Suzan is considering a piece of real estate that she can purchase for $916,000 today. The property will generate annual cash flows of $110,000 in perpetuity and the first cash flow occurs one year from today. What is Suzan's internal rate of return (IRR) from purchasing the property? Enter your answer as a decimal and round to four decimal places. For example, if your answer is 4.55%, enter .0455.

Answers

Answer 1

Suzan's internal rate of return (IRR) from purchasing the property is approximately 0.1201 or 12.01% (rounded to four decimal places).

To calculate Suzan's internal rate of return (IRR) from purchasing the property, we need to find the discount rate at which the present value of the cash flows equals the initial investment.

Using the perpetuity formula, we can calculate the present value (PV) of the cash flows:

PV = Cash Flow / Discount Rate

Since the cash flows are constant at $110,000 per year and the first cash flow occurs one year from today, we can set up the equation:

PV = $110,000 / Discount Rate

Now we need to solve for the discount rate that makes the present value equal to the initial investment of $916,000:

$916,000 = $110,000 / Discount Rate

To isolate the discount rate, we can rearrange the equation:

Discount Rate = $110,000 / $916,000

Discount Rate ≈ 0.1201

Therefore, Suzan's internal rate of return (IRR) from purchasing the property is approximately 0.1201 or 12.01% (rounded to four decimal places).

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Related Questions

Should a business email contain a salutation?

Answers

Answer:

A business email is meant in a professional way. It can be sought out as multiple different approaches, one of them, in this case, can include a friendly and welcoming business approach, including a salutation. All in all, it is up to the writer, there is no fully correct answer. Hope this helps :)

Mary was shopping in a clothing store. She had $100 to spend. She found three items she liked: $99 for a pair of shoes, $98 for a jacket, and $96 for a dress. After over an hour of shopping, she decided to buy the jacket for $98. What was her opportunity cost?

Answers

Answer:

    She have two opportunity cost: 1. Shoes

                                                          2. Dress

   With the return back money of $2

            Opportunity cost is the return of a foregone option less than the return on your chosen option.

"Pick n Pay's overall market share has stagnated over the years" Discuss the possible reasons for this stagnation. 3.2 The implementation of the proposed strategy will entail significant change at Pick n Pay. Discuss the change management process that Pick n Pay must follow to achieve the desired change.

Answers

Possible reasons for Pick n Pay's stagnated market share are as follows:1. Stiff competition: There has been an increase in the number of competitors in the retail industry in South Africa, and Pick n Pay has struggled to keep up with its competitors, particularly foreign retailers.

2. Slow adoption of technology: Pick n Pay has been slow in adopting digital technologies to improve its supply chain and customer experience.

3. Poor brand image: In recent years, the Pick n Pay brand has struggled to resonate with consumers. The company has failed to keep up with changing consumer preferences and expectations.

4. Weak marketing campaigns: Pick n Pay has struggled to communicate its value proposition effectively to consumers, resulting in low customer acquisition and retention rates.

The change management process that Picks n Pay must follow to achieve the desired change should include the following steps:

1. Establish a sense of urgency: The first step is to create an awareness of the need for change and why it is essential for the organization's survival.

2. Form a powerful coalition: The next step is to create a team of influential people in the organization who are committed to the change and can drive it forward.

3. Create a vision for change: The team should create a clear and compelling vision for what the organization will look like after the change has been implemented.

4. Communicate the vision: The vision should be communicated to all stakeholders in the organization, including employees, customers, suppliers, and shareholders.

5. Empower others to act on the vision: The team should enable employees to act on the vision by removing any obstacles that may hinder progress.

6. Create short-term wins: Celebrate small successes along the way to keep the momentum going.

7. Consolidate gains and produce more change: After achieving some short-term wins, the team should build on them to produce more significant and lasting change.

8. Anchor new approaches in the organization's culture: The team should ensure that the new ways of doing things are embedded in the organization's culture and become part of its DNA.

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Disability insurance
A. covers well-being preventive care and medical treatment
B. protects homes, land, and other possessions
C. pays a portion of wages if an individual cannot work for a period of time due to illness or accident
D. provides some financial support to beneficiaries when someone dies

Answers

Disability insurance is a type of insurance that provides financial support to individuals who cannot work due to illness or accident. Option C

The insurance policy pays a portion of the individual's wages for a period of time to help them cover their living expenses. The purpose of disability insurance is to help individuals maintain their standard of living and financial security when they are unable to work.

Unlike other types of insurance, disability insurance does not cover medical treatment or preventive care. Instead, it focuses solely on providing financial support to individuals who cannot work due to disability. Disability insurance is particularly important for individuals who do not have a significant amount of savings or other sources of income.

The amount of coverage provided by disability insurance varies depending on the policy. Some policies may cover a portion of the individual's wages, while others may cover a higher percentage. Additionally, some policies may have a waiting period before benefits are paid out, while others may begin paying immediately.

In summary, disability insurance is a valuable type of insurance that provides financial support to individuals who cannot work due to disability. While it does not cover medical treatment or preventive care, it is an important way for individuals to protect their financial security and maintain their standard of living in the event of a disability. Option C

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Instead of electing to annuitize the annuity, what is another common option chosen?

Answers

One common option chosen instead of electing to annuitize the annuity is to take a lump sum distribution.

This means that instead of receiving regular payments over time, the annuity holder receives a one-time payment of the accumulated funds in the annuity. This lump sum distribution gives the individual more control over their funds and allows them to use the money as they see fit, whether it be for investment, paying off debt, or other financial needs. It is a popular choice for those who prefer immediate access to the funds rather than a structured payout.

In conclusion, opting for a lump sum distribution from an annuity provides individuals with greater flexibility and control over their funds, allowing them to make immediate financial decisions based on their specific needs and goals.

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What ethical dilemmas do you think professionals in the marketing and advertising industry face? Explain.

Answers

Answer:

knowing how to play on emotions but also not make people feel like terrible human beings?

Explanation:

According to the video, what tasks do Librarians perform? Check all that apply.
A. supervising staff
B. writing stories
C. coordinating storytelling sessions
D. speaking at public events
E. dealing with angry customers
F. classifying materials

Answers

Answer: C and F

Explanation:

Answer:

Its I believe a,c, and f

Explanation:

your welcome

Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $15.50 per hour.

Answers

This means that employers must look for other ways to attract and retain workers, such as offering additional benefits or flexible working hours.

Additionally, employers may consider providing additional training and professional development opportunities to their employees in order to create a more attractive work environment. Employers may also look at offering higher bonuses, pay increases, and other incentives to reward employees for their hard work.

Employers should look at ways to make the job more fulfilling, such as offering more interesting tasks or opportunities for career growth.

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what was one effect of this type of advertising during world war ii? (17a) question 11 options: women's colleges closed as wartime employment opportunities grew. the number of women in nontraditional roles increased. women's organizations secured passage of the gi bill for returning veterans. congress passed laws guaranteeing equal pay for equal work for women.

Answers

We can see here that one effect of this type of advertising during World War II is: The number of women in nontraditional roles increased.

What is World War II?

World War II also referred to as the Second World War is actually known to be a war that lasted between 1939 to 1945. The war involved many of the world's countries. The countries of great powers were involved too. It was known to be a total war that directly involved more than 100 million personnels.

There were of two categories:

AlliesAxis powers.

During World War II, many people lost their lives. They were involved in various activities at time and women in nontraditional roles increased.

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Katelyn sells cars at a used-car dealer on commission. The car lot pays an 18% commission when the profit on a car is under $400, 22% when the profit is at least $400 but less than $1,000, and 24% when the profit is $1,000 or more. If katelyn sold a car at a profit of $680. 0. What is her commission? use a dollar sign and comma (if needed) and round to dollars and cents.

Answers

The commission that Katelyn would earn is $149.60.

What is the commission?

Profit is the excess of cost over revenue. It is the difference between revenue and cost.

Profit = revenue - cost

Commission is the percentage of the profit made on a sale that is paid to the sales agent. In order to determine the commission that would be paid, multiply the percentage commission by the profit that is earned.

The percentage commission is 22%. This is because the profit earned is more than $400 but less than $1000.

Commission = profit x commission

Commission = 22% x $680

Commission = 0.22 x $680

Commission = $149.60

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has two segments: the north segment and the south segment. the north segment has sales of $245,000, variable expenses of $135,600, and traceable fixed expenses of $64,800. the south segment has sales of $555,000, variable expenses of $313,800, and traceable fixed expenses of $123,100. the company's common fixed expenses total $122,200. what is the company's net operating income?

Answers

Te company's net operating income is $228,400.  A company's net operating income is a measure of its profitability from its core operations.

To calculate the company's net operating income, we need to subtract the total expenses from the total sales.

For the North segment:

Net Sales = $245,000

Variable Expenses = $135,600

Traceable Fixed Expenses = $64,800

North Segment's Contribution Margin = Net Sales - Variable Expenses

North Segment's Contribution Margin = $245,000 - $135,600 = $109,400

For the South segment:

Net Sales = $555,000

Variable Expenses = $313,800

Traceable Fixed Expenses = $123,100

South Segment's Contribution Margin = Net Sales - Variable Expenses

South Segment's Contribution Margin = $555,000 - $313,800 = $241,200

Total Contribution Margin = North Segment's Contribution Margin + South Segment's Contribution Margin

Total Contribution Margin = $109,400 + $241,200 = $350,600

Net Operating Income = Total Contribution Margin - Common Fixed Expenses

Net Operating Income = $350,600 - $122,200 = $228,400

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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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let’s focus on the second quarter since the change in velocity is so dramatic. during that quarter, the cpi fell by 0.9%, real gdp fell by 9.0%, the money supply rose by 23%, and velocity changed by %. give your answer to one decimal.
Choose one: A. People and banks were spending their money at faster rates.
B. There was a substantial increase in the money supply.
C. People and banks were holding on to their money longer.
D. The inflation rate was negative.

Answers

There is some indication that the United States may be entering a recession as a result of the fact that now the economy shrunk in the second period and GDP fell by 0.9%.

A shrunk economy is what?

Economic contraction is the term used to describe the business cycle's downward slope. A period of declining economic production is known as a contraction. The economy is currently producing less than it did previously. In order to create less goods and services, businesses must use fewer resources, especially labor.

The US economy has it shrunk?

One definition of the a recession is supported by the most recent GDP measurement, which shows that the US economy contracted for two consecutive quarters. During in the 2nd period of 2016, the US GDP contracted by 0.6%.

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Employers must provide a stairway or ladder if the elevation between two surfaces on a site is.

Answers

Employers are required to provide a stairway or ladder at all worker points of access if there is an elevation change of 19 inches (48 cm) or more and no ramp, runway, embankment, or personnel hoist is provided.

What are the elevated work surfaces OSHA regulations?

The final rule codifies OSHA's guidance for companies using RDS for elevated work. Employers are not allowed to utilize RDS over 300 feet above grade unless they can show that doing so would be impractical or provide a greater risk than utilizing another system.

OSHA, how tall may a platform be without a step?

Now that we are clear on how OSHA defines a platform and that any exposed side or edge that is four feet or higher than a lower level need fall protection to prevent employees from falling, let's talk about guardrail specifications for work platforms.

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Teresa is considering purchasing a home for $220,000 by taking out a loan with an interest rate of 4.3% for 30 years. What would her monthly payment be?

Use the monthly payment formula to calculate the monthly payment for this loan:

M =
M = monthly payment

P = principal

r = interest rate

t = number of years



$896.25
$1,088.72
$1,868.70
$2,069.75

Answers

Answer:

$1,088.72

Explanation:

This is an annuities situation. The applicable formula is

M  = PV   ×      r        

                     1 − (1+r)−n

where p = $220,000

r = 4.3% interest rate per year,  Converted to monthly rate = 4.3/100 /12=0.00358

r = 30 year, which is 30 x 12 months= 360 months

M= $220,000  x 0.00358        

      1  - (1+0.00358 ) ^ - 360

M=$220,000 x   0.00358    

                            1- 0.2762

M = $220,000 x (0.00358 /0.7238)

M = $220,000 x 0.0049461

M = 1,088.12

what is Revenue ???

Answers

Answer:

Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement. Income, or net income, is a company's total earnings or profit.

Explanation:

Not my answer

Answer:

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Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold.

How is the following scenario counted for the purposes of determining GDP? Mike buys a new house on a cul-de-sac

Answers

The purchase of a new house by Mike on a cul-de-sac is counted in the calculation of GDP as part of the investment component. It is considered a capital investment because the house is a durable good that is expected to provide economic benefits over a long period of time.

The purchase of the house is included in the Gross Private Domestic Investment (GPDI) category of GDP, which includes all expenditures made by businesses and households for new construction, machinery, equipment, and changes in inventories.

The purchase of a new house adds to the stock of physical capital in the economy and contributes to the long-term economic growth. However, it is important to note that the value of the house is only counted once in GDP, at the time of its initial purchase, and not in subsequent years.

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Doris put in $4000 in a 2-year CD paying 6% interest and being compounded monthly. What will her balance be after 2 years

Answers

Answer:

$4508.64

Explanation:

The formula for calculating future value:

FV = P (1 + r/m)^mn

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

m = number of compounding = 12

$4000 x (1 + 0.06 /12)^(2 x 12)

$4000 x 1.005^24

= $4,508.64

4508.64

Answer:

$4,261.93

Explanation:

It is the correct answer for the quiz. Full question by the way is "Doris put $4000 in a 5-year CD paying 6% interest compounded monthly. After 2 years, she withdrew all her money, and as an early withdrawal penalty, she paid back all interest she made during the first year. How much money was Doris left with?"

the chs company has provided the following information: accounts receivable written-off as uncollectible during the year amounted to $11,700. the accounts receivable balance at the beginning of the year was $170,000. the accounts receivable balance at the end of the year was $230,000. the allowance for doubtful accounts balance at the beginning of the year was $14,200. the allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $13,100. credit sales during the year totaled $910,000. how much was chs company's bad debt expense? multiple choice $13,100. $11,700. $14,200. $10,600.

Answers

To calculate the bad debt expense, we need to use the allowance method. The allowance method involves estimating the amount of uncollectible accounts receivable and adjusting the allowance for doubtful accounts accordingly.

First, let's calculate the ending balance of the allowance for doubtful accounts:

Allowance for doubtful accounts at the beginning of the year = $14,200

Accounts receivable written-off during the year = $11,700

Adjustment to the allowance for doubtful accounts = Ending balance of the allowance for doubtful accounts - Beginning balance of the allowance for doubtful accounts = $13,100 - $14,200 = -$1,100

A negative adjustment means that the allowance for doubtful accounts decreased during the year, which indicates that the company was more successful in collecting its accounts receivable than it had anticipated.

Next, we can calculate the bad debt expense:

Bad debt expense = Ending balance of the allowance for doubtful accounts - Beginning balance of the allowance for doubtful accounts + Accounts receivable written-off during the year

Bad debt expense = -$1,100 + $11,700 = $10,600

Therefore, the answer is $10,600, which is option (D) in the multiple-choice options provided.

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Which component within a corporation elects the board of directors?
(middle school)


A) shareholders


B) all the vice presidents


C) workers


D) the president

Ω Entity001 And Project Ω

Answers

Answer:

A. shareholders

Explanation:

i took the quiz sorry i did not do it sooner

The milk industry has a number of interesting aspects.

Provide economic explanations for the following:

a. Fluid milk is 87 percent water. It can be dried and

reconstituted so that it is almost indistinguishable

from fresh milk. What is a likely reason that such

reconstituted milk is not produced?

b. The United States has regional milk-marketing

regulations whose goals are to make each of the

regions self-sufficient in milk. What is a likely

reason for this?

c. A U.S. senator from a milk-producing state has been

quoted as saying, "I am absolutely convinced... tha

simply bringing down dairy price supports is not a

way to cut production." Is it likely that he is correct

What is a probable reason for his statement?

moto th

Answers

a. While reconstituted milk may be almost indistinguishable from fresh milk, it is likely not produced because of the cost involved in the process.

Drying milk requires specialized equipment and energy, both of which come with a high cost. Additionally, reconstituted milk may not have the same shelf life as fresh milk, making it less appealing to consumers. b. The likely reason for regional milk-marketing regulations in the United States is to ensure a stable supply of milk for each region.

Milk production can be affected by various factors, including weather and disease outbreaks, which can disrupt the supply chain. By encouraging self-sufficiency in milk production, the regulations aim to reduce the risk of milk shortages and price spikes.

c. It is possible that the senator is correct in saying that bringing down dairy price supports is not a way to cut production. Price supports are government subsidies that help maintain a minimum price for dairy products, which can encourage farmers to produce more milk.

However, cutting price supports alone may not be enough to reduce production, as there are other factors that influence milk production, such as consumer demand and production costs. The senator may be suggesting that a more comprehensive approach is needed to address overproduction in the dairy industry.

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Abc company is in the process of issuing bonds. The bonds have a stated interest rate of 6%, which is 2% above the current market rate. What effect will the two interest rates have on the bond issue price?.

Answers

Answer:

The issue price will be above the bond's face value.

Explanation:

Robert placed the following assets into service for his packing and shipping company this year

Answers

Option B. The way that Robert would eliminate the requirement to use the mid-quarter convention B.Claim the Section 179 deduction for the delivery truck.

What is meant by mid-quarter convention?

According to the mid-quarter convention, a company that purchases fixed assets during a reporting quarter should treat them as though they were purchased at the halfway point of the quarter.

When the total depreciable basis of MACRS property placed in service during the final three months of the client's tax year exceeds 40% of the total depreciable basis of all MACRS property placed in service throughout the entire year, you must utilize the mid-quarter convention.

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Robert placed the following assets into service for his packing and shipping company this year: April 3: Desk with a basis of $1,100. July 30: Computer software with a basis of $4,200. October 30: Delivery truck with a basis of $33,000. All assets were used exclusively for business purposes. How may Robert eliminate the requirement to use the mid-quarter convention?

A.Claim the special depreciation allowance for the computer software.

B.Claim the Section 179 deduction for the delivery truck.

C.Elect to expense the desk on the tax return in accordance with the de minimis safe harbor of the tangible property regulations.

D.Use the ADS system to depreciate the truck and the desk.

Need help ASAP!

Select the described workplace culture from the drop-down menu below.

* workplace culture emphasizes everyone being in agreement

* workplace culture emphasizes development of new skills

* workplace culture emphasizes reacting quickly to change

* workplace culture emphasizes accomplishing goals

Need help ASAP!Select the described workplace culture from the drop-down menu below.* workplace culture

Answers

Answer:

The workplace culture emphasizes everyone being in agreement.

Explanation:

The workplace culture emphasizes everyone being in agreement.

An organization should have a good work condition that should be create a good relationship and employee-employee and employer-employer relationship.

It should helped to everyone to achieve their organizational target.

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Answer:

✔ Consistency-oriented

workplace culture emphasizes everyone being in agreement.

✔ Involvement-oriented

workplace culture emphasizes development of new skills.

✔ Adaptive

workplace culture emphasizes reacting quickly to change.

✔ Achievement-based

workplace culture emphasizes accomplishing goals.

Explanation:

answer on edge

Taxes on cigarettes are designed to a. lower the price to reflect their true benefits b . encourage farmers to grow more tobacco . raise the price to reflect their true costs d. restrict sales to government-owned stores

Answers

Answer:

c

Explanation:

A tax is a compulsory sum levied by the government or an agency of the government on goods and services. Taxes increases the price of a good. the aim of tax on cigarettes is to increase the price of cigarettes. this should discourage consumption of cigarettes. taxes on cigarette reflect the true cost of consuming cigarettes

which two of these terms were not used to identify appropriate participants in regional dialect surveys?

Answers

The two terms that were not used to identify appropriate participants in regional dialect surveys are age and gender. Age and gender were not used in the selection of participants for regional dialect surveys.

Researchers who conduct surveys on regional dialects seek out participants who are native speakers of the dialect they are studying. In order to achieve representative results, they must ensure that the sample is diverse and inclusive. They use several criteria to select appropriate participants, such as geographic location, occupation, and education level. However, two factors that are not taken into account are age and gender. This is because dialect features are not dependent on age or gender. Rather, they are influenced by factors such as social class, ethnicity, and linguistic background. For example, a young woman and an elderly man from the same region may speak with the same dialect features if they have similar social and linguistic backgrounds. Conversely, two individuals of the same age and gender may have vastly different dialect features if they come from different socioeconomic or ethnic backgrounds. Therefore, age and gender are not reliable indicators of dialect variation and are not used to identify appropriate participants in regional dialect surveys.

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Assume interest is compounded monthly. The ______ annual rate will express this rate as though it were compounded annually.

Answers

A compounded interest rate is sometimes called an effective annual rate.


Answer: effective

TRUE/FALSE. the stack adt is organized according to the principle of fifo?

Answers

FALSE. the Stack ADT is organized according to the principle of LIFO, not FIFO.

The Stack ADT (Abstract Data Type) is actually organized according to the principle of LIFO (Last In, First Out), which means that the last item that is added to the stack is the first one to be removed.

A stack is a collection of elements with two main operations: push and pop. The push operation adds an element to the top of the stack, while the pop operation removes the element from the top of the stack. Additionally, a stack may have other operations such as peek, which returns the top element without removing it, and isEmpty, which checks if the stack is empty.

The LIFO principle is used in many real-life scenarios, such as a stack of books, plates, or a pile of papers. In computer science, stacks are used to keep track of function calls, to implement undo-redo functionality, and to parse expressions, among other things.

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what is the benefits of international bussiness to firms ?​

Answers

Answer:

Benefits to Firms

It helps in improving profits of the organizations by selling products in the nations where costs are high. It helps the organization in utilizing their surplus resources and increasing profitability of their activities. Also, it helps firms in enhancing their development prospects.

Explanation:

i just looked it up so hope it helps ;)

Think of a time you encountered an ethical dilemma. What was the situation? How did you react? Do you behave ethically? How do you know?
(i never had a ethical problem plz HELP!!!!!!!)

Answers

Answer: Ok so i work in a place where realtionships at the job are forbbiden, well not forbbiden strictly but you get it right. so, this boy and this girl were dating and once the boss found he did not let them work together he actually seperated them and the girl had to work with me and the boy had to work with other coulleges.    

Explanation: i hope you understand

Answer:

One time I was working in a group with my friends for a school project and they weren't acting appropriately or doing their part of the project. I didn't know if I should ask the teacher for a new group and upset my friends, or if I should just do the project myself so as to not risk upsetting my friends and still get a good grade. I reacted by having a serious conversation with my friends and explaining the situation. I behaved ethically because I communicated the issue, and we were able to solve it by them realizing what they were doing, focusing and completing their part of the project, and all of us getting it done as a team.