The debt to equity ratio is a measure that indicates the percentage of a company's financing that comes from investors and creditors. Thus, the correct option is (b) the proportion of the company financed by lenders versus owners.
The debt to equity ratio is a degree of the relative contribution of the owners and lenders in the capital employed in the business. The debt to equity ratio measures the extent of the relationship between the amount of debt and the amount of owners' equity used to finance the business.
A lower debt to equity ratio is an indicator of a lower amount of debt financed via lenders. A larger debt to equity ratio indicates that the company is at a greater financial risk because its operations are financed by a greater amount of debt via lenders than the funding by equity via owners.While other options are not chosen because:
None of them is aligned with the context of debt to equity ratio.
"The complete question is:
The debt to equity ratio indicates:
a. review later the net worth of the company
b. the proportion of the company financed by lenders versus owners
c. a company's working capital funding gap
d. the liquidity of the company "
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Read the following scenario. John James stopped the bus, bought a ticket for $2.00 and went for a drive to the countryside.
Identify if a market situation exists. Give reasons for your answer.
The market situation state of affairs phase of our plan consists of research and analysis of our target market, competition, enterprise challenges, and your company's competitive differentiators.
John James is an American businessman and political candidate. After graduating from the united states navy Academy, he served 8 years in the U.S. military, participating in multiple excursions of obligation inside the Iraq war. After leaving the military, James joined his family's delivery chain enterprise.
James ran as the Republican nominee for the U.S. Senate elections in Michigan in 2018 and 2020, losing the elections to Democratic incumbents Debbie Stabenow and Gary Peters, respectively. After dropping the 2020 race, James initially declined to concede and made claims of electoral fraud.
Despite their tandem paintings and capability to speedy and without difficulty find solutions to just about any obstacle thrown at them, the pair aren't associated in any manner.
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which quality management concept—often set at the beginning of a project—uses multiple guidelines, such as reliability and usability, to ensure its desired outcome?
Quality standards uses multiple guidelines, such as reliability and usability, to ensure its desired outcome.
Documents that would provide guidelines, specific requirements, regulations, or features that can be used continuously to ensure that components, goods, mechanisms, and facilities are fit for their purpose are referred to as quality standards.
Clear requirements and standards make it simpler for businesses to meet what their customers consider "quality," and they enhance the overall vision of what the business should strive for.
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a corporation that funds an employee training program to build computer skills could be seen as investing in which main category of complementary assets? auxiliary social governmental managerial organizational
In a case whereby a corporation whereby there is a funds of an employee training program to build computer skills could be seen as investing in the main category of complementary assets is managerial complementary assets.
What is managerial complementary assets?Managerial complementary assets can be described as the type of asset that is been used in the organization which is one that offer support for change as well as incentive systems .
It should be noted that the managerial complementary assets focus on the improvement of the team as well as the progress of the organization this can come in form of a training program as well as the provision of insensitive and anything that can help the individuals that are part of the company so that their productivity can be improved.
In conclusion , the Managerial complementary assets help to bring improvement to the team as well as to the organization at large.
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Q.1 Discuss whether or not an increase in income tax rates will improve economic performance. [8]
Because lower tax rates increase the after-tax benefit of working, saving, and investing, they have a beneficial impact on the size of the economy.
Briefing:-Through substitution effects, these larger after-tax incentives encourage workers to put in more labor, save more money, and invest more.
What transpires when income taxes rise?A tax rise will cut into discretionary income since it depletes household finances. A tax cut will result in higher discretionary income for households since they will have more money. Consumer demand, which makes up two thirds of all demand, is primarily driven by disposable income.
How does taxation impact economic expansion?mostly by way of the supply side. Specific tax preferences can have an impact on how economic resources are allocated, whereas high marginal tax rates can discourage work, saving, investing, and innovation. Tax cuts, however, can also reduce long-term economic development by raising deficits.
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Question 2 (1 point)
If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpful?
A Balance sheet
B. Income statement
C. Statement of owners' equity
D. Cash flow statement
workers at the ito motor plant are willing to work long hours and put the company's success ahead of their own because they are from a(n) culture.\
Workers at the auto motor plant are willing to work long hours and put the company's success ahead of their own because they are from a collectivist culture
The wants and objectives of the group as a whole are prioritized over the needs and preferences of each individual in collective cultures. In such societies, each person's identity is fundamentally shaped by their connections to other individuals and their relationships with other group members.
In these civilizations, strong families and friendship groups are valued, and individuals are willing to sacrifice their own happiness or free time for the sake of others or the larger good of a group.
The appeal of collectivism is that, as a result of personal sacrifice, the group advances and gains. The drawback of collectivism is that it frequently results in the individual suppressing his or her own interests and failing to reach their full potential.
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companies that report inventory using the lifo method must report the difference between the lifo cost and fifo cost of its inventory. this difference is commonly called the lifo reserve.
It is a true statement that companies that report inventory using the lifo method must report the difference between the lifo cost and fifo cost of its inventory; and this difference is commonly called the lifo reserve.
What is a LIFO reserve?In cost accounting, a LIFO reserve refers to the accounting term that measures the difference between the first in, first out (FIFO) and last in, first out (LIFO) cost of inventory for bookkeeping purposes.
The main benefits of the LIFO reserve is that it allows the investors and analysts to compare companies that use different accounting methods equally. However, it also allows a comparison between LIFO and FIFO and the ability to understand any differences including how taxes might be impacted.
Full sentence "companies that report inventory using the lifo method must report the difference between the lifo cost and fifo cost of its inventory. this difference is commonly called the lifo reserve. True/False"
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All purchase/sale transactions are made on credit. The company uses the fifo method and perpetual inventory system to report transactions. What is the ending balance of inventory under the fifo method?.
All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to report transactions. $4,500 is the ending balance of inventory under the FIFO method.
First In, First Out, sometimes known as FIFO, is a strategy of managing assets and valuing them that prioritizes the sale, use, or disposal of assets that were produced or acquired first. For taxation purposes, FIFO presumes that the cost of items sold on the income statement includes the assets with the oldest expenses (COGS).
According to the accounting principle known as first in, first out (FIFO), assets that are bought or acquired first are also the first to be sold.
According to FIFO, the inventory still on hand is made up of products that were bought last.
LIFO is an accounting technique that differs from FIFO in that assets that were acquired or purchased most recently are sold first.
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The question was incomplete. Check below the full question.
All purchase/sale transactions are made on credit. The company uses the FIFO method and perpetual inventory system to record transactions. Which of the following will be recorded on February 25?
a. $1,300
b. $4,500
c. $3,000
d. $1,000
on december 31 before adjusting entries, accounts receivable for calegari company had a debit balance of $200,000, and the allowance for doubtful accounts had a credit balance of $6,000. credit sales for the year were $1,600,000.
The balance of the allowance for doubtful accounts will be $22,000 after adjustment, if credit losses are estimated at 1% of credit sales.
After-adjustment allowance for doubtful accounts:
= Credit balance of Allowance for Doubtful Accounts + Estimated percentage of Credit Sales for the Year
= $6,000 + 1% of $1,600,000
= $6,000 + $16,000
= $22,000
The balance of the allowance for doubtful accounts will be $22,000 after adjustment.
Here is the complete question-
On December 31, 2016 before adjusting entries, Accounts Receivable for Nickolas Company had a debit balance of $200,000, and the Allowance for Doubtful Accounts had a credit balance of $6,000. Credit sales for the year were $1,600,000. If credit losses are estimated at 1% of credit sales:
a. The balance of the Allowance for Doubtful Accounts will be $10,000 after adjustment.
b. The balance of the Allowance for Doubtful Accounts will be $22,000 after adjustment.
c. The balance of the Allowance for Doubtful Accounts will be $16,000 after adjustment.
d. Bad Debts Expense for the year will be $22,000.
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identify the disadvantages of the corporate form of business. (check all that apply.) multiple select question. transferable ownership rights corporate taxation government regulation limited liability lack of mutual agency
The disadvantages of the corporate form of business includes:
Government regulationDouble taxationWhat is a corporate form of business?The corporate form of business is better known as a corporation. This form of business means the legal entity that is separate and distinct from its owners. It possess many of the same rights & responsibilities as individuals because they can enter contracts, loan and borrow money, sue, be sued, hire employees, own assets, pay taxes etc.
It is also known that a corporation offers the strongest protection to its owners from personal liability. although a demerit is that the cost to form a corporation is higher than other structures.
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exercise 7-11. canarie, inc. has decided to discontinue manufacturing its quantum model personal organizer. currently the company has a number of partially completed personal organizers on hand. the company has spent $105 per unit to manufacture these organizers. to complete each unit, costs of $14 for material and $17 for direct labor will be incurred. in addition, $10 of variable overhead and $29 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit. if canarie, inc., completes the organizers, it can sell them for $142 per unit. another manufacturer is interested in purchasing the partially completed organizers for $115 per unit and converting them into inventory tracking devices. what is the incremental profit per unit canarie, inc. needs to consider as it evaluates the two alternatives? enter your answers as amounts only with neither commas nor decimals.
For each alternative, the incremental profit per unit that Canarie, Inc. needs to consider in its evaluation is as follows:
Alternative 1 Alternative 2
Incremental profit $37 $15
What is the incremental profit?The incremental profit refers to the gain or the difference between the incremental sales revenue and the incremental cost.
Incremental profits arise from mangerial decisions, especially with respect to choosing betweeen alternatives.
We should remember that sunk costs, like fixed overhead, are not relevant in a managerial decision. The already incurred production cost is like a sunk but it is considered for determining the incremental profit.
Alternative 1 Alternative 2
Complete Incomplete
Sunk production cost $105 $105 = irrelevant
Incremental costs:
Materials 14
Direct labor 17
Variable overhead 10
Total incremental costs $41
Selling price $142 $115
Incremental profit $37 $15 ($115 - $105)
The total incremental costs is $41 for alternative 1 and $0 for alternative 2.
Thus, it profits Canarie, Inc. more to complete the organizers than selling them to another manufacturer.
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producers may only use cms and aetna-approved marketing materials that have been created by our marketing team, approved by us and filed with cms by us when discussing aetna individual medicare plans
Producers may only use CMS and Aetna-approved marketing materials that have been created by our marketing team, approved by us, and filed with CMS by us when discussing Aetna individual Medicare plans.
This statement is True.
A producer is a person who produces and supplies goods and services. A producer combines labor and capital (called factor input) to create another. H. Produce. Firms are the prime example of a producer, and what economists usually think of when they talk about producers.
Producers are people who produce or grow goods and provide services. Sometimes they are called workers and they help us do something. For example, a florist is a producer of beautiful bouquets.
Progenitors are creatures that feed themselves from sunlight, air, and soil. Green plants are producers, making food with their leaves. Consumers are creatures that cannot produce their own food. Consumers get their energy from food. All animals are consumers.
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beginning in the mid-1970s, the united states government has deregulated several industries, such as airlines, trucking, railroads, and telecommunications. on average, deregulation has
The united states government has deregulated several industries, such as airlines, trucking, railroads, and telecommunications. on average, deregulation has lowered price.
Economic deregulation does not take place instantly. Legislators and regulators take time to remove regulatory structures, and the deregulated industries need extra time to adapt to their new competitive environment. Midway through the 1970s, price, entrance, and exit restrictions in the transportation, finance, energy, and communications sectors were liberalized by federal regulatory agencies and the U.S. Congress. However, only two significant American industries—airlines and motor carriers—have undergone full deregulation to date, while several minor ones—such as intercity bus transportation and air cargo—have done so throughout that period. Take airlines as an example to understand the rate of industry change. When the Civil Aeronautics Board initially supported trials of discounted prices, economic deregulation of the airline sector started in 1974.
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Gregg company uses the allowance method for recording its expected credit losses. It estimates credit losses at three percent of credit sales, which were $900,000 during the year. On december 31, the accounts receivable balance was $150,000, and the allowance for doubtful accounts had a credit balance of $12,200 before adjustment. A. Prepare the adjusting entry to record the credit losses for the year b. Show how accounts receivable and the allowance for doubtful accounts would appear in the december 31 balance sheet.
A. At the end of a bookkeeping period, a section in a company's common record called a "adjusting journal entry" is created to record any unrecognised pay or expenses for the period.
B. Since a provision for doubtful accounts reduces the total value of a resource, in this case the accounts receivable, it is referred to as a "contra asset."
What is doubtful accounts?Money owed by customers to a company is referred to as a doubtful account. The only problem is that the business doesn't anticipate receiving the money. (It is "doubtful " that you will collect.)
The phrase can also be used to describe an account that is currently a reserve but could eventually turn into a bad debt because it hasn't reached the point where it can be written off. All types of businesses consistently face the challenge of managing doubtful debt.
A ) Adjusting entry
The adjusting entry to record the credit losses for the year is :
Bad debt expense Dr, $27,000
To Allowance for Doubtful Accounts Cr. $27,000 ($900,000 × 3%)
(To record accounts deemed to be uncollectible)
B ) December 31 balance sheet
Accounts Receivable $150,000
less: Allowance for Doubtful Accounts $39,200 ($12,200 + $27,000)
Net accounts receivable $110,800
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Pitt's pit stop sold 15,490.50 worth of gasoline yesterday. regular sold for 3.30 a gallon and premium sold for 3.45 a gallon. if the gas staton sold 380 more gallons of regular then premium part a) how many of each type of gasoline were sold part b) if the profit on a regular gas is 0.05 per gallon on premium is 0.18 per gallon what was the stations total profit?
a). The number of gallons for each gasoline sold is:
Regular gasoline sold = 2530 gallons
Premium gasoline sold = 2109 gallons
b). The station's Total profit = $506.12
To get the the number sold by both type of gasoline,
Let:
Amount of regular gasoline sold = x gallons
Amount of premium gasoline sold = y gallons
Rate of regular gasoline = $3.30 per gallon
Rate of premium gasoline = $3.45 per gallon
"The station sold 380 more gallons of regular than premium gasoline."
Equation will be, x = y + 380 --------(1)
"Pitt's Pit shop sold $15490.50 worth of gasoline."
Equation for the statement will be,
3.30x + 3.45y = 15490.50 ----------(2)
Now we substitute the value of x from equation (1) to equation (2)
3.30(y + 380) + 3.45y = 15490.50
3.30y + 1254 + 3.45y = 15700.50
6.75y = 15490.50 - 1254
6.75y = 14236.50
y = 14236.50/6.75
y = 2109 gallons
By substituting the value of y in equation (1)
x = 2150 + 380
x = 2530 gallons
Regular gasoline sold = 2530 gallons
Premium gasoline sold = 2109 gallons
b). Since:
Profit on regular gas = $0.05 per gallon
Profit on the premium gas = $0.18 per gallon
Therefore, total profit of the station = 2530*0.05 + 2109(0.18)
= $126.5 + $379.62
= $506.12
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an expected value or expected profit calculation is a great way to evaluate a classification model. they rely on some fairly restrictive assumptions, though. briefly, what are those assumptions?
They rely on some fairly limiting assumptions, those assumptions are called expected value.
The expected value (also known as EV, expectation, mean, or mean value) is the long-term average value of a random variable. It also shows the probability weighted average of all possible values. Expected value is a commonly used financial concept. In finance, it indicates the anticipated future value of an investment. By determining the possible scenarios that may occur, one can determine the EV of the scenario.
This concept is often used with multivariate models and scenario analysis. Scenario Analysis is a technique used to analyze decisions by speculating on various possible outcomes in financial investments. In financial modeling, this. This is directly related to the concept of expected returns. Expected Return The expected return on an investment is the expected value of the probability distribution of the possible returns that it can provide to the investor. Return on investment is an unknown variable that has different values associated with different probabilities.
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a pay adjustment matrix considers two factors—the employee's level of performance as rated in an appraisal and the employee's position in the pay range, which is often related to experience and tenure.
The employee's position within the salary range and their level of performance as determined by an appraisal (their current pay-level quartile),
How would you classify your employees?Employees are divided into two categories: tasks that are mission-critical and tasks that are not mission-critical. This classification is crucial for determining future needs for resources, such as the purchase of PPE and training, according to Phelps.
What does a level employee do?There are some characteristics that "A" level workers share. They are really engaged and feel a connection to the business. They eagerly anticipate going to work and, for the most part, take pleasure in their employment. They are aware of what to do in the event of failures and losses.
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if an auditor is unable to perform the audit procedures necessary to determine whether the statements are prepared in accordance with gaap, the auditor must issue a(n) opinion.
If an auditor cannot perform the audit procedures necessary to determine whether the statements are prepared in accordance with GAAP, the auditor must issue an opinion.
An opinion is a statement that expresses a feeling, attitude, judgment, or belief. Facts are stated as statements that can be verified or proven to be true. An opinion is an expression of a judgment or belief about something. Facts are based on observations or research, while opinions are based on assumptions. Facts are objective realities, while opinions are subjective statements.
A fact is a statement that can be proved to be true or false. Also, facts should be impartial and should not be presented objectively by taking a single point of view. Opinions can be based on facts or feelings, and can also be used to mislead people.
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Felicia believes strongly in buying from minority-owned businesses whenever possible. Which term best describes the motivation for her purchasing behavior?.
The term that best describes the motivation for Felicia purchasing behavior is called customer loyalty.
What is customer loyalty?This is when customers sticks to a particular brand of products irrespective of how much offer they receive from other competitors. It is as a result of continuous purchases of such brand of product.
Before a customer can be loyal to a firm's brand, he or she must have tested the firm's products overtime. The product must have meet and exceed the customer's expectation reason for continuous patronage.
Hence, customer loyalty is a term which best describes Felicia's desire and belief to buy from minority-owned businesses.
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at the reading of the will, you learn that your inheritance will allow you to receive the amount of $540 at the end of each year for a total of 11 consecutive years. however, because of your young age, these amounts will not begin until the end of 5 years. if the interest rate is 9.00%, what is the equivalent present value of the inheritance?
The equivalent present value of the inheritance is $2,388.37
The payout annuity formula:
P = C . [1 - (1 + r)⁻ⁿ] / r
Where P is the present value
C = periodic payment
r = interest rate per period
n = number of periods
In the given problem,
n = 11
C = $540
r = 9% = 0.09
Hence,
P = 540 . [1 - (1 + 0.09)⁻¹¹] / 0.09
= 3674.8
However, this present value of $3674.8 is the present value 5 years later, or the future value from now.
Use the future value formula:
FV = PV (1 + r)ⁿ
n = 5 years
3674.8 = PV (1 + 0.09)⁵
PV = 2388.37
Therefore, the equivalent present value of the inheritance is $2,388.37
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one of the primary reasons for investing in equity securities includes: group of answer choices acquiring debt of competing companies. appreciation in the value of the stock. earning interest revenue. deducting dividend payments for tax purposes.
One of the main justifications for purchasing debt securities is generating interest income.
A Debt Security is what?
A debt security is a financial instrument that includes fundamental terms like the notional amount (the amount borrowed), interest rate, and maturity and renewal dates defined and can be bought or traded between two parties.
A government bond, corporate bond, certificate of deposit (CD), municipal bond, or preferred stock are a few examples of debt securities. Debt securities may also take the form of collateralized securities, such as zero-coupon securities, mortgage-backed securities issued by the Government National Mortgage Association (GNMA), and collateralized debt obligations (CDOs).
Debt securities are typically regarded as a less dangerous kind of investment compared to equity investments such as stocks because the borrower is legally compelled to make these payments. Of course, as is often the case when investing, a security's actual risk will rely on its unique features.
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hewlett-packard (hp) founders david packard and william hewlett strived to create a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company. in hp’s culture, individual responsibility and the importance of innovation are
hewlett-packard (hp) founders david packard and william hewlett strived to create a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company. in hp’s culture, individual responsibility and the importance of innovation are been recorded.
What are organizational culture?Organizational culture can be described as the series of the values, expectations, and practices that is needed in the organization so that the smooth running of the organization can be possible.
It should be noted that this help the member of the organization to know what is necessary as well as what is not when they are carring out their work in the organization, however the culture in the organization help to be able to know about the working principle of the organization such as the hewlett-packard since this usually bring about innovation as well as increment in the productivity of the member of the team in the organization.
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companies establish time fences in order to? companies establish time fences in order to? limit the amount of time production planners have to create orders minimize the impact of changes and costly disruptions measure how long it takes to produce products
Companies establish time fences in order to Minimize the impact of changes and costly disruptions
Time fences represent divisions within the planning horizon between several time frames.
They outline short-term areas where planning restraints avoid expensive disruptions to supplier and shop floor schedules. Time fences also offer guidance for determining when and where different limitations or modifications to operational operations occur.
For instance, it is simple to make modifications to the MPS outside of the cumulative lead time, while it is more challenging to make changes inside of the cumulative lead period.
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A factory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. If a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. How is this factory owner seeking to solve the agency conflict problem in this case?.
The factory owner seeks to solve the agency conflict in this case by supplying incentives so the agents act in the way the principal desires.
Conflict is the term used to describe the discord brought on by opposing beliefs, objectives, and circumstances. Internal and external conflicts have two subtypes each, and there are two branches of each.
An incentive refers to anything that motivates someone to achieve something or work harder. When it comes to workers, rewards and incentives at work are advantageous to both employers and employees. Employee morale, work happiness, and motivation may all be enhanced when employers recognize employees for their performance and productivity.
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statistical discrimination results from ambiguous laws that allow this type of discrimination. firms having imperfect information regarding the actual productivity or skill of a potential employee. firms needing to make very quick judgments. firms hiring managers who explicitly favor some groups over others.
Due to unclear regulations that permit this kind of discrimination, statistical discrimination occurs. organizations with limited knowledge of a potential employee's actual productivity or expertise.
The required details for statistical discrimination in given paragraph
Due to the lack of information that businesses have about potential employees, they base their assessment of a candidate's productivity level on either their gender or race, depending on the statistics that pertain to that groups.
These statistics are frequently the result of previous prejudice that made the group's members less productive, but they are occasionally still applied. As an illustration, a woman who is applying for a job might not be selected because it is thought that she would need more paid sick days than a guy.
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six out of every ten jobs now require some postsecondary education and training, according to data reported by the eric clearinghouse on higher education
The correct answer is true
Higher education is postsecondary education that results in the award of a degree. After completing secondary school, there is an optional last step of formal study known as higher education, also known as post-secondary education, third-level education, or tertiary education. Numerous alternatives exist for postsecondary education, including public and private universities, colleges, community colleges, career and technical schools, vocational and trade schools, centers for continuing education, campus transition programs, and apprenticeship programs. Any degree you earn after completing high school is considered post-secondary. In other terms, a post-secondary degree is one that was earned following attendance at a higher school of learning. It could be a community college, a technical or vocational institution, or even a college for undergrads.
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1. when new employees arrive on the sales floor after training at hamilton department store, experienced employees have a tendency to say, "forget what you learned. this is how we really do it.
This is called Social Support. Social support improves one's quality of life and acts as a supportive social network against adversity.
The material and psychological resources offered by a social network to help people cope with stress are referred to as social support. Such social support can take many forms, including assisting an individual with various daily tasks when they are ill or providing financial assistance when they are in need. Social support is the perception and reality that one is cared for, that one can get help from others, and, most importantly, that one is part of a supportive social network.
Here is the complete question-
When new employees arrive on the sales floor after training at Hamilton department store, experienced employees have a tendency to say, "forget what you learned. this is how we really do it."
What is this?
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everything else held constant, an increase in the value of the dollar relative to all foreign currencies means that the price of american goods purchased by foreigners
Everything else held constant, an increase in the value of the dollar relative to all foreign currencies means that the price of American goods purchased by foreigners decreases.
What is exchange rate?The rate at which one currency will be exchanged for another is known as an exchange rate in the world of finance. It can also be thought of as the value of one currency in comparison to another. Money dealers will provide various purchasing and selling prices in the retail foreign exchange market. The ratio used to convert one currency into another is known as the exchange rate. It represents the cost of one currency reflected in another. Because currencies differ in value from one another, exchange rates are necessary.
The increase or decrease of the value of the dollar affects its exchange rate.
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When great britain voted to leave the euro- zone, the pound depreciated 17% against the dollar. it also raised fears that the eurozone would fall apart. explain how this fear would affect the euro/dollar exchange rate.
If there is a fear of Eurozone breaking apart due to Brexit, demand for European currency may either increase or decrease.
These fears would cause the demand for dollars to decrease or increase, and the supply of dollars to increase or decrease, leading to a decrease or increase in the euro/dollar exchange rate.
What causes demand and supply of currency?Changes in the expected rate of return causes demand and supply for a currency. When rates of return in a country seems relatively high, then such country will attract funds from abroad. However, when rates of return in a country seems low, then funds will flee to other economies.
Therefore, the correct answer is as given above.
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the economic value of ecotourism
Answer:
Explanation:
Ecotourism is a type of tourism to conserve and improve natural rural areas. It fuses the ideas of environmental protection, cultural awareness, and low impact travel for vacationers.
It has three main goals. They are:
1. To economically and socially benefit local people
2. Conserve the existing culture and habitat of a region.
3. Prevent harmful impacts to the environment.
Ecotourism celebrates the hyper-local importance of regional biodiversity, nature and geography. It helps appreciate the beauty of animals and plants without impacting them with pollution, excessive water and energy use and overcrowding.
Countries like Costa Rica, Madagascar, Kenya, and Ecuador have adapted ecotourism very integrally.
Some of the possible economic benefits of ecotourism are that it can provide job opportunities to the local community which will provide them with a source of income and improved lifestyle for the locals. It can bring foreign currency into the country when the foreigner pays for entrance fees, local food, souvenirs etc.
According to United Nations World Tourism Organization there were an estimated 25 million tourist arrivals in 1950, but that number increased drastically by 2018, reaching an astonishing 1.4 billion tourist arrivals. In 2019, global travel and tourism contributed to 8.9 trillion to the world's GDP.
Ecotourism should also include education and interpretation for cultural bridge building. This fosters respect between staff, visitors, community members and increase its economic value. It not only maintains a healthy ecosystem but also provides economic support to those who need it.