One of the most important strategic investments a company can make today is integration. Smart businesses are those that are linked. By integrating your business systems, you may get a comprehensive understanding of your customers, your data, and the state of your firm. It enhances your internal operations and provides a better client experience.
Companies that are unable to integrate and coordinate their plans behave like a body without a head. Employees need direction for their work even though they have the aptitude and expertise required to follow instructions. From the top of the organization down to the front-line employees, coordination and integration take place.
As they show that decision-makers can guide employees, integration and coordination are crucial inside an organization. Employees lose faith in the managerial skills of their superiors when managers are not on the same page with one another and fail to implement corporate strategy.
Without integration and coordination, businesses run the danger of losing out on production, communication, and long-term financial viability. Lack of direction causes workers to take longer to finish jobs.
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The concept of supply chain management is considered to be part of the ________ of the marketing mix.
Select one:
a. product
b. price
c. place
d. promotion
e. plan
Purpose marketing, or pro-social marketing, as practiced by the well-known Tom's shoe company, ________.
Select one:
a. engages consumers in a meaningful way
b. is a least preferred marketing strategy
c. focuses primarily on increasing productivity
d. has no impact on consumers who care about social issues
e. is a for-profit part of the business
Making a change in any one of the marketing mix elements will ________.
Select one:
a. require the firm to introduce new products
b. leave the other elements unchanged
c. require an increase in promotion
d. have a negative effect on a similar element
e. have a domino effect on the other elements
The Clean-O company makes a cleanser for the hospital and nursing home market that is guaranteed to kill 99 percent of Staphylococcus germs, a major concern for medical facilities. Unlike other companies, Clean-O is not interested in pursuing the consumer market. In this case, Clean-O has adopted a ________ orientation.
Select one:
a. relationship
b. differentiation
c. mass customization
d. market
e. product
Customer relationship management (CRM) is designed primarily to ________.
Select one:
a. position products to serve very specific customer groups
b. identify profitable customers in new markets
c. facilitate higher levels of customer satisfaction
d. clearly distinguish a firm's products from those of competitors in the minds of customers
e. assess the personality characteristics of target customers
In order for Marketing (Big M) to succeed, firms should create ________ strategies.
Select one:
a. market-driving
b. market-driven
c. predatory pricing
d. diversification
e. vertical integration
Plan, Meaningfully engages customers, Impact the other components in a cascading manner, Connection, Promote greater levels of client satisfaction and Market-driven are choosen option.
Thus option E, A, E, A, C, and B is correct.
What is marketing?The process of developing, communicating, supplying, and trading services that are important to customers, companies, partnerships, and society at large collectively is known as marketing.
The idea of managing supply chains is seen as a component of the marketing mix.
People are meaningfully engaged via purpose marketing, also known as pro-social advertising, which is used by the well-known Tom's shoe firm.
Any alteration to one of the marketing mix's components will ripple through the other components.
In this instance, Clean-O has chosen to focus on relationships.
The main goal of customer relationship management (CRM) is to focus on customer satisfaction.
Businesses need to develop brand marketing plans (Big M) to flourish.
Therefore, option E, A, E, A, C, and B is the correct option.
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Research three OSCM software packages from different companies. For each package, write 250-500 words explaining the capabilities and limitations of that package. Additionally, include a short introduction paragraph and conclusion with your overall impressions and recommendations for OSCM software.
E2OPEN, SAP SCM and LOGILITY are the three OSCM software packages from different companies.
What is OSCM software?There are several reasons why every firm needs to have a solid supply chain systems in place. The program helps to guarantee that supplies are uninterrupted and that merchandise is coming into the company continuously. The program likewise makes sure that perhaps the practices are cost-free and the best source is chosen. OSCM software comes in a variety of versions.
1) E2OPEN - E2Open is a web application for managing the supply chain that aims to provide a supply chain that is more agile and regulation.
2) SAP Supply Chain makes use of modern advancements like ai technology or the internet of things to provide do that and cutting-edge analytics to assist users in organizing, locating, and providing the ideal materials and products at the right time.
3) LOGILITY - In order to acquire a competitive advantage, we can use the supply chain management program Logility, which offers us predictive analysis plus plan.
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Which resource management task enables resource coordination throughout the Incident a order and acquire?
Track and report are the resource management task that enables resource coordination throughout the incident.
Resource management is the process of planning, scheduling, and allocating resources to complete a project. Project managers are in charge of overseeing the resource management process from start to finish. Resource management involves creating plans and processes to more effectively manage resources. Resource management as part of project management is all about doing more with less. Resource management is centered around optimization and efficiency.
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a major issue in logistics is: group of answer choices product customization. supplier evaluation. cost of purchase. cost of shipping alternative
Option d: A major issue in logistics is the cost of shipping alternatives.
Logistics in general is the detailed orchestration and execution of complex processes.
In a general business sense, logistics manages the flow of goods between points of origin and consumption in order to meet the needs of customers or businesses. Logistics-managed resources include tangible goods such as materials, equipment, and consumables, as well as food and other consumables.
The few of the major issues of the logistics are rising fuel and maintenance cost, poor communication between courier and customer, late or wrong deliveries, damage of goods during transportation and many more.
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which of the following statements is true about revenue bonds? qid: 3571174 mark for review a interest is usually paid from the earnings of the facility for which the bond was issued b interest is subject to federal taxes c revenue bonds are considered safer than general obligation bonds d the state public utility commission must approve each interest payment
The statement that is true about revenue bonds is c) revenue bonds are considered safer than general obligation bonds
Revenue bonds are a type of municipal bond which are issued by state and local governments to finance specific projects.
These bonds are generally considered to be a safer option than general obligation bonds, as they are backed by the revenue generated from the project they were issued to fund, rather than the creditworthiness of the issuer. Hence, option c is true.
This makes them an attractive option for investors looking for a secure financial product. As a result, investors have a greater assurance that the bonds will be paid back in full.
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Which type of machine learning is used to train autonomous cars to drive?
The type of machine learning algorithms that can be used for self-driving cars are Bayesian regression, neural network regression and decision forest regression, among others.
The development of self-driving cars now faces a number of obstacles that can be solved using machine learning techniques. Enhancing the use of machine learning to complete new jobs is crucial with the integration of sensor data processing in an ECU (Electronic Control Unit) in an automobile. Potential uses include classification of driving scenarios or evaluation of driver condition using data fusion from various internal and external sensors, such as lidar, radar, cameras, or the Internet of Things (Internet of Things).Applications that control a car's infotainment system can use information from sensor data fusion systems to, for instance, direct the vehicle to a hospital if it detects that the driver is not feeling well.
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What techniques do oligopoly firms use to stay competitive and in business?
Oligopolists make the most money when they form a cartel and act like monopolists by reducing output and raising prices.
An oligopoly is a market in which a small number of firms recognise their interdependence in pricing and output policies. Because the number of firms is small, each firm has some market power. Automobile manufacturing is another example of an oligopoly, with the top three automakers in the United States being Ford (F), General Motors (GM), and Stellantis.
Oligopolies typically form in industries with a small number of influential players, none of whom can effectively push out the others. These industries are typically capital-intensive, with additional barriers to entry such as regulation and intellectual property protections.
Many industries, including civil aviation, electricity providers, the telecommunications sector, rail freight markets, food processing, funeral services, sugar refining, beer manufacturing, pulp and paper manufacturing, and automobile manufacturing, have been identified as oligopolistic.
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What are 4 reasons why it's important to have insurance?
A financial safety net such as insurance can assist you and your loved ones in recovering financially in the event of a disaster like a fire, theft, legal action, or automobile accident. When you get insurance, you'll get an insurance policy, which is a binding legal agreement between you and your insurance company.
Here are four arguments in favor of getting insurance:
1) Promotes Savings: In addition to providing protection against risks and uncertainties, insurance policies can provide you with additional investment opportunities. Life insurance is a methodical saving that is made possible by monthly premium payments. It wouldn't be incorrect to claim that purchasing insurance fosters the habit of saving money and provides another avenue for investing. The lump sum payment is given to the insured when the contract matures.
2) Economic expansion: Insurance can help one access their personal funds. This has a big effect on the economy. This entire amount of money, or accumulated capital, can be utilized to make money-making investments that lessen the impact of financial losses, promote financial stability, and promote trade and commerce activities, all of which assist the growth and development of the economy.
3) Supports Medical Care: With medical insurance, the anxiety associated with reducing health-related risks is gone. Clinical illness or poor health are experiences that everyone can have. The majority of society finds it difficult to pay for medical expenses. Some defense against specific health risks is offered by medical insurance. The insured is assured access to medical care under the provisions of the medical insurance policy.
4) The Spread and Distribution of Risk: Numerous individuals buy insurance policies and pay the insurer a premium; as a result, in the event of a loss, compensation is given using the insurer's assets. Insurance makes it simpler for the insured to transfer risk to the insurer.
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What is the 10 am rule in stocks?
A trading rule known as the 10 a.m. rule states that you should never purchase or sell stocks at that time.
A trading rule states that you should never place a trade at ten in the morning. This is because prices are more likely to fluctuate in one direction or the other at that time due to the markets' typically higher volatility. As a result, it's frequently seen to be a horrible moment to make any trades.
The 10 a.m. rule is crucial because it can prevent you from making costly trading errors. You might not have enough time to think things through before buying or selling stocks at 10am. You'll have a better understanding of what the stock prices are truly doing and be less likely to make a mistake if you hold off until later in the day.
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What is one way Lean-Agile leaders lead by example?
-By applying empathic design and focusing on Customer Centricity
-By mastering the seven core competencies of the Lean Enterprise
-By modeling SAFe's Lean-Agile Mindset, values, principles, and practices
-By using the SAFe Implementation Roadmap to script the way for change
By modeling Safe's Lean-Agile Mindset, values, principles, and practices is one way Lean-Agile leaders lead by example.
Who are Lean-Agile leaders?The Lean-Agile Leadership competency explains how Lean-Agile Leaders enable people and teams to realize their full potential in order to create and sustain organizational change and operational excellence.
They achieve this by setting a positive example, absorbing and applying Safe's Lean-Agile mentality, beliefs, and practices, and driving the transition to a new way of working.
It is one of the seven Lean Enterprise key competences, all of which are necessary for achieving Business Agility. Each core competency is accompanied by an unique evaluation, allowing the company to judge how proficient each one is.
The Measure and Grow article contains these key competency tests as well as suggested areas for growth. The only ones with the power to alter and continuously enhance the mechanisms that control how work is done are them.
The implementation of Lean-Agile development and the skills that result in business agility, as well as their effectiveness and continual improvement, are the responsibility of an organization's managers, executives, and other leaders.
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Enterprise systems improve management decision making in all the following ways except: Select one: A. determining the profitability of products. B. providing more accurate sales and production forecasts. C. improving forecasts of consumer behavior. D. providing up-to-the-minute data on sales, inventory and production. E. implementing standard definitions and formats worldwide.
Enterprise systems improve management decision-making in all the following ways except improving forecasts of consumer behaviour. Hence, option C is correct.
What are forecasts of consumer behaviour?An easy method to learn more about your goods and services and give your customers a sense of importance in the customer service process is to use customer feedback surveys. You can target the needs of the customers and anticipate their behavior at the source by analyzing the qualitative feedback that has been provided.
There are four primary categories of consumer behavior, according to experts: complex buying, dissonance-reducing buying, habitual buying, and variety-seeking buying.
Thus, option C is correct.
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Why do companies focus on sustainability?
There are four reasons for organizations to focus their efforts on performance: It creates a way for organizations, departments, and individuals to plan activities.
What Is Business Sustainability?In a nutshell, sustainability in business refers to the impact that businesses have on the environment or society. A sustainable business strategy seeks to positively impact one or both of these areas, thereby contributing to the resolution of some of the world's most pressing issues.
Sustainability initiatives, in addition to driving social and environmental change, can contribute to an organization's overall success. Spending more money on sustainable business practises may appear counterintuitive to increasing a company's profitability, but studies show that the most sustainable companies are also the most profitable.
Environmental, social, and governance (ESG) metrics are frequently used to assess an organization's ethical and sustainable practises. Companies with high ESG ratings consistently outperform the market, according to McKinsey.
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Bonds that are secured by real estate are termed?
a. debentures.
b. mortgage bonds.
c. serial bonds.
d. convertible bonds.
Mortgage bonds are bonds that are secured by real estate.
A mortgage bond is secured by a mortgage or group of mortgages, which are frequently backed by real estate holdings and material possessions like equipment.
A mortgage bond is a bond that is secured by real estate or other types of real estate. Mortgage bondholders may opt to liquidate the underlying property backing a bond in order to make up for a default situation. Because they are generally safer than corporate bonds, mortgage bonds frequently offer a lower rate of return. Investor protection is provided by mortgage bonds because the principal is backed by a valuable asset.
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Kevin has x dollars in an account that pays 2. 2% interest, compounded quarterly. Express his balance after one quarter in an algebraic formula.
Balance of Kevin after 1 quarter will be 1.0055(x). The interest earned on savings that's reckoned using both the original star and the interest accrued over time is known as compound interest.
It's said that Italy in the 17th century is where the conception of "interest on interest" or compound interest first appeared. It'll accelerate the growth of a aggregate more snappily than simple interest, which is solely calculated on the top sum. Money multiplies more rapidly thanks to compounding, and the further compounding times there are, the advanced the compound interest will be. The monthly interest rate is raised to the number of compound periods minus one, and the starting top amount is multiplied by both of these factors. The performing value is also reduced by the full original loan amount.
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How can we store waste?
You ought to separate waste materials into distinct types (paper and cardboard, plastics, metals, etc) for storage, transport and recycling. You need to save your waste securely in sealed, labelled containers geared up for recycling or disposal.
What are the 4 methods we control waste?Possible waste disposal strategies are recycling, composting, incineration, landfills, bioremediation, waste to energy, and waste minimization. As for waste management, it is the measures utilized to manage waste in its entire lifestyles cycle, from waste technology to disposal or recovery.
What is a waste storage system?Definition. Temporary maintaining of waste pending remedy or disposal. Storage methods consist of containers, tanks, waste piles, and floor impoundments.
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https://brainly.com/question/4449362#SPJ4which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued? select one: a. major purchase of a business which is expected to double the sales volume. b. sale of long-term debt or capital stock c. settlement of litigation in excess of the recorded liability. d. loss of a plant as a result of a flood.
Settlement of litigation, in excess of the previously recorded liability require an adjustment to the financial statements before they could be issued.
How would you define litigation?The defense or resolution of legal issues between businesses and other parties falls under the category of business litigation. It frequently refers to defending businesses that are being sued or accused of wrongdoing for a range of reasons.
How do you decide whether to settle or proceed to court?Generally speaking, if the respondent and the attorneys for their insurance company are willing to pay the full amount of damages you are requesting, settling is preferable. When you are entitled significant damages, that is almost never the case. In a trial, there are never any assurances
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say that alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but georgeland can produce 24 units of food per year or 12 units of clothing. which of the following is true? a. alland has an absolute advantage in producing food and will trade with george and b. alland has a comparative advantage, but not an absolute advantage, in producing food c. georgeland has both a comparative and absolute advantage in producing clothing d. georgeland has a comparative advantage, but not an absolute advantage, in producing clothing
Alland has an absolute advantage in producing food and will trade with george, is the true statement regarding the given situation. Option A is correct.
What is the trade?The movement of commodities and services from one person or entity to another, frequently in return for money, is referred to as trade. Economists define a market as a structure or network that permits commerce.
Trading is also referring to the buying and selling of securities or other assets, because transactions are voluntary, commerce is often thought to benefit both sides.
Therefore, option A is correct, Alland will trade with george because each unit of food carries an opportunity cost of 0.5 units of clothes (i.e., 16/32 and 16/32) for both enterprises.
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How does an agile team obtain clarity on backlog items that may be picked up in upcoming introductions?
Every iteration, the team meets with the product owner to improve the backlog in order to decide which items to choose for subsequent iterations.
What are the items on a backlog?A backlog is a collection of jobs necessary to carry out a bigger strategic plan. A prioritized list of elements, for instance, is present in a product development scenario. The product team consents to begin these tasks first. User stories, modifications to current functionality, and bug patches are typical items on a product backlog. Basically, backlog items are any concepts that could improve a product that is under development. Backlog items, also known as product backlog items, are concepts that are transformed into items in Scrum and kept in a product backlog (sometimes referred to as PBIs).
Who is responsible for backlog items?The product owner is responsible for the backlog while the entire cross-functional agile team collaborates on it. The product manager or owner is typically in charge of keeping the product backlog organized and current.
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A firm will start generating positive accounting profits _____.Multiple choice question.below the break-even sales pointbeyond the break-even sales pointat the break-even sales pointat the point at which revenues exceed total fixed costs
A firm is a for-profit business entity that offers professional services, such as a corporation, limited liability company (LLC), or partnership. Most businesses only have one location.
The term "firm," when used in a title, is frequently connected to companies that offer expert legal and accounting services, but it may also refer to a wide range of companies, including consulting, marketing, and graphic design firms, among others. The theory of the company in microeconomics aims to explain why businesses exist, how they function and produce, and how they are organized. According to the theory of the firm, businesses exist to maximize profits, although this idea evolves as the economic landscape does. Moderner ideas would make a distinction between businesses that strive for long-term sustainability and those that want to make a lot of money quickly.
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a) the tendency to expend more effort searching for the lowest price when inflation is high. b) the cost of more frequent price changes induced by higher inflation. c) resources used to maintain lower money holdings when inflation is high. d) the distortion in resource allocation created by distortions in relative prices due to inflation.
Shoe leather cost refers to c) "resources used to maintain lower money holdings when inflation is high".
Inflation refers to a measure of how much more expensive goods and services have become over a certain time period, usually over a year. In simple words, inflation is the rate of increase in prices of goods and services over a given period of time. When inflation is high, it is considered an important step to maintain lower costs for some of the resources used in production processes.
For example, in shoe manufacturing cases when inflation is high, leather cost refers to those resources being used to maintain lower money holdings.
"
Complete question is:
Shoe leather cost refers to:
a) the tendency to expend more effort searching for the lowest price when inflation is high.
b) the cost of more frequent price changes induced by higher inflation.
c) resources used to maintain lower money holdings when inflation is high.
d) the distortion in resource allocation created by distortions in relative prices due to inflation.
"
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Is US a closed economy?
The United States is an open economy, because it interacts with other economies worldwide.
An open economy has no barriers or restrictions on the exit and entry into the market. A closed economy does not participate in international trade, which means it does not export or import services and goods from other countries. In a situation like this, all the services and goods are produced within the single economy’s boundaries.
Because the U.S. has become a nation involved in global trade, the economy is open. Being an open economy has helped the U.S. become a superpower globally. It can also be noted that many economies are more open than closed. In other words, the closed economy seems to be nonexistent.
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mario brings together buyers and sellers of used farm implement equipment and helps them negotiate the terms of the sale. however, he never takes title to any of the equipment himself, nor does he provide any financing for the buyer. mario is acting as a
As Mario brings together buyers and sellers of used farm implement equipment and helps them negotiate the terms of the sale but never takes title to any of the equipment himself, he is acting as a broker.
What is the role of a broker?Generally, a broker is an entity that arranges transactions between a buyer and a seller for a commission when the deal is executed. It also acts as a seller or as a buyer becomes a principal party to the deal
In finance, a broker means an individual or company that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from an individuals or firms who are members of that exchange, the individual traders and investors need the services of exchange members.
They helps to provide such service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.
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A deposit slip is the form supplied by a _____ to their customers. when a customer deposits cash or check into their account or behalf of the company, the need to fill this slip out.
A deposit slip is the document that banks give to their clients. The requirement to fill out this form when a customer deposits cash or a check into their account or on the business's behalf.
Deposit slips give security for both the bank and the customer. They're used by banks to help keep a written record of the money deposited during the day and to make sure that none are missing at the end of the business day. A deposit slip acts as a de facto evidence for bank customers that the moneybags were rightly recorded, placed in the right volume, and deposited into the right account. The deposit slip is evidence that the bank conceded entering the client's finances if the consumer thereafter checks the account balance and finds that the deposit was inaptly counted.
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which term refers to an interactive form of strategic communication that is transmitted via a medium or media directly to the target market and is used to create or maintain a relationship with those who respond to the message?
The Traditional Communication Model was primarily one-way, with advertisements speaking to customers and sometimes receiving feedback. Thus, the correct answer is the Traditional Communication Model.
What is the Traditional Communication Model?
The Traditional Communication Model was primarily one-way, with advertisements speaking to customers and sometimes receiving feedback.
This is how it worked:-
A message is created by an advertising agency (source) and is then broadcast through a medium such as a newspaper or television. The message is then seen/ delivered to the consumer (receiver).The consumer may then opt to respond or express feedback indirectly, for as by purchasing the advertised commodity or service.To learn more about Traditional Communication Model, click
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Do people own property in socialism?
Yes, people can own any property however as a secondary ownership whereas the first possession is for the common welfare.
A political and theory of social system that advocates that the suggests that of production, distribution, and exchange ought to be in hand or regulated by the community as an entire.
In socialism the properly is predicated on collective, common or public possession of production. in an exceedingly strictly socialist system, all production and distribution choices are created by the collective, directed by a central planner or government body. Employee cooperatives, however, are a sort of socialized production. The government determines the output and evaluation levels of those product and services.
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barry's bbq had sales revenue for the year of $250 million and net income of $90 million. total assets were $70 million at the beginning of the year, and $80 million at the end of the year. calculate barry's return on assets, profit margin, and asset turnover ratios. (do not round intermediate calculations. round your answers to 1 decimal place.)
Barry's return on assets ratio is 120% and profit margin ratio is 36% .
What is profit margin ratio?Profit margin ratio is an operating ratio computed by the business analysts to determine the profit generating capacity of an organization which is related to net-sales of firm.
In order to compute the the profit margin ratio one should deduct the cost of goods sold (COGS) from the entire revenue of the business and dividing the result by the net revenue; (a percentage shall be arrived by multiplying that number by 100).
Therefore sales revenue for the year of $250 million and net income of $90 million will give profit margin ratio of 36%.
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What are the unethical practices towards customers?
Unethical practices by business towards customers are: adulteration, spurious products, Injurious products, duplicates, etc.
1. Adulteration: To increase profit, adulteration is a common strategy used. It causes severe health issues. The amount of adulteration is such that it endangers the consumers' lives.
2. Spurious Products: A spurious product is one that uses the name of another product or is an exact duplicate of another product. Another unethical behaviour that our businesspeople frequently engage in is selling fake goods.
3. Duplication: Popular brands of Indian goods are also copied, not just imported goods. There are knockoffs of well-known brand names like detergents, soaps, soft drinks, jams, etc. Even bread, a staple for most people, is replicated.
4. Hazardous Products: This is not just a concern in our nation. Particularly in industrialised nations, it is more frequently practised. Products that have been shown to be health risks are produced and sold only for personal gain.
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Why did my monthly mortgage payment decrease?
The lack of private mortgage insurance is one of the most frequent causes of a decrease in your monthly mortgage payment.
A mortgage payment is what?
The payments you make on the long-term loan that allows you to purchase your house are known as mortgage payments. Almost all homeowners have a mortgage and make monthly mortgage payments. Over a predetermined number of years, homeowners typically make these payments on a monthly basis.
Mortgages with terms of 15, 20, and 30 years are some common choices. There are several advantages to paying down your mortgage. One benefit is that it lowers your debt load. As you make small, regular payments, your debt load decreases. You become a more appealing borrower if you opt to take out new loans when your debt-to-income ratio rises.
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Question 44 David, a member, is a sole practitioner CPA who provides bookkeeping financial statement, and tax preparation services to Chiropractical incorporation with two qual hardholders Kathy and Leah. David has provided services to Chiropractical, Inc. for approximately five years, during which time he has all exclusively with Katly on all matters relating to David engagement with the corporation. A dispute has developed between Kathy and Loth over various business matters.Pursuant to this dispute. Leah hasretted francia reports and records that were previously provided to Kathy, who has held herself out as the client's representative during the entire term of Davippement with the company is David obted to provide the same records to Leah that he has already provided to Kathy?
O Yes because she quhareholder in the corporation
O Nobec David has ready provided the records to Kathy
O Leah was a majority holder Duvid would be obligated to provide the records to her
O The AICPA Code of Professional Conductors at address the sun
A) Leeah is an equal shareholder in the company, hence the answer is yes. Yes because she quhareholder in the corporation
Each stakeholder in a company has an equal voice in the running of the company.
An individual or legal entity registered by a company as the legitimate owner of shares of the share capital of a public or private corporation is referred to as a shareholder. Members of a corporation are sometimes referred to as shareholders. As both Leeah and Kathy are shareholders in the corporation, they are therefore need to be aware of the business and its specifics.
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How does contractionary fiscal policy affect the economy?
Contractionary fiscal measures often limit economic development. Reduced government expenditure, as well as increased tax income, both impede the economy.
Fiscal policy is the employment of government expenditure and taxation to alter the economic path through time. Automatic stabilizers, which we learnt about in the previous part, are a sort of passive fiscal policy since once the system is in place, Congress does not need to take any additional action. Discretionary fiscal policy, on the other hand, is an active fiscal policy that employs expansionary or contractionary policies to accelerate or slow the economy.Expansionary fiscal policy is when Congress moves to lower tax rates or boost government expenditure, causing the aggregate demand curve to shift to the right. Contractionary fiscal policy is when Congress raises tax rates or reduces government expenditure, causing aggregate demand to move to the left.
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