The investor's portfolio consists of Adobe Systems stock, Dow Chemical, and Office Depot. To calculate the portfolio weights, we divide the value of each stock by the total value of the portfolio.
First, let's determine the total value of the portfolio:
Total value of the portfolio = Value of Adobe Systems stock + Value of Dow Chemical + Value of Office Depot
Total value of the portfolio = $10,000 + $15,000 + $25,000
Total value of the portfolio = $50,000
Now, we can calculate the portfolio weights for each stock:
Adobe Systems stock:
Portfolio weight of Adobe Systems stock = (Value of Adobe Systems stock / Total value of the portfolio) * 100
Portfolio weight of Adobe Systems stock = ($10,000 / $50,000) * 100
Portfolio weight of Adobe Systems stock = 20%
Dow Chemical:
Portfolio weight of Dow Chemical = (Value of Dow Chemical / Total value of the portfolio) * 100
Portfolio weight of Dow Chemical = ($15,000 / $50,000) * 100
Portfolio weight of Dow Chemical = 30%
Office Depot:
Portfolio weight of Office Depot = (Value of Office Depot / Total value of the portfolio) * 100
Portfolio weight of Office Depot = ($25,000 / $50,000) * 100
Portfolio weight of Office Depot = 50%
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In 2015, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $125,000 annual salary with no qualified fringe benefits, requires her to pay $3,200 a year for parking and will purchase life insurance at a cost of $2,100. The second package offers $115,000 annual salary, employer-provided health insurance, annual free parking (worth $310 per month), $212,000 of life insurance (purchasing on her own would have been $2,100 annually), and free flight benefits (she figures that it will save her $6,250 per year). If Jill chooses the first package, she would purchase health and life insurance benefits at $5,500 and $2,100, respectively, annually after taxes and spend another $6,250 in flights while traveling. Assume her marginal tax rate is 28 percent.
5-year Age Bracket Cost per $1,000 of Protection for One Month
Under 25 $0.05
25 to 29 0.06
30 to 34 0.08
35 to 39 0.09
40 to 44 0.10
45 to 49 0.15
50 to 54 0.23
55 to 59 0.43
60 to 64 0.66
65 to 69 1.27
70 and above 2.06
a-1. Which compensation package should she choose?
a-2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the other compensation package?
b-1. Assume the first package offers $138,000 salary with no qualified benefits instead of $125,000 salary plus benefits. Which compensation package should she choose?
b-2. How much would she benefit in after-tax dollars by choosing this package?
Answer:
a-1. To determine which compensation package Jill should choose, we need to compare the total value of each package. Let's calculate the values of each package:
Package 1:
Annual salary: $125,000
Parking cost: $3,200
Life insurance cost: $2,100
Health insurance cost: $5,500 (after-tax)
Flights cost: $6,250
Total value of Package 1 = Annual salary - Parking cost - Life insurance cost - Health insurance cost - Flights cost
Total value of Package 1 = $125,000 - $3,200 - $2,100 - $5,500 - $6,250
Package 2:
Annual salary: $115,000
Employer-provided health insurance: Included
Free parking value: $3,720 (12 months * $310 per month)
Life insurance value: $212,000 (annual cost if purchased individually)
Free flight benefits value: $6,250
Total value of Package 2 = Annual salary + Free parking value + Life insurance value + Free flight benefits value
Total value of Package 2 = $115,000 + $3,720 + $212,000 + $6,250
To choose the better package, Jill should compare the total values of Package 1 and Package 2 and select the one with the higher value.
a-2. To calculate the after-tax benefit of choosing one package over the other, we need to consider Jill's marginal tax rate. Let's calculate the after-tax benefit:
After-tax benefit = (Total value of chosen package - Total value of other package) * (1 - Marginal tax rate)
After-tax benefit = (Total value of chosen package - Total value of other package) * (1 - 0.28)
b-1. If the first package offers a $138,000 salary instead of $125,000, the calculations for both packages would be as follows:
Package 1:
Annual salary: $138,000
Parking cost: $3,200
Life insurance cost: $2,100
Health insurance cost: $5,500 (after-tax)
Flights cost: $6,250
Package 2:
Annual salary: $115,000
Employer-provided health insurance: Included
Free parking value: $3,720 (12 months * $310 per month)
Life insurance value: $212,000 (annual cost if purchased individually)
Free flight benefits value: $6,250
To determine which package Jill should choose, compare the total values of Package 1 and Package 2.
b-2. Calculate the after-tax benefit of choosing one package over the other using the updated salary values and the marginal tax rate. The formula for after-tax benefit remains the same:
After-tax benefit = (Total value of chosen package - Total value of other package) * (1 - Marginal tax rate)
After-tax benefit = (Total value of chosen package - Total value of other package) * (1 - 0.28)
What are the functions of money?
A. A measure of debt
B. A storehouse of value
C. A form of bartering
D. A unit of account
E. A medium of exchange
Answer:
E,C, and D, and B
Explanation:
The functions of money are- a measure of debt, a storehouse of value, a unit of account, and a medium of exchange. Thus all the options except C are the functions of money.
What is money?Money is any item or verifiable record that is widely accepted in a particular country or socio-economic context as payment for goods and services and repayment of debts, such as taxes.
Money serves as a medium of exchange, a unit of account, a store of value, and, in some cases, a standard of deferred payment. Money was historically an emerging market phenomenon with intrinsic commodity value.
Its value is derived as a result of social convention, having been declared legal tender by a government or regulatory entity; that is, it must be accepted as a form of payment within the borders of the country, for "all debts, public and private."
Therefore, options A, B,D, and E are the functions of money.
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An OSHA inspector arrived at a hotel construction site for no apparent reason. He was turned away because he did not have a search warrant. He was attempting to provide which level of enforcement?
a. Imminent danger
b. Serious accident
c. Employee complaint
d. Target inspection
e. Random inspection
Economic relationships are characteristically embedded in other relationships, such as kinship, in all of the following kinds of societies EXCEPT Question 2 options: A) states. B) foragers. C) horticulturalists. D) pastoralists. E) chiefdoms.
The correct answer would be that economic relationships are embedded in kinship relationships in all of these societies.
The economic relationships are characteristically embedded in other relationships, such as kinship, in all of the following kinds of societies, including states, foragers, horticulturalists, pastoralists, and chiefdoms. Economic relationships refer to the interactions and exchanges that occur within an economic system between individuals, organizations, and entities. These relationships are characterized by the production, distribution, and consumption of goods and services. Economic relationships involve various actors, including producers, consumers, suppliers, employees, investors, and government entities. They are governed by market dynamics, supply and demand forces, pricing mechanisms, and contractual agreements. Economic relationships are shaped by factors such as trade, specialization, competition, and cooperation. They play a crucial role in determining resource allocation, wealth distribution, and overall economic outcomes. Effective economic relationships foster growth, innovation, and efficiency, while poor economic relationships can lead to market failures, inequality, and economic instability.
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From the following facts, complete a depreciation schedule by using the straight-line method: (Input all amounts as positive values.) Cost of Honda Accord Hybrid Residual value Estimated life End of y
The depreciation schedule by using the straight-line method is End of Year Value of Honda Accord Hybrid Depreciation1 $27,7502 $24,5003 $21,2504 $18,0005 $14,7506 $11,5007 $8,2508 $5,000. The depreciation at the end of each year is $3,250.
Given Information: Cost of Honda Accord HybridResidual value
Estimated life End of year solution: A depreciation schedule by using the straight-line method is given below: Depreciation = (Cost of Honda Accord Hybrid - Residual value) / Estimated life Depreciation
= ($31,000 - $5,000) / 8Depreciation = $26,000 / 8Depreciation
= $3,250End year Value of Honda Accord Hybrid Depreciation
$31,000.00 $3,250.00 $27,750.00 $3,250.00 $24,500.00 $3,250.00 $21,250.00 $3,250.00 $18,000.00 $3,250.00 $14,750.00 $3,250.00 $11,500.00 $3,250.00 $8,250.00 $3,250.00 $5,000.00 $3,250.00
Ans: Therefore, the depreciation schedule by using the straight-line method is as follows: End of Year Value of Honda Accord Hybrid Depreciation1 $27,7502 $24,5003 $21,2504 $18,0005 $14,7506 $11,5007 $8,2508 $5,000
The depreciation at the end of each year is $3,250.
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Which of the following is NOT affected by marketing?
A. The locations you shop
B. The items you purchase
C. The product regulations
D. The use of the products
Answer:
D, The use of products.
The use of the products is not affected by marketing. Thus, option D is appropriate.
Marketing describes the actions a business takes to encourage the purchase or sale of a good or service. Advertising, selling, and delivering goods to customers or other firms are all included in marketing. Affiliates perform some marketing on behalf of businesses.
Marketing is the procedure of discovering, developing, and providing value to satisfy a target market's needs in terms of products and services, which may also involve choosing a target audience. The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing.
Thus, option D is correct.
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If the liabilities of a business are Rs.7,50,000 and the capital is Rs. 8,50,000. Find the total assets.
Rs 1600000
Explanation:
accounting equation= asset= liability+capital
if the fed carries out an open market operation and sells u.s. government securities, the federal funds rate falls and the quantity of reserves decreases.
If the fed carries out an open market operation and sells u.s. government securities, the federal funds rate rises, and the quantity of reserves decreases. Option E
What is an open market operation?Generally, One of the most important tools that the Federal Reserve employs in the process of putting monetary policy into action is known as open market operations, or OMOs for short.
These OMOs include the buying and selling of assets on the open market by the central bank. The Federal Open Market Committee is in charge of determining what the short-term goal for open market operations should be.
The Federal Reserve moves the federal funds rate and influences other interest rates via the use of open market activities. This is done in order to either speed up or slow down the economy.
The Federal Reserve may expand the money supply and decrease the fed funds rate by acquiring, in most cases, assets issued by the Treasury.
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CQ
If the Fed carries out an open market operation and buys U.S. government securities, the federal funds rate and the quantity of reserves
falls; increasesrises; increasesfalls; decreasesrises; does not changerises; decreasesHow important do you think focus groups are to the eventual success of a new product?
Answer:
Yes
Explanation:
Focus groups help businesses learn what their customers think, enabling strategic decision-making focused on their target market's true wants and needs
in addition to mean profit, what other factors should ftc consider in determining a production quantity? (select all that apply.)
Apart from the net profit the other things are inventory and possibility or surplus or stockout factors should ftc consider in determining a production quantity.
What is production quantity?Economic production quantity is the amount of product that should be produced in one batch to minimize total costs, including machinery setup costs and inventory costs.
The basic EPQ model gives the equation to calculate EPQ as follows:
EPQ= √((2* D*Co*P)/(Ci*(P-D)))
D = Annual demand for product
P = Annual demand production rate
Co = Fixed cost assembly- or setup cost
Ci = inventory holding cost per unit
"Understanding economic production volume is important in inventory management because holding too much inventory is expensive to transport and holding too little can cause inventory, lost sales. , and possibly in rare cases production plant shutdowns.
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The items below list several e-mail practices. If the practice describes something workers should do when using e-mail for business purposes, select Do. If the practice describes something workers should not do when using e-mail for business purposes, select Don't.
include a signature.
include lots of exclamation marks to get your point across.
include the thread of previous messages.
make e-mail messages brief.
always mark messages as urgent so your e-mails will be read first.
use a relevant subject line.
use all capital letters when the message is urgent.
Answer:
do
don't
do
do
don't
do
dont
When determining the amount of cash payments for manufacturing overhead, which costs are removed from the budgeted manufacturing overhead?
When determining the number of cash payments for manufacturing overhead, Depreciation is removed from the budgeted manufacturing overhead.
What is depreciation in accounting?
Depreciation is allocated across the asset's estimated useful life in order to charge a reasonable portion of the depreciable amount for each accounting period. Depreciation includes the amortization of assets with predetermined useful lifetimes.
How to calculate manufacturing overhead?
You must total up all indirect costs associated with the manufacturing of a product to determine manufacturing overhead. This covers the price of depreciation, factory supplies, electricity, insurance, maintenance of machines, indirect materials and labor, and more.
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Which of the following is usually not part of the criteria for project success?
A. Customer satisfaction
B. Customer acceptance
C. Meeting at least 75 percent of specification requirements
D. Meeting the triple-constraint requirements
Meeting at least 75 percent of specification requirements is usually not part of the criteria for project success. Thus the correct option is C.
The completion of the project's objectives within the defined restrictions, such as budget, schedule, scope, quality, and stakeholder expectations, is referred to as project success.
The project's success is primarily contingent on achieving customer needs within an agreed-upon time schedule and staying within budget in order to produce deliverables efficiently.
Therefore, option C is appropriate.
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donovan company projects sales for the year 2019 to be $32,000,000. for the past 5 years, donovan’s gross profit margin has averaged 45%. what amount should donovan company project for gross profit for 2019?
Answer:
$17,600,000 I took this test and this is it!
The publisher of Celebrity Living claims that the mean sales for personality magazines that feature people such as Megan Fox or Jennifer Lawrence are 1.5 million copies per week. A sample of 10 comparable titles shows a mean weekly sales last week of 1.3 million copies with a standard deviation of 0.9 million copies.
Answer and Explanation:
The computation is shown below:
For determining each part first we have to do the following calculations
Critical value of t = 3.250
Null hypothesis = 1.5
Alternative hypothesis ≠ 1.5
Population mean \(\mu\) = 1.5
Sample mean \(\bar X\)= 1.30
Sample size \(n\) = 10.00
Sample standard deviation \(s\) = 0.900
Standard error of mean is
\(s_x = \frac{s}{\sqrt{n} }\)
\(= \frac{0.900}{\sqrt{10.00}}\)
= 0.2846
Test static is
\(t = \frac{x - \mu}{s_x}\)
\(= \frac{1.30 - 1.5}{0.2846}\)
= -0.703
a. The null hypothesis is
μ = 1.5
Alternate Hypothesis is
μ ≠ 1.5
b. reject \(H_o\) if t is not between
-3.250 and 3.250
c. The value of the test statistic is
t = -0.703
(as we have computed above)
d. fail to reject \(H_o\) as this data does not contradict the publisher claim
DUE TODAY PLEASE HELP T^T
One reason picking a career that interests you is that you might easily spend 30-40 years doing that job.
False
True
Answer:
False
Explanation:
Because you would spend 30-40 years of that career that YOU would enjoy. If you do something that's easy but not fun, then you would most likely end up quitting that job/career.
1. Describe three different types of cash receipts that a business may record. Also identify the
document used
2. Describe typesdifferent types of cash payments that a business may record. Also identify the
document used.
answer 1 in the attachment ✌️✌️✌️
Dawn Browne, an investment broker, has been approached by client Jack Thomas about the risk of his investments. Dawn has recently read several articles concerning the risk factors that can potentially affect asset returns, and she has decided to examine Jack’s mutual fund holdings. Jack is currently invested in the Fidelity Magellan Fund (FMAGX), the Fidelity Low-Priced Stock Fund (FLPSX), and the Baron Small Cap Fund (BSCFX).
Dawn would like to apply the well-known multifactor model proposed by Eugene Fama and Ken French to determine the risk of each mutual fund. Here is the regression equation for the multifactor model she proposes to use:
In the regression equation, Rit is the return on Asset i at Time t, RFt is the risk-free rate at Time t, and RMt is the return on the market at Time t. Thus, the first risk factor in the Fama–French regression is the market factor often used with the CAPM.
The second risk factor, SMB, or "small minus big," is calculated by taking the difference in the returns on a portfolio of small-cap stocks and a portfolio of big-cap stocks. This factor is intended to pick up the so-called small firm effect. Similarly, the third factor, HML, or "high minus low," is calculated by taking the difference in the returns between a portfolio of "value" stocks and a portfolio of "growth" stocks. Stocks with low market-to-book ratios are classified as value stocks and vice versa for growth stocks. This factor is included because of the historical tendency for value stocks to earn a higher return.
In models such as the one Dawn is considering, the alpha (α) term is of particular interest. It is the regression intercept; but more important, it is also the excess return the asset earned. In other words, if the alpha is positive, the asset earned a return greater than it should have given its level of risk; if the alpha is negative, the asset earned a return lower than it should have given its level of risk. This measure is called "Jensen’s alpha," and it is a widely used tool for mutual fund evaluation.
1. For a large-company stock mutual fund, would you expect the betas to be positive or negative for each of the factors in a Fama–French multifactor model?
2. The Fama–French factors and risk-free rates are available at Ken French’s website: www.dartmouth.edu/~kfrench. Download the monthly factors and save the most recent 60 months for each factor. The historical prices for each of the mutual funds can be found on various websites, including finance.yahoo.com. Find the prices of each mutual fund for the same time as the Fama–French factors and calculate the returns for each month. Be sure to include dividends. For each mutual fund, estimate the multifactor regression equation using the Fama–French factors. How well do the regression estimates explain the variation in the return of each mutual fund?
3. What do you observe about the beta coefficients for the different mutual funds? Comment on any similarities or differences.
4. If the market is efficient, what value would you expect for alpha? Do your estimates support market efficiency?
5. Which fund has performed best considering its risk? Why?
For a large-company stock mutual fund, we would expect the betas to be positive for each of the factors in a Fama-French multifactor model.
After downloading the Fama-French factors and obtaining historical prices for each mutual fund, we can estimate the multifactor regression equation using the Fama-French factors. The beta coefficients for different mutual funds can vary widely depending on the type of stocks they hold
If the market is efficient, we would expect alpha to be zero. This is because an efficient market should reflect all available information in the price of a security, meaning that there should be no excess return to be earned. To determine which fund has performed best considering its risk, we can look at the alpha coefficient for each fund.
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Minors have choices under contract law. When a minor becomes an
adult and wants to honor his/her contract that was made when he/she
was a minor, he/she must:
Ratify the contract.
Give back
When a minor becomes an adult and wants to honor a contract that was made when they were a minor, they must ratify the contract.
What is the contract law?Ratification is the act of ratifying or acknowledging a contract that was initially filed into as a minor. Once one reaches the age of plurality (the voting age of maturity), they have the alternative to authorize the contract and have an obligation by allure agreements.
By ratifying the contract, the individual basically reinforces their goal expected constitutionally bound under the contract and concludes their allowable responsibilities.
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Minors have choices under contract law. When a minor becomes an adult and wants to honor his/her contract that was made when he/she was a minor, he/she must:
Ratify the contract.
Give back the goods or services received as a minor.
Bring a legal action (file a lawsuit) to verify the contract.
Disaffirm the contract.
Which of the following would help a hiring manager determine whether a
recruiting resource is effective?
A. Comparing the diversity of internal versus external candidates
B. Comparing retention and turnover results from different recruiting
sources
C. Comparing salaries at multiple corporations
D. Creating job listings on multiple social media sites
2. What are some banks, non-banks, technology and retail companies? Name 1 of each and explain what they are and what they do?
Banks are businesses that provide a range of financial services, such as mortgages, savings accounts, and loans. JPMorgan Chase, one of the biggest banks in the US, is an illustration of a bank. Financial services offered by JPMorgan Chase include banking, investing, and credit card services.
What are retail companies?Businesses that sell goods directly to customers are known as retail companies. Walmart, one of the biggest retailers in the world, is a good example of a retail business. Walmart runs a network of grocery stores, discount department stores, and hypermarkets and provides customers with a variety of goods and services.
Companies that provide financial services but lack a banking license are known as non-bank financial institutions. American Express, a provider of credit cards, debit cards, and other financial services, is one example of a non-bank financial institution.
Therefore, banks, non-banks, technology, and retail companies are stated above.
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In a game of pool, the white cue ball hits the #5 ball and stops, while the #5 ball moves away with the same velocity as the cue ball had originally. Both balls have the same mass. This type of collision is-
This type of collision is an example of an elastic collision.
In an elastic collision, the total kinetic energy of the system is conserved, and the objects bounce off each other with no loss of energy due to deformation or other factors.
Kinetic energy is a type of energy that an object possesses by virtue of its motion. It is defined as the energy that a moving object has due to its motion and is dependent on the object's mass and velocity.
In this case, the #5 ball moves away with the same velocity as the cue ball had originally, indicating that the two balls had an elastic collision.
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Question 1
All of the below are examples of noteworthy news that could generate positive media mentions, EXCEPT
Hiring a new employee
A partnership with a local nonprofit that you donate to
Growth of your business into new markets or product lines
A new product or service rollout
Answer:
A new product or service rollout
Explanation:
While a new product or service rollout can be important for a business, it is not necessarily noteworthy news that would generate positive media mentions. Positive media mentions typically come from news that is unique, impactful, or of significant interest to the public, such as a partnership with a local nonprofit or growth of a business into new markets or product lines. Hiring a new employee is also noteworthy news, as it can demonstrate growth and success for a business.
Which type of promotion would you use to attract customers quickly with the help of coupons, samples, and free gifts?
(blank) is a way of promoting your products and attracting customers quickly with the help of free coupons, vouchers, samples, and gifts.
Answer:
Sales promotion
Explanation:
Sales promotions refer to the persuasive activities of convincing potential customers to buy a product. The objective of a sales promotion is to boost sales volumes. The tactics used in a sales promotion are designed to have a short term effect. However, a business may acquire long-term customers through sales promotion techniques.
Sales promotion may focus on customers by enticing them to buy. They may also target traders by encouraging them to sell more. The techniques used in a sale promotion include Money off coupons, Competitions, Free gifts, Loyalty cards, Discount vouchers, among others.
Answer:
Sales promotion may focus on customers by enticing them to buy. They may also target traders by encouraging them to sell more. The techniques used in a sale promotion include Money off coupons, Competitions, Free gifts, Loyalty cards, Discount vouchers, among others.
Explanation:
The importance of flower farming is increasing day by day in nepal. Justify this statement. please write long ans
Answer:
Prior to 1990, there were a number of nurseries within the valley as well as a few outside that cultivated flowers, but the trend then was more towards producing potted plants, seeds, bulbs and suchlike. There was no large market for cut flowers of the variety available now, in part because there was very little demand due to a lack of market exposure to cut flowers. People in Kathmandu just did not use them on a regular basis. According to nursery owners, there was at that time only a small demand amongst the expatriate community and amongst the Indian community. On November 15 1992 however, the Floriculture Association of Nepal or FAN was formed, and this marked the beginning of the floriculture industry in Nepal.
FAN was formed by 11 nursery owners with the objective of promoting and enhancing the floriculture industry and the emergence of flowers in the Katmandu market can in fact be attributed to the training in flower arrangement that FAN conducted in 1993. Following this training, they initiated the opening of a wholesale market and the support FAN gave to the organization 'Women in Floriculture' project enabled several entrepreneurs to set up flower retail outlets. This supply driven demand resulted in flowers being made available in the market and the market responded by taking up this supply. Business has since improved as demonstrated by the change in demand from around 100 rose stems a day in 1992 to 3000 stems in 2003 and from 100 gladiolus stems in 1992 to 6000 in 2003. Figures from FAN put the total sale of cut flowers at 10 million in 1992, which went up to 70.2 million in 2003.
The domestic market for cut flowers is in fact increasing according to Suresh Bhakta Shrestha of Standard Nursery in Bansbari. He says that in 1993 150 thousand Nepali Rupees was the total turnover for all the shops that sold flowers in Kathmandu. This figure is now around 80 to a 100 thousand Rupees per month per shop! Latest figures also suggest that there are there are currently around 300 nurseries and 40 retail shops within the Kathmandu valley. This information suggests that floriculture has grown very rapidly and that the flower culture here continues to grow.
Explanation:
please answer 3 and 4 THANK YOU :)
Answer:
A.)
B.)
Explanation:
Correct me I'm wrong:)
what is networking why is useful when looking for a job
Answer:
Career networking involves using personal, professional, academic or familial contacts to assist with a job search, achieve career goals, learn more about your field, or another field you'd like to work in. Networking can be a good way to hear about job opportunities or get in at a company you'd like to work with.
Explanation:
In which case are you most likely to get sued if you are behind in paying bills?
If you are behind in paying bills, you are most likely to get sued in the case of a debt collection lawsuit. This is when a creditor takes legal action against a debtor to recover an unpaid debt, which can result in wage garnishment, bank account levies, and property liens.
There are several things you can do to avoid getting sued for unpaid bills, such as communicating with your creditors, setting up a payment plan, and seeking professional debt counseling if necessary. It's important to take action as soon as you know you won't be able to make a payment, rather than waiting until you're already in default. This will help you avoid negative consequences like damage to your credit score and legal action.
This would require a long-term investment from the American company to establish and sustain the restaurant's operation in Ireland. This type of investment is known as Foreign Direct Investment. Such investment could be through acquisition, merger, joint venture, partnership, or building new facilities in the foreign country. These investments can be long-term and can have an extended period of time to reap the return on investment for the company. In the given scenario, the American company is investing in Ireland by opening and operating a restaurant in the country.
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If a new car is valued at $21,300 and 7 years later it is valued at $8000, then what is the average rate of change of its value during those 7 years?
The average rate of change of the car's value over the 7-year period can be calculated by finding the difference in value and dividing it by the time elapsed. In this case, the initial value of the car is $21,300 and its value after 7 years is $8,000.
To calculate the average rate of change, we subtract the initial value from the final value: $8,000 - $21,300 = -$13,300. The negative sign indicates a decrease in value.
Next, we divide the difference in value by the time elapsed, which is 7 years: -$13,300 / 7 = -$1,900 per year.
Therefore, the average rate of change of the car's value over the 7-year period is -$1,900 per year, indicating a depreciation in value of $1,900 per year on average.
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Economists usually use GDP rather than GNP because they are tracking:
only transactions on the financial account.
only transactions on the curr tat account.
income rather than production.
production rather than income.
Economists usually use GDP (Gross Domestic Product) rather than GNP (Gross National Product) because they are primarily tracking production rather than income.
GDP measures the total value of goods and services produced within a country's borders, regardless of whether the production is carried out by domestic or foreign factors of production. It focuses on the physical output of goods and services within the country, regardless of who owns the production factors.
On the other hand, GNP measures the total income earned by a country's residents, including income generated both domestically and abroad. GNP takes into account the income earned by a country's residents from their investments and economic activities outside the country's borders.
Economists typically use GDP as their primary measure of economic activity and productivity because it provides a more direct measure of the physical output and economic performance within a specific country's territory. GDP allows economists to assess the level of production, economic growth, and overall economic activity within a country.
While GNP is useful for understanding a country's income flows and the contributions of its residents, it can be influenced by factors such as investment income from abroad or income earned by foreign residents within the country. GDP, on the other hand, focuses solely on production within the country's borders and is a more straightforward measure of economic activity.
Therefore, economists primarily use GDP as it provides a more accurate reflection of a country's production and economic performance, which is essential for analyzing and tracking economic growth, productivity, and living standards.
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