Diversification strategy refers to the expansion of an organization into new markets or industries that are different from its current offerings. It involves entering new business areas to reduce risk, capitalize on opportunities, and achieve long-term growth. This strategy can be categorized into related diversification, where businesses are closely connected to the existing operations, and unrelated diversification, where businesses are unrelated to the core operations.
Relevance to Organizational Success:
Diversification strategy is highly relevant to the importance of organizational success for several reasons:
a) Risk Reduction: By diversifying into different markets or industries, organizations can spread their risks. Relying solely on a single product or market exposes an organization to significant vulnerabilities. Diversification helps mitigate risks associated with changes in market conditions, consumer preferences, technological advancements, or economic downturns. If one business segment underperforms, the organization can rely on other diversified segments to maintain overall financial stability.
b) Capitalizing on New Opportunities: Diversification allows organizations to explore new growth opportunities beyond their current scope. It enables them to tap into emerging markets, target new customer segments, or develop innovative products or services. By diversifying, organizations can capitalize on changing market trends, technological advancements, or demographic shifts that present untapped potential for revenue and profit growth.
c) Competitive Advantage: Diversification can provide organizations with a competitive advantage by leveraging synergies and shared resources. Related diversification allows organizations to leverage existing capabilities, technologies, and knowledge across multiple business units. This leads to cost savings, improved efficiency, and enhanced customer value. Unrelated diversification, on the other hand, enables organizations to enter new industries with fresh perspectives, innovative ideas, and disruptive business models, giving them a competitive edge.
d) Long-term Growth and Sustainability: Diversification contributes to long-term growth and sustainability by reducing dependence on a single market or product. It allows organizations to adapt to changing customer preferences, technological advancements, and market dynamics. By expanding their reach and market presence, organizations can create a more balanced portfolio of businesses that can withstand market fluctuations and ensure steady growth.
e) Adaptation to Globalization: In today's globalized business environment, diversification is crucial for organizations to navigate international markets successfully. It enables them to expand globally, enter new geographies, and adapt to diverse cultural, economic, and regulatory environments. Diversification helps organizations capture opportunities in different regions and leverage their strengths to compete globally.
In summary, diversification strategy is relevant to the importance of organizational success as it enables risk reduction, capitalizes on new opportunities, provides competitive advantage, fosters long-term growth, and facilitates adaptation to globalization. By effectively implementing diversification strategies, organizations can enhance their overall performance, sustain profitability, and stay ahead in today's dynamic business landscape.
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Consider two hypothetical firms: Netflex, considering an investment on developing an electric vehicle; and Plugcar, looking into the profitability of building charging stations for electric vehicles. Each firm has two possible strategies: 'Innovate' and 'Do not innovate'. If both firms decide to innovate, the payoffs are high because electric vehicles and charging stations complement each other. If one firm innovates and the other does not, the former experiences a loss because the innovation cannot be profitable without the other. The matrix below describes the hypothetical payoffs. Netflex Innovate Do not innovate -0.5 -0.5 0 0 Find the Nash equilibrium(s) of this game. Provide your reasoning by referring to the payoff matrix above. Your reasoning must include the best responses of each firm. Question 8 [Max 200 words, 6 marks] Keep considering the same game and the payoff matrix from the previous question. Discuss whether the game between Netflex and Plugcar is an invisible hand game. Your discussion must start by explaining what an invisible hand game is. Question 9 [Max 200 words, 8 marks] Discuss how the incentives for firms to innovate (or invest on R&D) are related to the degree of product differentiation. Your discussion must refer to the notion of market power. There is no need Plugcar Innovate Do not innovate 1.0 1.0
To find the Nash equilibrium of the game between Netflex and Plugcar, we need to identify the best responses of each firm based on the payoffs.
Looking at the payoff matrix:
Netflex's best response:
- If Plugcar innovates, Netflex's best response is to innovate as well since the payoff of 1.0 is higher than -0.5.
- If Plugcar does not innovate, Netflex's best response is to not innovate since the payoff of 0 is higher than -0.5.
Plugcar's best response:
- If Netflex innovates, Plugcar's best response is to innovate as well since the payoff of 1.0 is higher than -0.5.
- If Netflex does not innovate, Plugcar's best response is to not innovate since the payoff of 0 is higher than -0.5.
By analyzing the best responses, we can see that the Nash equilibrium occurs when both firms decide to innovate. In this case, neither firm has an incentive to deviate from their strategy since the payoffs are higher compared to the alternative.
Moving on to the discussion of whether the game between Netflex and Plugcar is an invisible hand game, an invisible hand game refers to a situation where individual pursuit of self-interest leads to an optimal outcome for the society as a whole. In this case, the game is not an invisible hand game because the individual pursuit of self-interest does not lead to the optimal outcome.
If both firms decide not to innovate, the payoffs are 0 for each firm, which is suboptimal compared to the outcome where both firms innovate and receive payoffs of 1.0. In this game, cooperation between the firms is necessary to achieve the optimal outcome, but self-interest leads to a suboptimal outcome.
Regarding the relationship between incentives for firms to innovate and the degree of product differentiation, the degree of product differentiation can impact market power. When there is high product differentiation, firms have more market power as their products have unique features and consumers have fewer substitutes to choose from. This increased market power provides stronger incentives for firms to innovate and differentiate their products further to gain a competitive edge and capture higher profits.
On the other hand, in markets with low product differentiation and many close substitutes, firms have less market power, and the incentives to innovate may be lower since innovations may not result in a significant competitive advantage. In such cases, firms may focus more on cost-efficiency and price competition rather than investing heavily in R&D and innovation.
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At a price of
$2.21
per bushel, the supply of a certain grain is
7300
million bushels and the demand is
7700
million bushels. At a price of
$2.26
per bushel, the supply is
7700
a million bushels and the demand is
7600
million bushels.(A) Find a price-supply equation of the form
p=mx+b,
where p is the price in dollars and x is the supply in millions of bushels.(B) Find a price-demand equation of the form
p=mx+b,
where p is the price in dollars and x is the demand in millions of bushels.
Find the equilibrium point.
Graph the price-supply equation, price-demand equation, and equilibrium point in the same coordinate system.
The equilibrium price is roughly $2.9935 (or 7620 million bushels).
To find the price-supply equation, we can use the given data points:
Point 1: Price = $2.21, Supply = 7300 million bushels
Point 2: Price = $2.26, Supply = 7700 million bushels
We can use the slope-intercept form of a linear equation, which is given by:
p = mx + b
Using the two points, we can find the slope (m):
m = (p2 - p1) / (x2 - x1)
m = ($2.26 - $2.21) / (7700 - 7300)
m = $0.05 / 400
m = 0.000125
To find the y-intercept (b), we can substitute one of the points into the equation and solve for b:
$2.21 = 0.000125 * 7300 + b
$2.21 = 0.9125 + b
b = $2.21 - $0.9125
b = $1.2975
Therefore, the price-supply equation is:
p = 0.000125x + $1.2975
To find the price-demand equation, we can use the given data points:
Point 1: Price = $2.21, Demand = 7700 million bushels
Point 2: Price = $2.26, Demand = 7600 million bushels
Using the same method as before, we find:
m = (p2 - p1) / (x2 - x1)
m = ($2.26 - $2.21) / (7600 - 7700)
m = $0.05 / (-100)
m = -0.0005
b = $2.21 - (-0.0005 * 7700)
b = $2.21 + $3.85
b = $6.06
Therefore, the price-demand equation is:
p = -0.0005x + $6.06
To find the equilibrium point, we need to find the point where supply equals demand:
Supply = Demand
0.000125x + $1.2975 = -0.0005x + $6.06
Simplifying the equation, we get:
0.000625x = $4.7625
x = $4.7625 / 0.000625
x ≈ 7620 million bushels
Substituting this value back into either equation, we find the equilibrium price:
p = 0.000125 * 7620 + $1.2975
p ≈ $2.9935
To graph the price-supply equation, price-demand equation, and the equilibrium point, you can plot the points on a coordinate system with price on the y-axis and supply/demand on the x-axis. Then, connect the points to form the corresponding lines. The equilibrium point will be the intersection of the two lines.
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The equilibrium point is (7700, 2.21). To graph the price-supply equation, price-demand equation, and equilibrium point on the same coordinate system, plot the points (7300, 2.21), (7700, 2.26), and (7700, 2.21) on a graph, and draw the lines using the respective equations.
To find the price-supply equation, we can use the point-slope form of a linear equation, which is y - y1 = m(x - x1), where m is the slope and (x1, y1) is a point on the line.
Using the given information, we have two points: (7300, 2.21) and (7700, 2.26). Let's calculate the slope:
m = (2.26 - 2.21) / (7700 - 7300) = 0.05 / 400 = 0.000125
Now, let's use one of the points to find the y-intercept (b):
2.21 = 0.000125(7300) + b
b = 2.21 - 0.9125
b = 1.2975
Therefore, the price-supply equation is p = 0.000125x + 1.2975, where p is the price in dollars and x is the supply in millions of bushels.
To find the price-demand equation, we can use the same process. The two points are (7700, 2.26) and (7600, 2.21):
m = (2.21 - 2.26) / (7600 - 7700) = -0.05 / -100 = 0.0005
Using one of the points:
2.21 = 0.0005(7600) + b
b = 2.21 - 3.8
b = -1.59
So, the price-demand equation is p = 0.0005x - 1.59, where p is the price in dollars and x is the demand in millions of bushels.
To find the equilibrium point, we set the supply and demand equations equal to each other:
0.000125x + 1.2975 = 0.0005x - 1.59
Simplifying the equation, we get:
0.000375x = 2.8875
x = 7700
Substituting x back into one of the equations, we find the equilibrium price:
p = 0.000125(7700) + 1.2975
p = 2.21
Thus the correct equilibrium point is b.(7700, 2.21).
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Both Coca Cola and Benetton are global enterprises. Conduct online research and answer the following questions: What characteristics do these two firms display that qualify them as global enterprises?
Answer: here’s a photo of sample answer
Explanation:
Answer:
Both companies (Coca Cola and Benetton) registered as corporations, and both have a worldwide footprint across a number of countries. Both companies registered under the Companies Act of the respective countries in which they maintain a presence, and both abide by the laws and regulations of each nation.The companies operate on a large scale with huge investments in research and development, machinery, plants, and capital. They have numerous business functions that include marketing, manufacturing, market research, advertising, finance, and many more. They simultaneously work toward their core missions of generating profits, satisfying the needs of their customers, and continuously expanding their presence in current business markets and additional nations. They both raise capital from stock exchange markets.Both firms provide employment opportunities in their host nations and provide good quality products at moderate local rates. They also help in transferring resources such as raw materials and technology from advanced nations to the nations in which they operate.
Explanation:
8. Naseer Inc., is considering a project which will produce cash inflows of $145,000 a year for 2 years followed by $75,000 a year for the following 5 years. What is the NPV and IRR if the initial cost of the project is $400,000 ? Should the project be accepted or rejected? Why? The company uses 7.59% for evaluating projects. Use the frequency function to enter the 2 cash flows. 9. What are the strengths and weaknesses of the NPV method? 10. What are the strengths and weaknesses of the IRR method?
The NPV is $4,591.21 and IRR is 12.97%, if the initial cost of the project is $400,000. Therefore, the project should be accepted as the NPV is positive and the IRR is greater than the required rate of return which is 7.59%.
NPV is a method used in capital budgeting to estimate the potential profitability of an investment or project. It calculates the current value of cash inflows and outflows over a certain period of time at a specific discount rate. The discount rate is often referred to as the cost of capital. NPV can be determined through the following formula:
NPV = Sum of the present values of cash inflows - Initial investment cash outflow
The initial cost of the project is $400,000 which is the investment outflow. Let's calculate the present value of cash inflows.
The present value of cash inflows in the first two years at 7.59% discount rate is:
PV = $145,000 / (1+0.0759)²
= $121,511.02
The present value of cash inflows in the next five years at 7.59% discount rate is:
PV = $75,000 / (1+0.0759)³ * (1+0.0759)⁴ * (1+0.0759)⁵
= $283,080.19
Therefore, the NPV can be calculated by subtracting the investment outflow from the present value of cash inflows.
NPV = $121,511.02 + $283,080.19 - $400,000
= $4,591.21
Since the NPV is greater than 0, it indicates that the project should be accepted. The higher the NPV value, the better the investment will be.
IRR stands for Internal Rate of Return. It is the discount rate that equates the present value of cash inflows to the initial investment outflow. It is a measure of the profitability of the investment. The IRR can be found using the Excel function IRR.
The cash inflows for the project are -$400,000, $145,000, $145,000, $75,000, $75,000, $75,000, $75,000, and $75,000. Using the IRR function in Excel, the IRR of the project is found to be 12.97%.
Therefore, the project should be accepted as the NPV is positive and the IRR is greater than the required rate of return which is 7.59%.
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Answer to question 8:The Net Present Value (NPV) and Internal Rate of Return (IRR) of the project are as follows:NPV = $19,551.44IRR = 13.17%The project should be accepted because the NPV is positive.
The computation for NPV is given below:Given,Initial investment = $400,000Year 1-2 Cash inflow = $145,000Year 3-7 Cash inflow = $75,000Cost of Capital (r) = 7.59%To compute NPV using the frequency function, the cash flow from year 1 to year 7 is computed first. The cash flow for year 1-2 is input as the first two cash flows and the cash flow for year 3-7 is input next as five cash flows. The initial investment is input as a negative cash flow. Hence, the input is as follows:C01 = -400,000C02 = 145,000F01 = 2C03 = 75,000F02 = 5 Computing NPV using the calculator NPV = $19,551.44IRR is computed using the IRR function on the calculator IRR = 13.17%Answer to question 9:The strengths of the NPV method are as follows:It considers all cash flows throughout the project's life.It considers the time value of money.It provides a clear measure of the project's profitability.The weaknesses of the NPV method are as follows:It requires a reliable estimate of cash flows and discount rates.
The computation can be complex.The strengths of the IRR method are as follows:It considers the time value of money.The profitability of the project is reflected by the single percentage rate.The weaknesses of the IRR method are as follows:Multiple IRRs can exist. This can occur when there are unconventional cash flows, such as when there are multiple sign changes in the cash flow stream or non-conventional cash flow pattern.IRR does not provide a clear measure of the profitability of the project. It only indicates that the project is profitable if IRR is greater than the cost of capital.Answer to question 10:The strengths of the IRR method are as follows:It considers the time value of money.The profitability of the project is reflected by the single percentage rate.The weaknesses of the IRR method are as follows:Multiple IRRs can exist.
This can occur when there are unconventional cash flows, such as when there are multiple sign changes in the cash flow stream or non-conventional cash flow pattern. IRR does not provide a clear measure of the profitability of the project. It only indicates that the project is profitable if IRR is greater than the cost of capital.
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Which of the following is included in the introductory paragraph of the standard (unmodified) report on the entity's financial statements?
The introductory paragraph of the company's standard report contains the names of the audited financial statements.
Financial reporting typically involves preparing financial statements, including income statements, balance sheets, and cash flow statements. There may also be disclosures accompanying footnotes that provide details on specific topics as required by the relevant accounting framework.
According to the Corporate Finance Institute, the basic closing format of an income statement is to display income first, then expenses. Expenses are subtracted from income to calculate the company's net profit.
Accounting standards provide the principles for the preparation of financial reports and the type and amount of information that must be provided to enable users of financial statements, including investors and creditors, to make informed decisions.
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Richard has recently finished college and is about to prepare for his exam to become a certified public accountant. He wants to talk to other accountants to learn how best to prepare for this exam. Which professional organization would be most helpful for him to join?
Answer:
The accountant federation
Which of the following financial institutions does not take customer
deposits?
A. Investment bank
B. Credit union
C. Commercial bank
D. Savings bank
Option (A) Investment bank is correct.
Investment bank does not take customer deposits.
What meant by Investment bank?Investment banks are financial institutions that sell their services and act as a middleman in complex transactions like mergers or a startup's initial public offering (IPO). They are also capable of acting as brokers or financial advisers for significant institutional clients like pension funds.
Investment banks do not accept deposits; rather, they help individuals, groups, and governments raise money by issuing securities. Investment companies, often known as mutual fund companies, pool money from institutional and ordinary investors to offer them access to a greater variety of assets. While some financial institutions take deposits, others only offer particular banking services. These non-depository financial institutions include brokerage houses, finance companies, insurance companies, and pension funds. They provide services to both people and companies.
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Which of the following is a reason to use a full-service investment firm instead of a discount investment firm
The reason to use a full-service investment firm instead of a discount investment firm is because of years of experience and guidance.
Full-service investment firmA full-service investment firm is a type of firm or a broker which provides the best and authentic services to its clients.
They are licensed firm that offers a variety of services to the client in a transparent and fair manner.
Some of the services are retirement planning, investments and savings, tax tips and advice, researches, etc.
These firms offer proper guidance to their clients and have years of experience in the field.
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Natasha had a $922. 93 balance on her credit card at the beginning of September. Her credit card has an APR of 9. 89%, compounded monthly, and a minimum monthly payment of 3. 08% of the total balance. The following table shows Natasha’s credit card purchases over the next two months. Month Cost ($) September 33. 70 October 61. 70 October 27. 80 If Natasha makes only the minimum payments, what will her balance at the beginning of November? (Assume that the interest accrues before the monthly payment, and that the monthly payment occurs at the end of the month. Round all dollar values to the nearest cent. ) a. $1,180. 48 b. $1,064. 55 c. $1,000. 93 d. $1,123. 97.
Answer:
I think the answer is C but i'm not sure
Answer:
✅ C. $1,000.93i got 100% on test
WILL GIVE BRAINLEST ASAP!!!!!! Good afternoon can someone answer this please
Write one to two paragraphs explaining the importance of the seven marketing functions. Include examples to illustrate your points.
Answer: See explanation
Explanation:
The seven functions of marketing include:
1. Marketing Information Management: This helps an organization to understand what the customers need. Information can be gathered through the review of market research reports, social media, feedback from sales team.
2. Distribution: An organization's distribution strategy helps the customers to know where to get the product or the company. Marketing helps in the distribution of goods and services to ones customers.
3. Pricing: Pricing plays a role in the success of a particular product. Marketing helps one to be aware of the pricing strategy to use in order to have a competitive edge over ones rivals.
4. Product/Service Management: Marketing is vital for the development of a product as the information gotten from customers can be used to incorporate in new products.
5. Promotion: Through marketing, prospective customers can be made aware of a particular product through promotional activities.
6. Sale - Marketing aids sales as it brings about an increase in the volume of goods sold to the public and also on ways to improve the product through feedbacks.
7. Financing: Successful marketing gives revenue to a business and help in strengthening the loyalty of customers and help in gaining new customers.
A company with significant assets and activities in multiple countries is known as a(n):____.
A) multinational corporation.B) repatriated corporation.C) transferable corporation.D) duplicate corporation.E) emancipated corporation.
A company with significant capital and activities in multiple countries is known as a multinational corporation.
A multinational corporation generally has offices or factories in different and multiple countries and a centralized head office where they coordinate global management.
Other than its home country, a multinational corporation has facilities and other capital in at least one country. Many multinational enterprises are based in developed nations.
The multinational advocates create high-paying jobs and technologically advanced goods in countries that otherwise would not have reach to such opportunities or goods.
Some examples of multinational corporations include- Apple, Samsung, Starbucks, Ikea, Nike, McDonalds, Pepsi etc.
Hence, option A is correct.
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2. Ownership of the resources used to create wealth is in the hands of the individuals is known as what?
a. private property right
b freedom of choice
c. profits
d. competition
The President of a small company owns 100% of the company's stock. The President sells some of the company's stock to four employees and officers of that company without taking a commission. Under the Uniform Securities Act, the President is:
Answer:
B
Explanation:
it is because selling securities in an exempt transaction , so no registration is required.
Consider a bond with maturity 2 year, 100 face value, coupon 4.60%, and yield 7.00%. compute a dollar duration numerically using a dy =0.001%. report you result with two digits decimal accuracy and the correct sign. example: -185.95
The dollar term for security with developing long term, 100 presumptive worth, coupon 4.60%, and yield at 7% is - 0.00174785.
Presently, we should compute the dollar span of this bond.
Security cost at yield 7% = (coupon rate/1 + yield rate) + (coupon rate + 100)/(1 + yield rate) ^2
= 4.6/1.07 + 4.6 + 100/1.07^2
= 4.29906542 + 91.36169098
= 95.6607564
note : with dy = 0.001%, new yield = 7.001%
New security cost with a new yield of 7.001%
= (coupon rate/1 + new yield rate) + (coupon rate + 100)/(1 + new yield rate) ^2
= 4.6/1.07001 + (4.6 + 100)/1.07001^2
= 4.29902524 + 91.35998331
= 95.65900855
Consequently, the dollar span for this bond is = 95.65900855 - 95.6607564
= - 0.00174785.
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What company created the FICO score?
Answer:
FICO (legal name: Fair Isaac Corporation), originally F air, I saac and Co mpany, is a data analytics company based in San Jose, California focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956. Its FICO score, a measure of consumer credit risk, has become a fixture of consumer lending in the United States.
Explanation:
Fair Isaac Corporation
Question 1
Which of the following goods is both rival and excludable?
A city park
A ballpoint pen
A movie in an empty cinema
O A fish in the ocean
O All of these
The following goods are both rival and excludable.
A city parkA ballpoint penWhat is an example of a good that is both excludable and rival?Whilst a great is each excludable and rival in consumption, it is referred to as a personal proper. Wheat is an example of a private precise. it's far excludable: the farmer can sell a bushel to 1 client without having to provide wheat to all and sundry in the county.
Is a good both non-rival and non-excludable?The 2 foremost criteria that distinguish a public properly are that it needs to be non-rivalrous and non-excludable. The non-rivalrous way that the goods do now not dwindle in supply as greater human beings consume them; non-excludability approach that the best is available to all residents.
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Sheehan & Co. purchased 35% of the outstanding shares of Jules & Associates. Jules then declared dividends at year end. How will these dividends effect the investment account for Sheehan? A. Dividends received will increase the investment account. B. Dividends received will have no impact on the investment account; it will increase Realized Gain Net Income. C. Dividends received will reduce the investment account. D. Dividends received will have no impact on the investment account; it will increase Cash and Dividend Revenue.
Explanation is\(^{}\) in a file
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In LMX theory, what ultimately determines whether the follower becomes a member of an in-group or an out-group?
Answer:
d. the leader's perception of the follower
Explanation:
LMX theory stands for leader-member exchange theory and is an approach to leadership that focuses on the two-way relationship that exists between the leaders and followers of a group. Therefore the whether the follower becomes a member of an in-group or an out-group depends on the leader's perception of the follower. Mainly because the leader makes this decision and bases it around what they ultimately think about the follower.
eva runs a small bakery in the village of roggerli. she is debating whether she should extend her hours of operation. eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table to the right. she would have to hire a worker for those hours at a wage rate of $12 per hour. using marginal analysis, how many hours should eva extend her bakery's hours of operations? 4 hours
Eva should extend her bakery's hours of operation by 4 hours using marginal analysis.
To use marginal analysis to determine how many hours Eva should extend her bakery's hours of operation, we need to calculate the marginal revenue and marginal cost for each additional hour.
The marginal revenue is the additional revenue generated by each additional hour of operation. From the table provided, we can see that the marginal revenue for the first hour is $60, for the second hour is $50, for the third hour is $40, and for the fourth hour is $30.
The marginal cost is the additional cost incurred by hiring an additional worker for each additional hour of operation. In this case, the marginal cost is a constant $12 per hour.
To determine the optimal number of hours of operation, we need to continue adding hours until the marginal revenue equals the marginal cost. Based on the table provided, we can see that the marginal revenue equals the marginal cost at 4 hours of operation.
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-- The given question is incomplete, the complete question is
"Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour.
Refer to Table below.
Using marginal analysis, how many hours should Eva extend her bakery's hours of operations?"
In the united states what is the significance of April 15
Answer:
Hope it helps
have a good day Ahead
April 15th of the United States is Tax day
on the domestic front, carter’s most notable shortcoming was:
Jimmy Carter's most notable shortcoming on the domestic front was his handling of the economy, particularly in addressing stagflation and the energy crisis.
During his presidency, Jimmy Carter faced several challenges on the domestic front. One of his most notable shortcomings was his handling of the economy. Carter inherited an economy plagued by high inflation and unemployment rates, known as stagflation. Despite his efforts to address these issues, his policies, such as the Federal Reserve's tight monetary policy, did not yield the desired results.
Additionally, Carter's energy policies, including the creation of the Department of Energy and the promotion of conservation measures, were met with mixed success. The 1979 energy crisis, marked by skyrocketing oil prices and long lines at gas stations, further highlighted the shortcomings of his energy policies.
Overall, Carter's inability to effectively address the economic challenges and energy crisis during his presidency is considered one of his most notable domestic shortcomings.
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You are creating a budget for your new business. What should you include?
A. All income and expenses.
B. Fixed expenses but not income.
C. Income but not variable expenses.
D. Fixed and variable expenses but not taxes.
Answer:
A
Explanation:
You should include all income and expenses because you need to know the value of the business and the amount of money you'll have to spend after you have deducted all the expenses and added all the incomes of the business.
What accounts are inventory invoices placed into?
Inventory invoices are usually placed into one of the following accounts in an accounting system:
Inventory Account: This account is used to track the cost of goods that a business has in stock. The inventory invoices are recorded as a debit in this account.
1. Purchases Account: This account is used to track the cost of goods purchased by a business. The inventory invoices are recorded as a credit in this account.
2. Cost of Goods Sold (COGS) Account: This account is used to track the cost of goods sold by a business. The inventory invoices are recorded as a debit in this account when the goods are sold.
3. Accounts Payable Account: This account is used to track the amount owed to suppliers for goods purchased on credit. The inventory invoices are recorded as a debit in this account until they are paid.
4. The specific accounts that inventory invoices are placed into may vary depending on the accounting system and the business's accounting policies. It's important to consult with an accountant or financial advisor to determine the most appropriate accounts to use for your business.
Roger wants the human resources department to focus on attracting the right employees, measuring their progress toward corporate goals, and rewarding employees for achieving those goals. What is the department focusing on?
A.
talent management
B.
strategic human resources management
C.
succession planning
D.
external recruitment
E.
reemployment
question modemultiple select questionselect all that applyof the following, which three would be considered a component of the marketing plan? (check all that apply.)multiple select question.advertising tie-insproduction schedule marketing strategy situation analysis financial section
The three components that would be considered component of marketing plan are advertising, financial section and marketing strategy.
What is advertising?Advertising is a process and a set of techniques used to promote a product or service. Businesses try to get consumers to notice their products and services by using advertising. Commercial advertising typically aims to increase customer use of their products or services through "branding," in which consumers associate a product name or image with particular characteristics. On the other side, direct-response advertising describes commercials that are intended to stimulate an immediate purchase. Non-commercial entities that advertise their goods or services more than for-profit businesses include political parties, interest groups, religious institutions, and governmental agencies. Public service announcements are one type of free persuasion that non-profit groups are permitted to use.
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When state and local governments issue bonds, the bond owners are not required to pay federal income tax on the interest income. Because of this tax advantage, ...
The tax advantage of municipal bonds allows bond owners to potentially avoid paying federal income tax on the interest income, and in some cases, state and local income taxes as well.
When state and local governments issue bonds, commonly known as municipal bonds, the bond owners are indeed eligible for a tax advantage. The interest income generated from these bonds is generally exempt from federal income tax, making them an attractive investment option for individuals seeking tax-efficient returns.
The tax advantage associated with municipal bonds stems from the federal government's desire to encourage investment in state and local infrastructure projects. By exempting interest income from federal taxation, the government aims to lower borrowing costs for municipalities, allowing them to fund important projects such as schools, roads, hospitals, and utilities more easily.
However, it's essential to note that the tax advantage applies only to federal income tax. Depending on the bondholder's residency and the state where the bonds are issued, the interest income may also be exempt from state and local income taxes, further enhancing the tax benefits.
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shareholders influence a company by multiple choice question. voting to establish corporate policies. voting for the officers who manage the company. appointing the top management of the company. voting for the board of directors.
Shareholders influence a company by voting to establish corporate policies, voting for the officers who manage the company, and voting for the board of directors.
About corporation's shareholdersIn the United States, a corporation's shareholders elect the board of directors, which is the company's decision-making body.
The board of directors, in turn, appoints the company's top management, which is responsible for running the company on a day-to-day basis. Shareholders have an impact on the company's activities because the board of directors, the top management, and the officers all report to them.
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provide a defination of GAAP
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Generally accepted accounting principles, or GAAP, are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.
You are evaluating two investment alternatives. One is a passive market portfolio with an expected return of 10% and a standard deviation of 16%. The other is a fund that is actively managed by your broker. This fund has an expected return of 16% and a standard deviation of 20%. The risk-free rate is currently 7%. Answer the questions below based on this information.a. What is the slope of the Capital Market Line? What is the slope of the Capital Allocation Line offered by your broker's fund?b. Draw the CML and the CAL on one graph.c. What is the maximum fee your broker could charge and still leave you as well off as if you had invested in the passive market fund? (Assume that the fee would be a percentage of the investment in the broker's fund, and would be deducted at the end of the year.)d. How would it affect the graph if the broker were to charge the full amount of the fee?
a. The slope of the Capital Market Line (CML) is (10% - 7%) / 16% = 0.19. The slope of the Capital Allocation Line (CAL) offered by the broker's fund is (16% - 7%) / 20% = 0.45.
b. CML and CAL graph
c. The passive market portfolio has a Sharpe ratio of (10% - 7%) / 16% = 0.19 / 1, so for every unit of risk taken, the investor earns 0.19 units of excess return. To be as well off as if they had invested in the passive market fund, the investor would need the same Sharpe ratio from the broker's fund. The Sharpe ratio for the broker's fund is (16% - 7%) / 20% = 0.45 / 1. Therefore, the maximum fee the broker could charge and still leave the investor as well off as if they had invested in the passive market fund would be:
Fee = (0.45 - 0.19) / 0.45 = 57.78%
So, the broker could charge a fee of up to 57.78% of the investment in the fund and still leave the investor as well off as if they had invested in the passive market fund.
d. If the broker were to charge the full amount of the fee, the CAL would shift downwards parallel to the original CAL. This would result in a lower expected return and a lower Sharpe ratio for the broker's fund, which means the maximum fee the broker could charge and still leave the investor as well off as if they had invested in the passive market fund would be lower.
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