Advance payment is commonly used for export import financing when the buyer agrees to pay the full amount upfront before the goods are shipped.
What is the reason?This is a preferred method for sellers as it reduces the risk of non-payment or disputes over payment terms. Advance payment also allows the seller to fund the production of the goods and cover other expenses associated with exporting, such as shipping and customs fees.
However, advance payment may not be feasible for buyers who are not familiar with the seller or the product, as it increases their risk of fraud or non-delivery.
In such cases, other payment methods such as letters of credit or payment upon delivery may be more appropriate.
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Changing organizational culture is essentially a teaching proces, proces in which members instruct each other about the organizative's preferred values, beliefs, expectations, and behavior. True or False
It is true that Changing organizational culture involves teaching members about the preferred values, beliefs, expectations, and behaviors of the organization.
This is a continuous process in which members instruct each other on the new culture and reinforce the desired behaviors. It requires effective communication and leadership to ensure that everyone is aligned with the new culture and understands what is expected of them. In addition, changing culture also involves recognizing and addressing any barriers or resistance to change. It takes time, effort, and patience to successfully shift an organization's culture, but the benefits can be significant in terms of improved performance, employee engagement, and overall successe.
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once an organization's security policies have been established, what is the single most effective method of countering potential social engineering attacks?
The single most effective method of countering potential social engineering attacks, once an organization's security policies have been established, is employee education and awareness.
Social engineering attacks rely on manipulating individuals within an organization to gain unauthorized access, sensitive information, or to exploit vulnerabilities.
educating employees about the tactics and techniques used in social engineering, organizations can empower their workforce to recognize and respond appropriately to potential threats.
Employee education should include:
1. Training programs: Conduct regular security awareness training sessions that cover common social engineering techniques, such as phishing, pretexting, baiting, and tailgating. Train employees on how to identify suspicious emails, phone calls, or requests for sensitive information.
2. Knowledge sharing: Promote a culture of sharing knowledge and experiences related to social engineering attacks. Encourage employees to report any suspicious activities, incidents, or attempts to the designated security team.
3. Testing and simulations: Conduct simulated social engineering attacks, such as phishing campaigns or social engineering penetration tests, to assess employees' awareness and response. Provide feedback and additional training based on the results to reinforce best practices.
4. Regular updates: Keep employees informed about the latest social engineering tactics and trends. Provide timely updates on emerging threats and reinforce the importance of following security policies and procedures.
5. Strong password practices: Educate employees on creating and maintaining strong, unique passwords, implementing multi-factor authentication, and regularly updating their login credentials.
It is crucial to remember that employee education should be an ongoing effort and aligned with evolving social engineering techniques. By promoting a security-conscious culture and equipping employees with the knowledge to recognize and respond to social engineering attacks, organizations can significantly mitigate the risks associated with such threats.
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when a supply-related risk exists the supply management team should
When a supply-related risk exists, the supply management team should proactively identify and assess the risk, develop mitigation strategies, establish contingency plans, and continuously monitor the supply chain to minimize the impact of the risk.
Supply management teams should first analyze the nature and severity of the supply-related risk. This involves understanding the potential disruptions or vulnerabilities that may affect the supply chain, such as natural disasters, geopolitical issues, or supplier bankruptcies. Once identified, the team should develop appropriate mitigation strategies, such as diversifying suppliers, establishing backup sources, or negotiating alternative agreements.
In addition, contingency plans should be established to address potential disruptions, including alternative sourcing options, inventory management strategies, and crisis response protocols. Continuous monitoring of the supply chain is crucial to identify any emerging risks or changes that may require adjustments to the mitigation and contingency plans.
By taking these proactive measures, the supply management team can effectively manage supply-related risks, ensuring the continuity of supply and minimizing any negative impacts on the organization.
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a hedge in which the asset underlying the futures is not the asset being hedged is group of answer choices a cross hedge an optimal hedge a basis hedge a minimum variance hedge none of the above
A hedge in which the asset underlying the futures is not the asset being hedged is called a cross hedge.
A cross hedge refers to a hedging strategy where an asset underlying a futures contract is used to hedge against the price risk of a different asset. In this case, the asset being hedged is not the same as the asset underlying the futures contract.
Cross hedging is typically employed when a perfect hedging instrument for the specific asset being hedged is not available in the market. It involves selecting a related asset that has a reasonably high correlation with the asset being hedged. Although not a perfect match, the related asset's price movements can still provide some level of protection against price fluctuations in the asset being hedged.
While cross hedging can help manage price risk to some extent, it is important to note that the effectiveness of the hedge may be reduced due to differences in the price behavior and correlation between the underlying asset and the asset being hedged. Therefore, cross hedging involves additional considerations and risks compared to hedging with the exact asset underlying the futures contract.
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1-a. compute the companywide break-even point in dollar sales. 1-b. compute the break-even point for the chicago office and for the minneapolis office. 1-c. is the companywide break-even point greater than, less than, or equal to the sum of the chicago and minneapolis break-even points?
1-a. The companywide break-even point in dollar sales is **X dollars**.
To compute the companywide break-even point in dollar sales, you need to know the company's fixed costs and its contribution margin per unit (selling price per unit - variable cost per unit). The formula to calculate the break-even point in dollars is: Break-even point = Fixed costs / Contribution margin ratio, where the contribution margin ratio is the contribution margin per unit divided by the selling price per unit.
1-b. The break-even points for the Chicago and Minneapolis offices are **Y dollars** and **Z dollars**, respectively.
To compute the break-even points for each office, apply the same formula as in part 1-a, but use the respective fixed costs and contribution margins for each office.
1-c. The companywide break-even point is **(greater than, less than, or equal to)** the sum of the Chicago and Minneapolis break-even points.
Compare the value of X (companywide break-even point) with the sum of Y (Chicago break-even point) and Z (Minneapolis break-even point) to determine the relationship between them.
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for an investor, purchase price plus closing expenses is known as . unset starred question basis depreciation profit roi
For an investor, the purchase price plus closing expenses is known as- C. the basis.
What is basis?Basis is the amount that the investor has invested in the property. It is important to know the basis as it is used to calculate depreciation, profit, and return on investment (ROI).
Depreciation is the decrease in value of the property over time and is a tax deduction that reduces taxable income. Profit is the difference between the sales price and the basis. ROI is the return on the investment, which is calculated by dividing the profit by the basis.
By knowing the basis, the investor can make informed decisions about the property and understand the financial implications of buying and selling it.
Heence, option c. is correct.
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Brink presents an alternative approach to estimate VaR for Fund Y. Fund Y has assets of USD 213 million. Brink's Historical VaR analysis indicates that Fund Y's average monthly return over the past 10 years is 1.16% with a monthly standard deviation of 2.51%. The 10 worst monthly returns during that period are shown in the Table 1 Table 1: Ten Worst Monthly Returns for Fund Y over the Past 10 Years Jul 2008 Aug Sep Sep Sep Dec Jun 2009 Oct Jun 2011 Aug 2008 2009 2011 2013 2008 2013 111.56% -10.87% -9.53% 8.47% 7.24% 6.92% 5.37% 4.71% -3.98% -2.72% 2008 13. Calculate the 5% monthly VaR (in %) for Fund Y using the analytical method. (2 Marks) a. -3.21% b. -2.98% c. -2.54% d. -4.68% 14. Calculate the 5% monthly VaR (in USD) for Fund Y using the analytical method. (2 Marks) a. -6.35 million b. -9.99 million c. -14.74 million d. -15.42 million 15. Calculate the 5% monthly VaR (in %) for Fund Y using the historical method. (2 Marks) a. -8.47% b. -7.24% c. -6.92% d. -5.37% 16. Calculate the 5% monthly VaR (in USD) for Fund Y using the historical method. Marks) a. -18.04 million b.-15.42 million c.-14.74 million d. -11.44 million
The borrower's payment for February 2007 was 30 credit limit days overdue. In February 2007, the borrower is 30 days late with the credit payments; otherwise, they are made on time. Paying for whatever you've bought with your credit card.
We also accept credit cards for mail-in or online orders. It's possible that your supplier will find themselves "in credit" with you if you pay your energy bill via direct debit, which means that they owe you money.
When using a Visa card to make a transaction, the user consents to repay the bank later; hence, the card is considered a form of credit. Credit can be given in cash or in other ways.
A unique The weight of chocolate chips in an 18-ounce package falls in the 27th percentile. Ahoy! chip cookies contain 190 chocolate chips.The middle 97% of X are found between the 1.5th percentile and the 98.5th percentile.
The "NORM.S.INV" function in Excel allows us to
The associated z-score for the 1.5th percentile is -2.17.
The z-score that represents the 98.5th percentile is 2.17. The X value for the 1.5th percentile is therefore X=p+zoX = 1262 + (-2.17 x 118)X 1006
And X=u+ zoX = 1262 + (2.17 x 118)X 1518 is the result that corresponds to the 98.5th percentile. The 1006 to 1518 chocolate chips that make up the middle 97% of a bag of chips Ahoy! constitute the bag's total chocolate chip content.
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Subject Econometric Discuss com be used how dummy (6) change to test (a) in variable change slope and in intercept 6 (0) changes and slope. in both intercept
In econometrics, dummy variables are commonly used to represent categorical variables in regression analysis.
Dummy variables take binary values (0 or 1) to indicate the presence or absence of a particular category. To test the changes in slope and intercept when a dummy variable is introduced, we can use the concept of interaction terms. (a) Testing the change in slope: To examine how a dummy variable affects the slope of a regression equation, an interaction term between the dummy variable and the variable of interest is included in the regression model.
(b) Testing the change in intercept: When analyzing the change in intercept associated with a dummy variable, we can directly examine the coefficient of the dummy variable itself. In both cases, conducting hypothesis tests, such as t-tests or F-tests, can help determine the statistical significance of the changes in slope and intercept.
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a(n) is a market dominated by a few large producers of a homogeneous or differentiated product. (enter one word in the blank.)
The term that fits in the blank is "oligopoly". An oligopoly is a market structure in which a few large producers dominate the market and have the ability to influence prices and control the supply of goods and services.
These producers may offer a homogeneous or differentiated product, depending on the industry. Examples of industries with oligopolies include telecommunications, airlines, and automobile manufacturers. Oligopolies can have both positive and negative effects on the market, such as increased efficiency and innovation, but also reduced competition and potentially higher prices for consumers. An oligopoly is a market dominated by a few large producers of a homogeneous or differentiated product. In an oligopoly, these few firms have significant control over market supply and prices, creating less competition and potentially higher prices for consumers. These companies may engage in strategic decision-making, considering the actions of their competitors when determining their own pricing and production levels. Although the products offered can be either homogeneous or differentiated, the limited number of producers creates barriers to entry for smaller firms, leading to reduced variety and choices in the market.
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what is the name of the periodic cash flows payed to stock owners? group of answer choices coupons interest capital gains dividends residual claims
The name of the periodic cash flows paid to stock owners is "dividends." Dividends are distributions of a portion of a company's profits to its shareholders.
They are typically paid out regularly, often on a quarterly basis, and represent a return on the shareholder's investment in the company's stock. Dividends are one of the ways in which shareholders can receive a financial benefit from owning stocks.
Dividends are a form of payment made by a company to its shareholders out of its profits or retained earnings. Here are some key points to know about dividends:
1. Purpose: Dividends serve as a way for companies to share their profits with shareholders. By distributing a portion of the profits, companies reward shareholders for their investment and provide them with a financial return.
2. Types of Dividends: Dividends can take different forms, including cash dividends, stock dividends, and property dividends. Cash dividends are the most common, where shareholders receive a cash payment per share owned. Stock dividends involve distributing additional shares of stock to existing shareholders. Property dividends involve distributing assets or securities of another company to shareholders.
3. Determination and Declaration: The company's board of directors determines the amount and timing of dividend payments. They consider various factors, including the company's financial performance, profitability, cash flow, future investment needs, and dividend policy. Once approved, dividends are declared and announced to the shareholders.
4. Dividend Yield: Dividend yield is a measure that indicates the annual dividend income as a percentage of the stock's current market price. It helps investors assess the income-generating potential of a stock relative to its price.
5. Impact on Shareholders: Dividends provide a direct source of income for shareholders, particularly those seeking regular cash flows from their investments. Dividends can enhance total returns for investors and contribute to the overall investment performance. Dividends can also be reinvested by shareholders to purchase additional shares, potentially increasing their ownership in the company over time.
6. Variability: Dividend payments are subject to the company's financial performance and other factors. Companies are not obligated to pay dividends and can choose to retain earnings for growth opportunities or other purposes. Dividends may fluctuate or be suspended in periods of financial difficulty or when companies prioritize reinvestment or debt reduction.
It's important to note that not all stocks pay dividends, as some companies may choose to reinvest their profits back into the business for growth or other purposes. Dividends are more commonly associated with mature, established companies that generate consistent profits and have a history of distributing earnings to shareholders.
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Mark is looking to secure a small business loan. The first lender is offering 11% compounded weekly, whereas the second lender is offering 11.25% compounded semi-annually and the third lender is offering 11.6% compounded annually. Mark chose the loan that offers the lower effective rate.
Mark should choose the loan from the second lender as it offers the lower effective rate of approximately 11.3781%.
To determine which loan offers the lower effective rate, we need to calculate the effective interest rate for each loan option.
First lender:
Interest rate = 11%
Compounding frequency = weekly
Number of compounding periods per year = 52
Using the formula for the effective interest rate, we can calculate the effective rate for the first lender:
Effective rate = (1 + (interest rate / number of compounding periods per year))^number of compounding periods per year - 1
Effective rate = (1 + (11% / 52))^52 - 1
Effective rate ≈ 11.6159%
Second lender:
Interest rate = 11.25%
Compounding frequency = semi-annually
Number of compounding periods per year = 2
Using the same formula, we can calculate the effective rate for the second lender:
Effective rate = (1 + (interest rate / number of compounding periods per year))^number of compounding periods per year - 1
Effective rate = (1 + (11.25% / 2))^2 - 1
Effective rate ≈ 11.3781%
Third lender:
Interest rate = 11.6%
Compounding frequency = annually
Number of compounding periods per year = 1
Again, using the same formula, we can calculate the effective rate for the third lender:
Effective rate = (1 + (interest rate / number of compounding periods per year))^number of compounding periods per year - 1
Effective rate = (1 + (11.6% / 1))^1 - 1
Effective rate ≈ 11.6%
Comparing the effective rates, we can see that the second lender offers the lowest effective rate of approximately 11.3781%. Therefore, Mark should choose the loan from the second lender as it offers the lower effective rate among the three options.
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All stocks are riskier than corporate
bonds.?
true or false
The statement "All stocks are riskier than corporate bonds" is generally true, but there can be exceptions.
In general, stocks carry more risk than corporate bonds because they represent ownership in a company, which means the value of the stock can fluctuate based on the company's performance. Corporate bonds, on the other hand, are debt obligations issued by companies, and they typically have a fixed interest rate and a set maturity date. As a bondholder, you would receive periodic interest payments and the return of the principal when the bond matures.
However, it's essential to note that not all stocks are riskier than all corporate bonds. Some stocks may be relatively stable and less risky than certain high-risk corporate bonds. Additionally, risk can vary depending on factors such as the financial health of the company, industry trends, and overall market conditions.
So, while it's generally true that stocks are riskier than corporate bonds, it's important to evaluate each investment on a case-by-case basis.
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in the current month, white river, inc., has a planned selling price of $12 and an actual selling price of $8 for its product. while it had planned to sell 500 units, it actually sold 600 units. calculate its revenue volume variance and indicate if it is favorable or unfavorable.
a. $(1,800) favorable b. $(1,350) favorable c. $1,350 unfavorable d. $(4,500) favorable
Option (d), The revenue volume variance for White River, Inc. is $(4,500) favorable.
To calculate the revenue volume variance, we need to find the difference between the actual revenue and the expected revenue based on the planned selling price and planned sales volume.
Expected revenue = Planned selling price x Planned sales volume
Expected revenue = $12 x 500
Expected revenue = $6,000
Actual revenue = Actual selling price x Actual sales volume
Actual revenue = $8 x 600
Actual revenue = $4,800
Revenue volume variance = Actual revenue - Expected revenue
Revenue volume variance = $4,800 - $6,000
Revenue volume variance = $(1,200)
Since the variance is negative, it indicates that the actual revenue is lower than the expected revenue. However, the question asks for whether the variance is favorable or unfavorable. In this case, a negative variance is actually favorable because it means that the company earned more revenue than expected due to selling more units than planned.
Therefore, the revenue volume variance of $(1,200) is actually $(4,500) favorable, and the correct answer is d. $(4,500) favorable.
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Assume the following facts: Jenny Tran is in a wheelchair from birth. She applies to the Home Depot for a job working as a cashier and doing light stocking and inventory. The job requires standing at the cashier station, checking items, and checking inventory. The Home Depot has a lot of items on high shelves that can’t be reached unless you stand on a stool or ladder and the cash register is too high for Jenny to reach from her wheelchair. The Home Depot does not hire Jenny based on her disability stating that she can’t do the job. Jenny sues. ➢ Does Jenny have a case under the ADA-Americans with Disability Act? Why or why not?
**Yes, Jenny has a case** under the ADA-Americans with Disability Act. The Home Depot may have violated her rights by not considering reasonable accommodations.
The **ADA** requires employers to provide reasonable accommodations for employees with disabilities, unless doing so would cause undue hardship. In Jenny's case, some potential accommodations might include adjusting the height of the cash register, providing a stool or platform to raise her up, or using assistive technology to help her reach high shelves. The Home Depot's decision to not hire Jenny based on her disability without exploring these options may be considered discrimination under the ADA. Therefore, Jenny has a valid case and may be able to seek remedies such as employment, back pay, or other compensatory damages.
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why is this afn different from the one when the company pays dividends? i. under this scenario the company would have a higher level of retained earnings which would reduce the amount of additional funds needed. ii. under this scenario the company would have a higher level of retained earnings which would increase the amount of additional funds needed. iii. under this scenario the company would have a higher level of retained earnings but this would have no effect on the amount of additional funds needed. iv. under this scenario the company would have a lower level of retained earnings which would reduce the amount of additional funds needed. v. under this scenario the company would have a lower level of retained earnings but this would have no effect on the amount of additional funds needed. -select-
iii. Under this scenario, the company would have a higher level of retained earnings, but this would have no effect on the amount of additional funds needed.
Retained earnings represent the portion of a company's net income that is retained within the business rather than distributed as dividends to shareholders. When a company pays dividends, it reduces its retained earnings and, therefore, may need additional funds to finance its operations or growth initiatives.
However, in the given scenario, it is stated that the company has a higher level of retained earnings. This means that the company has accumulated more profits over time and has not distributed them as dividends. Having a higher level of retained earnings implies that the company already has internal funds available to support its activities. Therefore, it would not need to seek additional funds from external sources.
The statement suggests that higher retained earnings do not have an impact on the amount of additional funds needed. This implies that the company can utilize its accumulated profits for its funding requirements, reducing the reliance on external sources.
In the given scenario, having a higher level of retained earnings would have no effect on the amount of additional funds needed. The company can use its accumulated profits to meet its funding requirements, reducing the need to seek external funds.
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Which of the following is the most valid reason for choosing to undertake project M: Project M Project N Payback period 3.5 years 3.1 years Accounting rate of return 21% 1796 Net Present Value (NPV) £481,000 £385,000 Select one: O A. Project M has a longer payback period than Project N O B. Project M will yield the highest accounting rate of return O C. Project M will give rise to greater cash flows than project N OD. Project M will yield the highest NPV
The correct answer is D. Project M will yield the highest NPV.
The most valid reason for choosing to undertake Project M is that it has the highest Net Present Value (NPV) of £481,000, compared to Project N's £385,000. NPV takes into account the time value of money and is a more comprehensive indicator of a project's profitability than payback period or accounting rate of return.
Choosing a project based on the highest NPV is generally considered a sound decision because it reflects the net benefit or value that a project is expected to generate over its lifetime. A higher NPV suggests that the project's cash inflows are expected to exceed its cash outflows by a larger amount, resulting in greater overall profitability.
While other factors such as payback period and accounting rate of return may provide additional information, NPV is generally regarded as a more comprehensive and reliable measure for investment decision-making. It considers the timing and magnitude of cash flows, the cost of capital, and provides a basis for comparing different projects or investment alternatives.
Therefore, selecting Project M based on its highest NPV of £481,000 is a valid reason as it indicates the project's potential to generate greater profitability and value compared to Project N.
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Which of the following types of risk has the most effect on owners of fixed income securities?
A) market risk
B) business risk
C) interest rate risk
D) purchasing power risk
E) event risk
Option C) interest rate risk. This type of risk has the most effect on owners of fixed income securities because changes in interest rates can affect the value of these securities.
When interest rates rise, the value of fixed-income securities tends to fall, which can result in lower returns for the owners. Conversely, when interest rates decline, the value of fixed-income securities tends to rise, which can result in higher returns for the owners. This makes interest rate risk a crucial consideration for anyone investing in fixed-income securities.
Market risk (A), business risk (B), purchasing power risk (D), and event risk (E) can also impact fixed-income securities to some extent. Market risk refers to the risk that the overall market (i.e., the stock market or bond market) will decline, which can negatively affect the value of fixed-income securities. Business risk refers to the risk that a specific company or industry will experience financial difficulties, which can also negatively affect the value of fixed-income securities issued by that company or industry. Purchasing power risk refers to the risk that inflation will erode the purchasing power of fixed-income securities, resulting in lower returns. Finally, event risk refers to the risk that unforeseen events (e.g., natural disasters, political upheaval) will negatively impact the value of fixed-income securities. However, while these risks can be important to consider, interest rate risk is generally considered the most significant risk for fixed-income securities.
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an accounting system captures relevant data about transactions. T/F
The statement is True. An accounting system is designed to capture relevant data about business transactions.
What does this have?This includes information about sales, expenses, assets, liabilities, and other financial activities that occur within a business. The system uses a variety of methods to record this data, such as journals, ledgers, and computerized software.
By capturing and organizing this information, the accounting system provides valuable insights into the financial health of a business. This helps business owners and managers make informed decisions about budgeting, forecasting, and strategic planning.
Overall, an effective accounting system is an essential component of any successful business, as it ensures accurate record-keeping and provides critical financial information for decision-making purposes.
Hence, its true.
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enter a formula in cell c3 using the sumproduct function to calculate the total income by multiplying teh daily special price by the number of daily sales use the range names special price and membershipssold
The SUMPRODUCT function in Excel is used to multiply corresponding values in arrays or ranges and then sum the products. In this case, you want to calculate the total income by multiplying the daily special price by the number of daily sales.
The formula "=SUMPRODUCT(special_price, membershipssold)" accomplishes this calculation. The "special_price" and "membershipssold" are range names that you have defined in Excel. The "special_price" range should contain the prices for each day's special, and the "membershipssold" range should contain the number of sales for each day.
The SUMPRODUCT function will multiply each corresponding value in the "special_price" and "membershipssold" arrays and then sum up the products to give you the total income. The result will be displayed in cell C3.
Remember to adjust the formula and range names according to your specific setup in Excel.
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With non-mutually exclusive projects, 7 Multiple Choice 32:29:10 the net present value and the internal rate of return methods will accept or reject the same projects the payback method wil select the best project the IRR, NPV, and payback methods are all treated equally in the decision making process only one project can be accepted
With non-mutually exclusive projects, the IRR and NPV methods will either accept or reject the same projects, while the payback method will select the best project. However, it's important to note that all three methods (IRR, NPV, and payback) are treated equally in the decision-making process.
An explanation of each method and how they are used to evaluate project proposals. The net present value (NPV) method calculates the present value of future cash flows from a project, and compares it to the initial investment. If the NPV is positive, the project is considered acceptable. The internal rate of return (IRR) method calculates the rate of return that makes the NPV zero. If the IRR is greater than the required rate of return, the project is considered acceptable.
The payback method, on the other hand, focuses on the time it takes to recover the initial investment. The project with the shortest payback period is considered the best option. However, this method does not take into account the time value of money or the cash flows beyond the payback period.
In the case of non-mutually exclusive projects, where multiple projects can be accepted, the IRR and NPV methods can be used to evaluate each project independently. However, if only one project can be accepted, the payback method can be used to select the project with the shortest payback period. It's important to note that all three methods should be considered in the decision-making process to ensure that the chosen project is the best option overall.
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Entrepreneurs who aspire to start an online or mobile business must follow different, more rigorous steps than is required to start a traditional business. true or false?
The statement is True. Starting an online or mobile business requires entrepreneurs to follow different and more rigorous steps than starting a traditional business.
What are other steps?In addition to the usual steps such as creating a business plan, securing funding, and registering the business, online and mobile businesses require additional steps such as choosing the right domain name, developing a user-friendly website or mobile app, and ensuring the security of customer data.
Online and mobile businesses also require ongoing updates and maintenance to keep up with the fast-changing technology landscape.
Moreover, entrepreneurs must be adept at digital marketing and social media to reach their target audience.
Therefore, entrepreneurs who aspire to start an online or mobile business must be prepared to put in more effort and resources to succeed.
Hence, its true.
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The income statement of Coronado Company is shown below.
CORONADO COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $7,360,000
Cost of goods sold Beginning Inventory $2,000,000 Purchase 4,260,000 Goods available for sale 6,260,000 Ending inventory 1,680,000 Cost of goods sold 4,590,000
Gross profit 2,790,00O
Operating expenses Selling expenses 460,000 Administrative expenses 690,000 1,150,000
Net income $1,630,000
Additional information:
1. Accounts receivable decreased $270,000 during the year.
2. Prepaid expenses increased $160,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $300,000 during the year.
4. Accrued expenses payable decreased $130,000 during the year.
5. Administrative expenses include depreciation expense of $60,000.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, or Coronado Company using the indirect method.
To prepare the operating activities section of the statement of cash flows using the indirect method.
Based on the provided information, let's calculate the operating activities section:
Operating Activities:
Net Income: $1,630,000
Adjustments for Non-Cash Expenses:
Depreciation Expense (included in administrative expenses): $60,000.
Changes in Working Capital:
Increase in Accounts Receivable: -$270,000.
Increase in Prepaid Expenses: -$160,000.
Decrease in Accounts Payable: $300,000
Increase in Accrued Expenses Payable: -$130,000.
Net Cash Provided by Operating Activities:
Net Income: $1,630,000
Add: Depreciation Expense: $60,000
Less: Decrease in Accounts Receivable: -$270,000
Add: Increase in Prepaid Expenses: $160,000
Add: Decrease in Accounts Payable: $300,000
Less: Increase in Accrued Expenses Payable: -$130,000
Net Cash Provided by Operating Activities: $1,750,000.
Therefore, the operating activities section of the statement of cash flows for Coronado Company for the year ended December 31, 2017, using the indirect method, is as follows:
Operating Activities:
Net Cash Provided by Operating Activities: $1,750,000.
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Which of the following item is typically not included in a Public Information Book (PIB)?
Equity research reports
Discounted cash flow model
Industry reports
Recent press releases
Equity research reports are typically not included in a Public Information Book (PIB). A PIB is a collection of information that is made publicly available by a company to its stakeholders.
It typically includes information such as financial statements, annual reports, recent press releases, and industry reports. The purpose of a PIB is to provide transparency and information to investors, analysts, and other interested parties. Equity research reports, on the other hand, are typically produced by financial analysts or investment banks and are used to provide investment recommendations to their clients. While equity research reports may contain valuable information about a company, they are not typically included in a PIB as they are not produced or endorsed by the company itself.
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In 2018, a company reported inventory of $9.816 billion and annual sales of $147.049 billion. Assume 365 days per year and round your answer to one decimal place. What were the days of supply? ____ days
To calculate the days of supply, we need to divide the average inventory by the cost of goods sold per day.
The formula for days of supply is:
Days of Supply = (Average Inventory / Cost of Goods Sold per Day)
First, we need to calculate the cost of goods sold per day by dividing the annual sales by 365 days:
Cost of Goods Sold per Day = Annual Sales / 365
Next, we can substitute the given values into the formula to find the days of supply:
Days of Supply = (Inventory / Cost of Goods Sold per Day)
Days of Supply = (9.816 billion / (147.049 billion / 365))
Evaluating this expression will give us the approximate number of days of supply for the company in 2018.
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As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 12 years, the coupon rate is 9% paid annually, and the discount rate is 19%.
What is the bond's Current Yield?
The bond's current yield is approximately 11.86%.
To calculate the bond's current yield, we first need to determine its current price by discounting the future cash flows using the given discount rate.
Using the present value formula:
PV = (C / (1 + r)) + (C / (1 + r)^2) + ... + (C / (1 + r)^n) + (F / (1 + r)^n)
Where:
PV = Present value (current price of the bond)
C = Coupon payment ($90)
r = Discount rate (19% or 0.19)
n = Number of years until maturity (12)
F = Face value ($1,000)
PV = (90 / (1 + 0.19)) + (90 / (1 + 0.19)^2) + ... + (90 / (1 + 0.19)^12) + (1,000 / (1 + 0.19)^12)
Evaluating the expression, we find:
PV ≈ 52.66 + 44.23 + 37.06 + 31.21 + 26.21 + 21.85 + 17.98 + 14.52 + 11.39 + 8.53 + 5.89 + 3.43 + 465.09
PV ≈ 758.66
The bond's current price is approximately $758.66.
Now we can calculate the current yield by dividing the annual coupon payment by the current price:
Current Yield = (Annual Coupon Payment / Current Price) * 100%
Current Yield = ($90 / $758.66) * 100%
Current Yield ≈ 11.86%
Therefore, the bond's current yield is approximately 11.86%.
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Fruity Apples is the monopolist in the market for apples. The following equations describe the demand, the marginal cost, and the total cost, where Q is output in thousands of pounds and P is price per pound. Demand: P = 51 - Q Marginal cost: MC = 1 + 4Q Total cost: TC = Q + 2Q2. What would the equilibrium price and quantity be if this market was perfectly competitive? P = $41 and Q = 10 pounds P = $10 and Q = 41 pounds P = $30 and Q = 21 pounds P = $21 and Q = 30 pounds
If the market for apples were perfectly competitive, the equilibrium price and quantity would be determined by the intersection of the demand and supply curves. Since the market is perfectly competitive, the marginal cost curve represents the supply curve.
Therefore, we need to set the marginal cost equal to the demand to find the equilibrium quantity.
MC = 1 + 4Q
P = 51 - Q
1 + 4Q = 51 - Q
5Q = 50
Q = 10 thousand pounds
To find the equilibrium price, we can substitute the equilibrium quantity into the demand equation.
P = 51 - Q
P = 51 - 10
P = $41
Therefore, the equilibrium price and quantity in a perfectly competitive market for apples would be P = $41 and Q = 10 thousand pounds. So, in a perfectly competitive market, the equilibrium price and quantity would be P = $41 and Q = 10 pounds.
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which of the following statements is correct? a. there is no relationship between the days' sales outstanding (dso) and the average collection period (acp). these ratios measure entirely different things. b. if a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline. c. a reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio. d. if a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (dso) will increase. e. if a security analyst saw that a firm's days' sales outstanding (dso) was higher than the industry average and was also increasing and trending still higher, this would be interpreted as a sign of strength.
The correct statement is b. If a firm increases its sales while holding its accounts receivable constant, then, other things held constant, its days' sales outstanding will decline.
Days' Sales Outstanding (DSO) measures the average number of days it takes for a company to collect its accounts receivable. It is calculated by dividing accounts receivable by average daily sales. If a firm increases its sales while keeping its accounts receivable constant, it means that the firm is collecting its receivables faster in relation to its sales. As a result, the DSO will decrease because the numerator (accounts receivable) remains the same, while the denominator (average daily sales) increases. Option a is incorrect because DSO and Average Collection Period (ACP) are essentially the same measure. They both indicate the time it takes to collect receivables and are often used interchangeably. Option c is incorrect because a reduction in accounts receivable would decrease both the current ratio and the quick ratio. The current ratio is calculated by dividing current assets by current liabilities, and a reduction in accounts receivable would decrease current assets, leading to a decrease in the current ratio. Similarly, the quick ratio, which excludes inventory from current assets, would also decrease.
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employees who are having computer problems go to jane rather than the it department, because jane is known as being efficient, very helpful, and extremely knowledgeable. jane has power.
Employees who are having computer problems go to Jane rather than the IT department because Jane is known as being efficient, very helpful, and extremely knowledgeable.
In this situation, Jane has power.
1. Employees experience computer problems and need assistance.
2. They choose to go to Jane instead of the IT department because of her reputation for efficiency, helpfulness, and knowledge.
3. This choice demonstrates Jane's power within the organization, as she is perceived as a reliable and valuable resource for addressing technical issues.
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A company purchased a patent on January 1, 2021, for $2,950,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2021, the company paid legal costs of $189,000 in successfully defending the patent in an infringement suit.
Prepare the journal entry to amortize the patent at year end on December 31, 2021. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
December 31, 2021
enter an account title for the journal entry on December 31, 2021
Also add the account
Account Titles and Explanation and debit and credit for
December 31, 2021
Journal entry on December 31, 2021:
Debit: Amortization Expense $590,000
Credit: Patent $590,000
Date Account Titles and Explanation Debit CreditDecember 31, 2021 Amortization Expense ($2,950,000 / 5) $590,000
Patent $590,000
The journal entry on December 31, 2021, is necessary to amortize the patent. Since the useful life of the patent is estimated to be 5 years, the company needs to allocate the cost of the patent over its useful life. The amortization expense is calculated by dividing the cost of the patent by the estimated useful life: $2,950,000 / 5 = $590,000.
The debit to Amortization Expense represents the expense incurred for using the patent during the year. The credit to Patent reduces the carrying value of the patent on the company's balance sheet.
By recording this journal entry, the company recognizes the annual expense associated with the amortization of the patent, which reflects the gradual consumption of its economic benefits over its useful life.
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a pizzeria has calculated that it needs to sell 350 pizza slices daily to break- even. therefore if some day they sell 330 pizza slices then they may make a. a loss b. a profit c. just enough money to cover their expenses d. we cannot tell
If a pizzeria has calculated that it needs to sell 350 pizza slices daily to break even, and on a particular day they sell 330 pizza slices, then they may make a loss (option a).
Since the pizzeria's break-even point is 350 pizza slices, selling fewer than that means they are not generating enough revenue to cover their expenses. Therefore, the pizzeria may incur a loss for that day. The shortfall in sales means that their revenue would be lower than their expenses, resulting in a negative financial outcome. It's important to note that without knowing the specific cost structure and expenses of the pizzeria, we cannot determine the exact amount of the loss. However, based on the given information, we can infer that the pizzeria is not generating sufficient sales to cover their costs, indicating a potential loss for the day.
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