Suppose that Brazil is capital-abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, Chile will produce more timber after trade begins with Brazil.
After centuries of use of the word, the metaphorical meaning continued. The term building materials has generally become a word meaning "material" or "cloth" ("it's the best-selling timber") and also refers to properties, quality of experience. , or intellect ("Manager Wood").
Timber comes straight from the garden and includes sticks, branches and lumber. All of these can be composted in an organic trash can with a green lid. Wood is processed wood. Unfortunately, it contains chemicals and adhesives that contaminate the compost.
The term lumberjack is largely historical. The logger is used by his 21st-century worker. When lumberjack is used, Timber refers to lumberjacks of an earlier era, before the advent of chainsaws, lumberjacks, and other modern logging equipment.
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steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. the predetermined overhead rate per hour will be
Predetermined overhead rate per hour will be $4.25 per hour, if Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year.
What is Predetermined overhead rate?The estimated cost of manufacturing overhead is applied to cost objects for a particular reporting period using an allocation rate called a predetermined overhead rate. Since this rate does not require the compilation of actual manufacturing overhead costs as part of the period-end closing process, it is frequently used to help close the books more quickly. But at the very least at the conclusion of each fiscal year, the discrepancy between the amounts of overhead that were estimated and actual must be reconciled.
Predetermined Overhead rate = estimated Manufacturing overhead / estimated Machine hours
Predetermined Overhead rate = $68,000 / 16,000 =$4.25 per hour
Machine-hours 16,000
Manufacturing Overhead
Salary of production supervisor $40,000
Indirect material $8,000
Rent on factory equipment $20,000
Total Manufacturing overhead $68,000
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Full question:
Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year: Direct materials $ 20,000 Direct labor $ 60,000 Sales commissions $ 80,000 Salary of production supervisor $ 40,000 Indirect materials $ 8,000 Advertising expense $ 16,000 Rent on factory equipment $ 20,000 Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be ____________. A) $10.25B)$4.25C) $9.00D)$8.00
marcella is self-employed. in 2022, she had the following business meal expenses: $1,000 spent for meals at restaurants with vendors and clients, and $200 spent for food at the grocery store. how much can marcella de
Answer:$1100
Explanation:
100% of what was reasonably spent on clients and vendors and 50% of personal spending at grocery and liquor stores.
jay and joyce meet george, the banker, to work out the details of a mortgage. they all expect that inflation will be 2 percent over the term of the loan, and they agree on a nominal interest rate of 6 percent. as it turns out, the inflation rate is 5 percent over the term of the loan. a. what was the expected real interest rate? b. what was the actual real interest rate? c. who benefited and who lost because of the unexpected inflation?
Jay and joyce meet george, the banker, to work out the details of a mortgage the loan, and they agree on a nominal interest rate of 6% . as it turns out, the inflation rate is 5 percent over the term of the loan
The lending of money by one or more people, businesses, or other entities to other people, businesses, or other entities is known as lending in the world of finance. The recipient, or borrower, incurs a debt and is often responsible for paying interest on that loan until it is returned in addition to the primary amount borrowed. In the field of economics, inflation refers to a general rise in an economy's prices for products and services.
a) Expected real interest rate is 6-2=4 percent
b)actual real actual=6-5=1%
c)Jay and Joyce benefit because higher inflation means that their money is worth more.
The promissory note or equivalent document used to prove the debt will typically include information such as the principle amount borrowed, the interest rate being charged by the lender, and the due date. The relevant asset(s) will be temporarily reallocated between the lender and the borrower as part of a loan.
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toyota offers a different products that are promoted and priced differently to attract different groups of consumers. in fact, toyota distributes its lexus vehicles at a completely different place. this combination of product, price, place, and promotion is also known as the
This combination of product, price, place, and promotion is also known as the Marketing mix.
Marketing mix is defined as set of marketing tools which is used by management to achieve its objective. It helps to focus on the product.
Marketing mix refers to the 4 P's : product, place, price, promotion.
All the elements of marketing mix works in a conjunction with one another.
It helps to reach the wider customer groups, and helps to make strategic decisions.
Three additional P's are also added to the marketing mix that is people, process and physical evidence.
Product is defined as value given to to the customer whereas price is defined as value charged from customer for the product offered.
Place is the area where product is being sold.
Promotion refers to give information about the product to the respective people.
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at many airports, a person can pay only $1 for a $100,000 life insurance policy covering the duration of the flight. in other words, the insurance company pays $100,000 if the insured person dies from a possible flight crash; otherwise the company gains $1. suppose that past records indicate 0.45 deaths per million passengers. how much can the company expect to gain on one policy? on 100,000 policies?
Expected money gets by the company = premium received -expected payout
=100000-0.45*(100000/1000000) *100000 = 95500
Expected Monetary Value (EMV) is a venture control metric utilized in hazard evaluation for figuring out the general contingency reserve required for a venture plan. When you are making a plan, it may cross higher or worse than you expected.
The EMV PMP examination method in its best shape is a three-step process: Determine the probability (P) a final result will occur. Determine the economic fee or impact (I) of the final results. Multiply P x I to calculate the EMV.
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Question 4
Not-for-profit organizations are?
Not-for-profit is a broad term for organizations that do not generate profit for their owners. All money generated by the not-for-profit business must be reinvested back into running it. Unlike nonprofits, not-for-profits are not required to operate specifically for the benefit of the public or the advancement of a social cause. A not-for-profit can simply operate to serve the goals or special interests of its members. For example, recreational sports clubs can operate as a not-for-profit.
answer the question posed by the ceo of bricks ‘n’ bats. "where would it make sense for managers to have wide spans of control?" check all that apply. in shipping, where most employees are very experienced and highly trained in marketing, where most employees and contractors work out of their homes located across the country in manufacturing, where most employees perform similar tasks that don’t change much over time in logistics, where employees need to coordinate with several other areas to do their wo
Where it would make sense for managers to have wide spans of control include:
where most employees and contractors work out of their homes located across the country in manufacturing and
where employees need to coordinate with several other areas to do their work.
Who is a manager?A manager is a person who supervises both activities and people within a given establishment. In other words, a manager is the person in charge of overseeing things that needs to get done. A manager normally controls both people and resources which could be physical resources, economic resources, among others and even all these resources together at the same time.
Therefore, the correct answer is as given above
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the company determines that the interest expense on a note payable for the period ending december 31 is $750. this amount is payable on january 1. journalize the entries required on december 31 and january 1. study
The face amounts of the promissory notes that a corporation has issued are recorded in the Notes Payable general ledger liability account. The sums that are still owed are represented by the balance in Notes Payable.
The journal entry to represent the receipt of the note proceeds is quite simple: raise the checking account to reflect the deposit and raise the Notes Payable long-term liabilities account.
$700 in a checking account $750 in Notes Payable
What sort of notes are considered payable?
Examples of notes payable include getting a loan from a bank, buying a house, and getting a business automobile. Depending on when the loan is due, notes payable may be referred to as either a short-term obligation (lt;1 year) or a long-term liability (lt;1+ year).
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the following adjusted trial balance at december 31 of wilson trucking company. account title debit credit cash $ 8,700 accounts receivable 18,200 office supplies 3,700 trucks 179,000 accumulated depreciation—trucks $ 36,700 land 92,000 accounts payable 14,100 interest payable 4,700 long-term notes payable 61,500 k. wilson, capital 177,000 k. wilson, withdrawals 20,700 trucking revenue 137,000 depreciation expense—trucks 24,200 salaries expense 63,100 office supplies expense 8,700 interest expense 12,700 totals $ 431,000 $ 431,000
The preparation of the balance sheet for Wilson Trucking Company is as follows:
Wilson Trucking Company
Balance SheetAt December 31
AssetsCurrent Assets:
Cash $8,700
Accounts receivable 18,200
Office supplies 3,700
Total current assets $30,600
Long-term Assets:
Trucks $179,000
Accumulated depreciation (36,700)
Land 92,000
Total long-term assets $234,300
Total Assets $264,900
Liabilities and EquityShort-term Liabilities:
Accounts payable $14,100
Interest payable 4,700
Total current liabilities $18,800
Long-term notes payable 61,500
Total liabilities $80,300
Equity:
K. Wilson, capital $177,000
K. Wilson, Withdrawals (20,700)
Net income 28,300
Total equity $184,600
Total liabilities and equity $264,900
What is the balance sheet?
The balance sheet is a financial statement that summarizes the assets, liabilities, and equity balances of an entity at a point in time.
The assets and liabilities are classified into short-term and long-term for effective presentation.
Income SummaryTrucking revenue $137,000
Expenses:
Depreciation expense—trucks 24,200
Salaries expense 63,100
Office supplies expense 8,700
Interest expense 12,700 $108,700
Net income $28,300
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Question Completion:Prepare the balance sheet at December 31.
if the mortgage loan is 80% of the house purchase price and the interest rate of 6% amounts to $460 mortgage payment each month for 25 years, what is the house purchase price?
The house purchase price is mathematically given as
$68140
This is further explained below.
What is a mortgage payment?Generally, Principal, interest, property taxes, and mortgage insurance are the basic components that make up a monthly mortgage payment. The Principal amount is the part of the payment that goes toward reducing the total amount still owed on the loan.
The cost of borrowing money is represented by the interest rate. Your interest rate and the outstanding balance on your loan are the two main factors that go into calculating the amount of interest you have to pay.
The equation of the principle amount is mathematically given as
[tex]P V=A\left[\frac{1-\left(\frac{1}{1+r}\right)^n}{r^{(p)}}\right][/tex]
Number of Periods/Years (n) = 15
Nominal Rate Of Interest (r(12)) = 0.06
Regular Withdrawal (A) = $5520
Therefore
[tex]\\P V=5520 * \frac{1-\left(\frac{1}{1+0.06168}\right)^{15}}{0.06} \\\\P V=\$ 54511.61675\end{gathered}[/tex]
Therefore
[tex]Price =54511.61675*(5/4)[/tex]
=68139.5209
=68140
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Mrs. Fitzpatrick wants to be the first teacher to travel from planet to planet in our solar system (she cray!). After she visits each planet, she plans to then try and land on an asteroid and then follow a comet that orbits our solar system. What unit of measure would Mrs. Fitzpatrick use to describe the distances she has traveled within the solar system?
The unit of measure which Mrs. Fitzpatrick would use to describe the distances she has traveled within the solar system is the Astronomical Units.
The Astronomical Unit is known to be the distance from the Earth to the Sun. So initially it thus varies dependent upon where the Earth has been but now it is said that they just use the average distance between the Sun and the Earth.
This Astronomical unit is used as the many distance calculations rely on thge parallax measurements. Thus, the distances to stars which are relatively close to the solar system are measured by observing changes in the position in sky.
Hence, such dimensions are quite simple to work out in Astronomical Unit.
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Which of the following describes a public
accountant?
A. Natalie prepares and files taxes for
individuals.
B. Darlene is an auditor for an
international manufacturing
company.
C. Chris is a fraud investigator for the
Government Accountability Office.
D. Jorge is a senior accountant at a
nonprofit organization.
Answer:
A. Natalie prepares and files taxes for individuals
Explanation:
Just took the test, hope this helps
What is viability factors researches the demand for products or services?
Answer:
Viability is a mass noun that refers to something's capacity or potential for success. It may be a demand, an idea, a project, or even a plan to change how a business runs. Establishing viability is the goal of a viability evaluation. Product viability is the capacity of a software product to maintain itself or reach its potential.
Explanation:
The term "market viability" describes the commercial potential of a certain market. You may decide whether starting a business in a specific market makes financial sense with the use of a market viability analysis.
Industry size: Is there adequate room on the market for new vendors? Exists room for improvement?
Target market: Do potential customers have more money to spend? Can they afford to purchase your offering?
Competition: Who are the major retailers in this industry, in terms of competition? What are their advantages and disadvantages? How are you going to rival them?
Your objective is to eliminate any markets that are too small, too competitive, or comprised of clients who are unable or unable to pay your prices.
which of the following government offices help individuals fund their college education?
office of educational technology
office of postsecondary education
office of vocational and adult education
office of federal student aid
Answer:The office of Federal Student Aid
Explanation:
The office of Federal Student Aid provides approximately $112 billion in grant, work-study, and loan funds each year to help pay for college or career school.
Hope that helped! :D
Comparing and contrasting sets of data in order to rank them and make a decision best defines _____. a. personal information b. evaluation c. career information d. personal career profile please select the best answer from the choices provided a b c d
Comparing and contrasting sets of data in order to rank them and make a decision best defines b. evaluation.
We can define evaluation as checking of a data or documents to see if everything in it is written correctly. The evaluation also refers to comparing multiple data or documents in order to source out the best amongst them.
Evaluation is not only used in business but in everyday life to sort out the best thing for users.
By evaluation, a business tends to rely on the best data that can help it to approach its goal. Every aspect of a business needs to be properly evaluated for the proper outgrowth of a business.
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oger works as a sales manager for hi-tech solutions, a company that performs software consulting services. while working for hi-tech, roger started a side business doing software consulting work and made $50,000 in it over the course of three years. roger never informed hi-tech of his lucrative side business. if a court finds that roger breached his duty of loyalty and orders him to pay hi-tech the $50,000 in profits he earned from his secret business, this is known as multiple choice disgorgement. restoration. reinstatement. replenishment.
A right answer is an option (a), which is disgorgement.
What does disgorgement mean?Disgorgement is described as "the act of giving up something on demand or under legal coercion" in Black's Law Dictionary. A party who makes money via unlawful or improper behavior is required to forfeit whatever profits they have made as a result of that unlawful or improper behavior. This remedy is called disgorgement. By making illegal activity unprofitable, this remedy aims to prevent unfair gain.
An example of a penalty that is meted out to people who have accumulated wealth illegally is disgorgement. It calls for giving up or returning all gains or funds obtained by unethical business practices to individuals who were harmed by the transaction.
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Sport managers compete for the __________ of consumers through the sale of items that might or might not be related to the primary focus of the sport business.
Sports managers compete for the discretionary funds of consumer by selling items that may or may not be related to the core focus of the sports business.
Discretionary funds corresponds to a type of expense which is related to a product or service that is not considered essential, even if there is a utility that justifies it, such as:
Travel expenses
Restaurant
Academy
Movie theater
Automobiles
Sporting items that can be linked to discretionary spending can be, for example, accessories related to a football team, such as a hat, key chain and sportswear.
Thats why , sports managers develop strategies to develop products and services that are characterized as discretionary funds to attract consumers, increase the profitability and competitiveness of a brand in the market.
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in pennsylvania, the broker is providing communication and document preparation services and is assisting both parties in a transaction without advocating for either party. this broker is a:
A transaction licensee brokers are mostly working in Pennsylvania as the broker without advocating for either party .
Who are Brokers ?
In order to earn a commission after the trade is completed, brokers organize transactions between buyers and sellers. Brokers that take on dual roles as buyers or sellers are considered primary parties to the transaction. Neither function should be mistaken with that of an agent, who represents the principal party in a transaction.
An impartial party whose services are often used in several businesses is a broker. The main duty of a broker is to connect buyers and sellers; as a result, the broker acts as a neutral intermediary between a buyer and a seller. A real estate or stock broker who helps in the sale of a property would be an example.
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macey is assessing market growth, market competitiveness, and market access for each segment she has identified. macey is evaluating the blank of each potential market segment.
Macey is evaluating the profitability of each potential market segment.
What is mean by market segment?Market segmentation in marketing refers to the division of a large consumer or corporate market into smaller consumer groups based on some sort of shared trait, typically consisting of current and future customers.By identifying which items have the best odds of capturing a share of a target market and choosing the most effective means of distributing those products to that market, market segmentation seeks to reduce risk.Although the four primary categories of market segmentation are thought to be geographic, demographic, psychographic, and behavioral, there are many more approaches you can take, as well as many variants on the four primary types.Learn more about market segment here:
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jerry is purchasing a condo in a mello-roos district. as his agent, where can you advise him to look for information about mello-roos taxes assessed on the property?
Mello-Roos is commonly calculated as a percentage of the property worth of your home.. Examine your most recent property tax bill to see what rate is being used for your Mello-Roos. Your most recent Mello-Roos tax payment will be clearly shown on this document.
Mello-roos taxes are exactly what they sound like, right?A Mello-Roos district is a special tax assessment district established in California to fund local infrastructure or services. The tax is only levied on residents of the district who benefit from the project.
The Mello-Roos tax is assessed against the land but is not based on the property's value; thus, when the property is sold, the amount of the tax does not change. The original maximum amount specified in the Resolution of Formation cannot be exceeded by the tax amount.
Mello-roos is a real estate term that refers to an additional tax or special assessment placed on a property at the time of purchase, in addition to the property tax.
Some buyers believe that having Mello-Roos CFDs helps to maintain the investment value of the property. Other buyers are either opposed to Mello-Roos funding or cannot afford the additional costs. They may believe it is not worth the extra cost and would prefer to shop elsewhere.
Hence, Mello-Roos is commonly calculated as a percentage of your home's property value. Your most recent Mello-Roos tax payment will be clearly shown on this document.
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if $12,000 is invested in an account that earns 3.95% compounded continuously, find the instantaneous rate of change of the amount in the account after 5 years.
The total amount from compound interest on an original principal of $12,000.00 at a rate of 3.95 % per year compounded continuously over 5 years exists $ 12,023.7234.
What is meant by Compound Interest?Compound interest can be thought of as the addition of the loan's interest to the deposit's principal amount.
The formula for Compound Interest Compounded continuously is given as A = P[tex]$$e^{rt[/tex]
A = Amount after t years
r = Interest rate = 3.95%
t = Time after t years = 5
P = Principal = Initial amount invested = $12,000
First, convert R percent to r a decimal
r = R/100
substitute the value of R in the above equation, we get
r = 3.95% / 100
r = 0.000395 per year
The formula for Compound Interest Compounded continuously be,
A = P[tex]$$e^{rt[/tex]
substitute the value in the above equation, we get
A = 12,000 × [tex]$e^{(0.000395 \times 5)[/tex]
A = $ 12,023.7234
The total amount from compound interest on an original principal of $12,000.00 at a rate of 3.95 % per year compounded continuously over 5 years is $ 12,023.7234.
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if a bond's price is higher than the principal amount (or face value), its yield to maturity will be the coupon rate. a. equal to b. more than c. no relation to d. less than
the adult working-age population is 249.7 million, 67.8 million of whom are not in the labor force. what is the labor force participation rate? (round your answer to the nearest 10th)
The adult working-age population is 249.7 million, 67.8 million of whom are not in the labor force, the labor force participation rate is 27.1525831%
Given
Total population = 249.7 million
Labour force = 67.8 million
Let
Labour Force Participation Rate = Labour force / Total population
= 67.8 / 249.7
= 0.271525831
Labour Force Participation Rate (%) = 0.271525831 × 100
= 27.1525831 %
A measure of how many people are actively employed in an economy is the labor force participation rate. The calculation is the proportion of the working-age population who are either employed or actively looking for work and who are not in institutions.The percentage of persons who are working or actively looking for employment across the whole population is known as the labor force participation rate.It can provide some perspective on the status of the economy when paired with the unemployment rate data.Learn more about Labour Force Participation Rate, here
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avery construction assembles residential houses. it uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). direct labor-hours is the allocation base for assembly support costs. in december 2019, avery budgets 2020 assembly-support costs to be $8,700,000 and 2020 direct labor-hours to be 145,000. at the end of 2020, avery is comparing the costs of several jobs that were started and completed in 2020.
The majority of job-order costing systems use established overhead rates, or rates based on expected overhead costs and driver units, to distribute overhead expenses to works that are currently in process.
It is known as normal costing.
Which business uses job order costs the most frequently?
Job order costing can be used by enterprises in the white-collar sector of the economy, such as law firms, accounting firms, and private investment firms, to handle specific client accounts. For instance, accounting firms may view every client as a separate task.
Why don't businesses use the actual overhead rate instead of one that is predetermined?
Actual overhead expenses can fluctuate owing to periodic variances, but using fixed overhead rates can help level those out (such as seasonal changes). This will guarantee that product prices stay the same throughout the year.
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the benefits of data warehouses a. provide a centralized view of all data being collected across the enterprise and provides a means for determining data that is inconsistent. b. generate one version of the truth. c. snapshots of data can be taken over time
The benefits of data warehouses a. provide a centralized view of all data being collected across the enterprise and provides a means for determining data that is inconsistent.
What is the benefit that can be associated to a data warehouse?A data warehouse can be described as the system that is been designed to help to serves as the centralized view of all data that is been used in an organization, however this could be the data that is been collected as well as the data that is been sent out or stored i n that database of the organization.
It should be noted that the data ware house help in the storage as well as the retrieval of data in the organization, however with the data ware house of the organization, the data are tends to be safe and allow thae data to be gotten at anytime it is wanted.
Therefore, option A is correct.
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to take advantage of the massive amount of data now available, a sophisticated analysis technique called is becoming a priority for many firms.
To take advantage of the massive amount of data now available, a sophisticated analysis technique called data mining is becoming a priority for many firms.
The term 'mining' comes from the action of extracting minerals from deep within the earth. Data mining also refers to the extraction and discovery of the distinct patterns present in sets of data. These patterns are then used for predicting future changes or outcomes.
Data mining has some stages through which it does the extracting and predicting. They are data acquisition, cleaning, preparing, and transforming the data, analyzing, modeling, and forecasting data, and the final report.
Since it carries on such an organized, maintained manner of data analysis, it is called a sophisticated analysis technique. Using data mining helps the company to have compact data and analysis in their hands which helps them to invest in the right channel.
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halle is trying to identify the work performed and the working conditions of the 200 sales associates at acme global. she needs the information quickly in order to present it at the next management meeting. in this case, the job analysis method would be most appropriate.
It would be best to use the questionnaire job analysis approach.
The correct option is A.
How do job questionnaires work?The Job Description Questionnaire (JDQ) is a tool used to obtain details on the tasks and obligations associated with staff positions.
What does an HR questionnaire entail?A set of questions known as a questionnaire is used to gather data for a variety of reasons. Questionnaires can be designed, produced, distributed, and answered; the results can then be analyzed.
What exactly is the job analysis questionnaire method?The Work Analysis Questionnaire (JAQ) is a tool for gathering data that focuses on the tasks, obligations, vital duties, and physical demands of a particular job rather than the person performing the job.
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I Understand that the question you are looking for is
Halle is trying to identify the work performed and the working conditions of the 200 sales associates at Acme Global. She needs the information quickly to present it at the next management meeting. In this case, the ______ job analysis method would be most appropriate.
A. questionnaire
B. interview
C. diary
D. observation
when commercial farming proposals have promised more jobs in zambia, why have there been job losses at the farm taken over by chayton capital?
The commercial farms have not offered assistance to the nearby subsistence farmers.
What is commercial farming?Commercial farming is done to cultivate crops and cattle in order to gain money. Crops can be sold directly to consumers and businesses or processed into products like juices, jellies, pickles, and other foods.
Commercial agricultural practices: the raising of animals and food for market, frequently utilizing current technology.
Thus, The commercial farms have not offered assistance to the nearby subsistence farmers.
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1. hedging with currency options when would a u.s. firm consider purchasing a call option on canadian dollars for hedging? when would a u.s. firm consider purchasing a put option on canadian dollars for hedging? (1 point)
A U.S. firm would consider purchasing a call option on the Canadian dollars when it is expected that the Canadian dollars would appreciate.
What is a call option?A call option is a derivative option that gives the holder of the call option the right and not the obligation to buy an asset at a predetermined price known as the strike price. The call option would be exercised if the current price of the asset is higher than the strike price.
For example assume that the exchange rate of the CAD and the US dollar is 0.80 CAD to 1 dollar. Assume that it is expected that the CAD would appreciate in value inn the future. A US investor could decide to buy a call option with a strike price of 0.85 CAD to 1 dollar. Assume that at the time of the expiration of the call option, the exchange rate is 0.90 CAD to 1 dollar. The US firm would exercise the call option and exchange the currency at 0.85 CAD to 1 dollar.
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Martinez co. Borrowed $50,000 on march 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on april 30, the entry to record the payment should include a?.
The entry to record the payment should include debit to Interest Expense for $750.
What is an interest-bearing note?
A lender will lend money to a borrower on an interest-bearing note, and interest will be charged in accordance with the terms of the agreement. There are numerous uses for these notes. For instance, an account receivable may be changed into a note, under which a client is now regarded as a borrower and is responsible for making interest payments on what was once an account receivable. Another option is to get a mortgage, which requires a homeowner to commit to a protracted series of payments that, based on the terms, may contain both interest and principal payback components. A long-term loan to a business that is utilized to meet its funding needs over a number of years is a third example of an interest-bearing note.
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