An application where the interest rate stays the same over time, but interest revenue increases as the rate is multiplied by a receivable balance that increases, is referred to as: the effective interest method. The correct option is C.
The effective interest method is used for accounting purposes when dealing with bonds or loans. It allows the interest expense or revenue to be calculated based on the carrying value of the bond or loan, which changes over time. This method ensures that the interest recognized is proportional to the outstanding balance, leading to an increasing interest revenue as the receivable balance grows.
1. Determine the fixed interest rate for the bond or loan.
2. Calculate the initial carrying value, which is the present value of the future cash flows associated with the bond or loan.
3. At the end of each accounting period, multiply the carrying value by the fixed interest rate to determine the interest revenue or expense.
4. Update the carrying value by adding the interest revenue or subtracting the interest expense from the previous carrying value.
5. Repeat steps 3 and 4 for each subsequent accounting period until the bond or loan is fully paid or matured.
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Complete question:
an application where the interest rate stays the same over time, but interest revenue increases as the rate is multiplied by a receivable balance that increases is referred to as what? multiple choice question.
a. future value method
b. present value method
c. effective interest method
d. noninterest bearing method
Résumés should be written in complete sentences.
Please select the best answer from the choices provided
TRUE OR FALSE?
ANSWER: FALSE
Answer:
false lol thx
Explanation:
True/False. The "North American Classification Code" can be used to look up your industry and focus your market research.
Answer: True
Explanation: I got it right. Have a blessed day!!! :)
solved baldwin's product bold has an awareness of 72%. baldwin's bold product manager is determined to have more awareness for bold than andrews' product abby. she knows that the first $1m in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. she also knows one-third of bold's existing awareness is lost every year. assuming that abby's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum baldwin's elite product manager should spend in promotion to earn more awareness than andrews' abby product?
To determine the minimum amount that Baldwin's product manager should spend on promotion to earn more awareness than Andrews' Abby product, we need to calculate the potential new awareness that each promotion budget would generate for Baldwin's Bold product, taking into account the one-third loss of existing awareness.
Let P be the promotion budget in millions of dollars.
For the first million dollars in promotion, Baldwin's Bold product would gain 22% new awareness, which is 0.72 x 0.22 = 0.1584 after accounting for the loss of existing awareness. The total awareness for Baldwin's Bold product after this promotion would be 0.72 x (1 - 1/3) + 0.1584 = 0.6192.
For the second million dollars in promotion, Baldwin's Bold product would gain 23% more new awareness, which is 0.72 x 0.23 = 0.1656 after accounting for the loss of existing awareness. The total awareness for Baldwin's Bold product after this promotion would be 0.6192 x (1 - 1/3) + 0.1656 = 0.6896.
For the third million dollars in promotion, Baldwin's Bold product would gain another 5% new awareness, which is 0.72 x 0.05 = 0.036 after accounting for the loss of existing awareness. The total awareness for Baldwin's Bold product after this promotion would be 0.6896 x (1 - 1/3) + 0.036 = 0.5292.
To surpass Andrews' Abby product awareness of 77%, Baldwin's Bold product needs to achieve at least 78% awareness. Therefore, we need to solve the following equation for P:
0.5292 + P = 0.78
P = 0.2508
Therefore, the minimum promotion budget that Baldwin's product manager should spend to earn more awareness than Andrews' Abby product is $2.5 million (in millions of dollars), which is the smallest promotion budget that can achieve at least 78% awareness for Baldwin's Bold product.
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PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE
Manni wants to start a paper company. He needs to find a place where he can have access to lumber so he can create his products. Which category of economic resource does he require?
labor
entrepreneurial ability
land
Answer:
I think land
Explanation:
because he needs the wood to make paper, and wood makes paper so
The Correct Answer: land
A healthcare organization in Canada outsources its insurance work to a service provider in South Asia. The employees in South Asia used to receive less than half the salary that the employees in Canada received. But in recent years, there has been a rapid increase in employees salaries in South Asia. Slowly, the healthcare organization is reducing the level of outsourcing and is employing people in Canada. Which of the issues associated with offshore outsourcing describes the above scenario
Answer:
Diminishing cost advantages
Explanation:
Diminishing cost advantage is a decline in the coat benefits that offshore outsourcing offers.
Offshore outsourcing occurs when a company outsources part of its operations to a foreign company.
The main benefit of such a move is a reduction in cost.
However when the benefits decline it is referred to as diminishing cost advantage.
In the given scenario employees in South Asia used to receive less than half the salary that the employees in Canada received. But in recent years, there has been a rapid increase in employees salaries in South Asia.
This will result in more cost for the company through its outsourcing activity
Assuming you are one of the Manager in breeding company based in Melaka, what should you do to sustain its competitive advantage? Suggest TWO (2) strategies to your company on likelihood to attack the competitive rivalry.
Developing a strong brand presence and improving product/service quality are strategies that can help sustain competitive advantage by building customer loyalty and differentiation from competitors.
As a manager of a breeding company in Melaka, there are several things that can be done to sustain its competitive advantage. Two strategies that can be implemented to help your company likely to attack the competitive rivalry are as follows:Develop a strong brand presence: Developing a strong brand presence is important for any company that wants to remain competitive in the market. A strong brand presence can help you build a loyal customer base, differentiate yourself from your competitors, and attract new customers to your business. You can achieve this by investing in advertising, marketing, and other promotional activities that can help you build brand recognition and awareness.Improve the quality of your products and services: To sustain your competitive advantage, you need to focus on improving the quality of your products and services. By doing this, you can offer your customers better value for their money and provide them with a better overall experience. You can improve the quality of your products and services by investing in research and development, upgrading your technology and equipment, and hiring skilled and experienced personnel.These two strategies can be of great help in sustaining your competitive advantage.
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The following industries have a market-oriented location A. Newspapers B. Yahoo! Data center C. Paper mills D. Textiles
Answer:
A. Newspapers
D. Textiles
Explanation:
Market oriented location is the selection of business location based on customers. The market for business will be selected where there are customers already present. This is possible where there is presence of some competitor in market and business chooses to open its store just beside him so that competitor customers may visit our store too.
Ahkem is considering buying a new car. He has narrowed his choices down to two models. On a sheet of paper, he begins writing down the positive characteristics of each car and the negative characteristics of each car. He will be using this list to help guide his final decision. In this example, Ahkem is using __________. automatic thinking illogical thinking self-fulfilling thinking controlled thinking
Ahkem is using a controlled thinking when he wrote down the characteristics of each car to help guide his final decision.
What is a controlled thinking?A controlled thinking refers to a kind of thinking process that is slow and sequential which requires effortful attention.
Hence, the controlled thinking is used by him because It allows to reason effectively and come to general conclusion.
Therefore, the Option E is correct.
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8-1 Discussion: Blockchain and Cryptocurrency
Blockchain and cryptocurrency have great potential to bring prosperity into our world. The concept of a truly shared and democratic economy is at the core of the blockchain initiative.
In your initial post, address the following:
Discuss your experience with cryptocurrencies.
Have you used Bitcoin, Dogecoin, Ripple, Tether, Litecoin, Ethereum, or other cryptocurrencies? If so, explain why you used one of these systems and describe your experience.
If you haven’t used cryptocurrencies, discuss your opinion about using them. Would you be interested in using or investing in cryptocurrency? Explain why or why not.
How do you think blockchain technology and cryptocurrency might affect the economy in the future?
Cryptocurrencies have gained significant attention and popularity in recent years. Bitcoin, Ethereum, and Litecoin are among the most well-known cryptocurrencies.
Blockchain technology, which underlies cryptocurrencies, has the potential to revolutionize various sectors of the economy. Its decentralized and transparent nature can enhance security, efficiency, and trust in transactions and data management. Blockchain has the potential to streamline processes, reduce intermediaries, and enable new business models.
In the future, blockchain technology and cryptocurrencies could impact the economy in several ways:
Financial Inclusion: Cryptocurrencies can provide financial services to the unbanked population worldwide, allowing individuals without access to traditional banking systems to participate in the global economy.
Disintermediation: Blockchain technology can remove the need for intermediaries in various industries, such as banking, supply chain management, and real estate, reducing costs and increasing efficiency.
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Creating a Multimedia Presentation
to Describe Your Personal
Characteristics
Student Guide
Assignment Summary
For this assignment, you will create a multimedia presentation describing your
personal characteristics, and think about how these characteristics relate to career
fields.
Your presentation should include a title slide, eleven slides representing your
personal characteristics, and a works cited slide.
Assignment Instructions
Step 1: Gather materials and necessary information.
a) Create your multimedia presentation describing your personal characteristics
and how they relate to career fields.
b) Be sure to keep a list of your references so that you can cite them later.
c) Complete the personal assessment from earlier in this lesson to learn about
your top three career clusters. If needed, it is available as a resource for this
assignment.
d) Ask your teacher where you should save your presentation as you work on it.
Your teacher may also have specific guidelines about the file name you
should use.
Step 2: Create your title slide.
a) Begin by creating the title slide. On this slide, include the title of your
presentation, your name, your teacher’s name, and the due date of the
presentation.
A multimedia presentation is a sort of presentation that combines multiple digital communication mediums, such as video, interactive slides, audio clips, music, and more, to convey the message. The usage of text and graphics is only one component of a multimedia.
Create a multimedia presentation: what are the steps?Organize your thoughts into an outline, choose your software, design your slides, gather your material, write, incorporate the media, and then finish.
Which of the subsequent is an illustration of a multimedia presentation?These three programs together set the bar for making multimedia presentations in the slide-deck format.
What five qualities does multimedia possess?The five primary components of multimedia are text, image, audio, video, and animation.
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Choose all that apply.
Select all of the strategies for avoiding credit problems.
.Set goals
.Create a budget and stick to it.
.Run a credit report annually.
Use the debt-to-income ratio to determine if you are ready for a big purchase.
.Pay bills on time.
.Get rid of unnecessary expenses.
Answer:
all
Explanation:
Answer:
all
Explanation:
Approximately how much revenue was generated by e-commerce sales worldwide in 2019? Select one: A. About $360 billion B. About $3.6 trillion C. About $36 trillion D. About $36 billion E. About $3.6 billion
Approximately $3.6 trillion in revenue was generated by e-commerce sales worldwide in 2019.
In 2019, e-commerce sales around the world amounted to an estimated $3.6 trillion. This represented a significant increase from the previous year and highlighted the growing importance of digital commerce in the global economy. Factors driving this growth included increasing internet and smartphone penetration, rising consumer confidence in online shopping, and improving logistics and payment infrastructure. The largest e-commerce markets in 2019 were China and the United States, followed by countries such as Japan, the United Kingdom, and Germany.
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Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Answer:
A. Traditional model
Explanation:
The strategic planning model refers to methods used by companies in setting goals, making decisions and implementing them within their organizations. The traditional or basic model is used by companies with no clearly defined methods of operation. They begin by defining the mission and vision of the company and develop ways to achieve these goals.
They monitor the goals they have set overtime to evaluate the progress they have so far made. The organizations adopting this model might have never done extensive projects before.
Please help me answer these questions!!
1. Jon yanta’s sale exceeded the amount of his expenses (true or false)
2. Reducing expenses could improve the company’s results (true or false)
3. An increase in total revenue could result in net income (true or false)
4. Rent expense of $5,500 would have resulted in net income (true or false)
5. Supplies expense were not a significant portion of total expenses (true or false)
6. Selling more services would have no effect on the revenues (true or false)
7. An increase in prices could result in higher revenue but could also result in fewer sales (true or false)
Answer: 1st false
2nd true
3rd true
4th true
5th false
6th false
7th true
5 objectives of an entrepreneur.
Answer:
Explanation:
An entrepreneur is a person that sets up a business for the aim of making profits and of social benefits to the society . An entrepreneur bears the risks and rewards alone.
The five objectives of an entrepreneur are listed as below.
1) Profit making: This is one of the primary objectives of an entrepreneur and it is a basis on which some other objectives are built , being a source of cash generating to achieve other objectives.
2)Acquiring the right talents and skills ; An entrepreneur will like to have the right skills and talent in his team for efficiency , effective and economy purposes.
3)Growth ; An entrepreneur aims at growth as the level of profit generated is directly related to the growth attained. The higher the growth, the higher the profit.
4)Sustainability : Another goal is sustainability . He will work towards maintaining his position in the market to ensure going concern . Every business is confronted with competition which can take a business down if not well managed.
5)Online positioning : Taking advantages of online opportunities is critical to success in businesses. He will like to leverage on online opportunities for growth and sustainability.
Design a virtual Health Insurance Scheme for a medium size (you can determine the size by yourself) firm that includes about 1000 employees including the top management and Board of Directors, workers and middle management and other supporting staff. Your design should include the following:
1. All workers and their families considering that the average family size is 4.5 persons;
2. Identify all insurance functions as
a. Collection – how premiums and copayments will be determined and collected from beneficiaries (Company staff and their families) and the employer.
b. Pooling – describe the risk sharing process among all beneficiaries from various age groups.
i. Do you advise to accept pre-existing conditions? Why? And how?
ii. How the insurance scheme will deal with catastrophic events? Mention
options and choose a preferable one.
c. Purchasing – which services will be purchased, from which providers, and
determine the providers’ payment mechanisms PPMs used.
3. Elaborate the contracting process to clearly mention the following
a. Are the contracts will be direct between the payer ad different providers or it will be carries out through a third party?
b. Payment mechanism used for various kinds of services (PHC, investigations, drugs, hospital services, etc.)
c. Reimbursement system(s).
4. Propose how to ensure efficiency of the proposed system and to avoid conflict of
interest.
5. Recommend how to guarantee financial sustainability of the insurance scheme.
NB: All questions / points are subjective. Consequently, justify your ideas/answers as much as possible
In conclusion, a virtual health insurance scheme is an important part of the employee benefits package. It is important to design a scheme that is affordable for all beneficiaries and is financially sustainable.
A virtual health insurance scheme is a plan that offers coverage for medical services provided in the company. A company can provide a health insurance scheme to its employees as a way of motivating them to perform better in the workplace and retain them. Below is a virtual Health Insurance Scheme for a medium-sized firm that includes about 1000 employees
:1. All workers and their families considering that the average family size is 4.5 persons
The health insurance scheme will cover all workers and their families, including the average family size of 4.5 persons.
2. Identify all insurance functions as:a. Collection - how premiums and copayments will be determined and collected from beneficiaries (Company staff and their families) and the employer.
The premiums and copayments will be determined based on the scope of coverage and the estimated medical costs. Beneficiaries, including Company staff and their families, will pay premiums and copayments. The employer will also contribute to the insurance scheme.b. Pooling - describe the risk sharing process among all beneficiaries from various age groups.
i. Accept pre-existing conditions - pre-existing conditions will be accepted as a part of the insurance scheme, as it is considered a risk-sharing process that is fair for all beneficiaries. Pre-existing conditions can be covered by adding them to the list of medical services provided.
ii. Dealing with catastrophic events - catastrophic events will be covered by the insurance scheme. The options are to provide financial assistance to the beneficiaries, or to offer medical services to the beneficiaries in case of catastrophic events. The preferable option is to provide financial assistance to the beneficiaries.
c. Purchasing - which services will be purchased, from which providers, and determine the providers' payment mechanisms PPMs used.
The insurance scheme will purchase medical services from various providers, including hospitals, clinics, and pharmacies. The payment mechanism used will be a fee-for-service payment method.
3. Elaborate the contracting process to clearly mention the following:
a. Direct contracts - the contracts will be direct between the payer and different providers.
b. Payment mechanism - the payment mechanism used for various kinds of services (PHC, investigations, drugs, hospital services, etc.) will be a fee-for-service payment method.c. Reimbursement system - a reimbursement system will be used for the insurance scheme
.4. Propose how to ensure the efficiency of the proposed system and avoid conflict of interest.The efficiency of the proposed system will be ensured by making sure that the premiums and copayments are affordable for all beneficiaries. The insurance scheme will be monitored to ensure that there are no conflicts of interest between the providers and the beneficiaries.
5. Recommend how to guarantee the financial sustainability of the insurance scheme.
The financial sustainability of the insurance scheme will be guaranteed by making sure that the premiums and copayments are affordable for all beneficiaries. The insurance scheme will be monitored to ensure that there are no conflicts of interest between the providers and the beneficiaries. The insurance scheme will also be reviewed periodically to ensure that it is still relevant and meets the needs of the beneficiaries.
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what is nursing ?why is it needed?
Answer: What type of nursing?
Show transcribed data
a. Explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment declsion making. The arithmetic average assumes While the geometric average assumes b. For the time period indicated, rank these investments on a relative basis using the coefficient of variation from most to leaut desirable. Do not round intermediate calculations. Round your answers to two decimal places, c. Assume the arithmetic mean returns in these series are normally distributed. Calculate the range of returns that an investar would have expected to achileve 95 percent of the time from holding long-term corporate bonds. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any, Arithmetict from
The geometric and arithmetic mean returns are not equal because they reflect different aspects of investment performance. The arithmetic mean assumes constant returns over time.
The geometric mean return and arithmetic mean return are both measures of central tendency used to summarize investment returns. However, they differ in how they account for the effect of compounding and the assumption of constant returns.
The arithmetic mean return simply calculates the average return over a given period by summing the individual returns and dividing by the number of periods. It assumes that returns are constant and not affected by compounding.
On the other hand, the geometric mean return considers the compounding effect by calculating the average rate of return over a period. It accounts for the compounding growth of investment returns, making it a more accurate measure when comparing investment performance over multiple periods.
The choice between the geometric and arithmetic mean returns depends on the specific investment context and the investor's objectives. If the investment involves compounding effects or if the investor wants to assess long-term growth, the geometric mean return may be more appropriate. However, if the investment involves shorter periods or if the investor is more concerned with short-term performance, the arithmetic mean return may be more useful.
In terms of the coefficient of variation, it is a measure of relative risk or volatility. Investments with lower coefficients of variation are considered more desirable as they exhibit lower volatility relative to their mean returns.
Regarding the calculation of the range of returns for long-term corporate bonds, more information is needed, such as the mean return, standard deviation, and the desired level of confidence (e.g., 95%). Without this information, it is not possible to provide a specific answer.
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Think about the life cycle (i.e., Introduction, Growth, Shakeout, Maturity and Decline) of the electric vehicle industry. What stage of the life cycle is the electric vehicle industry?
what are the advantages of interdependence in economics
Answer:
This affiliation allows specialist industries to thrive. And, the success can lead to job and wage/salary increases and an overall improvement to wealth and lifestyle
First and foremost, the video game industry is a business. It makes billions of dollars every year, and a large part of that money comes from M-rated games. Halo 3, one of those M-rated games, sold $170 million on its first day of release. Somehow, people expect to put a stop to that, just rid the industry of millions of dollars worth of high-quality adult games that are responsible for hundreds or thousands of jobs and are a viable alternative to movies or television aimed at the same audience. What type of argument does this passage utilize
Answer:
Appeal to logic
Explanation:
Appeal to logic is a type of argument that relies on presentation of facts to convince a target audience.
Logical appeal is made up of claim, evidence, and warrant.
In the given scenario the author claims the video game industry is a business that makes billions of dollars every year.
The evidence he presents is that a a large part of that money comes from M-rated games. For example Halo 3, one of those M-rated games, sold $170 million on its first day of release.
T/F ; reits can sometimes capitalize rather than lease certain expenditures to increase ffo.
True, REITs can sometimes capitalize rather than lease certain expenditures to increase FFO. By capitalizing these costs, they can spread the expenses over a longer period of time, resulting in a higher FFO in the short term.
True, REITs (real estate investment trusts) can sometimes choose to capitalize certain expenditures instead of leasing them in order to increase their FFO (funds from operations). This allows them to report higher earnings and potentially attract more investors. However, this strategy can also lead to higher debt and may not always be beneficial in the long term.
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One value of uing ______ material i that they are uually well-recognized, which may help to boot ale
The answer is Trademark. One value of using Trademark material is that they are usually well-recognized, which may help to boost sales.
Another benefit of using Trademark is that they can help you build your brand. This can be useful if the brand is well-known and people know about it. Additionally, it can help increase the likelihood that someone will buy from you because they know your brand and the products it relates to.
Trademarks can help increase sales by helping you build a strong, recognizable brand. This can help customers use your product or service with confidence and can lead to increased profits for your business.
Question:
One value of using _____ material is that they are usually well-recognized, which may help to boost sales.
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In which period of industrial revolution industries experienced the need of selling function
Answer:
Industrial revolution industries experienced the need of selling function is explained below in details.
Explanation:
The Industrial Revolution converted economics that had been based on cultivation and craftsmanship into markets based on large-scale manufacturing, mechanized production, and industry arrangement. New instruments, new energy sources, and new forms of creating a product made present industries more fruitful and effective.
Indicating when and how written and oral reports will be provided by the team, how team members will coordinate work, what messages will be sent to announce the project to interested parties, and what kinds of information will be shared with vendors and external contractors involved with the project describes: A. developing a Statement of Work B. determining project standards and procedures C. developing a communication plan D. setting a Baseline Project Plan
Answer:
hi yo Wassup
Explanation:
hi and should be therw see ya. did you know the song woman? by doja cat
the success of gerald murray’s forestry projects in haiti was based on:
The success of Gerald Murray's forestry projects in Haiti was based on understanding the local context, community involvement, sustainable practices, capacity building, and effective partnerships.
1. Understanding the local context: Gerald Murray took into account the socio-economic and cultural aspects of the Haitian communities he worked with, ensuring that the forestry projects were tailored to their needs and circumstances.
2. Community involvement: Murray's projects engaged local communities in the planning, implementation, and maintenance of forestry initiatives. This collaboration helped create a sense of ownership and responsibility among community members.
3. Sustainable practices: Murray's forestry projects focused on sustainable practices, such as reforestation and agroforestry, to promote long-term environmental and economic benefits for Haitian communities.
4. Capacity building: The projects included training and education for community members, building their knowledge and skills in forestry management and conservation.
5. Effective partnerships: Murray's projects were successful in part due to the collaboration between different stakeholders, including government agencies, non-governmental organizations, and local communities.
In summary, the success of Gerald Murray's forestry projects in Haiti was based on understanding the local context, community involvement, sustainable practices, capacity building, and effective partnerships.
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A __________ is a group of closely related items which are sold or made by a company. Product segment Product mix Product line Product code
Corporations have the advantage of limited liability but have to deal with what
disadvantage that sole proprietorships and partnerships do not have to deal with?
O inability to obtain subsidies
O continuity of the business
O double taxation
O ease of raising financial capital
The disadvantage that corporations have to deal with that sole proprietorships and partnerships do not have to deal with is double taxation.
This means that the corporation's profits are taxed at the corporate level and then again at the individual level when distributed as dividends to shareholders. However, corporations still have the advantage of limited liability which protects the personal assets of the shareholders from the debts and liabilities of the corporation.
Corporations have the advantage of limited liability, but they must deal with the disadvantage of double taxation, which is not an issue for sole proprietorships and partnerships. This means that corporations pay taxes on their income at the corporate level, and then shareholders pay taxes again on dividends they receive from the corporation. This results in a higher overall tax burden for corporations compared to other business structures.
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the market system fails to provide the efficient output of public goods because:
Public goods are goods and services that are non-excludable and non-rivalrous, meaning that their consumption by one individual does not reduce their availability to others.
Due to their nature, public goods cannot be efficiently provided by the market system. This is because private firms will not produce public goods as they cannot charge consumers for their use. As a result, public goods tend to be under-produced or not produced at all in the absence of government intervention.
Furthermore, the provision of public goods is subject to the free rider problem. Free riders are individuals who benefit from the provision of a public good without contributing to its cost. Since public goods cannot be excluded, individuals have no incentive to pay for them voluntarily.
This leads to a situation where the optimal level of public goods is not produced because the cost of providing them is not shared fairly among all those who benefit from their consumption. As a result, governments often have to intervene and provide public goods to ensure that the economy is efficient and all members of society benefit.
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Based on the communications industry, show the top four steps in
the supplier selection process and indicate reasons for your
ranking.
The top four steps in the supplier selection process are, Needs Assessment and Requirements Definition, Supplier Identification and Prequalification, Request for Proposal (RFP) or Quotation, Evaluation and Selection.
The supplier selection process in the communications industry typically involves several steps to identify and choose the most suitable suppliers. While the specific steps may vary depending on the organization, here are four crucial steps and their ranking based on their importance:
Needs Assessment and Requirements Definition: This step involves conducting a thorough needs assessment to determine the specific requirements and expectations from suppliers. It includes defining quality standards, delivery timelines, pricing considerations, technical capabilities, and any specific industry certifications or compliance requirements. This step is ranked first because it lays the foundation for the entire supplier selection process, ensuring that the organization's needs are clearly defined and understood.
Supplier Identification and Prequalification: Once the requirements are established, the organization needs to identify potential suppliers that have the capability to meet those requirements. This step involves conducting market research, seeking recommendations, and evaluating potential suppliers based on their track record, reputation, financial stability, and technical expertise. Supplier prequalification ensures that only qualified suppliers move forward in the selection process. This step is ranked second as it helps narrow down the pool of potential suppliers and ensures they meet the basic criteria.
Request for Proposal (RFP) or Quotation: After prequalifying suppliers, organizations typically issue a detailed RFP or request for quotation (RFQ) to the selected suppliers. The RFP/RFQ outlines the organization's requirements, asks for detailed proposals, pricing information, and other relevant details. This step allows suppliers to respond with their proposed solutions, capabilities, pricing structures, and any value-added services they can offer. The RFP/RFQ stage is ranked third as it enables organizations to assess suppliers' alignment with their specific needs and compare the offerings provided.
Evaluation and Selection: In this final step, organizations evaluate the proposals received from suppliers based on predetermined criteria such as technical fit, quality, pricing, delivery capabilities, financial stability, and contractual terms. A thorough evaluation process is conducted, which may include reviewing proposals, conducting supplier interviews, visiting supplier facilities, and seeking references. The evaluation results in the selection of the most suitable suppliers. This step is ranked fourth as it concludes the supplier selection process by selecting the suppliers who best meet the organization's requirements.
The ranking of these steps is based on their logical sequence and their significance in ensuring a thorough and effective supplier selection process. However, it's important to note that the actual ranking may vary depending on the specific needs and priorities of the organization and the industry dynamics.
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