Answer:
none
Explanation:
correct
nominal interest rates and prices of previously issued boinds will be affected in which of the following ways when money dmenad exceeds money supply?
When money demand exceeds money supply, nominal interest rates will increase as a result of the higher demand for money.
This increase in interest rates will lead to a decrease in the prices of previously issued bonds, as investors will demand higher returns to compensate for the higher interest rates. In other words, the prices of bonds will decrease because their yields will increase to match the higher interest rates in the market.
When money demand exceeds money supply, nominal interest rates will typically increase, while the prices of previously issued bonds will generally decrease. This occurs because the increased demand for money leads to higher borrowing costs, and the higher nominal interest rates make older bonds with lower fixed interest rates less attractive, causing their prices to decline.
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Full question:
nominal interest rates and prices of previously issued bonds will be affected in which of the following ways when money demand exceeds money supply? responses nominal interest rates will decrease, and bond prices will decrease. nominal interest rates will decrease, and bond prices will decrease. nominal interest rates will increase, and bond prices will decrease. nominal interest rates will increase, and bond prices will decrease. nominal interest rates will decrease, and bond prices will increase. nominal interest rates will decrease, and bond prices will increase. nominal interest rates will increase, and bond prices will increase. nominal interest rates will increase, and bond prices will increase. nominal interest rates will not change, and bond prices will not change.
Jim asked Gina if she wanted a contemporary or traditional style couch. Why was that the wrong question to ask?
a) He should have been able to tell Gina's tastes from the way she dressed.
b) He limited Gina's choices before she had really considered them.
c) He made Gina feel like she did not have good taste in furniture.
Answer:
B
Explanation:
magma math: given a spherical magma body with a radius of 5.8 meters and a cubical magma body with sides of length 9.35 meters, in which body of magma is the magma likely to cool more quickly
Choose one:
A. The magma will cool at the same rate for both magma bodies.
B. There is not enough information provided to answer the question.
C. The magma will cool more quickly in the cubical magma body.
D. The magma will cool more quickly in the spherical magma body.
A spherical magma body with a radius of 5.8 meters and a cubical magma body with sides of length 9.35 meters, in which body of magma is the magma likely to cool more quickly .The magma will cool more quickly in the cubical magma body.
This is because the surface area-to-volume ratio of the cubical magma body is larger than that of the spherical magma body. The rate of cooling depends on the surface area available for heat loss, and since the surface area of the cubical magma body is greater than that of the spherical magma body, the cubical magma body will cool more quickly.
Additionally, the corners of the cubical magma body provide even more surface area for heat loss compared to the smooth surface of the spherical magma body.
The rate of cooling of a body of magma (or any object, for that matter) depends on several factors, including its surface area, its volume, and its thermal conductivity. The greater the surface area, the more heat can be lost to the surrounding environment, and the faster the body will cool. Similarly, the greater the volume, the more heat the body contains, and the longer it will take to cool. Finally, the thermal conductivity of the material also plays a role, as some materials are better at conducting heat than others.
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A schedule is useful for
a. Visualizing all your commitments
b. Solving workflow problems
C. Maintaining your responsibilities
d. All of the above
Answer:
The answer is D =All of the above
Answer:
DDDDDD
Explanation:
lester mccann is thinking about getting a loan for a new car. he knows that when he goes shopping for a loan that all of the banks must report the annual percentage rate as well as all other terms and conditions of the loan. this will allow him to easily compare loans from different banks. which consumer protection law requires full disclosure on all loans?
The consumer protection legislation, which demands full disclosure on all loans, is the Truth in Lending Act. Thus, option (E) is correct.
What is Consumer Protection?Consumer protection is the safeguarding of customers of products and services against low-quality or harmful items, as well as misleading advertisements.
According to the scenario, Lester McCann is looking at getting a vehicle loan. He understands that when he goes loan shopping, all banks must reveal the yearly marginal rate in addition to all other loan terms and conditions.
Therefore, it can be concluded that option (E) is correct.
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Your question is incomplete, but most probably the full question was...
A) Fair Credit Reporting Act
B) Fair Credit Billing Act
C) Equal Credit Opportunity Act
D) Fair Debt Collection Practices Act
E) Truth in Lending Act
given total assessed value of $80,000 and a tax rate of 5%, what is the amount of the property tax due?
The amount of property tax due is $4,000.
We need to convert the tax rate of 5% to a decimal by dividing it by 100.
Tax rate as decimal = 5% ÷ 100 = 0.05
Next, we can calculate the property tax due by multiplying the total assessed value by the tax rate as a decimal:
Property tax due = Total assessed value x Tax rate as a decimal
Property tax due = $80,000 x 0.05
Property tax due = $4,000
Tax refers to a mandatory financial charge imposed by a government on individuals, businesses, and other entities to fund public services and projects. Taxes can take various forms, including income tax, sales tax, property tax, and value-added tax, among others.
The revenue generated from taxes is used to finance the provision of public goods and services, such as healthcare, education, infrastructure, and defense. Taxes are collected by government agencies through various means, including withholding taxes from employees' salaries, charging taxes on goods and services, and assessing property taxes based on the value of assets.
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Explain to the management of SSSMM the impact of the following socio-
economic issues on their business.
a.Inflation
b.Dumping
Answer:
inflation
Explanation:
this a process by which prices of a particular goods are high
what is the process of decision-making plan?
The process of decision-making plan refers to the process that involves making and evaluating each set of interrelated decisions.
What is decision making plan?Decision making plan is when different possible solutions to problems are identified whilst making use of the most feasible course of action.
The decision-making process is essential for any organization hence helps in choosing the best decision to reach the objectives and goals.
Steps to the process of decision-making plan includes :
Identify the decision.Gather relevant information.Identify the alternatives.Analysis of relevant information.Selection of the best alternative.Performance evaluation.Learn more about decision-making plan here : https://brainly.com/question/17622567
State 5 advantage and 5 disadvantages of trade unions.
Answer:
5 advantages/ higher wages, better benefits, your representatives, fair pay, better environment
Explanation:
5 disadvantages/ high labor cost, law suits, abritrations, and members can legally strike
A US based company is attempting to merge with a French National conglomerate. With IFRS and GAAP being so different, what would be some of the challenges the two sides may face with the merger from an accounting standpoint?
The merger between a US-based company and a French National conglomerate can pose several challenges from an accounting standpoint due to the differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Some of the challenges they may face include:
Accounting Principles: IFRS and GAAP have different underlying principles and concepts. IFRS is principles-based, emphasizing substance over form, while GAAP is rules-based, providing specific guidelines for various transactions. The differences in accounting principles can lead to variations in the recognition, measurement, and presentation of financial information.
Financial Statement Presentation: IFRS and GAAP have different requirements for financial statement presentation. The formats and classifications of items on the balance sheet, income statement, and cash flow statement may vary between the two sets of standards. This can make the comparison and consolidation of financial statements challenging.
Revenue Recognition: IFRS and GAAP have differing guidance on revenue recognition, particularly in areas such as the timing of revenue recognition, multiple-element arrangements, and percentage-of-completion method for long-term contracts. Aligning the revenue recognition policies of the merging entities can be a complex task.
Valuation of Assets and Liabilities: IFRS and GAAP may have different rules for the valuation of assets and liabilities, such as inventory, property, plant, and equipment, intangible assets, and financial instruments. Differences in valuation methodologies can impact the reported values of assets and liabilities, which can have implications for financial ratios, financial performance, and tax implications.
Business Combinations and Goodwill: IFRS and GAAP have different requirements for accounting for business combinations and the subsequent treatment of goodwill. For example, IFRS allows for the option of measuring goodwill at cost or using the impairment model, while GAAP follows a more strict impairment-only model. This can result in differences in the recognition and measurement of goodwill and the related impact on financial statements.
Disclosures: IFRS and GAAP have varying disclosure requirements, with differences in the level of detail and specific disclosures mandated for certain transactions and events. Harmonizing the disclosure requirements can be a complex task to ensure compliance with both sets of standards.
These are just a few examples of the challenges that may arise during the merger process from an accounting standpoint. It is crucial for the merging entities to have a thorough understanding of the differences between IFRS and GAAP and work closely with accounting professionals and advisors to address these challenges effectively and ensure accurate financial reporting and compliance with relevant regulations.
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A small island country has recently begun an initiative aimed at attracting more businesses to revitalize the economy. An increase in bed and breakfasts, resorts, casinos, hotels, and restaurants has created several jobs, as well as brought in more tourist dollars. However, the island’s president isn't satisfied and has announced a special effort to attract small- to medium-size suppliers and manufacturers. Why do you think he wants to put additional emphasis on businesses that produce goods rather than provide services?
Service jobs have higher salaries than manufacturing jobs.
Manufacturers pay more in taxes.
Manufacturing has the most significant multiplier effect.
Service businesses conflict with manufacturing.
Option (b) Manufacturing has the most significant multiplier effect.
Manufacturing is the basic to produce any product or to start any business. As in the case study we studied small island country has taken initiative to attract more and more business. On the other hand, president has announced a special effort to attract small- to medium suppliers and manufactures because to firstly balance everything in the economy like reduce unemployment, providing proper wages so that workers would encourage to perform best in their fields.Once the everything is balanced then it can lead to hike in the economy.Learn more about this here-
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What kind of account requires you to leave your money in it for a specific
amount of time?
A. Savings account
B. Money market account
C. Checking account
D. Stock market account
SUBMIT
Answer:
B. Money market account
Explanation:
A money market account is a type of savings account that usually offers a higher interest rate in exchange for a higher minimum balance requirement and a longer-term commitment. The account holder must agree to leave a certain amount of money in the account for a specified period of time, which can range from a few months to several years. Withdrawing money early can result in penalties and fees.
18. For non-Stafford Act Incidents, who activates the appropriate coordinating structures?
O A. Agency with primary legal authority
O B. Federal government
O C. Agency with the most responders
O D. First responding agency
Answer:
For non-Stafford act incidents, The agency with primary legal authority activates the appropriate coordinating structures. Hence, option C is correct.
Explanation:
For non-Stafford Act Incidents, an agency with primary legal authority activates the appropriate coordinating structures. Thus, option A is the correct option.
What is a non-Stafford Act Incident?The National Response Framework allows a Federal organization (the seeking agency) that has primary responsibility and legal authority for managing an event to request DHS coordination and facilitation if it needs additional support or assistance. The National Preparedness Objective outlines 32 tasks, referred to as core competencies, that address the biggest threats to the country in five mission areas: prevention, protection, mitigation, response, and recovery.
The National Response Framework outlines the guiding principles that allow all response partners to organize a coordinated, national response to all sizes of crises and disasters, from minor incidents to major catastrophes. Disasters are viewed by emergency managers as recurrent events that include four phases: mitigation, readiness, response, and recovery.
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______________ exists when an organization's employees believe that their pay is fair when compared to what other employers pay their employees who perform similar jobs.
Pay equity exists when employees perceive their pay as fair in comparison to other organizations paying employees with similar job roles.
Pay equity is essential in ensuring a fair and just workplace. Employees who perceive their pay as unfair are more likely to feel undervalued and underappreciated. In turn, this may lead to high turnover rates, low productivity, and low job satisfaction. Therefore, organizations must conduct regular pay equity analyses to ensure that employees are paid fairly and avoid any potential legal issues. Additionally, providing transparent information about the company's pay structure can also contribute to increased employee satisfaction and a positive work environment. By promoting pay equity, organizations can foster a more inclusive and diverse workplace, which ultimately benefits everyone involved.
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can someone recommend me some research topics for economics.would really appreciate if it is in a list
Explanation:
here are some research topics for economics::
1. The effect of income changes on consumer choices
2. The effect of labor force participation on the economy and budget – A comparison
3. The impact of marital status on the labor force composition: A case of [your country] economy
4. The difference in the consumption attitude in [your country] over the last decade – Critical analysis of consumer behavior trends
5. The relationship between salary levels and ‘economic convergence’ in [your country]?
6. Analyzing salary inequalities in [your country] and the forces behind such inequalities.
7. The evolution of consumption in [your country] over the last 10 years: Trends and consumer behavior.
8. Dynamics of the Gini index as a reflection of the problem of inequality in income
9. Cashless economy: The impact of demonetization on small and medium businesses
10 Privatization of Public Enterprises and its implications on economic policy and development
the goods-producing industries have a higher rate of nonfatal injuries and illnesses than the service-providing industries. TRUE or FALSE
TRUE. The statement is true.
Goods-producing industries, such as manufacturing, construction, and agriculture, typically have higher rates of nonfatal injuries and illnesses compared to service-providing industries. This is primarily due to the nature of the work involved, which often includes physical labor, operation of machinery, exposure to hazardous materials, and work in challenging environments. These factors contribute to a higher risk of accidents, injuries, and occupational health issues in goods-producing industries compared to the generally lower-risk service-providing industries, which involve a range of activities such as professional services, healthcare, education, and hospitality.
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Question 2. Small Town Sweets—audit planning analytics (4%)
Small Town Sweets is based in Molong, NSW, and produces a range of high-quality confectionery for the East Coast market. Small Town Sweets operates in a low-margin environment, which typically means that large volumes are required to cover overhead costs and generate profits. It also means that overheads need to be kept under control to ensure that a net profit is generated from its operations. Debt is also kept to a minimum to ensure that interest costs are low and that there is sufficient margin to protect solvency during downturns.
The company did not reach industry profitability benchmarks in the previous year and budgeted to do better in the current year. It thought that it could do so by keeping its costs down in relation to sales while allowing its gross margin to drop, evidently planning to generate a larger volume of sales. The company also planned to better manage its working capital by reducing inventory and accounts receivable levels, indicating that it expected to produce a healthy cash flow to enable it to do so. As part of the planning process MCA has produced the following analytical information:
Ratio Actual Budgeted Prior Year Industry
Return on equity % 12.9 16.6 14.8 15.5
Return on total assets % 10.7 14.2 13.1 14.5
Gross margin % 8.5 9.0 9.5 9.0
Marketing expense/sales % 2.6 1.8 2.0 2.2
Admin expenses/sales % 1.6 1.6 1.8 2.0
Interest coverage ratio 5.4 8.1 6.4 6.0
Days in inventory 33.1 30.4 31.1 30.0
Days in accounts receivable 50.0 48.0 49.7 45.0
Current ratio 1.3 1.2 1.2 1.5
Quick asset ratio 0.81 0.77 0.77 1.0
Debt to equity ratio 0.51 0.33 0.41 0.40
Required
With reference to ASA 315 and the information above, identify and justify:
the three ratios that would be of most interest in the planning of the audit.
the account balance that is most at risk for each ratio identified in 1.
the assertion most at risk for each account balance identified in 2.
Answer this question using the following headings:
1. Ratio
2. Account balance
3. Assertion
Ratio:
a) Return on equity %
b) Days in inventory
c) Days in accounts receivable
Account balance:
a) Net income
b) Inventory
c) Accounts receivable
Assertion:
a) Existence
b) Valuation
c) Completeness
Justification:
Ratio:
a) Return on equity %: Return on equity is a key profitability ratio that measures the company's ability to generate profits for shareholders. It is of interest to auditors as it provides insight into the effectiveness of the company's management team in generating profits. A lower than expected return on equity could indicate mismanagement or fraudulent activity.
b) Days in inventory: Days in inventory is a ratio that measures the average number of days it takes for inventory to be sold. It is of interest to auditors as it provides insight into the efficiency of the company's inventory management system. A high number of days in inventory could indicate that inventory is not being managed efficiently, leading to potential overstatement of inventory and understatement of cost of sales.
c) Days in accounts receivable: Days in accounts receivable is a ratio that measures the average number of days it takes for customers to pay their bills. It is of interest to auditors as it provides insight into the efficiency of the company's accounts receivable management system. A high number of days in accounts receivable could indicate that the company is not collecting receivables in a timely manner, leading to potential overstatement of accounts receivable and understatement of bad debts.
Account balance:
a) Net income: Net income is the primary measure of a company's profitability. It is at risk if the return on equity ratio is lower than expected, as it may indicate mismanagement or fraudulent activity.
b) Inventory: Inventory is a major component of cost of sales and is at risk if the days in inventory ratio is higher than expected, as it may indicate potential overstatement of inventory and understatement of cost of sales.
c) Accounts receivable: Accounts receivable represent amounts owed to the company by customers. They are at risk if the days in accounts receivable ratio is higher than expected, as it may indicate potential overstatement of accounts receivable and understatement of bad debts.
Assertion:
a) Existence: The existence assertion is at risk for net income if the return on equity ratio is lower than expected, as it may indicate mismanagement or fraudulent activity.
b) Valuation: The valuation assertion is at risk for inventory if the days in inventory ratio is higher than expected, as it may indicate potential overstatement of inventory and understatement of cost of sales.
c) Completeness: The completeness assertion is at risk for accounts receivable if the days in accounts receivable ratio is higher than expected, as it may indicate potential overstatement of accounts receivable and understatement of bad debts.
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What are economic theories?
Economic theories are sets of ideas and principles that outline how different economies function.
Is there anyway to make money as a teen (Online), I am 14.
Write a short report on ethical business dilemmas, and give examples of ethical dilemmas faced by businesses.
this is the edmentum answer and ill put my answer as well
Explanation:
edmentum: Ethical dilemmas are very common in the workplace. The employees of an organization are under pressure to deliver an expected level of performance. They need to perform to meet the organization’s goals without compromising on quality or giving in to temptation, such as opportunities to share confidential company data. When an organization provides training and guidance to its employees, it helps them to make appropriate ethical decisions.
The cultures of organizations vary. Some businesses do not look beyond their own profits, and their leaders often ignore their own standards of ethics. Employees who do not agree to certain practices may hesitate to protest because they don’t want to risk losing their jobs or for management to single them out as untrustworthy.
Ethical dilemmas are common in business processes; for example, when employees manipulate work reports to obtain recognition and appreciation, or when employees fudge financial statements to depict false increases in sales.
Another example of an ethical business dilemma would be an employee finding out that a senior manager is misusing company resources for personal gain. The employee may receive an offer from the manager to share in the unethical gains.
my answer: Ethical business dilemmas are growing more important over the years now that people have realized businesses should be treating their employees as human beings. Applying for a job you should be aware of common ethical dilemmas business faces and how well they handle them. Some common dilemmas are health and safety, diversity and discrimination policies, employee privacy, unethical pricing, and sadly sexual harassment.
When drawing a portrait, you want to make sure that the face you are drawing is _____________ (the right size).
Answer:
The right size
Explanation:
Which two sentences use words that have a positive connotation?
1. The determined CEO increased the profits this quarter.
2. The bossy manager pushed his team to meet the deadline.
3. The self-confident team leader made a good impression.
4. The company’s cheap measures saved the investors millions.
5. The arrogant executive was immediately hired
The two sentences which use words that have a positive connotation are Options 1 and 3.
What exactly does a favorable connotation imply?A positive connotation is a favorable or positive association with a specific word. In this context, the meaning makes the word appear cheerful or affirmative.
The opposite is true with a negative connotation. Connotation is a technique used by writers to produce emotional associations that might be good, negative, or neutral.
The word has a positive connotation. Words that elicit a positive emotional reaction. Using terms like "go-getter" and "youthful" to describe someone who is ambitious or vivacious and curious.
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a furniture company wants to start using campaign manager 360 to start advertising across mobile platforms, focusing primarily on smartphones. which scenario represents a consideration to bear in mind for advertising on a smartphone?
Campaign manager 360 to start advertising across mobile platforms, focusing primarily on smartphones. Their mobile website is linked to a mobile-optimized advertisement for a sectional couch.
A lengthy video advertisement leading viewers to their mobile design company is an innovative idea for coffee tables. It needs a reliable Wi-Fi and broadband connection to create a dynamic animation for throw pillows. Extra huge, dynamic, and with extremely exact flying requirements, the creative for all 8 by 10 carpets.
For marketers and agencies, there is a web-based ad management solution called Campaign Manager 360. You may manage your digital marketing across websites and mobile devices with its aid. The tools for ad serving, targeting, verification, and reporting are extensive.
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How should countries operate relative to their investment opportunities?
a. Those with weak investment opportunities should maximize investment within their home countries.
b. Those with strong investment opportunities should maximize investment within foreign countries.
c. Those with strong investment opportunities should minimize investment within their home countries.
d. Those with strong investment opportunities should maximize investment within their home countries.
Relative to their investment opportunities Countries should operate with Those with strong investment opportunities should maximize investment within their home countries. The correct option is d.
To promote economic growth and development, nations with good investment opportunities should invest as much as possible domestically. By making investments in their own nation. they can build infrastructure, support local businesses and create jobs. all of which can help to increase economic activity and productivity.
On the other hand, in order to promote growth and development nations with limited domestic investment opportunities might need to look abroad. A self sustaining cycle of economic growth and development can be created by countries by maximizing investment within their own borders in order to take advantage of their strengths and opportunities. The correct option is d.
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A company uses the weighted-average method for inventory costing. At the end of the period, 19,000 units were in the ending Work in Process inventory and are 100% complete for materials and 68% complete for conversion. The equivalent costs per unit are materials, $2.58, and conversion $2.20. Compute the cost that would be assigned to the ending Work in Process inventory for the period.
Answer: $77,444
Explanation:
Given the following :
Ending work in process inventory = 19,000 units
Complete for materials = 100%
Complete for conversion = 68%
Equivalent cost per unit (material) = $2.58
Equivalent cost per unit (conversion) = $2.20
Cost of ending work in process inventory (materials) :
Cost per unit (material) * (ending work in process inventory) * complete for material
$2.58 * 19000 * 100% = $49,020
Cost of ending work in process inventory (conversion) :
Cost per unit (conversion) * (ending work in process inventory) * complete for conversion
$2.20 * 19000 * 68% = $49,020
$2.20 * 19000 * 0.68 = $28,424
Total cost (ending work in process inventory) :
Material cost + conversion cost
$49,020 + $28,424 = $77444
Which of the following is not one of the purposes of an internal control system?
A) The evaluation of performance
B) Safeguarding the company's assets
C) Ensuring that the company is using the most effective marketing plan
D) The assessment of the degree of compliance with company policies and public laws
C). A system of internal controls is not intended to ensure that an organization is employing the best marketing strategy.
Describe the internal control system.Internal control is a practice carried out by management, the board of directors, and other employees of a firm with the goal of providing a reasonable level of assurance that the information is accurate, timely, and reliable.
Internal controls were developed as a means of safeguarding a business and lowering the risk to its objectives. Internal controls support risk mitigation, asset protection, accurate record-keeping, improved operational performance, and regulatory compliance.
Types: There are two main types of internal controls: preventative and detective. Both belong to a successful internal control system.
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what does this mean? this repository has been archived by the owner on mar 1, 2023. it is now read-only.
When a repository on a platform like GitHub is archived, it means that the repository is no longer actively maintained or updated. The repository owner has decided to stop developing and maintaining it, so no further changes or contributions can be made.
The owner of the repository has taken a deliberate decision to stop development and maintenance of the repository, and it is no longer possible to make any changes or contributions to the repository.
Archiving a repository can be done for several reasons, such as the project being completed, lack of interest or resources to maintain the repository, or a shift in priorities or focus.
It can also be used as a way to indicate that a repository is no longer relevant or useful, or as a way to preserve a repository for historical or reference purposes.
When a repository is archived, it becomes "read-only", which means that it is still accessible to view and download, but no further changes or updates can be made to the code or other files in the repository.
It is important to note that archived repositories can still be forked or copied by other users, but any changes made to those copies will not be reflected in the original archived repository.
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Bailey owns and operates Bailey's Pie Shop as a sole proprietorship. When she dies, the business will automatically a reform with its employees as the owners b transfer to Bailey's heirs c transfer to its creditors d dissolve
Bailey owns and operates Bailey's Pie Shop as a sole proprietorship. When she dies, the business will automatically transfer to Bailey's heirs. The correct answer is B.
When a sole proprietor such as Bailey dies, the business will typically be transferred to Bailey's heirs according to her estate plan or, if she does not have an estate plan, according to the laws of intestacy in her state. The heirs will then have the option to continue operating the business or to sell or liquidate it.
The business will not automatically reform with its employees as the owners, transfer to its creditors, or dissolve unless specified in Bailey's estate plan or by the legal requirements of her state. However, the business may need to be dissolved or transferred to creditors if there are outstanding debts or liabilities that cannot be satisfied by the assets of the business or the estate.
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ABC Corp purchased a conference room table on July 1, 2014 for $2,800. The estimated salvage (disposal) value is $400.00 and the estimated useful life is 5 years. What is the accumulated depreciation at the end of 2017?
Answer:the guuy up top is right
Explanation:
Suppose a self-regulating economy is in a recessionary gap at the time the Fed enacts expansionary monetary policy. Furthermore, suppose the Fed is able to enact expansionary monetary policy in such a precise way that the economy moves from a recessionary gap into long-run equilibrium, if there are no other changes in the economy. The combination of expansionary monetary policy and a self-regulating economy will cause
The combination of expansionary monetary policy and a self-regulating economy will cause real GDP will rise to the level above natural real GDP and the recessionary gap would hence turn into an inflationary gap situation.
What do you mean by monetary policy?Monetary Policy refers to the control of the quantity of money available in an economy through which new money is supplied.
The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.
Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.
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