Yes, I wholeheartedly support this idea. Because fiat money is printed, it has an infinite supply. However, gold and silver are natural resources with finite supplies that can deplete over time.
Give a basic overview of fiat and commodities money.The value of fiat currency is largely influenced by public trust in the issuer. The value of commodity money, on the other hand, is defined by the substance used to manufacture it, such as gold or silver. As a result, in contrast to fiat money, commodity money typically has inherent worth. Fiat currency may lose value if public opinion about the issuing authority shifts. Commodity money, on the other hand, retains its value based on the metal or other material composition it includes. Fiat currency is more prone to inflation since it has no inherent value. Despite its intrinsic value, commodity money is vulnerable to huge price fluctuations when commodity prices fluctuate.
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Assume prices increase by 11 percent from a base year in 2010 to 2011. The price index moves from 100 to 111 and therefore 1/111 x 100= _________ for the value (purchasing power) of a dollar.
The purchasing power of currency is the quantity of goods and services that can be bought with a monetary unit.
What does the purchasing power of a dollar mean?The purchasing power of a currency is the amount of goods and services that can be bought with one unit of the currency.Purchasing power (or buying power) is the amount of goods and services that a single unit of currency can buy. For example, if you purchase a can of soda for one US dollar, but the following year a can of soda costs two US dollars, the purchasing power of a single US dollar changed.Inflation is a general, sustained upward movement of prices for goods and services in an economy. It affects purchasing power or the amount of goods and services that a unit of currency can buy; more specifically, inflation reduces purchasing power. Data show the changing value of the dollar and its purchasing power.It can weaken over time due to inflation. That's because rising prices effectively decrease the number of goods or services you can buy.The purchasing power is the measurement of what a value of money can buy.The purchasing power of a currency in a particular year is calculated by dividing the consumer price index (CPI) of a base year by the CPI of the target rear and multiplying the result by 100.Therefore, the purchasing power for 2011 using 2010 as a base year, when the CPI moved from 100 to 111 from 2010 to 2011 is given by:Purchasing power = 100 / 111 x 100 = 90.09 x 100 = 90.09%Therefore, the purchasing power of 2011 relative to 2010 is 90.09%.To learn more about the purchasing power refer to:
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PPE stands for __________________ and is specialized clothing or equipment, worn by an employee for protection against infectious materials.
PPE, or personal protective equipment, refers to specialized clothing or other items that employees wear to protect themselves against infectious materials.
What do PPE's five examples mean?Wearing personal protection equipment, also referred to as "PPE," can assist lower risk exposure. PPE includes items like gloves, foot and eye protection, protected hearing devices (earplugs, muffs), hard helmets, respirators, and full body suits.
How come PPE is used?PPE acts as a barrier between your skin, mouth, nose, and eyes and infectious agents including bacteria and viruses when worn properly (mucous membranes). The barrier may stop the transmission of contaminants from blood, body fluids, or respiratory secretions.
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Which of these actions would most likely decrease a person’s net worth for at least the next 6 months?
Decreasing net worth, on the other hand, is cause for concern as it might signal a decrease in assets relative to liabilities.
What decreases your net worth?When net liabilities exceed net assets, the condition is known as having a negative net worth. Deficit net worth, also known as negative net worth, can happen for a number of reasons, but it often happens when the value of present or future assets declines suddenly.
On the other side, declining net worth is a cause for concern as it can indicate a decline in assets compared to liabilities. The greatest approach to raise net worth is to either increase assets while obligations either remain constant or decline, or decrease liabilities while assets either remain constant or rise.
A current glimpse of your financial status can be found in your net worth. You may see the total of all you've made and spent if you compute your net worth today.
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What are the characteristics of an effective group work participant?
The characteristics of an effective group work participant include: 1. Open-mindedness: Being open-minded in a group setting allows for more creative problem-solving and positive collaboration. It also allows for constructive criticism and meaningful dialogue.
2. Respectful: Respectful group members are able to listen to the opinions of others, provide meaningful feedback and constructive criticism, and work together to achieve their common goal.
3. Organized: Effective group work participants are organized and prepared. They bring the necessary materials to the group meeting and stay on task.
4. Good Communicator: Good group work requires effective communication. Group members should be able to articulate their ideas and opinions clearly and respectfully.
5. Flexible: Being flexible in a group setting is essential. Group members should be willing to compromise and adjust their goals and plans when needed.
6. Self-Motivated: Effective group work participants are self-motivated. They stay focused and committed to their tasks, even when it gets difficult.
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Generosity towards others is an example of ______ in the business world. Multiple choice question. weakness accountability caring competence
In the business sector, generosity toward others is an illustration of caring.
A donor in business is what?Giving people are those that want to contribute to a cause and go out of their way to assist others. One must have "a willingness to help others attain their goals" in order to be really inventive and collaborative (Grant, 2013). Then there are what Grant refers to as "toxic takers" (Grant, 2013).
What does kindness in business mean?Accordingly, if you are kind to your customers, business partners, and staff members — if you put in the extra effort, take the extra time, and do whatever you can — they are likely to return the favor.
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The idea that a firm borrows to the point that the tax benefit of debt is exactly equal to the increased probability of financial distress is called the
The idea that a firm borrows to the point that the tax benefit of debt is exactly equal to the increased probability of financial distress is called the static.
All tax laws that assist you in lowering your tax burden are referred to as tax benefits. Deductions, tax credits, exclusions, and exemptions are all types of benefits. They address a wide range of topics, such as family programmes, educational initiatives, worker rights, and natural calamities. The capacity to pay taxes is a factor in several tax benefit. The child tax credit and the earned income tax credit, for instance, take into account the expense of raising a family. Deductions for charitable contributions and mortgage interest are two additional tax advantages that are incentives for social policy objectives. The amount of tax you owe is decreased by both tax credits and tax deductions, although they operate in different ways. In contrast to tax deductions, which reduce your taxable income, tax credits directly reduce the amount of tax you owe.
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39. If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be __________. *
(Nominal GDP minus Real GDP) x 100 is the GDP price deflator. When the nominal GDP is lower than the actual GDP, the GDP deflator is negative, which indicates that the country is experiencing deflation.
Nominal/Real x 100 is the formula used to compute the GDP deflator. The GDP Deflator for 1980 in the aforementioned example is 100 ($500/$500 x 100 = 100). GDP deflator is always set to 100 for the base year. The 2017 GDP deflator is 342.86 ($3000/$875 multiplied by 100 = 342.86). Real GDP is typically calculated by multiplying nominal GDP by the GDP deflator (R). The deflationary figure, for instance, is 1.01 if an economy's prices have risen by 1% since the base year. Real GDP is computed as $1,000,000 / 1.01, or $990,099, if nominal GDP was $1 million.
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In the 1980s, the dangerous Ebola virus entered the United States through contaminated monkeys that were imported for use in medical experiments. Suppose this virus had not been contained but had spread to the general population. Assume that the virus is lethal in half of the people who are exposed to it. Describe the resulting effect on labor productivity.
There is widespread inflammation and tissue destruction caused by the Ebola virus. Because it disrupts the body's clotting mechanism and causes internal bleeding when blood seeps from tiny blood vessels, the virus is classified as a hemorrhagic fever. In total, six distinct virus species have been identified, although only four are thought to pose a significant health risk to people.
Contact with contaminated bodily fluids, including as blood, saliva, sweat, tears, mucus, vomit, feces, breast milk, urine, or semen, can result in the transmission of the virus. Transmission can also occur through contact with infected surfaces or objects.
The economic impacts of an Ebola outbreak are just as severe as the loss of human lives. The ripple effects of an Ebola pandemic can be felt across the whole economy. When an outbreak of Ebola occurs in a country, stopping the transmission of the disease within the country and among its citizens becomes an urgent matter. Preventative actions are required to forestall a catastrophic pandemic.
Still, the measures taken to manage Ebola have a negative impact on the economy. Household incomes dropped and poverty increased in the nations severely hit by the Ebola pandemic in 2014. The World Bank reported in 2016 that the total cost of the Ebola epidemic in Liberia, Guinea, and Sierra Leone was $2.8 billion.
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At the end of every year you deposit $4,800 into an account that earns 8% interest per year. What will be the approximate balance in your account immediately after the 20th deposit
The amount is $219657.43 will be the approximate balance in your account immediately after the 20th deposit.
To find the future value we use following formula
FV=A[(1+r)" -1/r)
Where,
FV = Future Value OR Amount at time n
A = Regular Withdrawal Amount OR Regular Interest OR Regular Dividend OR Installment Amount
n = Number of period
r=Compound interest rate
Given: Number of periods/years (n) = 20
Rate of interest (r) -8%
Regular withdrawal (A)- $ 4800
After substituting the values into the formula we have,
[tex]FV= A(\frac{(1+r)"-1}{r} \\FV=4800+(\frac{1+0.08)20-1}{0.08} )FV = $219657.42863[/tex]
The future value of the annuity is $219657.42863.
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Which one of the following is not a factor in determining a company's unit sales and market share of branded footwear in a particular geographic region?
a. The number of retailers stocking the company's footwear brand
b. The number of models/styles in the company's product line
c. Footwear features and footwear durability
d. S/Q ratings of the company's footwear
e. Expenditures for retailer support
Footwear features and footwear durability is one of the following is not a factor in determining a company's unit sales and market share of branded footwear in a particular geographic region.
What is Market Share?
Market share is a measure of the relative size of a company, product, or service in relation to its competitors in the same market. It is usually expressed as a percentage of the total market. It is calculated by dividing a company's sales in a given market by the total sales of all competitors in that market. Market share is an important measure for businesses, as it is used to assess the company's performance and identify potential opportunities for growth.
What is Geographic region?
Geographic region is an area of land that is identified by a specific set of characteristics such as physical features, climate, population, economic activity and cultural traits. Regions are often divided into subregions, which can be further divided into smaller areas. Regions can be identified as countries, states, provinces, cities, counties, districts and other divisions.
Therfore the correct answer is C. Footwear features and footwear durability
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Output Quantity Produced in 2019 Prices in 2019 Quantity Produced in 2020 Prices in 2020 Chocolate 15,000,000 bars $1.00 per bar 15,000,000 bars $1.75 per bar ________ 4. Refer to Table 2. Based on this information, we can conclude that the production of chocolate: A. increased both nominal and real GDP from the previous year. B. increased nominal GDP from the previous year, but real GDP was unaffected. C. increased real GDP from the previous year, but nominal GDP was unaffected. D. decreased nominal GDP from the previous year, but real GDP was unaffected. E. did not change either nominal or real GDP from the previous year. F. decreased both nominal and real GDP from the previous year.
The correct option is 2. The production is the same in both years but the price increased so the real GDP is unaffected by the nominal GDP increase from the previous year.
Gross home product (GDP) is a monetary degree of the market cost of all the final items and services produced and offered (no longer resold) in a particular term by way of nations. due to its complex and subjective nature, this measure is frequently revised before being taken into consideration as a reliable indicator. GDP (nominal) per capita does now not, but, reflects differences in the price of residing and the inflation costs of the nations; therefore, the usage of a basis of GDP per capita at purchasing energy parity (PPP) can be extra useful while evaluating residing requirements among nations, while nominal GDP is more beneficial evaluating national economies at the global market.
Overall GDP can also be damaged down to the contribution of every enterprise or quarter of the financial system. The ratio of GDP to the full populace of the place is the in keeping with capita GDP (also referred to as the suggest fashionable of dwelling).
GDP definitions are maintained by some countrywide and worldwide financial organizations. The agency for monetary Co-operation and improvement (OECD) defines GDP as "a mixture degree of production equal to the sum of the gross values brought of all resident and institutional devices engaged in production and services (plus any taxes, and minus any subsidies, on products now not included in the fee in their outputs)".
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In the United States during the late 1800s, the corporate form of business organization became increasingly important mainly because
The late 1800s saw the emergence of big business, which altered American society. The growth of corporate empires made the United States a strong economic force.
What exactly did industrialisation entail?The process of industrialization is when a country or region switches its economic emphasis from industry to agriculture. A crucial element of this change is the use of automated mass production techniques.
Which industries have undergone industrialization?Manufacturing (in the 1900s), mining (in the 1930s), transportation (in the 1950s), and retailing are examples of industrialisation (1970s). A good example is the industrialization of a vehicle.
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What are the 3 types of ownership?
The 3 types of ownership are Sole Proprietorship, Partnership and Corporation
1. Sole Proprietorship: A sole proprietorship is an unincorporated business owned and operated by one individual. The owner is entitled to all profits and is responsible for all losses, debts, and liabilities.
2. Partnership: A partnership is an unincorporated business with two or more individuals who share ownership and management. The owners share in the profits and losses and are jointly responsible for the debts of the business.
3. Corporation: A corporation is a legal entity created by a state and separate from its owners. It has the authority to enter into contracts, borrow money, pay taxes, and sue and be sued. The owners of a corporation are shareholders and their liability is limited to the amount of their investment in the company.
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You own a construction business and need to hire workers to build a house and add one worker at a time to the added contribution of each worker. At what point will you stop hiring workers ? Relate this process to the three stages of production function as you explain your answer .
Ethics for the workplace are often defined by Group of answer choices professional organizations. religious groups. team meetings. other employees.
Workplace ethics is defined as a moral code that guides employee behavior in terms of right and wrong in behavior and decision-making.
Workplace ethics, also known as workplace ethics, are moral principles that companies use to determine appropriate or inappropriate behavior in the workplace. Workplace ethics affects everything from how a company operates to how employees behave in the workplace to protect the company's image.
Characteristics are:
Appearance, presence, demeanor, character, communication, cooperation, organization, productivity, respect and teamwork have been defined as critical to academic success and are listed below.
The Cambridge Dictionary defines business ethics as "the rules, principles, and standards that determine what is morally right and wrong in the workplace." Business ethics therefore refers to the implementation of good business practices and policies in the workplace.
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The expense that relates to a formal note payable and accumulates or accrues throughout the accounting period is referred to as
The expense that relates to a formal note payable and accumulates or accrues throughout the accounting period is referred to as the interest expense.
The interest expense can be assumed as a phenomenon wherein the expenses are related to a particular period of accounting, and as a result of the same, only the bills or notes that are payable within the period are recorded under this head in the books of accounts of the firm related thereto. Moreover, the interest expense is also related to the direct expenses and not the indirect ones.
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Topic 5 Lesson 1 The factory system Group of answer choices developed mainly in rural areas. brought workers and machinery together. faded after widespread industrialization. increased the cost of goods.
The five ways the factory system changed life for industrial workers, women, and children are:-
1). Family members who used to work together at home were split during the day as members went to factories to work
2) Manufacturing moved from the countryside into towns causing crowding and poor living conditions.
3). A new lower class of people -- the working class-- was created.
4) There was no singing at work as there might be at home
5) Factory owners and workers no longer had a personal relationships (like family members did with the people who bought their goods)
The manufacturing facility gadget is a way of manufacturing the use of machinery and division of exertions. because of the excessive capital cost of equipment and manufacturing facility buildings, factories are usually privately owned by rich people or organizations who hired the operative exertions. The use of equipment with the department of exertions decreased the desired skill degree of employees and additionally increased the output according to workers.
The manufacturing unit system was first followed in Britain at the beginning of the commercial Revolution in the past due eighteenth century and later spread around the world. It changed the setting-out device (home system). the primary feature of the manufacturing unit device is using machinery, at the beginning powered via water or steam and later via power. other characteristics of the device often derive from using machinery or economies of scale, the centralization of factories, and the standardization of interchangeable parts.
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For marketers, important objectives of a point-of-purchase display are to
a. maximize the consumer's attention and provide storage.
b. encourage repeat purchase and recommendation.
c. generate store traffic and bulk purchasing.
d. minimize brand-switching behavior and incentivize recommendation.
e. increase trial and retaliate against competitors' actions.
Increase trial and retaliate against competitors' actions: Point-of-purchase displays should be designed to encourage customers to try the product. This can be done by offering free samples or special offers, or by retaliating against competitors' promotional activities.
What is encourage customers?Encouraging customers is an important strategy for any business. It is a way to build customer loyalty and increase sales. Encouraging customers involves identifying customer needs and providing them with the best possible service or product, as well as rewards and incentives for continued patronage. This can include offering discounts, providing promotional offers, and providing rewards for repeat customers. It is also important to create a positive customer experience and make sure customers feel appreciated. This can involve providing personalized service and recognizing customers for their loyalty. Taking the time to listen to customer feedback and address any concerns can also go a long way in making customers feel valued.
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Say you take out a loan with a principal of $44,500. the interest rate is 13.11%, compounded monthly. if you make consistent monthly payments and pay off the loan over the course of six and a half years, how much interest will you have paid in total? round dollar amounts to the nearest cent.
a. $21,849.92
b. $3,018.03
c. $20,003.60
d. $24,321.18
please select the best answer from the choices provided a b c d
According to the question, $21849.92 interest you have to paid in total.
What is the interest?
Interest is the cost incurred by a borrower as a result of using borrowed funds. It is calculated as a percentage of the principal amount that is borrowed. Interest can be charged for different types of loans such as mortgages, auto loans, credit cards, and personal loans. The interest rate on a loan is typically determined by the lender and is based on the borrower's credit score, income, and other factors. When a borrower pays interest, it allows the lender to make a profit and also helps to cover the lender's costs.
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Answer: A
$21,849.92
Explanation:
MR BEAAAAAST
For Amy, the day began like any other at the Sequential Label and Supply Company (SLS) help desk. Taking calls and helping office workers with computer problems was not glamorous, but she enjoyed the work; it was challenging and paid well enough. Some of her friends in the industry worked at bigger companies, some at cutting-edge tech companies, but they all agreed that jobs in information technology were a good way to pay the bills. What happened
All of her industry acquaintances felt that working in information technology was a good way to make ends meet. The phone rang, as it did about four times an hour and 28 times a day.
This excerpt is from Book of Five Rings. Amy was unaware that a specially programmed computer at the edge of the SLS network had already made a predetermined choice around four minutes before to Bob's phone call.
The networking, messaging, and information security teams at SLS referred to this computer as the "e-mail gate- way" even though it was more commonly known as postoffice.seqlbl.com.
It decided to prohibit the transmission of a file that was attached to an email addressed to Bob.Hulme,seqlbl.c-om, just like the many thousands of other judgments it made every day. Bob didn't require the executable application that was attached to the email message, according to the gateway.
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Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with the company. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise closes provider _____ by using marketing research.
Enterprise closes provider soft by using marketing research.
A unit of economic system or activity: a project or operation that is particularly challenging, complex, or dangerous. Particularly: a business organization.: a planned, organized action. The primary economic activity among these people is agriculture.
The Enterprise Service Quality Index (ESQI) is a technique that measures results by using a questionnaire that makes it simple to gather data rapidly. The survey emphasizes responses from the top box. Customers who choose to remain close to the business will typically provide free, beneficial marketing for Enterprise.
A legal entity that has the authority to conduct commerce on its own, such as the ability to sign contracts, own property, amass debts, and open bank accounts, is said to have an enterprise. A business can be incorporated, quasi-incorporated, a non-profit organization, or unincorporated.
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Agency theory examines the relationship between the Multiple Choice shareholders of the firm and the firm's investment banker. owners of the firm and the managers of the firm. board of directors and large institutional investors. shareholders and the firm's transfer agent.
The correct answer is option B i.e. owners of the firm and the managers of the firm. If a department is operating efficiently, a Manager or Supervisor supervises the team members inside that division.
What do managers mean?A manager is a qualified someone who leads an organization and oversees a group of personnel. Managers frequently oversee a certain department within their organization. There are many different kinds of managers, but they typically have responsibilities including making decisions and conducting performance reviews.
Why are managers crucial?Simply said, firms wouldn't succeed without managers. By creating growth with high-performing teams, managers play a significant role in the sector. Overall, managers will always be a key component of every organization because of their involvement in activities like hiring and training new personnel as well as decision-making.
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Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
A. becoming too fixated on cost reduction
B. overly aggressive price-cutting
C. having the basis for the firm's cost advantage undermined by cost-saving technological breakthroughs that can be readily adopted by rival firms
D. setting the industry's price ceiling to capture volume gains and achieve economies of scale
E. relying on an approach to reduce costs that can be easily copied
Among the followings, overly aggressive price-cutting is not one of the pitfalls of a low-cost provider strategy.
What do you mean by Low-Cost Provider Strategy?
Low-Cost Provider Strategy is a business model that focuses on providing customers with products and services at the lowest possible price. This is done by reducing overhead costs and cutting out unnecessary expenses. Low-cost providers strive to be the absolute most cost-effective option in the market by offering the lowest prices for the same quality of goods or services. This model works best when there is a large customer base that desires to purchase a certain type of product or service at a low price. Low-cost providers are usually able to pass on the savings to customers, enabling them to purchase the same quality of product or service at a lower cost. This strategy is often used by companies that have a competitive advantage such as a large market share, economies of scale, or access to cheaper resources.
So, The correct option is A.
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The value principle of ______ is the basis of the income approach to appraisal. Anticipation Capitalization Competition Substitutio
The assumption of future benefits is a fundamental tenet in income property valuation. also known as income capitalization, translates potential property ownership benefits into current revenue
What does an appraisal's income strategy entail?Level II Tutorials for 2022, Page 2 Income Method • The earnings method is based on the idea that an investment property's value reflects the type and amount of income it is anticipated to produce over the course of its life.
The income capitalization approach is what?Any technique utilized to turn a revenue source into value is known as capitalization. Direct capitalisation and yield capitalization are the two main types of income capitalization. Any rate used to transform an estimated future revenues into an estimation of market worth is known as a capitalization rate.
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What are the 4 primary roles of advertising?
Advertising is a powerful marketing tool that can assist you in attracting customers, educating them about your products, and earning their confidence.
Define about roles of Advertising? "Marketing mix" that includes four crucial elements for selling a good or service: product, pricing, place, and promotion. Businesses often consider the four Ps when creating marketing strategies and plans to attract their target audience.Advertising refers to any sponsored marketing of a product, service, or notion with the aim of swaying one or more people. Print, radio, television, and digital media are just a few of the platforms where it could occur. The main goal of advertising is to persuade a person to buy a product or do something else.Advertising aids in spreading awareness of the new product so that customers can visit and try it.To learn more about Types of Advertising refers to:
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What is the major problem of economics and why do we have such problem?
The conundrum of limited resources and insatiable wants is the core issue in economics. Additionally, economics has demonstrated that a man's requirements cannot be met. As more of our requirements are met over time, we gradually create greater wants.
The social science of economics deals with the creation, exchange, and consumption of products and services. Economics is the study of how economies work as well as the behavior and interactions of economic actors. The study of microeconomics focuses on what are thought to be the fundamental components of the economy, such as the interactions that result from market and agent activity. Individual agents can represent a variety of clients, including homes, companies, buyers, and sellers. The study of the economy as a coexisting system of production, consumption, saving, and investment is known as macroeconomics. Additionally, it looks at the elements that have an impact on this system, including the use of labor, capital, and natural resources, currency inflation, economic expansion, and public policies .
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very employee helps the business achieve its financial goals. How do support staff help the company achieve its financial goals
They keep equipment maintained. And They conserve the use of office supplies.
An economic aim is any plan you have for your cash. you could have short-time period monetary dreams (like saving up $1,000) or lengthy-term financial goals (like investing for retirement). You must set desires for every vicinity of your lifestyle, however, having financial goals allows you literally placed your money wherein your intention is.
Key brief-term desires consist of putting a price range, reducing debt, and starting an emergency fund. Medium-term dreams should encompass key insurance rules, while lengthy-term goals want to be centered on retirement.
Examples of various sorts of monetary desires encompass: Create a price range. store for retirement and different lengthy-term plans. keep for short-time period and mid-time period plans. pay off debt.
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Complete question:
Every employee helps the business achieve its financial goals. How do support staff help the company achieve its financial goals?
What are the 4 factors that influence a purchasing decision?
Cultural, social, personal and psychological are the four factors that influence a purchasing decision .
The appeal of a product can be greatly influenced by cultural and societal influences. Industry organisations invest a lot of money in trying to sway public opinion because they are aware of how culture can affect industry sales. When developing your marketing, keep cultural and social issues in mind. Without offending anyone, you want to draw in as many clients as you can. Consumer behaviour is also influenced by personal variables. Tastes evolve with time. Experts on ageing claim that senior consumer behaviour is extremely varied, indicating that on average, seniors have more motives to make purchases than youth. Motivation refers to the consumer's underlying requirements. A valuable tool is knowing how to inspire your customers. how your potential buyer learns about your goods or views the world.
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A state in which a mortgage that can be foreclosed is the preferred method of security for a home loan is called a
A lien theory state is one in which a foreclosed mortgage is the preferred means of collateral for a house loan. Thus, the lien theory state is the correct answer.
What is the state of lien theory?According to the lien theory, the borrower owns the property. A Mortgage, rather than a Deed of Trust, is registered in the public record and serves as a lien against the property until the loan is paid off. A mortgage gives a homeowner both legal and equitable title.
Leroy's home is in New York, which follows the lien principle. As a result, he can claim ownership of the house upon purchase. Leroy signed a mortgage to make this possible. The mortgage is an arrangement between Leroy (the mortgagor) and the bank or creditor (mortgagee) to get a loan to buy the property. As a security interest in the title, the mortgagor delivers this mortgage to the mortgagee. This arrangement secures the lender's rights and grants the borrower the right to keep the residence until the loan is fully paid.
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Claims for which formal instruments of credit are issued as proof of the debt are _____.
(a) accounts receivable
(b) interest receivable
(c) notes receivable
(d) other receivables.
The correct response is (c), since notes receivable are bills of exchange, official forms of credit, and they can also be endorsed.
What are Receivable Notes?Asset accounts are linked to an underlying promissory note, which specifies in writing the payment terms for a purchase between the "payee" (typically a company, sometimes referred to as a creditor) and the "maker" of the note (typically a customer or employee, sometimes referred to as a debtor). Notes receivable are also known as "notes payable." A company can have notes receivable with any other party, including another company, a financial institution, or an individual. They typically arise when a customer requires longer payment terms than the standard billing terms for a sale. Payees charge interest and require a signed promissory note for legal purposes in exchange for agreeing to a slower payment. Another way that notes receivable are created is through employee cash advances in which the employer requires the employee to sign a promissory note.
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