in an amount equal to such New Lender's pro rata share of the New Loan Amount if the New Loan Amount is less than the Maximum New Loan Amount.

It is based on the share of the Maximum New Loan Amount that each New Lender is willing to contribute. The largest sum that a bank or financial organization permits a New Lender to obtain a loan for is referred to as the maximum loan amount. Credit cards, regular loans, and line-of-credit accounts are all subject to the maximum loan amount.

During the underwriting process, a number of variables are taken into consideration when establishing the maximum loan amount. On the basis of the borrower's debt to income ratio, the maximum loan amount is typically advised.

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In Calc, what does the * symbol mean?
A.
Divide by
B.
Multiply by
C.
Subtract
D.
Calculate these numbers first

Answers

B. Multiplication it usually means multiplication if I am right

assume that the ending merchandise inventory was accidently understated by $300. what are the correct amounts for cost of goods sold and gross profit?

Answers

Average inventory equals (Beginning inventory + Ending inventory) / 2, according to the formula. Knowing the formula alone won't get you very far, though. Your overall inventory strategy should include calculating average inventory.

What is the right formula to determine the average merchandise inventory?Average inventory equals (Beginning inventory + Ending inventory) / 2, according to the formula. Knowing the formula alone won't get you very far, though. Your overall inventory strategy should include calculating average inventory. Add the opening and closing inventories together, then multiply the result by two to get the average inventory. The daily inventory utilization is the outcome. The variance in average inventory may reflect the nature of the company and the degree of its volatility exposure.The ideal inventory turnover ratio for the majority of industries will be between 5 and 10, meaning the business will sell and refill inventory every one to two months. The optimal ratio will be higher for businesses that deal in perishable goods, like florists and supermarkets, to reduce inventory losses due to spoiling.

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interviews are inevitable during the job search process and we learn from our experiences. describe an instance when a job interview went well and explain where you feel you sold the employer to hire you. on another note there are instances where interviews did not go as planned and it actually became an uncomfortable situation. explain how would you change the interview if you had a second chance?

Answers

I would change the interview by Examination of earlier interview questions, Working on personality, listening quality, communication skills, dressing sense for interview.

Examination of earlier interview questions

        If I have a second shot at an interview, I attempt to evaluate the

        varied questions from the prior interviews, and we prepare several

        responses for each unique topic in the interview. In order to best

        prepare ourselves, we discuss the answers to these questions with

        professionals in the area.

Working on personality: By focusing on our personalities inside the

       organization, we may develop our interviewing abilities. The sum of          

       a person's different traits—which we are unable to fully understand

       on our own—makes up their personality. In order to better

       understand our personalities at work, we seek the assistance of

       professionals.

Improving the audio quality

       Sometimes our poor listening skills prevent us from passing the

       interview, thus in this effort we must improve this trait if we want to

       succeed.

Practicing communication skillsMaking preparations for interview attireCreate a list of interview-related questions that may be asked.

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If an increase of​ $10 billion of investment results in an increase in equilibrium expenditure of​ $40 billion, the expenditure multiplier equals.

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Based on the fact that the increase in investment led to such an increase in equilibrium expenditure, then the expenditure multiplier can be found to be E. $40 billion ÷ $10 billion = 4.

How to find the expenditure multiplier?

The expenditure multiplier shows how much expenditure will increase by, as a result of an increase in investment or other factors that bring about a cash injection into the economy.

The expenditure multiplier in this case, can be found by the formula:

= Equilibrium expenditure / Increase in investment

Solving for the Expenditure multiplier gives:

= 40 billion / 10 billion

= 4

Options for this question include:

A. $10 billion $40 billion = - $30 billion. B. $40 billion $10 billion = $30 billion. C. $10 billion x $40 billion = $400 billion. D. $10 billion ÷ $40 billion = 0.25. E. $40 billion ÷ $10 billion = 4

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nestor is the expatriate manager of his company's textile plant in cambodia. he observes that the working conditions in the cambodian facility are terrible, compared to the manufacturing plants in the united states. he also finds that wages are much lower in cambodia. nestor is bothered by this and insists that the facility in cambodia follow the standards set forth in the united states. what straw men approach to ethics is razor sharp electronics using?

Answers

In my opinion, the manufacturing plants maybe have different rules. As we can see, not all the manufacturing plants are bonafide to give their employees good facilities. But, the way he complained is good, maybe the manufacturing plants can consider it and improve the facilities to make their employees comfortable in working.

Employers have the right to maintain rules and procedures governing such matters as employee ethics, leave policies, pay, pay for performance, and behavior when interacting with customers or the public. Employer policies can be included social media usage during work hours and after hours.

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according to duffy fashion bloggers often group of answer choices go to school to learn how to blog are fresh out of school but have no experience have experience in fashion, journalism, design and/or marketing are novices without training or experience

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According to Duffy fashion bloggers have experience in fashion, journalism, design and/or marketing.

A fashion blogger is someone who posts fashion and style-related articles, outfit photographs, and videos on their site. A fashion blogger is essentially a cross between a model, journalist, and stylist. A fashion blog might discuss a variety of subjects, including specific clothing and accessory products, beauty advice, developments in the apparel industry, celebrity style decisions, and street styles. From the biggest fashion design studios to the smallest freelance designers, they cover fashion at all levels. Like the contents of fashion magazines, many fashion blogs might also be labelled as shopping blogs. A few fashion retailers have created blogs to advertise their goods.

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the formal system of task and reporting relationships that coordinates and motivates an organization's members to achieve the company's goals is called the organizational . multiple choice question.

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Based on organizational policy, this formal system that helps the organization to achieve the company's goal is called Organizational Structure.

What is Organizational Structure?

Organizational Structure is a term that is used and applied by various firms to create, maintain, and achieve the organization's goal.

There are various types of Organizational Structures which include the following:

Hierarchical organizational structure.Functional organizational structure.Horizontal or flat organizational structure.Divisional organizational structures (market-based, product-based, geographic)Matrix organizational structure.Team-based organizational structure.Network organizational structure.

Also, there are various elements of Organizational structure, which include the following:

Work specialization.Departmentalization and compartments. Formalization of elements. Centralization and decentralization. Span of control.Chain of command.

Benefits of Organizational Structure include the following:Centralize the company's marketing message;Facilitate higher and increasing mobility for the company's progress;Create and promote strategic planning;Enhance worker's training and working conditionsImprove the decision-making process

Hence, in this case, it is concluded that the correct answer is Organizational Structure.

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Which of the following can an ATM at your bank be used for?

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To check your debit card with a bank teller is an ATM at your bank be used for. An automated teller machine, or ATM, is a customized computer that makes it simple for bank account holders to manage their money.

One can use it to print a statement of account activity or transactions, check account balances, withdraw or bank deposit money, and even buy stamps. ATMs come in two main categories. Customers only have access to cash withdrawals and account balance updates in basic units. The more sophisticated machines enable line of credit payments and transfers, receive or debit deposits, and access account data.

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scent systems, inc is start-up company developing a system to deliver fragrances to buildings. the technology will allow for delivery of customized fragrances directly through a building's hvac systems. occupants of a room can customize and manage the scent of their room via their smartphone.the technology will be available soon and the company expects the first annual cash flow of $4500 to begin 5 years from today. cash flows are expected to increase at a rate of 3.00% annually forever. using a discount rate of 9.00%, what is the present value of the technology?

Answers

The main objectives of technology, which includes tools to promote growth, use, and information exchange, are to make labor easier and address many of humanity's problems. As technology advances and keeps making our lives easier, we must accentuate its benefits.

Explain about the value of technology?

Technology offers students quick access to knowledge, rapid learning, and enjoyable opportunities to put what they have learned into practice. Particularly in STEM, it allows students to go deeper into challenging ideas and explore new disciplines.

The area of knowledge known as technology deals with the development of technical tools and how they interact with the environment. The improvements that technology has made to our lives include time savings, instant connection and interaction, a higher standard of living, simple information access, and safety.

These values may include freedom, justice, enlightenment, privacy, security, companionship, comfort, trust, autonomy, and nourishment in technologically advanced, liberal democracies.

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after setting a five-year goal for their company, a group of managers look at where the company is today and the steps needed to achieve the final goal. they are using a technique called . question 22 options: overregularization means-end analysis analogies systematic random search

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After setting a five-year goal for their company, a group of managers looks at where the company is today and the steps needed to achieve the final goal. they are using a technique called means-end analysis.

A common problem-solving method in artificial intelligence for limiting search in AI programs is means-ends analysis. Additionally, it is a creative tool that has been employed at least since the 1950s and is most usually discussed in engineering publications on design techniques.

A key idea in artificial intelligence (AI) is means-end analysis (MEA), which helps in issue-solving. By identifying the objective and creating the appropriate action plan, MEA resolves issues. In AI programs, this method is used to restrict the search.

In essence, Means-End Analysis is an early version of the Gap Analysis that we use frequently today. In their 1972 book, "Human Problem Solving," Allen Newell and Herbert Simon presented their creation from the late 1950s.

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you are given the task of brainstorming with a team about how the marketing information and research results will help your company adjust the marketing strategy for the price of its product. what types of questions should you be asking?

Answers

The types of questions should you be asking is How are we doing at providing good value for the price?

What is marketing strategy?A marketing strategy is a long-term plan for attaining a business' objectives through an understanding of client needs and the development of a distinct and long-lasting competitive advantage. It includes everything, from choosing which channels to utilize to contact your customers to figuring out who they are. A company's limited resources can be focused on the best possibilities to boost sales and gain a long-term competitive edge through the use of a marketing plan. Product, pricing, place, and promotion make up the four Ps. They serve as an illustration of a "marketing mix," or the collection of tools and techniques utilized by marketers to accomplish their marketing goals.The types of questions should you be asking is How are we doing at providing good value for the price?

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3. productivity, dependability, and responsibility are examples of skills that managers look for when determining who to promote within a company. evaluate these three skills and another one or two that you come up with and explain how each skill could be helpful for an employee looking to get a promotion.

Answers

Decent cultural fit One of the most difficult aspects of the job search process is finding a company with a wonderful culture and team members that make you feel at home. A creative environment,a concentration on career advancement,an established organizational structure that is evident, Employer investment.

How should a competent manager look?In addition to leading teams and fostering their growth, excellent managers are also able to fully control their company's operations and performance. These are the individuals that consistently adapt to novel circumstances, inspire others to realize their greatest potential, and produce their best work.Good managers are independent and don't need much guidance. They must take responsibility for their own errors. Effective managers model constructive accountability in their behavior and leadership. This is crucial because managers must teach employees how to take accountability upon themselves.Decent cultural fit One of the most difficult aspects of the job search process is finding a company with a wonderful culture and team members that make you feel at home. A creative environment,a concentration on career advancement,an established organizational structure that is evident, Employer investment.            

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which term describes currency derivatives to reduce potential transaction, translation and economic risks of currency movement that could lead to loses for a firm or investment? a. an exchange position b. hedging c. speculating d. a shot position g

Answers

The correct option is b. Hedging means that currency derivatives to reduce potential transaction.

In the world of finance, to hedging is to take an opposite position in a security or investment to balance out an existing holding's price risk. Therefore, a trade undertaken with the intention of lowering the risk of unfavourable price changes in another asset is called a hedge. A hedge often entails taking the opposite viewpoint in a security that is related to or based on the asset being hedged. Because of how more or less precisely defined the connection between the two is, derivatives can be useful hedging tools against their underlying assets. Securities known as derivatives fluctuate in accordance with one or more underlying value. Options, transactions, futures, and forward agreements are some examples.

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suppose the bank of tazi loaned the banks of tazi $10 million. suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. by how much would the money supply change?

Answers

Money supply is changed by 250 million tazi. The total amount of money cash, coins, and balances in bank accounts in circulation is known as the money supply.

The money supply is typically understood as a collection of secure assets that individuals, businesses, and governments can use to make payments or hold as short-term investments.

We first determine the credit multiplier before computing the change in the money supply.

Credit multiplier is determined as follows:

Reserve ratio multiplied by one

This additional 10 million will be lent out and the overall change in the money supply will be when the Bank of Tazi lends 10 million to a bank but their reserve requirements remain the same.

10,000,000 Multiplier

As an illustration, if the reserve ratio was 4%, 1/0.04 multiplied by 25

The overall change in the money supply follows

would be 250,000,000 x 10*25.

= 250 million

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