The correct answer is high P/E ratios. Growth stocks are frequently described as having high P/E ratios.
Growth stocks are characterized by their potential for significant earnings growth in the future. Investors are often willing to pay a premium for these stocks due to the anticipation of their future growth and higher earnings. This premium is reflected in the high price-to-earnings (P/E) ratio of growth stocks.
The P/E ratio is calculated by dividing the market price per share of a stock by its earnings per share (EPS). A high P/E ratio indicates that investors are willing to pay a higher price for each dollar of earnings generated by the company.
Investors are attracted to growth stocks because they believe that the company's earnings will grow at a faster rate than the overall market or its industry peers. These companies typically reinvest a significant portion of their earnings back into the business for research and development, expansion, or other growth initiatives. As a result, growth stocks often have lower dividend payouts and lower cash flows per share compared to more mature, dividend-focused stocks.
In summary, growth stocks are associated with high P/E ratios because investors expect these companies to deliver above-average earnings growth in the future, even if they have lower cash flows per share and lower dividend payouts.
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Using a loan could help with the purchase of which of the following?a) A new televisionb) A dream weddingc) A housed) Airline tickets to your dream vacation
Using a personal loan could help with the purchase of A house .Option C is correct .
What does the term "personal loan" mean?
When someone borrows money for a personal need, such as investing in a business, it is referred to as a personal loan (also known as a consumer loan).
What is an example of a personal loan?
A personal loan is a sum of money that you can borrow and use for a number of things. For instance, you may utilize a personal loan to pay off debt, finance home improvements, or finance your ideal wedding. Online lenders, credit unions, and banks can all provide personal loans.Learn more about personal loan
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What are the three most important types of insurance?
The three most important types of insurance are: term life insurance, whole life insurance, and universal life insurance.
There are several types of life insurances, but among them, there are three most important types.
Term life insurance: This insurance covers you for a specific number of years. If you die before the term is over, it pays a predetermined sum to your specified beneficiary. Term policies are the most basic and easily available type of life insurance coverage.Whole life insurance: This type of insurance differs from term insurance in that it never expires. It is an investment-like, tax-deferred savings account with a death benefit and a cash value. Every month, a percentage of your premium is deposited into your saved cash worth. As a result, the more you invest each month, the faster it will increase.Universal life insurance: It is a popular type of permanent life insurance. It comes with cash value and allows you to select your own premiums. So, if you don't spend as much on premiums, some money will come from your policy's cash worth. This insurance is intended for persons who want to develop a nest egg without incurring increased income or permanent need.Learn more about life insurance here:
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Which function of financial statements is the most important for entrepreneurs?
Income Statements, Balance Sheet, Statements of Owner's Equity, and Cash Flow Statements are the financial statements that serve entrepreneurs the most.
Income statement: An income statement is a financial statement that details a company's revenues and outlays for a given time period. An entrepreneur is aware of the gross profit, operating net income, and tax costs. An entrepreneur can also get an estimate of the earnings per share if it's a corporation.
Financial statement that displays the input and outflow of cash is known as a cash flow statement.
The balance sheet is a financial statement that lists all of an organization's assets, liabilities, and owner capital. Current assets, non-current assets, current liabilities, long-term obligations, and owner's equity are all listed on the balance sheet. While the balance sheet is generated for a certain date, the income statement is prepared for an accounting period.
The disclosure of owners' equity is required regardless of whether the company is publicly or privately held. It displays the starting balance, retained earnings, and dividends that the business has paid out.
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Larry krovitz is a salesman who works at a used-car showroom in sydney, australia. it’s the last week of july but he is yet to meet his sales target for the month. a customer, harold kumar, who wants to buy a ford fiesta, walks in to the showroom. after taking one of the cars for a test drive, harold decides to buy it. while $11,000 was the least that larry would have been willing to accept for that car, he quotes a price of $15,000. after some bargaining, the car is sold for $12,000.
a. What is the producer surplus in this oase? b. If Larry bought the car for $8,000, what is his profit? c. Is producer surplus always equai to profit?.
The producer surplus in oase is $1000, the profit of larry's car is $4000 and producer surplus is not always equal to profit.
a) The producer surplus is calculated as follows: 12,000 minus 11,000, which equals $1,000.
(b) Profit equals Market price minus Purchase price, or 12,000 minus 8,000, or $4,000
(c) Producer surplus, which is calculated as the area between the supply curve and the price, is the difference between the market price and the lowest acceptable price. The difference between total revenue and entire costs is known as profit. As a result, profit and producer surplus are not always equal.
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The federal gift tax applies to all gifts over
O $2,000.
O $10,000.
$14,000.
$18,000.
The federal gift tax applies to all gifts over: C. $14,000.
What is the IRC?The IRC is an abbreviation for Internal Revenue Code and it can be defined as a body of federal statutory tax law that is saddled with the responsibility of codifying all federal tax laws in the United States of America, such as the following:
Income taxEstate taxGift taxExcise taxAlcohol taxEmployment taxAccording to the Internal Revenue Code section, §2502, for the year 2014, 2015, 2016, and 2017, the federal gift tax applies to all gifts that are over 14,000 dollars.
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a. Describe SWOT analysis as a way to guide internal analysis. (Define and cite, then answer through your definition)
b. What are potential weaknesses and limitations of SWOT analysis?
c. Do a SWOT analysis on you current or former employer
d. What is benchmarking, and how can it assist in strategy development and formulation?
a. SWOT analysis is a strategic tool used to assess the internal strengths and weaknesses of an organization and the external opportunities and threats it faces.
According to Kotler and Armstrong (2021), SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It involves analyzing the organization's internal resources, capabilities, and limitations, as well as external factors in the market or industry that may impact its performance.
The purpose of SWOT analysis is to provide insights into the organization's current situation, identify areas of competitive advantage, and uncover potential areas for improvement. It helps guide internal analysis by providing a structured framework to assess and evaluate the organization's internal environment and its alignment with external factors.
b. While SWOT analysis is a widely used tool, it is important to acknowledge its potential weaknesses and limitations. Some of these include:
Oversimplification: SWOT analysis tends to simplify complex situations into four categories, which may overlook important nuances or interdependencies between factors. It may not provide a comprehensive and in-depth understanding of the organization's internal and external dynamics.
Lack of Prioritization: SWOT analysis does not inherently prioritize or rank the identified factors. It may not provide clear guidance on which factors are more critical or impactful to the organization's performance and success.
Limited Perspective: SWOT analysis is primarily focused on the current situation and may not adequately consider future trends or emerging factors. It may not capture long-term strategic considerations or anticipate changes in the external environment.
Subjectivity and Bias: SWOT analysis relies on subjective judgments and interpretations of data, which can introduce biases or personal perspectives. It may be influenced by individual or group biases, leading to incomplete or skewed analysis.
c. As an AI language model, I do not have a current or former employer to conduct a SWOT analysis on. However, I can assist you in understanding the process and provide guidance on how to conduct a SWOT analysis for your specific organization or industry.
d. Benchmarking is the process of comparing an organization's performance, practices, or strategies against those of other organizations or industry standards. It involves identifying best practices and performance measures used by industry leaders and using them as reference points for performance improvement.
Benchmarking assists in strategy development and formulation by:
Identifying Areas for Improvement: Benchmarking helps organizations identify performance gaps and areas where they lag behind industry leaders. By comparing their practices with those of top performers, organizations can identify opportunities for improvement and set targets for performance enhancement.
Learning from Best Practices: Benchmarking allows organizations to learn from industry leaders and adopt their best practices. It helps in understanding how successful organizations achieve superior performance and enables the transfer of knowledge and techniques to improve strategies and processes.
Setting Performance Targets: Benchmarking provides a reference point for setting performance targets. By comparing their performance with industry benchmarks, organizations can establish realistic and ambitious goals that align with industry standards and market expectations.
Enhancing Competitive Position: Benchmarking helps organizations gain a competitive advantage by identifying areas where they can differentiate themselves from competitors. By adopting best practices and implementing strategies that outperform industry benchmarks, organizations can enhance their market position and stand out from the competition.
Overall, benchmarking is a valuable tool in strategy development as it enables organizations to learn from others, identify improvement opportunities, and set performance targets based on industry standards and leading practices.
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if the only two firms in an industry successfully collude
If the only two firms in an industry successfully collude, they can maximize profits by acting as a monopoly. Collusion is defined as an illegal agreement among market participants to limit competition. This is done to achieve an unfair advantage and reduce competition.
When two firms in an industry successfully collude, they create a monopoly.A monopoly is a market structure in which there is only one firm, and it controls the entire market. This is achieved through collusion. The only two firms in an industry that successfully collude can create a monopoly by working together to fix prices, limit output, and divide the market between themselves.
This allows them to maximize profits by acting as a single entity and charging higher prices than they would be able to if they were competing against each other. The government is usually against the creation of monopolies as they limit competition and lead to higher prices for consumers. Therefore, if it is discovered that the two firms are colluding to create a monopoly, the government may take action against them.
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Definition of literature
Answer:
writings in which expression and form, in connection with ideas of permanent and universal interest, are characteristic or essential features, as poetry, novels, history, biography, and essays
Explanation:
Answer:
the art of written works, and is not bound to published sources (although, under circumstances they can be exempt).
Explanation:
A travel agent arranges a vacation at Disney World for the Smith family that includes airfare, lodging, and dinner reservations. These industries are collectively known as the
Tourism and Restaurant career cluster.
Tourism and Lodging career cluster.
Hospitality and Tourism career cluster.
Hospitality and Recreation career cluster.
Answer:
Its B
Explanation:
Answer:
C.
Explanation:
Edge
You have been given the choice to invest $1,200 each year in an account that is expected to pay 3 percent per year or you can invest in an account that pays 4 percent. What is the difference between the returns, if you choose to invest for four years
Answer:
$4872.48
Explanation:
future value = amount x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
r = 4% - 3% = 1%
1200 x [(1.01)^4 - 1] / 0.01 = $4872.48
Among the hurdles small businesses must overcome in starting to operate globally are: Multiple select question. many shippers available to start shipping more quickly difficulty finding financing understanding cultural differences bureaucratic paperwork
The hurdles that small businesses must overcome in starting to operate globally includes:
difficulty finding financingunderstanding cultural differencesbureaucratic paperworkWhat are hurdles in business?These refers to the barrier or problem faced by business owners/
The problem includes difficulty finding financing, understanding cultural differences and bureaucratic paperwork.
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Olga has several line items under her campaign. Two of the line items are underdelivering and not meeting performance goals, while two are high-performing. Which of the following is the recommended optimization strategy?
-Shift budget from high-performing line items to the underperforming/underdelivering line items.
-Adjust frequency caps on the underdelivering/underperforming line items to serve more impressions
-Shift budget from the underperforming and underdelivering line items to higher performing line items that are scaling.
-Adjust frequency caps on the underdelivering/underperforming line items to serve less impressions
The recommended optimization strategy for Olga who has several line items under her campaign is to adjust frequency caps on the underdelivering/underperforming line items to serve more impressions.
What is a frequency cap?A frequency cap is a parameter that determines how many times your advertisements are served to the same user. Frequency caps help you keep track of how often people are seeing your advertisements and how frequently they're exposed to them.
Adjust frequency caps on the underdelivering/underperforming line items to serve more impressions is the recommended optimization strategy because it will help the underdelivering/underperforming line items get to the level of the high-performing line items.
The reason for this is that adjusting frequency caps will ensure that more people see the underperforming/underdelivering line items, increasing the chances of engagement and conversion.
Adjusting frequency caps on the underperforming/underdelivering line items to serve less impressions is not the right optimization strategy because it will result in fewer people seeing the ads, which may cause the performance to become even worse. This may be detrimental to the line items.
Shift budget from high-performing line items to the underperforming/underdelivering line items or shift budget from the underperforming and underdelivering line items to higher performing line items that are scaling is not the recommended optimization strategy because it may lead to increased costs without necessarily boosting performance.
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The demand function for super big bright led light bulbs is Q^d=(45 million)-(3.5 million * P).If the company charged a price of $8 per bulb
Answer:
74
Explanation:
saif
_______________ is used when the buyer needs to provide potential suppliers very detailed descriptions of the characteristics of an item or service.
A Request for Proposal (RFP) is used when the buyer needs to provide potential suppliers very detailed descriptions of the characteristics of an item or service.
A Request for Proposal (RFP) is a formal document that is used by organizations to solicit bids from potential suppliers for goods or services. In cases where the buyer requires specific and detailed descriptions of the characteristics, specifications, or requirements of an item or service, an RFP is typically utilized.
The RFP includes comprehensive information about the buyer's needs, expectations, and desired outcomes, allowing potential suppliers to understand the exact details and submit proposals that address those specifications. It is common for an RFP to outline technical requirements, performance standards, timelines, pricing expectations, and other relevant factors.
By providing detailed descriptions through an RFP, the buyer aims to ensure that potential suppliers have a clear understanding of the buyer's requirements, allowing them to provide well-informed proposals that align with the buyer's needs.
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Ophelia Org. uses the indirect method to determine net cash provided by operating activities. During 2017, Ophelia experienced a decrease in Accounts Receivable of $10,000, a decrease in Accounts Payable of $15,000, and Amortization Expense of $6,000. What should be reported as the net cash provided by operating activities if net income was reported at $100,000 and dividend payments were $25,000
The net cash provided by Ophelia Org.'s operating activities is $131,000.
Data and Calculations:
Decrease in Accounts Receivable = $10,000
Decrease in Accounts Payable = $15,000
Amortization Expense $6,000
Net income = $100,000
Dividend payments = $25,000
Net Cash from Operating Activities:
Net income = $100,000
Add: Amortization Expense $6,000
Decrease in Accounts Receivable $10,000
Decrease in Accounts Payable $15,000
Cash provided by operations = $131,000
Thus, the net cash provided by Ophelia Org.'s operating activities is $131,000.
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why is it neccesary to exclude waterin each stage of the production of a product in a grgard reeaction
It's necessary to exclude water in each stage of the production of a product in a Grignard reaction because water can react with the Grignard reagent, leading to the formation of unwanted side products.
This can decrease the overall yield and purity of the desired product. Water can act as a reactant or a product in many chemical reactions, and its presence can alter the outcome of the reaction. In a graded reaction where precise control of the reaction conditions is necessary, water can interfere with the reaction by diluting the reagents or altering the pH of the solution.
Therefore, to ensure the desired product is obtained in each stage of the production, it is necessary to exclude water or carefully control its presence in the reaction.
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When josh bought his new iphone upon its release, the phone cost $999. Since he has high company loyalty and loves technological innovation, he bought the phone immediately even though he knew within a couple of years, the phone would be significantly less expensive. This is an example of what type of pricing strategy for apple?
The pricing strategy exhibited by Apple in this scenario is known as price skimming. Price skimming is a strategy where a company sets a high initial price for a product and gradually lowers it over time. It is commonly used for innovative and technologically advanced products.
Apple often adopts a price skimming strategy for its new product releases, such as the iPhone. By setting an initially high price, Apple aims to capitalize on the willingness of early adopters, like Josh, to pay a premium to be the first to own the latest technology. These customers are typically highly loyal and value the prestige associated with owning the latest Apple product.
The price skimming strategy allows Apple to maximize its profits in the early stages of a product's lifecycle when demand is high and customers are willing to pay a premium. This strategy helps Apple recover its research and development costs, marketing expenses, and other associated costs quickly.
Over time, Apple gradually lowers the price of its products to attract a broader customer base and increase market penetration. As the product matures and faces competition from other brands, lowering the price helps Apple maintain its market share and attract price-sensitive customers.
In summary, Apple's decision to launch the new iPhone at a high price to capture early adopters like Josh demonstrates the use of a price skimming strategy. This approach allows Apple to maximize profitability during the product's introduction phase and gradually expand its customer base by lowering prices over time.
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What effects on a retail stores accounting equation occur when merchandise returned by the customers is recorded?
Assets and stockholders equity decreases when merchandise returned by the customers is recorded.
When merchandise is returned by the customer, the sales returns and allowances account is debited to reduce sales, and accounts receivable or cash is credited to refund cash or reduce what is owed by the customer. This leads to the decrease in assets and stockholders equity in a retail store.
A second entry must also be made debiting inventory to put the returned items back. In this entry, we debit the cash account and the credit accounts receivable account.
Hence, this effects on a retail stores accounting equation.
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Why might some investors become careless about their portfolios ?
The body of the electric drill is cracked. Some of the wires are exposed but none of them appear to be damaged. Describe the hazard, describe the potential harm and level of risk and describe the actions required to manage this?
Damaged wires and cables can generate electric shocks and fires. If too many appliances are plugged into a circuit, the current will heat the wires to a extremely high temperature, which may cause a fire. If the wire insulation melts, arcing may occur and cause a blaze in the area where the overload lives or even inside a wall.
What will happen when you touch uncovered electrical wire or a piece of electrical equipment?Coming in touch with an electrical voltage can cause current to flow through the body, resulting in electrical shock and burns. Severe injury or even death may occur.
What uncovered electrical parts?Exposed electrical parts may contain open power distribution units, momentary lightning or detached insulation parts. These parts can cause shocks and burns. Connect the electrical parts with proper protective mechanism and repair expose parts instantly.
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While workers in the United States are more task oriented and require information to do their jobs, workers from Korea are more motivated by strong relationships and developing trust to do the same job. That is because Korea is a ______ context culture and the U.S. is a ______ context culture.
Considering the situation described above, it is concluded that Korea is a High context culture, and the U.S. is a low-context culture.
A high context culture is a type of culture that is characterized by collectivism and an implicit form of communication.
On the other hand, a low context culture is a type of culture that is associated with direct verbal interaction and individualism.
It is no secret that the United States promotes individualism or independence as a society which is a form of low context culture. In contrast, the Korean culture promotes stability and group relation, which is a form of high context culture.
Hence, in this case, it is concluded that Korea has high context culture while the United States has a low-context culture.
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Why is the Brexit vote significant both within the UK and globally? What are the potential implications for the Brexit vote in relation to Canada's relationship with the EU and the UK? What are the key challenges facing leadership in the UK in light of the Brexit vote?
The Brexit vote, which refers to the referendum held in the UK in 2016 resulting in a decision to leave the European Union (EU), is significant both within the UK and globally for several reasons:
1. UK's Sovereignty: The Brexit vote represents a significant shift in the UK's relationship with the EU, as it signals a desire to regain sovereignty and have more control over its own laws, regulations, and borders. It reflects the UK's decision to assert its independence and determine its own path separate from the EU.
2. Economic Implications: Brexit has economic implications for both the UK and the EU. The UK's departure from the EU's single market and customs union has resulted in changes to trade agreements, movement of goods and services, and access to the EU market. It has created uncertainty for businesses, impacted investments, and led to changes in economic relationships between the UK and EU member states.
3. Global Impact: The Brexit vote has broader global implications, as it has challenged the existing framework of regional integration and cooperation within the EU. It has raised questions about the stability and future of the EU itself and has influenced debates on nationalism, populism, and sovereignty in other parts of the world. It serves as a precedent for other countries considering similar moves or reevaluating their relationships with supranational organizations.
In relation to Canada's relationship with the EU and the UK, the Brexit vote and subsequent negotiations have implications:
1. Trade and Investment: Canada has strong economic ties with both the EU and the UK. The UK's exit from the EU has necessitated the negotiation of new trade agreements, including the Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU. The UK's ability to negotiate its own trade deals post-Brexit may provide opportunities for Canada to establish closer trade relations with the UK.
2. Diplomatic Relations: Canada has expressed its commitment to maintaining a positive relationship with both the EU and the UK. It has emphasized the importance of preserving existing ties, cooperating on global issues, and minimizing disruptions to bilateral relations caused by Brexit. Canada has indicated its readiness to negotiate agreements with both parties to ensure a smooth transition.
The key challenges facing leadership in the UK in light of the Brexit vote include:
1. Negotiating Future Relationship: The UK needs to negotiate a new relationship with the EU, covering areas such as trade, security, and regulatory cooperation. These negotiations are complex and involve balancing national interests, addressing potential trade barriers, and finding solutions to contentious issues such as the Irish border.
2. Economic Impact: The UK's departure from the EU has economic consequences, including potential disruptions to supply chains, changes in investment patterns, and the need to establish new trade relationships. Managing the economic impact and ensuring a smooth transition is a significant challenge for UK leadership.
3. Domestic Unity and Political Consensus: Brexit has led to divisions within the UK, with different regions and demographics holding diverse views on the issue. Building consensus and maintaining domestic unity during the negotiation process and beyond is crucial for effective governance and decision-making.
4. Rebuilding International Relationships: The UK's departure from the EU requires reevaluating and rebuilding relationships with other countries and international organizations. Establishing new partnerships and maintaining influence on the global stage will be important for the UK's post-Brexit position.
It's important to note that the implications and challenges related to Brexit are ongoing and subject to change as negotiations progress and new agreements are reached. The outcomes will shape the future trajectory of the UK, its relationships with the EU and other countries, and the broader global landscape.
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Which of the following statement is not true about Globalisation Mcq? A
Liberalisation works as a catalyst to the process of globalisation.
B
Globalisation integrates economies across the world.
C
Globalisation makes foreign capital investment difficult.
D
Globalisation helps to build better relationships among the countries.
The untrue statement about globalization is (C) "foreign capital investment is tough due to globalization."
What is Globalisation?The term "globalization" refers to the increasing interdependence of the economies, cultures, and populations throughout the world as a result of technology, cross-border trade in goods and services, and flows of capital, labor, and information.
This indicates that many traditions and practices that small communities share have spread to other communities that (before) had different practices and even different beliefs.
The trading of goods like coffee or avocados is one good illustration of cultural globalization.
Worldwide economic integration is a result of globalization.
The improvement of international relations is facilitated by globalization.
The progress of globalization is accelerated by liberalization.
Therefore, the untrue statement about globalization is (C) "foreign capital investment is tough due to globalization."
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3) When you order a sweater from an L.L. Bean mail order catalog, what type of marketing channel are you and the company using?
A) Cash and carry marketing channel
B) Omnichannel marketing
C) Intensive distribution channel
D) Direct to consumer marketing channel
E) Dual marketing channel
When you order a sweater from an L.L. Bean mail order catalog then Direct to consumer marketing channel used by the company and us.
What is consumer marketing?Selling products or services to customers for their own use and advertising these products and services using a variety of marketing tactics, such as using consumer data for tailored experiences, is known as consumer marketing.
What advantages does customer marketing offer?Creating a customer-centric marketing strategy has the advantage of not only keeping your existing customer satisfying and retaining, but it may also help you to find new prospects. Consumer marketing has a proven track record and can help increase conversions with clients who may not have previously recognized your business.
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Look for _____ in research information showing preferential treatment or consideration regardless of legitimate reasoning.
credibility
relevance
bias
additional sources
Answer:
bias
Explanation:
bias is the true anwer
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT?
All of the following, with the exception of conditions, are required.
Describe insurance.One party will agree to compensate another in the event of a certain loss, damage, or injury in exchange for a fee in order to safeguard oneself from financial loss. It is a risk management technique that is typically used to guard against the danger of a hypothetical loss that may or may not materialise.
An underwriter, insurer, firm, or carrier is a company that provides insurance. A person or organisation that obtains insurance is known as a policyholder, whereas a person or organisation that the policy protects is known as an insured.
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When will the Social Security fund dry up at Its current level?
• A.
2022
© B.
2027
• C
2037
© D. 2097
© E. 2117
Answer:
c. 2037
Explanation:
As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.
How does the availability of economic resources in conjunction with the law of diminishing returns affect an entrepreneur's decisions?
Answer: A
Explanation:
According to the law of diminishing returns, the increase in output that results from adding a production factor is smaller. The law of diminishing returns aids the business in determining the ideal amount of output in production. This is so that the producer can determine whether or not the output has reached its maximum potential.
Why is the law of diminishing returns important?Because economists anticipate that a firm's short-run marginal cost curves would slope upward as the number of output units rises, the law of diminishing returns is significant because it forms part of the theoretical framework.
According to the economic theory known as the law of diminishing returns, as an investment in a certain area rises, the rate of profit from that investment can no longer rise if other factors remain constant after a certain point.
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Advantages of using social media for a business (in terms of customer service)
Elysha has a monthly gross income of $3,000 and a monthly debt load of $500. How can her debt-to-income ratio be classified?
Answer:
Her debt to income ratio is classified as favorable
Explanation:
The given information are;
Elysha's gross monthly income = $3,000
The amount she pays as debt each month = $500
Therefore, her debt to in to income ratio, DTI, is given as follows;
DTI = (Amount payed as debt)/(Gross income) = $500/$3,000 ≈ 0.167
We multiply by 100 to express the result as a percentage, to get;
0.167 × 100 = 16.7%
Given that her debt to income ration is less than 35%, her debt to income ratio is classified as favorable and she has a manageable debt.
Answer: Good—between 15 and 20 percent
Explanation: All you have to do is find what the different percents of 3,000 are and see which one is the closest.