Answer:
the answeris B, hope this helps
Answer:
I am positive it is (B) because it helps to obtain information.
Explanation:
Hope this helped you :)
During 2020, Oriole Inc. had sales revenue $1374000, gross profit $730500, operating expenses $457000, cash dividends $93300, other expenses and losses $45000. Its corporate tax rate is 30%. What was Oriole's income tax expense for the year?
Answer:
300009$ 30009djdjdhshhshs
Which of the following is not a key component of the merger model we walked through in the course?
Answer:
Gathering publicly available comparable company information
Creating detailed forecasts for both companies
An accretion/dilution and sensitivity analysis
Determining and calculating items related to the acquisition structure
With the CEO and driver of the company—Howard Schultz—stepping down as the company’s unquestioned leader, do you expect Starbucks to change its foreign market entry strategy in any way?
Answer:
The short answer to that is No, Starbucks will not change its foreign market entry strategy.
Explanation:
The reasons are as follows:
did Howard Schultz lose his shares when he stepped down? This is highly unlikely and according to the rules of corporate governance may depend on his contract. So stepping down as the chairman does not necessarily translate to losing control. Corporations such as Starbucks: don't just up and change direction. Strategies are usually vetted by the board of directors. Whoever the majority shareholder is (corporate person or individual) will always have a say regarding the expansion of the business. Howard Schultz has stepped down in 2018. At that time, Starbucks had a total of 28,000 stores in 77 countries. Currently, there are 15,000 in 50 countries. This reduction didn't happen because Howard stepped down but because of the recent pandemic which hit the globe in 2020.Cheers
the wildlife department has been feeding special food to rainbow trout finger lings in a pond. A sample of weight of 40 trout revealed that the mean weight is 402.7 grams and the standard deviation 8.8 grams .
what is estimated mean wight of population? what is 99% confidence interval?,what degree of confidence is being used? interparet the result
We estimate the mean weight of the population to be 402.7 grams, with a 99% confidence interval of (398.77, 406.63) grams. The degree of confidence used is 99%.
To estimate the mean weight of the population of rainbow trout fingerlings, we can use the sample mean as an estimate. In this case, the sample mean weight is 402.7 grams.
Since the sample is a good representation of the population, we can consider this as our estimate for the population mean weight.
To determine the 99% confidence interval, we need to calculate the margin of error. The margin of error is given by multiplying the critical value (z*) with the standard deviation of the sample mean.
For a 99% confidence level, the critical value is 2.576 (obtained from a standard normal distribution table).
The margin of error is then calculated as 2.576 * (8.8 / sqrt(40)), which equals 3.932 grams. Therefore, the 99% confidence interval for the mean weight of the population is 402.7 ± 3.932, or approximately (398.77, 406.63) grams.
The degree of confidence used is 99%, meaning that if we repeated the sampling process multiple times, approximately 99% of the resulting confidence intervals would contain the true population mean weight.
In conclusion, we estimate the mean weight of the population to be 402.7 grams, with a 99% confidence interval of (398.77, 406.63) grams. This means we are 99% confident that the true population mean weight falls within this range.
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Information regarding the potential for a job opening is a _____.
job board
job lead
job offer
job description
Answer:
Your answer is "Job lead"
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,110 in assets to launch the business. On December 31, the company’s records show the following items and amounts.
Cash $ 14,550 Cash withdrawals by owner $ 1,120
Accounts receivable 12,940 Consulting revenue 12,940
Office supplies 2,400 Rent expense 2,640
Land 45,860 Salaries expense 5,920
Office equipment 17,020 Telephone expense 800
Accounts payable 7,820 Miscellaneous expenses 620
Owner investments 83,110
The preparation of the stockholder equity is presented below:
Statement of stockholder equity
J.Ernst, Capital, December 1 $ 0
Add: Investment by owner $83,100
Add: Net Income $2,960
Less: Withdrawals by owner ($1,120)
J.Ernst, Capital, December 31 $84,940
Working note:
The preparation of the income statement is presented below:Income Statement
Consulting revenue $12,940
Less:
Rent expense $2,640
Salaries expense $5,920
Telephone expense $800
Miscellaneous expenses $620
Total expenses ($9,980)
Net Income $2,960
Therefore we can conclude that the ending balance of the stockholder equity is $84,940
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The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000. The minimum acceptable rate of return on assets is 12%. What is the residual income for the division?
The residual income for the Division A of Magnolia Company for an income from operations of $80,000 will be $32,000.
What is residual income?Residual Income is the total of total income from operations less the minimum acceptable rate of return on the deployed assets for such operations over a financial period.
Using the above information, it can be ascertained that the residual income will be,
\(\rm Residual\ Income = Income\ from\ Operations - Rate\ of\ Return\ x\ Assets\\\rm Residual\ Income = 80000- (12\%\ x\ 400000)\\\\\rm Residual\ Income = \$32,000\)
Hence, the residual income will be as computed above.
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• please explain the 5 common strategies and actions of rival companies. with examples
Thank you.
( I need the answer no more 2 hours ).
Rival companies typically employ various strategies and actions to compete with each other in the market such as price competition, product differentiation, marketing and advertising, partnerships and price competition.
How companies competeHere are five common strategies and actions that rival companies may use:
Price competition: In order to outbid competitors, this tactic entails reducing the cost of a good or service. This is frequently done to draw in consumers who are interested in the best bargain yet are price conscious.
Product differentiation: This tactic entails developing distinctive goods or services that distinguish them from rivals. Features, design, quality, or brand reputation can all be used by businesses to differentiate their products.
Marketing and advertising: Businesses utilize marketing and advertising to build their brands, boost revenue, and draw in new clients. In order to reach target audiences, this strategy calls for the creation of appealing marketing messages and the use of numerous channels.
Strategic alliances and partnerships: Strategic partnerships and alliances are created by businesses to obtain access to new markets, technologies, or resources. This tactic entails working with other businesses to accomplish common objectives.
Mergers and acquisitions: To expand market share, lessen rivalry, or gain access to cutting-edge technologies or resources, businesses may combine with or purchase rival businesses. For the purpose of achieving synergies and economies of scale, this strategy involves buying or merging with another business.
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Introduction to Business class is to observe the use of groups in a large manufacturing business. The students notice that most groups are arranged by reporting relationships. Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees. Jane finds that the executives of the company have formed a team consisting of themselves, some middle managers, and a few hourly employees to work on improving work processes and efficiency within the company. This group has been in existence for 5 years and is going strong. The group of managers that Bill discovers is an example of:
A) an informal interest group
B) a formal group
C) A fun group
D) a quality group.
The correct answer is B) a formal group.
The group of managers that Bill discovers is an example of a formal group.
During their visit to a large manufacturing business, Bill discovers a formal group. It is a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees.
When we are referring to an organization, a formal group can be understood as a workgroup that is formed by design, depending on a hierarchical composition. The members of this group have specific tasks according to the work they perform in the company.
Usually, these groups are formed based on the experience of their members because they want to accomplish goals in a more effective way and to improve the decision-making process of difficult issues.
________ and ________ differentiate a line process from a cell.
-Workflow and Cross-Training
-Modularity & Worker Skill Levels
-All of those listed
-Variety & Volume
Workflow and Cross-Training differentiate a line process from a cell. Modularity & Worker Skill Levels differentiate a line process from a cell. Variety & Volume differentiate a line process from a cell. All are correct so C. All of those listed is the correct option.
What is workflow ?A workflow is a method for organizing routine chores and operations that take place in a specific order. They are the means by which individuals and organisations carry out their tasks, whether they involve the production of goods, the rendering of services, the processing of data, or any other value-creating activity.
Workflows can assist automate and streamline repetitive corporate operations, reducing opportunity for error and boosting overall productivity.
There are three parts to the design. To begin, process selection identifies also every service step, including sequence but instead timing. Second, employee requirements include employee behaviors, skills, capabilities, as well as interactions customer interactions customers even during its service encounter.
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Cheyenne Corp., a private corporation, received its articles of incorporation on January 3, 2024. It is authorized to issue an unlimited
number of common shares and $1 preferred shares. It had the following share transactions during the year:
Jan. 12
24
July 11
Oct. 1
Issued 47,000 common shares for $5 per share.
Issued 890 common shares in payment of a $5,479 bill for legal services.
Issued 940 preferred shares for $25 per share.
Issued 9,400 common shares in exchange for land. The land's fair value was estimated to be $51,700. Cheyenne's
accountant estimated that the fair value of the shares issued might be as high as $6 per share.
What is the average per share amount for the common shares???
The average per share amount for the common shares of Cheyenne Corp. is approximately $4.9787.
To calculate the average per share amount for the common shares of Cheyenne Corp., we need to determine the total amount of money received from the issuance of common shares and divide it by the total number of common shares issued.
Let's calculate the total amount of money received from the issuance of common shares:
Jan. 12: 47,000 common shares issued for $5 per share
47,000 common shares × $5 per share = $235,000
Now, let's calculate the total number of common shares issued:
Jan. 12: 47,000 common shares issued
The total number of common shares issued is 47,000.
Next, we can calculate the average per share amount for the common shares:
Average per share amount = Total amount of money received / Total number of common shares issued
Average per share amount = $235,000 / 47,000
Average per share amount ≈ $4.9787
Therefore, the average per share amount for the common shares of Cheyenne Corp. is approximately $4.9787.
It's important to note that the calculation assumes that there were no other common share issuances or transactions throughout the year. If there were additional issuances or transactions, they would need to be considered to calculate an accurate average per share amount.
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20 points easy …………………….
Answer:
D.....................................
In which scenario is an individual's behavior least likely to change?
a. The city of Saskatoon chooses to give its residents a penny for each soda can they recycle in an effort to promote environmental awareness.
b. In an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread.
c. A basketball team manages to sign a trio of famous basketball stars who then clamor for other players to come join their team to win a guaranteed championship.
d. The country of Ravamolk enacts a policy to fine companies 20% of their earnings if the safety standards in their factories do not reach acceptable work conditions.
An individual's behavior is least likely to change when merely informed of a healthier option, like in Scenario B, as there is no incentive or consequential action attached.
Explanation:In the given scenarios, an individual's behavior is least likely to change in Scenario B where the city of Bakersville tells its residents to eat wheat bread instead of white bread. This scenario only involves information provision with no rewarding or punitive actions attached to induce behavior change, as compared to the rest of the scenarios. Behavioral change usually occurs when there are incentives or penalties associated with the action. For instance, in Scenarios A & D, Saskatoon and Ravamolk are using a reward technique and penalties respectively, as a trigger for behavioral change. Scenario C is using the appeal of fame and success to encourage change. But talking about bread choice without any consequential actions does not guarantee a behavior change.
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Suppose that $2000 is invested at a rate of 4%, compounded semiannually. Assuming that no withdrawals are made, find the total amount after 7 years.
Do not round any intermediate computations, and round your answer to the nearest cent.
Assume that $2,000 is saved at a 4% yearly compounding rate. Find the total after $2437.99 assuming no withdrawals are made.
What's an illustration of assuming?I was startled when he did not arrive because I had believed he would. She inferred that he was perplexed based on his demeanor. We'll show around around noon. Providing our flight leaves on schedule, that is
What is the use of assuming?In order to think out the implications of a potential occurrence or event, you employ assumption. If you're right, there wasn't much I have to do about it, he said.
Briefing
A = P(1+r/n)^ nt
A = 2000(1+.04/2)^(5*2)
A = 2000(1.02) =$2437.99
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what is the yearly salary or hourly wage of a librarian?
Answer
$23–43per hour
Librarian
United States
$34k–78kper year
Librarian
Chicago, IL
Explanation:
make a list of the means of obtaining information about foreign employment
List of the means of obtaining information about foreign employment are:
Notice board.newspapers.electronic media (radio, FM, television etc)websites.public programs.Prospectus.What is foreign employment ?
Going abroad for work or to make money is referred to as foreign employment. People working abroad have been a common occurrence since the dawn of human civilization.
What are the benefits of foreign employment?the benefits of foreign employment are improved self-worth, new life skills, etc., A fresh outlook on life, improved communication abilities.
better proficiency in a foreign language.
a competitive edge over other job seekers.
Boost the size of your professional network.
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Context: Lean Six Sigma has emerged as a key to achieving world-class value-added processes. But not everyone has benefited equally from implementing these operating philosophies and their accompanying tool sets.
Discussion: Based on your own personal experience—or on the results of an Internet search—identify a Lean Six Sigma implementation success story.
(Note: if using your own personal experience it must be on a formal lean six sigma implementation in a company where you know or can research the specific events, decisions and investments made by leadership.)
Describe what happened. How did the key decision-makers use process design or Lean Six Sigma tools to achieve success—that is, improve value and decrease costs?
Identify the specific events, decisions, or investments they made in order to leverage operations (or Lean Six Sigma) as a competitive weapon.
Now, based on your own personal experience—or on the results of an Internet search—identify a Lean Six Sigma “horror” story.
Describe what happened. More importantly, describe what went wrong.
Assess how key decision-makers failed to appropriately use process design or Lean Six Sigma tools.
As a consultant to the company, how would you help them “fix” the implementation process to achieve success next time? What specific events, decisions, or investments would you promote to help them leverage operations (or Lean Six Sigma) to improve value and reduce costs?
Organize you post with the following headers:
Keys to a Successful LSS implementation
What not to do when implementing LSS
Correcting the LSS failure with the keys to success
References
A successful Lean Six Sigma implementation story can be found in the case of the US Navy's Naval Air Systems Command (NAVAIR). NAVAIR implemented Lean Six Sigma to improve their processes and reduce costs.
They used process design tools such as value stream mapping and process flow diagrams to identify areas of waste and inefficiency. They also used Lean Six Sigma tools such as DMAIC (Define, Measure, Analyze, Improve, Control) to identify and eliminate sources of variation and defects.
Additionally, they invested in training and certifying their personnel in Lean Six Sigma principles and tools. As a result of their efforts, NAVAIR was able to reduce costs by $1.2 billion and improve customer satisfaction.
Where can the Lean Six Sigma be found?A Lean Six Sigma “horror” story can be found in the case of the US Postal Service. The USPS attempted to implement Lean Six Sigma in order to reduce costs and improve efficiency. However, they failed to properly train their personnel in Lean Six Sigma principles and tools, and they did not invest in the necessary infrastructure to support the implementation. As a result, the implementation was unsuccessful and the USPS was unable to realize any cost savings or efficiency gains.
To correct the failure of the USPS implementation, key decision-makers should invest in training and certifying personnel in Lean Six Sigma principles and tools. Additionally, they should invest in the necessary infrastructure to support the implementation, such as data collection and analysis tools.
Finally, they should use process design tools such as value stream mapping and process flow diagrams to identify areas of waste and inefficiency. By following these steps, the USPS can leverage Lean Six Sigma to improve value and reduce costs.
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COMPLETE ANSWER
THE ANSWER TO THE QUESTION IS I'M GOING TO VOTE BRAINLIEST
YOU NEED TO PROVE YOUR ANSWER
Direction: Read each statement carefully. Write True in the blank if the statement is right and False if it is wrong and prove it.
1. Internal Forces refers to set of elements which affects organization's or firm's behavior.
2. External Forces is unpredictable and uncontrollable.
3. Poor corporate image is a strength of the firm.
4. Money is the lifeblood of every business.
5. Customers are the king of the market.
6. Demographic aspects are the characteristics of the people in which the organization can be found.
7. Macro and micro environment are types of internal environment.
8. Technological includes the use of robots and online commerce.
9. Improper plans and policies help the firm to accomplish its objectives.
10. Socio-cultural are the characteristics of the population of a certain place. 8
The given statement 1,2,3,6,7 and 9 are false statement and 4,5,8 and 10 are true statement.
What is called an organization?An organization is consists group of people who work together, like an association, a charity, a union, or a corporation.
1. Internal Forces refers to set of elements which affects organization's or firm's behavior. It is false statement because today's organizational behavior is influenced by a complicated mix of major influences. People, Structure, Technology, and Environment are the four categories of important factors. People, structure, and technology interact, and these factors are impacted by the environment.
2. External Forces is unpredictable and uncontrollable. It is false statement because it is possible to predict economic trends using forecasted data.
3. Poor corporate image is a strength of the firm. It is false because when the corporate image is weak or poor, it affects the customers perception of not just the company but it's products as well. Hence, deflecting demand for their goods an services.
4. Money is the lifeblood of every business. It is True statement
5. Customers are the king of the market. It is true statement.
6. Demographic aspects are the characteristics of the people in which the organization can be found. It is false statement because demography is the scientific survey of populations, particularly human populations. Demographic analysis may be used to entire societies or groupings based on factors such as education, nationality, religion, and ethnicity.
7. Macro and micro environment are types of internal environment. it is false because Macro relates to external while micro relates to internal.
8. Technological includes the use of robots and online commerce, it is true.
9. Improper plans and policies help the firm to accomplish its objectives it is false because a bad plan cannot possibly lead to a good plan. Hence, improper plans and policies can not help the firm to accomplish its objectives.
10. Socio-cultural are the characteristics of the population of a certain place. It is the true statement.
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What amount must be set aside now to generate payments of $30,000 at the beginning of each year for the next 11 years if money is worth 5.95%, compounded annually? (Round your answer to the nearest cent.)
The amount that must be set aside in the present, to generate payments of $30, 000 for the next 11 years is $251,326.61
How to find the amount to set aside?The $30, 000 generated each year is an annuity which means that the amount to be set aside today is the present value of the annuity.
Because the payments come at the beginning of the year, this is an annuity due which means that we are looking for the present value of an annuity due.
This present value can be found as:
= Annuity amount x Present value of annuity due factor, 11 years, 5.95%
= 30, 000 x 8.38
= $251,326.61
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Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm’s dividends are 30% of earnings. Investors have a required return on FSL shares of 12.4%. The company has a profit margin of 10%, total asset turnover of 0.9, and total debt ratio of 0.4.
a) Calculate the ROE of the company.
b) Calculate the price of FSL shares.
c) How much of that price is due to future growth opportunities?
Answer and Explanation:
The computation is shown below:
a) For ROE of the company
As we know that
Debt ratio = 1 - (1 ÷ Equity multiplier)
0.4 = 1 - (1 ÷ Equity multiplier)
(1 ÷ Equity multiplier) = 0.6
Equity multiplier = 1 ÷ 0.6
= 1.6667
Now ROE is
ROE = Net Profit Margin × Total Asset Turnover × Equity multiplier
= 10% × 0.9 × 1.6667
= 15%
b) For the Price of FSL shares
Expected Dividend next year (D1) = Projected EPS × Dividend payout ratio
= $3.50 × 30%
= $1.05
And, Required Return(ke) = 12.4%
Growth Rate(g) = ROE × (1 - Dividend payout ratio)
= 15% × (1 - 0.30)
= 10.5%
And finally the Price of STock:-
= D1 ÷ (ke - g)
= $1.05 ÷ (0.124 - 0.105)
= $55.26
C. For Present Value of Growth Opportunity(PVGO)
As we know that
Present Value of Growth Opportunity(PVGO) = Stock Price - (EPS ÷ Ke)
= $55.26 - ($3.50 ÷ 12.4%)
= $27.03
in a 3 - 4 page essay, discuss warren Buffett's approach to business dealings, especially as they relate to business ethics.
Compare that approach to Benie Madoff's.
Apply ethical philosophies that you have learned about in this module and state which you think apply to Mr. Buffett.
Which ethical philosophies apply to Mr. Madoff? Why?
In this essay, we explore Warren Buffett's ethical approach to business, compare it to Bernie Madoff's, and analyze the applicable ethical philosophies for each.
Here are the steps to be followed:
1. Introduction:
2. Warren Buffett's Approach to Business Dealings and Business Ethics:
Explain Warren Buffett's overall approach to business dealings.Discuss his stance on business ethics, emphasizing any specific principles or values he adheres to.Provide examples or case studies that demonstrate Buffett's ethical decision-making in his business practices.Discuss the impact of his ethical approach on his reputation and long-term success.3. Bernie Madoff's Approach to Business Dealings and Comparison to Buffett:
Describe Bernie Madoff's approach to business dealings, specifically in relation to ethics.Highlight any unethical practices or actions committed by Madoff, such as his infamous Ponzi scheme.Compare and contrast Madoff's approach to Buffett's approach, pointing out the key differences in their ethical standards and behaviors.Discuss the consequences of Madoff's unethical actions, including the financial losses and damage to investors.4. Application of Ethical Philosophies to Warren Buffett:
Introduce the ethical philosophies that you have learned in the module.Identify which ethical philosophies apply to Warren Buffett based on his approach to business dealings.Explain why you believe these philosophies are applicable and provide supporting evidence or examples from Buffett's actions or statements.Discuss the implications and benefits of Buffett aligning with these ethical philosophies.5. Ethical Philosophies Applicable to Bernie Madoff and Reasons:
Analyze the ethical philosophies that can be applied to Bernie Madoff's actions.Discuss which ethical philosophies are relevant to understanding Madoff's unethical behavior.Provide justifications and explanations for the selected ethical philosophies, considering how they align with Madoff's actions or motivations.Reflect on the consequences of Madoff's departure from ethical principles.6. Conclusion:
Summarize the key points discussed in the essay regarding Warren Buffett's approach to business dealings and ethics, as well as the comparison to Bernie Madoff.Emphasize the importance of ethical decision-making in business and the long-term implications it can have.Offer any final thoughts or insights on the topic.Remember to support your arguments with evidence, examples, and references to credible sources. Properly cite any sources used in your essay according to the appropriate citation style.
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Human Resources and many other departments at Walmart will use the following as a form of business communication
Human Resources as well as many other departments at Walmart usually use Accounting as a form of business communication.
Human resources can be regarded as division of a business which carry out some functions such as;
finding and screening of employees. recruitment of employees.training job applicants.administering employee-benefit programs.This department overseas the employees affairs as well as their behavior.
Therefore, they use accounting as means of communication.
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Star co.had sale revenue £540000 in 2015
Answer:
Net income $55,000
Earnings per common share $0.55
Explanation:
Preparation of a single-step income statement for Starr for 2015.
Starr Co. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015
REVENUES
Sales revenue $540,000
Total revenues $540,000
EXPENSES:
Cost of goods sold $330,000
Salaries and wages expense $120,000
Income tax expense $25,000
Other operating expenses $10,000
Total expenses $485,000
($330,000+$120,000+$25,000+$10,000)
Net income $55,000
($540,000-$485,000)
Earnings per common share $0.55
($55,000 ÷ 100,000 shares)
Therefore single-step income statement for Starr for 2015 will have a Net income of $55,000 and Earnings per common share of $0.55.
calculating broad money supply?
Answer:
M3 (Broad Money)
M3 = M1 + Time deposits with commercial banks (Fixed deposits, Recurring deposits). MIND IT: M3= M1+time and NOT M3=M2+time.
Advantages of large group communication ?
Answer:
1: Increased output: The first and most important advantage of group work is, that it increases total productivity
2: More resources :The more member you have in a group, the resources you have at the end of the day...
3: Reliability: Project are safer with team than with individual.
4: proper decision making
5:Exposure to diversity.
Answer:
andvatage whem itsits when couple enoustryied withcouple walangjowa ble
Explanation:
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In addition to earning a bachelor's degree in education, what else do teacher candidates need to do in order to be eligible for a teaching certificate?
* * * is my answer
A. pass a series of state tests
B. write an essay on why they want to teach
C. complete additional courses in a second area of study
D. complete a survey by the State Board of Education * * *
Answer:
pass a series of state tests
Explanation:
good luck baes <33
In addition to earning a bachelor's degree in education, the teacher candidates need to pass many state tests in order to be eligible for a teaching certificate. Therefore, option A is the correct option.
What is a teaching certificate?A teaching certificate is a certificate which is provided and rewarded by the government or governmental organization to an individual. These certificates can be obtained by many processes such as giving and passing certain examinations which are conducted by the government and completing a certain teaching degree.
The teacher candidates must pass numerous state exams in addition to receiving a bachelor's degree in education in order to be qualified for a teaching certificate. As a result, choice A is the best one.
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The South African government decides to increase taxes to reduce the Budget deficit. Assume that:
• Investment is fairly responsive to changes in interest rates.
• The Taylor rule curve is positively sloped.
• The economy starts in a position of IS-TR-IFM equilibrium.
Structure your answer in the following way, at each stage making sure you explain how the relevant assumptions affect your answer.
a. Start by using an IS-TR diagram with no foreign sector and explain how the increase in taxes impacts upon income and interest rates. (5 marks)
b. Now include the foreign sector in the same diagram as for question 1(a) and explain the impact of the increase in taxes on all of the components of the balance of payments before any exchange rate adjustment. (5 marks)
c. Now, still using the same diagram as for questions 1(a) and 1(b), illustrate and explain the adjustment to final IS-TR-IFM equilibrium as a result of the increase in taxes if South Africa has a flexible exchange rate and capital is perfectly mobile internationally. (5 marks)
d. Illustrate and explain how your answer to question 1(c) will differ if South Africa instead has a fixed exchange rate? (5 marks)
e. How would your answer to question 1(c) differ when the exchange rate is flexible but capital mobility is imperfect? Illustrate this on a new diagram and explain your answer.
An increase in taxes in South Africa affects income, interest rates, trade surplus, and capital flow, with varying effects depending on exchange rate and capital mobility.
What is capital flow ?
Capital flow refers to the movement of money or capital into or out of a country for the purpose of investment or trade.
a. An increase in taxes will shift the TR curve upward, decreasing the disposable income and consumption spending of households. This leads to a decrease in the IS curve, causing a fall in output (income) and a fall in interest rates. Since investment is responsive to changes in interest rates, a fall in interest rates will increase investment, partially offsetting the negative impact of the tax increase on output.
b. With the inclusion of the foreign sector, an increase in taxes will reduce income and, therefore, imports. However, exports will remain unaffected, leading to an increase in the trade surplus (exports minus imports). The increase in taxes will also lead to a decrease in the capital account balance, as higher taxes reduce after-tax profits and discourage foreign investment. The overall impact on the current account and the balance of payments will depend on the size of the trade and capital account balances.
c. Assuming a flexible exchange rate and perfectly mobile capital, the decrease in output and the increase in the trade surplus will cause a decrease in the demand for money, leading to a fall in interest rates. This will stimulate investment and consumption, partially offsetting the negative effects of the tax increase on output. The economy will eventually reach a new equilibrium at a lower level of output, a lower interest rate, and a higher trade surplus than before the tax increase.
d. If South Africa has a fixed exchange rate, the increase in the trade surplus will lead to an increase in the demand for the domestic currency, causing it to appreciate. To maintain the fixed exchange rate, the central bank will have to intervene in the foreign exchange market by buying foreign currency, increasing the money supply, and causing inflationary pressures. The increase in the trade surplus will still lead to a lower output level, but the interest rate may not necessarily decrease.
e. With imperfect capital mobility, the exchange rate can still adjust, but it will do so more slowly and with less magnitude than in the case of perfect capital mobility. In this case, the adjustment to the tax increase will be similar to that in 1(c), but the new equilibrium will have a smaller increase in the trade surplus and a smaller decrease in output. The adjustment will be slower and smoother, and the impact on interest rates may be less pronounced.
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LCM of 36 48 50 and 80
can you please help me
QUESTION 2 10 poir if an investment account gives 5% interest annually, how much equal annual deposits you have to make for 10 years starting year 1 to have a $271,384 at your account at the end of this investment
You need to make equal annual deposits of $21,580.66 for 10 years at a 5% interest rate to have a final account balance of $271,384 at the end of this investment.
To determine the equal annual deposits you need to make for 10 years at a 5% annual interest rate to have a final account balance of $271,384, we can use the future value of an ordinary annuity formula:
FV = P * [(1 + r)^n - 1] / r
Where:
FV = future value of the annuity ($271,384)
P = equal annual deposits (unknown)
r = annual interest rate (0.05)
n = number of years (10)
We need to solve for P:
$271,384 = P * [(1 + 0.05)^10 - 1] / 0.05
Now, we will calculate the value inside the brackets:
(1 + 0.05)^10 - 1 = 1.62889 - 1 = 0.62889
Now, we plug this value back into the equation and solve for P:
$271,384 = P * (0.62889 / 0.05)
Next, we'll divide 0.62889 by 0.05:
0.62889 / 0.05 = 12.5778
Now, we'll plug this value back into the equation and solve for P:
$271,384 = P * 12.5778
Finally, we'll divide both sides by 12.5778 to find the equal annual deposits:
P = $271,384 / 12.5778 = $21,580.66
Therefore, you need to make equal annual deposits of $21,580.66.
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Which of the following is the most
"liquid" asset?
A. currency
B. checking accounts
C. certificate of deposits
Answer:
A. currency
Explanation:
Answer:
a
Explanation: