The most effective way to compare the financial performance of the two companies is to look at their earnings per share. This statement is false.
Since there are significant variations in the number of outstanding shares between firms, comparing profits per share is not a practical approach to assess how well one company's earnings have performed in comparison to another. Stocks that are highly valued in relation to their existing profits are known as value stocks.
Net income made available to common shareholders is divided by the weighted average number of outstanding common shares to calculate earnings per share. Since preferred dividends are not available to common shareholders, they must be subtracted from net income.
Because it does not take into account the opportunity cost of capital and is subject to manipulation by short-term decisions, EPS is not a good indicator of performance.
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I need help with the business ventures Pt 3 assignment, I dont know how to do the tables with graphic designing business. I NEED HELP FAST!!!
Graphic design is a field that creative people with a love of art, technology, and communication might want to consider.
What about graphic design?Graphic design is both a profession and an academic field. and applied art, whose work entails the projection of visual signals meant to convey particular messages to social groups with specific aims. An multidisciplinary area of both the fine arts and design, graphic design is. Using manual or digital technologies, it requires creativity, invention, and lateral thinking. Text and visuals are frequently used to convey ideas graphically.The graphic designer's function during the communication process is that of the message's encoder or interpreter. They focus on the analysis, arrangement, and presentation of visual messages. Graphic design typically goes beyond what language alone can say by using ornamentation, graphics, compositional arrangement of the text, and appealing typography.Graphic design is a field that creative people with a love of art, technology, and communication might want to consider.
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along with industrial goods, the most rapidly growing sector of u.s. international trade today consists of:
Aside from industrial goods, the most rapidly growing sector of the United States international trade consists of: Business services
Business services is defined as type of business model that build and provide system of services and serve as a supporting function for other businesses, rather than produces output of industrial goods. Examples of business services that would be the backbone of international trade would be of an Information Technology provider, communication provider, banking industries including insurance, transportation and logistics, and other outsourcing services such as accounting and marketing. Business services are important because by outsourcing certain sections of business processes to a third party, efficiency is increased and therefore business from small business to large scale enterprises such as manufacturers of industrial goods may grow faster.
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What is the name for a meeting between a candidate and an employer to assess how well the candidate fits the position and the organization?.
Answer:
an interview
Explanation:
elizabeth (37) is married, but she lived apart from her husband, leo, for the last three months of the tax year. elizabeth and leo are not divorced or legally separated. they agree that they do not want to file a joint return. they share custody of their two children, who spend an equal amount of time with both parents. given the circumstances, what filing status will elizabeth need to use?
Elizabeth will need to use the filing status of "head of household". This status applies if she is unmarried and has paid more than half of the costs of keeping up her home for the tax year, and a qualifying person, in this case, her two children, lived with her for more than half of the year.
Head of household is a term used to describe the person who is responsible for the day-to-day management of a household. This person is often the primary wage earner in the family, but in some cases, it may be someone who is responsible for taking care of the family’s home and managing the family’s finances. The head of household can be a single parent, a married couple, or even an unmarried couple living together. The role of head of household is one of the most important in any family. It is the head of the household’s responsibility to provide for the family, ensure that all bills are paid, and manage the household budget. This includes making decisions about what to buy, what to save, and how to invest the family’s money.
The head of the household also makes sure that the family is taken care of emotionally and physically. This includes providing love and support, setting boundaries, and teaching values. The head of household is responsible for setting a good example for the rest of the family, and ensuring that everyone is happy, healthy, and living a good life.
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an energy drink maker relies on student brand managers to distribute free samples to their peers. which form of marketing communication is this?
Student brand managers are given the responsibility by Red Bull to distribute free samples to their fellow students.
What kind of marketing strategy can promote target customers' interests and quicken interactions with them?
Targeted marketing requires researching and comprehending the interests and demands of your potential customers in order to concentrate your message and marketing budget on the specific audience segment most likely to purchase your product or service.
Free samples certainly count as marketing, don't they?
What does free sample marketing entail?
Free sample marketing refers to distributing free samples of products or services to potential clients. It works especially effectively in the food, beverage, health, and cosmetic industries.
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when a large company downsizes, some of the middle-aged and older workers who are laid off find it difficult to get another job. when such workers decide to start their own businesses, they are known as .
[tex][(x_{2} - x_{1} )^{2} 2 + (y_{2} - y_{1} ][/tex] is the distance formula. Any two points in 2D space that have coordinates of [tex](x_{1} , y_{1} )[/tex]for the first point and [tex](x_{2} , y_{2} )[/tex] for the second point can be used in this.
What is the formula for computing distance ?Since the stone will accelerate due to gravity once it is dropped at a rate of 9.8 meters per second squared, you may use physics to compute the depth of the ocean by applying the distance formula to the stone's trip distance.
In addition, the relationship between flow rate and velocity may be seen in the equation Q = Av, where A is the flow's cross-sectional area and v is its average velocity.
A tube created by two parallel, flat rectangular plates with dimensions of 1 m in length and 5 m in breadth is filled with water at 20 °C moving at a free stream velocity of 2.0 m/s. A distance d separates the flat plates.
[tex]D = v_{0}t +1/2 at^{2}[/tex]
[tex]D=2.0*5 +1/2 *20 * 5^{2}[/tex]
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a purchaser of furniture on a time payment plan agrees to pay $200 at the end of each month for 24 months. later it is discovered that the same furniture could have been purchased for $3800 cash. what interest rate per month is the purchaser paying? what are the nominal and effective interest rates per year?
Purchase of furniture is a cash outflow from investing activity.
What is the entry of purchase of furniture?Upon furniture purchase, the value of an asset is increased and according to the Rules of Debit and Credit, an increase in an asset A/c is debited . Further, cash is reduced according to the Rules of Debit and Credit. So Cash A/c would be credited.The annual nominal interest rate is 9.31% when a $2000 furniture can be financed by paying $50 per month for 4 years for the loan.A loan's nominal interest rate is also known as the annual percentage rate. The term nominal describes the fact that the interest rate doesn't quite account for interest compounding over the course of the year.Purchases without full payment immediately are credit transactions. We record such transactions by debiting the asset account and crediting the liability account.
M= P*12*J/1-(1+12J)^-N
M is the monthly payment, P is the loan amount, J is the monthly interest and N the total number of payments.
$50= $2000 *J*12 /1-(1+J*12)^-48
1-(1+J*12)^-48 = $2000 *J*12 / $50
1-(1+J*12)^-48 / 12*J = $2000 / $50
Solving for 12*J as we need to find annual rate
12*J = 9.31%
The annual nominal interest rate is 9.31% .
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danielle williams is a 29-year-old single taxpayer who changed jobs during the year. when she left her first job, she decided to take a total distribution from the 401(k) plan she had established with her former employer. she then used the proceeds to make a down payment on a new car. in early 2022, she received the following form 1099-r reporting the distribution. her only other income was from wages, and her 2021 taxable income was $51,350. what will be the amount of the penalty for the early withdrawal from her 401(k) plan, if any?
Given that both firms are in the same industry and have similar financial characteristics, Firm A would be more likely to experience more significant operating exposure to currency risk due to the presence of more foreign currencies in its markets of operation.
What is financial characteristic?Financial characteristics are the characteristics of a person, company, or asset that affect the ability to generate and manage financial resources. These characteristics may include financial resources, financial performance, financial risk, financial stability, and financial capability. Financial characteristics are essential for businesses to understand and use in order to make informed decisions about their financial situations. Examples of financial characteristics include liquidity, solvency, debt-to-equity ratio, and return on equity. Financial characteristics provide important insights into a company’s financial health and can help inform decisions about how to best manage resources. By understanding financial characteristics, businesses can make informed decisions about their financial management strategies and maximize their financial resources.
Firm A operates in six different countries with six different foreign currencies, while Firm B only operates in four foreign countries with four different currencies. This means that Firm A is exposed to greater exchange rate movements and hence has a higher level of operating exposure to currency risk.
To manage their operating exposure to currency risk, Firm A can use a number of methods. One option is to use currency hedging instruments such as forward contracts and options to lock in the exchange rate for future transactions and protect themselves from losses due to exchange rate fluctuations. Another option is to use currency swaps to exchange one currency for another in order to limit their exposure to currency risk. Finally, they could also diversify their operations geographically by diversifying their operations across multiple countries and currencies, making them less vulnerable to currency risk.
For Firm B, they should also take similar measures to manage their operating exposure to currency risk. However, due to their fewer number of foreign countries, they may have to use more aggressive methods such as currency futures, currency options, and currency swaps to limit their exposure to currency risk. Furthermore, they could also diversify their operations across multiple countries and currencies, making them less vulnerable to currency risk.
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franklin, a successful manager at his firm’s cleveland headquarters, is offered a position managing the new division in asia. he plans to run that office exactly as he did back in ohio, assuming that policies that worked well for the company and its employees in the united states will work well everywhere. as a manager, franklin is demonstrating
It should be noted that when Franklin, a successful manager at his company's Cleveland headquarters, is offered a position to manage the new division in Asia.
He intends to run that office in the same manner as he did in Ohio, assuming that policies that were successful for the company and its employees in the United States will also be successful elsewhere. Franklin is exhibiting cultural incompetence as manager.
How is cultural competence defined?A set of cognitive, emotional, and behavioral skills that enable successful and acceptable communication with people from various cultures is referred to as cultural competence, which is also known as intercultural competence. Cultural competency training is referred to as "intercultural" or "cross-cultural" education.
You'll learn about the five components of cultural competence in this tutorial: a willingness to learn, a self-awareness, an awareness of others, cultural expertise, and knowledge
Acceptance and recognition of differences in culture, behavior, and appearance are all facilitated by cultural competency. You will meet people from all walks of life in this neighborhood.
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What did the large medical bill of $55,543 cover? What are three examples of health care expenses after surgery for appendicitis?
The large medical bill of $55,543 covered the surgery for appendicitis and the treatments received.
How does health insurance operate?A health insurance plan or policy pays a portion of the costs associated with hospital stays and doctor appointments. It exists to assist with reducing the expenses of medical occurrences, whether they are anticipated or unanticipated.
Depending on your age and income, the insurance provider will decide how much you will pay for your health insurance premium. In order to maintain your health and treat illnesses and accidents, health insurance is necessary. Having health insurance shields you and your family from financial hardships, which is only one of its many advantages.
Three examples of healthcare expenses after the surgery for appendicitis are the surgeon fees, the check-up cost, and the cost of hospital stay.
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the kraft heinz company is one of the largest food and beverage companies in the world. the company manufactures more than 200 iconic brands, including capri sun, velveeta, jell-o, planters, ore-ida, oscar mayer, and maxwell house. kraft heinz also owns the lunchables brand. lunchables are prepackaged lunches and snacks that come in a variety of combinations. lunchables, would be considered .
The correct Option is B. The type of co-branding is Ingredient branding.
Ingredient branding is an approach to branding that is based on the association of a product or service with a well-known brand name. It is a type of co-branding that involves a partnership between two or more companies. The brand name of one company is used in combination with the product or service of another company in order to create a strong, recognizable name or logo.
By doing this, ingredient branding helps create an association between the two companies and can be used to increase brand recognition and loyalty. This type of branding is especially effective in the food and beverage industry, where companies often partner together to create unique products that appeal to customers. In the end, ingredient branding helps boost sales and brand loyalty for both companies involved.
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Complete Questions:
The Kraft Heinz Company is the fifth-largest food and beverage company in the world, with 2018 net sales of approximately $26 billion. The company manufactures more than 200 iconic brands including Capri Sun, Velveeta, Jell-O, Planters, Ore-Ida, Oscar Mayer, and Maxwell House. The Kraft Heinz company also owns the Lunchables brand. Lunchables are prepackaged lunches and snacks that come in a variety of combinations without drinks such as turkey and cheddar with crackers, nachos with cheese dip and salsa, and pizza with pepperoni. In addition, Lunchables are available with drinks, with 100 percent juice, in an “Uploaded” version with a drink, chips, and dessert treat, and in a snack version. Lunchables just introduced Lunchables Brunchables breakfast sandwiches. Available in three varieties, the Brunchables feature Oscar Mayer meat and Kraft cheese with flatbread and a blueberry muffin.
The Lunchables Uploaded varieties include Oscar Mayer meats, Kraft cheese, and a Kool-Aid single drink mix pouch—all Kraft Heinz brands. This is an example of which type of co-branding?
A). Subsequent branding
B). Ingredient branding
C). Cooperative branding
D). Complementary branding
3. Which of the following is not a characteristic of a typical bank savings account?(1 point)
A. no restrictions on money withdrawals or deposits
B. savings are easily accessible for the customer
C. a high interest rate
D. an average of 0.05% interest with no other restrictions
4. Which of the following are considered to be capital gains?(1 point)
A. the new value of a stock after the market closes
B. the profit earned on the sale of an asset which has increased while it was owned
C. the money lost when a stock is sold for less than it was purchased for
D. the interest earned from a government bond
A savings bank account does not have a high-interest rate and the profit earned on the sale of an asset which has increased while it was owned is a capital gain. The correct option of 3 is c and 4 is b.
What is a savings bank account?A savings account is a bank account at a retail bank. Some common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn.
Traditionally, transactions on savings accounts were widely recorded in a passbook and were sometimes called passbook savings accounts, and bank statements were not provided. But, currently, such transactions are commonly recorded electronically and accessible online.
Savings accounts normally pay interest as well.
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What is the opportunity cost of Sarah playing in the statewide soccer league?
the time and money required to drive to games all over Georgia
the registration fee Sarah must pay to be on the soccer team
the ability to hang out with her school friends during summer
D the effort Sarah must expend to develop her soccer skills
$200 and her parents have to drive her all over Georgia, b
The opportunity cost of Sarah playing in the statewide soccer league is the ability to hang out with her school friends during summer. Thus, the correct answer is option C.
What is opportunity cost?The opportunity cost of a particular activity is the value or benefit lost by participating in that activity in comparison to participating in another activity. More effectively, it means that if you choose one activity, you forfeit the opportunity to do another.
As, Sarah will be playing in the statewide soccer league, she will not be able to hang out with her school friends during summer. As, opportunity cost is the cost of foregoing the next best alternative so for Sarah the hanging out with her school friends is the opportunity cost.
Therefore, the ability to hang out with her school friends during summer is the opportunity cost of Sarah playing in the statewide soccer league.
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cesar, a satellite architect, based on his performance for the fiscal year 2017, gave him a lump sum payment of $60,000. what kind of pay factor was used?
Merit bonus kind of pay factor was used. Merit pay, also known as performance-based pay, is the incentive that employee receives whenever they perform the job successfully based on the standards set by the company.
It might take the form of a bonus, pay increase, or promotion. Merit compensation is typically observed in the sales force, who receive bonuses for exceeding goals or performing well. The employer would design a set of standards as part of the merit pay program to evaluate the employee's performance over a specific period of time. Managers frequently check in with employees, assess their progress, and offer comments. Merit pay programs succeed when businesses can support the incentive with reliable data.
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the annual holding cost of a certain type of computer is 30% of its cost of $1,000. annual demand is expected to be 10,000 units, and the order cost is $150 per order. what is the approximate economic order quantity?
The answer to the inquiry shows that an economic order quantity of 100 is about right.
What are the many sorts of cost?Fixed and variable costs are the two primary types of expenses incurred by enterprises. Variable costs change with output, but fixed costs do not. Overhead costs are yet another name for fixed expenses. They must be paid whether a company makes 100 or 1,000 widgets.
What does it actually cost?The Physical Price is the cost amount based on the value at the moment the products are received or issued. The price known at the time of billing for the products is the monetary impact. The settlement has to do with closing out the inventory.
Briefing:
Holding cost = 1000*0.3 =$300
Demand = 10000 units
Order cost = $150
Economic order quantity = sqrt(2DS/H)
= sqrt(2*10000*150/300)
= sqrt(10000)
= 100
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if an investor desires diversification, should he or she seek investments that have a high positive correlation?
Answer: An investor should select securities that are less linked or negatively correlated who wants to diversify their portfolio or holdings.
Explanation:
Relying on the blending of various assets in a portfolio, diversification is a strategy for lowering investment risk. As the assets would respond uniformly to a specific economic development or market shift, a large positive correlation is inappropriate. A portfolio's risk is raised as a result. Since assets would respond to a change in the opposite way, a negative correlation is advantageous for lowering investment risk.
Question #4
Multiple Choice
Values are principles that typically guide or influence an individual's decision-making process. Two
areas of life most often affected or influenced by values include
emotions and reactions
decisions and responses
physical health and feelings
attitudes and behaviors
The two spheres of life that are most frequently impacted or altered by values are attitudes and behaviors. The correct response is option (4).
Define attitudes and behaviors.An individual's attitude is defined as their mental perspective, or how they feel or think about someone or something. Behavior describes the actions, motions, conduct, or behaviors of an individual or a group toward other individuals. built upon. Experience and observation.
When people put more focus on their own attitudes and feelings, they tend to act more in line with those feelings, therefore there is a link between attitude and behavior. Additionally, when people feel greater responsibility for their individual actions rather than the actions of a collective, their opinions are more consistent with their behavior.
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If the planned budget revenue for 5,000 units is $120,000, what is the flexible budget revenue if the actual activity is 4,500 units?
If the planned budget revenue for 5000 units is $120,000 , the flexible budget revenue of actual activity of 4500 unit is $108,000.
What is budget revenue?
The revenue budget is made up of the government's revenue receipts (tax revenues and other revenues) and the expenditures met from these revenues. Tax revenues are the proceeds of the Union's taxes and other duties.Revenue budgets ensure that businesses allocate resources efficiently, saving time, effort, and money.
Budget revenue = $120,000
Units = 5000
As a result, $120000 / 5000 = $ 24 per units
So, $24units X 4500 =$108,000 units.
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if applicant selects option 1: recertifying by examination, and fails the examination, which option will be available:
The right response is to retest with retest submission of the application, according to the supplied statement.
What does a healthcare recertification entail?Recertification serves to guarantee that medical assistants who have been qualified by the CCBMA keep the level of understanding that was assessed at the time of original certification and show improvement in their specialized areas via ongoing training and education.
A recertification audit is what?Every three years after the initial certification audit is finished, a recertification audit is conducted. An organization often undergoes a lot of organizational changes over the course of three years. A valuable certification guarantees that you keep up a high degree of knowledge and understanding in your field.
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The complete question is-
If applicant selects option 1: recertifying by examination, and fails the examination, which option will be available:
a. Applicant still has the option to select another renewal option provided the current license has not expired
b. Retest, with retest application submission
c. May then submit the appropriate amount of CE hours provided the current license has not expired
d. Must then take a recertification course regardless of current license status
one big impediment to exporting is the simple lack of knowledge about the opportunities available in other countries. true or false
One big impediment to exporting is the simple lack of knowledge about the opportunities available in other countries. The statement is true.
What do you understand by exporting?
Because exports provide access to so many different new markets, modern economies greatly rely on them. One of the primary objectives of diplomacy and international relations between nations is to promote economic trade by increasing exports and imports for the benefit of all trading partners.
According to statistics provider Statista, the top five exporting countries in terms of dollars in 2019 were China, the United States, Germany, the Netherlands, and Japan.
China announced exports of goods worth around $2.5 trillion, primarily machinery and technology. Capital goods made up the majority of the $1.6 trillion in exports from the US. Japan's exports, which totalled approximately $705 billion, and Germany's, which reached nearly $1.5 trillion, were mostly composed of automobiles.
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deadweight loss a. equals monopoly profits. b. measures monopoly inefficiency. c. equals monopoly revenues minus profits. d. exceeds monopoly profits.
The deadweight loss measures monopoly inefficiency.
What is a deadweight loss?The production and consumption of any given good or service, including taxes, must match in order to avoid deadweight loss in economics. Deadweight loss is most frequently detected when the quantity generated compared to the quantity consumed deviates from the optimal concentration of surplus. This discrepancy in the amounts represents the amount that is not being used or eaten, causing a loss. Since neither the producers nor the consumers benefit from the excess of the total production, this "deadweight loss" is consequently attributed to both groups. A positive or negative externality, tax or subsidy, or a legally imposed price cap or floor, such as the minimum wage, can all result in suboptimal production. Monopoly pricing in the situation of artificial scarcity can also be to blame.
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although accounting has several specific uses, the overall purpose of accounting can be summarized as
Although accounting has several specific uses, the overall purpose of accounting can be summarized as to provide financial information that is useful to decision makers.
Accounting is the process of compiling financial information data such that it is visible and clear for all stakeholders and shareholders. Recording and reporting a company's financial transactions, financial performance, and cash flows is accounting's primary objective. Accounting is the process of documenting, analysing, interpreting, and conveying a person's or an organization's financial activity. Accounting's goal is to make it possible for interested parties to base their decisions on truthfully documented data. Liabilities less assets equals net worth.
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the changes in the firm's future cash flows that are a direct consequence of accepting a project are called:
When accepting a project, the term refers to a change in the firm's future cash flows as a direct consequence of the project is incremental cash flow.
What is Incremental Cash Flow?Incremental cash flow is a gain or loss in the form of an investment, product, or cash experienced by a company. Forecasting the incremental cash flow is very important for companies to determine whether an investment decision is worth considering or is worth taking. In simple terms, incremental cash flow is one of the economic elements that we can use to see the level of Return on Investment (ROI) a company can get.
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private markets are those like the nyse, where transactions are handled by members of the organization, while public markets are those like the nasdaq, where anyone can make transactions. group of answer choices true false
Private markets are those like the nyse, where transactions are handled by members of the organization, while public markets are those like the nasdaq, where anyone can make transactions.
The statement is False.
What do you mean by private markets?
Investments made in assets not listed on a public exchange or stock market are known as private markets. This might include, for instance, direct lending from investors to borrowers in the absence of a market for trading the debt, or private debt, which refers to investments made in private enterprises.Along with bonds and cash, public equity is regarded as one of the three major asset types. The term "alternative" refers to a class of assets that includes private debt, real estate, infrastructure, and natural resources, in addition to private equity.To know more about Markets here
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demonstrating personal excitement or passion about something is part of leadership. a.symbolic b.integrative c.entrepreneurial d.charismatic e.participative
The correct option is (a) charismatic.
What is charisma?An individual's charisma is their capacity to captivate and persuade others.
Some experts contend that the traits of charismatic people can be learnt and developed, despite the fact that it is frequently said that charisma is a mystery attribute that one either possesses or does not.
Charisma makes people think of influential corporate people, performers on stages, and public figures.
The impact charisma has on other people, though, might be its most fundamental strength.
The capacity to influence others is a valuable skill for motivating others to work toward common goals. The use of charisma by predators and narcissists to control others is a manifestation of charisma's darker side.
Some people refer to charisma as a "gift." Many people utilize charm to differentiate themselves from the herd.
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what types of actions can be taken by the nlrb in response to an unfair labor practice? check all that apply.
Issue a notice to stop and comply. Order the workers' reinstatement.
In the workplace, what does it mean to be reinstated?An employee with a Mandatory Reinstatement right can return to their previous position with all of their rights and status as before they left.
When an employee is reinstated, what happens?According to case law, the simplest definition of reinstatement is "to put an employee in the same position he or she was in before being dismissed." This indicates that the worker will be reinstated with the same terms and conditions as if the dismissal had never occurred.
Can a worker fired be reinstated?The employer should immediately reinstate the employee if the initial decision to dismiss the employee as a result of a disciplinary procedure is overturned as a result of an appeal. In place of the initial decision to fire the employee, the employer may choose to impose a lesser punishment.
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Full Question = What types of actions can be taken by the NLRB in response to an unfair labor practice? Check all that apply.
Multiple select question.
Organize a labor strike or labor reduction.
Issue a cease-and-desist order.
Demand a higher wage.
Order a reinstatement of workers.
long-term bonds backed only by the general credit of the issuing corporation and not by liens on specific assets are called
Long-term bonds backed only by the general credit of the issuing corporation and not by liens on specific assets are called Debentures.
A debenture is a form of long-time period commercial enterprise debt no longer secured via any collateral. it is a funding alternative for organizations with stable finances that want to avoid issuing shares and diluting their fairness.
A debenture is a loan agreement in writing between a borrower and a lender that is registered at the business's house. It gives the lender safety over the borrower's property. usually, a debenture is used by a financial institution, factoring company, or invoice discounter to take protection for his or her loans.
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NEED HELP 100 POINTSThe Harappan civilization had a language with how many symbols attached to it? (Hint: It has never been decoded.)
A. 400 symbols
B. 100 symbols
C. 200 symbols
D. 300 symbols
Answer: A. 400 symbols
Explanation:
A contract is unenforceable if the terms of the contract call for an action that is against the law. True False
the answer to your question is true
the presence of resources such as supporting industries and a skilled labor pool that make foreign direct investment more enticing are known as
The presence of resources such as supporting industries and a skilled labor pool that make foreign direct investment more enticing are known as Location externalities.
What is Location externalities?
Location externalities refer to the interdependence of agents, which, on a micro level, means that the placement of one or more households and/or businesses in a neighbourhood alters the neighborhood's quality.
Externalities are unpriced goods that are a part of both consumer and producer market transactions. One example of air pollution is caused by motor vehicles. Neither the makers nor the users of motorised transportation are responsible for covering the cost of air pollution to the rest of society.
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