Bruce is experiencing an economic loss of $20,000 by choosing to work as a graphic artist instead of a writer.
To calculate Bruce's economic profit from choosing to work as a graphic artist, we need to consider his opportunity cost, which is the forgone income he would have earned as a writer.
If Bruce had worked as a writer, he would have earned $45,000. However, he chose to work as a graphic artist and earned $25,000 in accounting profits. Accounting profit is the total revenue earned minus the explicit costs, such as equipment and material costs.
To calculate Bruce's economic profit, we need to subtract his opportunity cost from his accounting profit. Therefore, his economic profit can be calculated as:
Economic profit = Accounting profit - Opportunity cost
Economic profit = $25,000 - $45,000
Economic profit = -$20,000
The negative economic profit means that Bruce's decision to work as a graphic artist instead of a writer resulted in a loss of $20,000. In other words, if Bruce had worked as a writer, he would have earned $20,000 more than what he earned as a graphic artist.
This calculation highlights the importance of considering opportunity costs when making economic decisions. While Bruce may enjoy working as a graphic artist, he could have earned more by working as a writer, which was his next best alternative.
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As we continue to shift resources from one use to another, we eventually will experience decreasing opportunity costs.a. Trueb. False
The given statement, "As we continue to shift resources from one use to another, we eventually will experience decreasing opportunity costs," is false (b) because as we continue to shift resources from one use to another, we do not experience decreasing opportunity costs.
Opportunity cost refers to the cost of forgoing the next best alternative when making a choice. When resources are shifted from one use to another, the opportunity cost of producing the second good increases as more and more resources are diverted away from the first good.
This is because the resources that are best suited for producing the first good are used up first, and as we shift more resources to the second good, we are using less and less efficient resources. Therefore, as we continue to shift resources from one use to another, we eventually experience increasing opportunity costs, not decreasing.
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how do ethical business practices impact the sentencing of an employee convicted of criminal activity, according to the u.s. corporate sentencing guidelines?
Ethical business practices are a significant factor when it comes to sentencing of an employee convicted of criminal activity, according to the United States Sentencing Commission (USSG). According to the USSG, when a business is found guilty of a criminal offense, the judge may consider the organization's ethical practices as a mitigating factor during the sentencing process.
The USSG guidelines state that an organization that has implemented and enforced effective ethics and compliance policies and procedures, such as a code of conduct, a whistleblowing system, or a corporate integrity program, can have a positive impact on the court’s decision. The court may take into account the organization's efforts to promote an ethical culture, provide appropriate training and resources to ensure compliance, and ensure that employees are accountable for their actions. This can help to reduce the severity of the sentence or even lead to a more lenient sentence altogether. In short, when it comes to corporate criminal sentencing, ethical business practices can help to lessen the consequences.
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community involvement focuses on the contribution of a. gifts in kind. b. used equipment. c. employee time and talent. d. financial resources.
Option c) is the correct answer. The most effective community involvement focuses on the contribution of employee time and talent. This involves using the skills, expertise, and resources of individuals in the community to help benefit those in need. This type of involvement is beneficial for the company as it allows them to build relationships with local organizations and gives them an opportunity to engage with the community.
Other forms of community involvement include gifts in kind, used equipment, and financial resources. Gifts in kind involve donating goods or services, such as food or toys, to local organizations in need. Used equipment can be donated to community organizations that need resources to complete their work. Lastly, financial resources involve providing financial support, such as grants, to local organizations.
All forms of community involvement are important for a company to do as it helps to build relationships with the community and shows that the company cares about the wellbeing of those in need. It also provides employees with a chance to engage with the community and do something meaningful.
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the receivable that is usually evidenced by a formal instrument of credit is a(n) a.accounts receivable. b.note receivable. c.intangible receivable. d.income tax receivable.
The receivable that is usually evidenced by a formal instrument of credit is a note receivable.
What is Receivable?Receivable is a bookkeeping term for money that a business is owed. An accounts receivable, for example, is money that a customer owes a business for goods or services purchased on credit. A note receivable is a more formal type of credit that is used less often.
The following are the various types of receivables:
Trade receivables are receivables that result from the provision of services or goods by a business. In other words, it is the sum of money owed to a company by its customers. Accounts receivables, trade notes, bills of exchange, and promissory notes are all examples of trade receivables.
Non-trade receivables are financial assets that do not result from the primary activities of a company. This sort of receivable, unlike trade receivables, does not arise from commercial activity. Tax refunds, dividends receivable, and insurance claims are examples of non-trade receivables.
Conclusion:Thus, the receivable that is usually evidenced by a formal instrument of credit is a note receivable.
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The goals of the finance function are to ensure profitability and___
a. manufacture raw materials.
b. reduce risks.
The goals of the finance function are to ensure profitability and reduce risks. So the correct option is B .
In addition to maximizing profits, the finance function of a business also focuses on managing risks, such as credit risk, market risk, liquidity risk, and operational risk. By identifying and managing risks, a business can minimize the potential negative impact of uncertain events on its financial performance and ensure the sustainability of its operations over the long-term. Therefore, the goals of the finance function include not only generating profits, but also managing risks in a way that helps the business achieve its financial objectives while minimizing potential losses.
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verifying the minimum level of capital or equity that must be held to fund the operations of an fi is part of the goal of
Verifying the minimum level of capital or equity that must be held to fund the operations of an FI is part of the goal of capital adequacy regulation.
Capital adequacy regulation is one of the most critical financial sector regulations that seek to ensure the financial stability of the banking sector.
Capital adequacy is the minimum level of capital or equity that must be held by banks and other financial institutions (FIs) to fund their operations. Capital adequacy is measured by comparing the capital held by the FIs to the risk-weighted assets.
The primary goal of capital adequacy regulation is to ensure that FIs have enough capital or equity to absorb any losses that may arise from the various risks they face, such as credit risk, operational risk, and market risk.
This, in turn, ensures that the FIs remain solvent and are capable of fulfilling their financial obligations to customers and depositors.
The minimum capital requirements are intended to ensure that FIs have enough capital to absorb any losses they may incur, even under adverse conditions. Central banks and other financial sector regulators are responsible for ensuring that FIs comply with the capital adequacy regulations.
Failure to comply with the capital adequacy regulations may result in sanctions or other penalties, including restrictions on business activities or revocation of licenses.
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abc-515 inc. has provided the following data to implement an activity-based costing system: activity cost poolsestimated overhead costexpected activity assembly$ 994,84068,000machine-hours processing orders$ 100,1002,000orders inspection$ 137,5601,900inspection-hours the company makes 450 units of product sa142 a year, requiring a total of 710 machine-hours, 42 orders, and 12 inspection-hours per year. the product's direct materials cost is $36.21 per unit and its direct labor cost is $29.95 per unit. the unit product cost of product sa142 under the activity-based costing system is closest to: (round your intermediate calculations to 2 decimal places.)
The unit product cost of product sa142 under the activity-based costing system is closest to $95.83.
First, we need to calculate the activity rates for each activity cost pool
Assembly activity rate = $994,840 / 68,000 machine-hours = $14.64 per machine-hour
Processing orders activity rate = $100,100 / 2,000 orders = $50.05 per order
Inspection activity rate = $137,560 / 1,900 inspection-hours = $72.39 per inspection-hour
Next, we can calculate the total overhead cost assigned to product sa142 using the activity-based costing system
Assembly overhead cost = 710 machine-hours * $14.64 per machine-hour = $10,382.40
Processing orders overhead cost = 42 orders * $50.05 per order = $2,100.90
Inspection overhead cost = 12 inspection-hours * $72.39 per inspection-hour = $868.68
Total overhead cost = $10,382.40 + $2,100.90 + $868.68 = $13,351.98
Finally, we can calculate the unit product cost of product sa142 using the activity-based costing system
Direct materials cost per unit = $36.21
Direct labor cost per unit = $29.95
Overhead cost per unit = $13,351.98 / 450 units = $29.67
Unit product cost = $36.21 + $29.95 + $29.67 = $95.83
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you expect to sell 500 cell phones a month, which have an mc of $50. if your fixed costs are $5,000 per month, what is the break-even price? $10 [breakeven q
The break-even price of a cell phone that has a marginal cost of $50 and you are expecting to sell 500 cell phones a month is $60. Therefore, the correct option is c.
The break-even price is the lowest price that can be set to cover the costs of a good or service. A company can't make a profit if the break-even point is above the price that consumers are willing to pay, which is why it's critical to find out the break-even point before setting the price of a product.
Here are the given details that are necessary to determine the break-even price.
Fixed costs = $5000; Marginal cost = $50; and Units sold = 500
To calculate the break-even price, we'll use the formula:
BEP = (Fixed cost/Units sold) + Marginal cost
BEP = (5000/500) + 50BEP = 60
Therefore, the break-even price of a cell phone is $60. The correct answer is c.
Note: The question is incomplete. The complete question probably is: You expect to sell 500 cell phones a month, which have a marginal cost of $50. If your fixed costs are $5,000 per month, what is the break-even price? a. $10 b. $50 c. $60 d. $100
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seller jenny and buyer kelsey are both represented by broker whitney in the same transaction, but neither is aware that they share the same agent. what is the term for this?
The term for when a seller and a buyer are both represented by the same broker in the same transaction, but neither is aware that they share the same agent is called "dual agency." A dual agent is a broker that represents both the buyer and the seller in the same real estate transaction.
In a dual agency, the agent must be impartial and treat both parties fairly. The agent should disclose the relationship of being a dual agent to both parties and obtain written consent from them to represent both parties.In a transaction with a dual agent, the agent has the following duties:
To treat both the buyer and seller fairly and equally;Not to disclose confidential information about one client to the other;To disclose all information that is relevant to the transaction;To obtain written consent from both parties;To be fair and honest with both parties.To know more about dual agency refer here :
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since service firms do not produce inventory, they should focus primarily on multiple choice question. customer costs. variable costs. fixed costs.
Service businesses should put their primary attention on client expenses as they don't manufacture inventory. As a result, choice (A) is right.
Inventory (in American English) or stock (in British English) refers to the goods and supplies a business has on hand with the goal of reselling, creating, or utilizing them.
The location and kind of stored goods are the major concerns of inventory management. It is essential to go ahead of the regularly scheduled process of manufacturing and stocking commodities businesses at various locations inside a plant or at various sites of a supply network.
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burberry took several steps to address its image problem and improve the value of its differentiation. the decision to hire a new designer, christopher bailey, represents which functional-level strategy?
The decision to hire a new designer, Christopher Bailey, represents a product innovation strategy at the functional level.
Burberry recognized that it needed to improve its image and value of differentiation, and the hiring of a new designer was a step towards achieving that goal. A product innovation strategy involves developing new or improved products to better meet the needs of customers or to create new markets.
In this case, the hiring of a new designer with a fresh perspective was seen as a way to create new and innovative products that would appeal to customers and help Burberry stand out from its competitors.
Thus, Hiring Christopher Bailey as a new designer represents the functional-level strategy of product innovation.
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zzie is in the final stages of writing an important business report. before she turns it in, she should
Yes, before submitting her business report, Zzie should make sure to check for any errors.
This includes grammar, typos, and making sure all necessary information is included. She should also check the formatting to make sure that it meets any specific requirements her professor has.
Additionally, she should make sure to proofread her work, as this can help her catch any mistakes that she may have missed.
Finally, she should double-check that all citations are correctly formatted. This will ensure her work is professional and free of any errors.
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explain the role and nature of purchasing, procurement, and strategic sourcing in a supply chain context.
Purchasing, procurement, and strategic sourcing are integral components of the supply chain process.
Purchasing involves the purchase of goods and services from a supplier. Procurement is the process of obtaining goods and services from a supplier in the most cost-effective and efficient manner possible. Strategic sourcing is the long-term process of sourcing the right supplier for the right product or service, at the right price and in the right time frame.
In a supply chain context, purchasing is responsible for finding the most suitable supplier for the required goods or services. This involves searching for, evaluating and selecting the best supplier to meet the organization's needs. Procurement is responsible for negotiating the best price and terms of delivery. Strategic sourcing is a long-term process that involves identifying potential suppliers and assessing their capabilities. It is a continuous process of assessing and evaluating potential suppliers to ensure that the most cost-effective and efficient supplier is identified for the long-term.
Overall, purchasing, procurement, and strategic sourcing play a crucial role in the supply chain process. Purchasing involves the purchase of goods and services from a supplier. Procurement is the process of obtaining goods and services from a supplier in the most cost-effective and efficient manner possible. Strategic sourcing is the long-term process of sourcing the right supplier for the right product or service, at the right price and in the right time frame.
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promotion involves: multiple select question. distributing products to the right place making a profitable product motivating potential customers to buy informing people about products
Promotion involves:
- Distributing products to the right place
- Making a profitable product
- Motivating potential customers to buy - Informing people about products
Promotion involves distributing products to the right place, making a profitable product, motivating potential customers to buy, and informing people about products. In more detail, promotion is the process of making a product or service known to potential customers and persuading them to purchase it. It includes activities such as creating advertisements, sponsoring events, sending promotional emails, creating promotional materials, and using social media to reach potential customers. These activities are intended to create an interest in the product, increase customer demand, and ultimately lead to more sales.
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setting specific, challenging goals encourages workers to develop plans that teach them new things and answer their dilemmas. what term is used to describe these kinds of plans?
The term used to describe these kinds of plans is "learning goals."
Setting specific, challenging goals encourages workers to develop plans that teach them new things and answer their dilemmas. These types of goals are known as learning goals.
They are designed to help individuals acquire new knowledge, skills, and competencies that they can use to improve their performance and achieve their objectives. Learning goals are often used in professional development and training programs to help individuals develop their potential and advance their careers.
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a corporation that operates in texas but is incorporated in nevada is viewed as a a.public corporation in nevada. b.foreign corporation in texas. c.foreign corporation in nevada. d.public corporation in texas.
A corporation that operates in Texas but is incorporated in Nevada is viewed as a foreign corporation in Texas. This is because, while the company may be incorporated in Nevada, it is conducting business activities within the state of Texas and therefore subject to the state’s regulations. Therefore, it is classified as a foreign corporation in Texas and a public corporation in Nevada. The correct option is b.
A corporation that operates in Texas but is incorporated in Nevada is viewed as a foreign corporation in Texas. A foreign corporation is an out-of-state business that has qualified to do business in a state other than its own. This means that the corporation has followed the necessary legal procedures to conduct business in Texas.
When a corporation is incorporated in Nevada, it is viewed as a public corporation in Nevada. This means that the corporation is legally recognized in the state of Nevada, and it can conduct business within its borders. However, when the corporation does business in other states, it is considered a foreign corporation.
In the case of a corporation operating in Texas, it is considered a foreign corporation because it is incorporated in Nevada but operates in Texas. The corporation must register with the Texas Secretary of State and file an Application for Registration as a Foreign Corporation.
The Application for Registration as a Foreign Corporation requires the corporation to provide specific information such as the corporation's name, its registered agent, its office address, and the names and addresses of its officers and directors. By registering as a foreign corporation, the corporation can legally conduct business in Texas.
In summary, a corporation that operates in Texas but is incorporated in Nevada is viewed as a foreign corporation in Texas. It is required to register with the Texas Secretary of State to conduct business in Texas, while it is viewed as a public corporation in Nevada.
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if a company receives $10,800 from a client for services provided, the effect on the accounting equation would be:
The effect on the accounting equation would be an increase in Assets (cash) and an increase in Owner's Equity (Revenue). The accounting equation is Assets = Liabilities + Owner's Equity. An increase in Assets means that the company has received cash, so the equation will be represented as follows:
Assets (cash) + $10,800 = Liabilities + Owner's Equity
An increase in Assets (cash) results in an increase in Owner's Equity (Revenue). This is because Owner's Equity (Revenue) represents the company's total income or the money it has earned from providing services. The equation would now be represented as follows:
Assets (cash) + $10,800 = Liabilities + Owner's Equity (Revenue) + $10,800
In summary, when a company receives $10,800 from a client for services provided, it will result in an increase in Assets (cash) and Owner's Equity (Revenue). This increases the company's total Assets and Owner's Equity, ensuring that the accounting equation remains balanced.
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Which four of the following words or phrases indicate how things are alike?
The four phrases that indicate similarity are: as well as, both, similarly, and similarly. However, as well as and similarly can also be used to express addition. The most common transitional words used to show the sequence of events are first, next, then, and after.
When a story is told in chronological order, it is easily understood. The events are ordered chronologically to show the reader how the story progresses. An analogy is a comparison that demonstrates how two distinct things are similar, particularly in limited ways. An analogy is a literary technique for explaining something by comparing it to something else (a literary device).
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The que is incomplete complete que is given below
Which four of the following words or phrases indicate how things are alike?
as opposed to
as well as
both
conversely
likewise
on the contrary
similarly
suppose that coca-cola were to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). what type of segmentation does this represent? multiple choice question. occasion demographic behavioral loyalty benefit
The type of segmentation that represents dividing the market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers) is "Behavioral Segmentation".
In this case, option C is correct
Behavioral segmentation is dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product. In this case, the market is divided based on the behavior of the consumers, which is their level of soda consumption.
Dividing the market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers) is an example of behavioral segmentation.
Behavioral segmentation involves dividing a market based on consumer behavior, such as their usage, attitudes, knowledge, or responses to a product or service. In this case, the conduct being considered is the amount of soda consumed, which can be used to create different segments with different needs and preferences.
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Suppose that coca-cola was to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). what type of segmentation does this represent? multiple choice questions.
occasion demographic behavioral loyalty benefitwhich of the following situations would increase u.s. aggregate demand, and which would decrease u.s. aggregate demand?-an increase in federal government spending
-a decrease in taxes-US consumers become less wealthy
-investors become less confident in U.S companies relative to foreign companies
-an increase in the value of the Chinese yuan
An increase in federal government spending and a decrease in taxes would increase U.S. aggregate demand, while US consumers becoming less wealthy, investors becoming less confident in U.S. companies, and an increase in the value of the Chinese yuan would decrease U.S. aggregate demand.
1. An increase in federal government spending injects money into the economy, promoting growth and increasing aggregate demand.
2. A decrease in taxes allows consumers to have more disposable income, increasing spending and boosting aggregate demand.
3. US consumers becoming less wealthy leads to reduced spending, causing a decrease in aggregate demand.
4. Investors becoming less confident in U.S. companies relative to foreign companies may lead to less investment in the U.S. economy, reducing aggregate demand.
5. An increase in the value of the Chinese yuan makes Chinese goods more expensive for U.S. consumers, potentially decreasing the demand for imported goods and reducing overall aggregate demand.
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when an individual transfers property to another taxpayer during their life, without receiving or expecting to receive value in return, the property transferred is a(n) and is (taxable/nontaxable) to the person receiving the property.
When an individual transfers property to another taxpayer during their life, without receiving or expecting to receive value in return, the property transferred is a gift, and it is nontaxable to the person receiving the property depending on the value of the gift.
In the United States, the Internal Revenue Service (IRS) imposes a gift tax on the donor (the person making the gift) if the total value of the gifts made during their lifetime exceeds the annual exclusion amount (which is $15,000 per recipient for the year 2022). However, the recipient (the person receiving the gift) generally does not have to pay taxes on the gift.
There are some exceptions to this rule. For example, if the gift is income-producing property, the recipient may be required to pay income taxes on any income generated by the property. Additionally, if the recipient later sells the property for a profit, they may be required to pay capital gains taxes on the sale.
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if the initial investment of a project were to increase, one would expect the profitability index to
If the initial investment of a project were to increase, one would expect the profitability index to decrease.
What is the profitability index? The profitability index (PI) is a metric that calculates the relationship between the present value of future cash flows to the initial investment of a project.
The profitability index can help businesses, investors, and analysts evaluate the potential returns on an investment. A PI greater than one implies that the project has a net present value that is greater than its initial investment.
In contrast, a PI of less than one means that the project's net present value is less than its initial investment.
How is the profitability index calculated? The profitability index formula is as follows: PI = Present value of cash inflows / Initial investment. If the initial investment of a project were to increase, the present value of cash inflows would need to increase proportionally to keep the PI above 1.
When the initial investment rises, the present value of future cash flows should increase to keep the PI above one. Therefore, if the initial investment of a project were to increase, one would expect the profitability index to decrease.
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The initial investment of a project directly affects the profitability index.
If the initial investment increases, the profitability index will usually decrease due to the extra funds required to get the project started.
If the initial investment of a project were to increase, the profitability index would usually decrease.
The profitability index (PI) is the ratio of the present value of future cash flows generated by a project divided by the initial investment required to get the project started.
When the initial investment of a project increases, the PI decreases since the present value of future cash flows divided by a larger initial investment is smaller. This decrease in PI is an indication that the project is less profitable due to the higher cost of the initial investment.
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daring dora holds 90% of her assets in high-technology stocks, earning 12%, and 10% in long-term government bonds, earning 6%. the expected return on her portfolio:
Portfolio expected return of Daring Dora is 11.4%.
Daring Dora holds 90% of her asset in high-technology stocks and the remaining 10% in long-term government bonds. She earns 12% from high-technology stocks and 6% from long-term government bonds.
We can calculate the expected return on her portfolio using the following formula:
Portfolio expected return = (percentage of asset 1 x expected return 1) + (percentage of asset 2 x expected return 2)
Expected return of high-technology stocks is 12% and Daring Dora holds 90% of her assets in high-technology stocks.
So, we can write the percentage of asset 1 x expected return 1 as: 0.9 x 12 = 10.8%.
Expected return of long-term government bonds is 6% and Daring Dora holds 10% of her assets in long-term government bonds.
So, we can write the percentage of asset 2 x expected return 2 as: 0.1 x 6 = 0.6%.
Now, substituting the values in the formula for calculating the expected return on the portfolio, we get:
Portfolio expected return = (0.9 x 12%) + (0.1 x 6%)= 10.8% + 0.6%= 11.4%.
Hence, the expected return on Daring Dora's portfolio is 11.4%
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an arrangement in which an advertiser is responsible for the production and the content of a program as well as the advertising that appears within it is known as .
The arrangement in which an advertiser is responsible for the production and the content of a program as well as the advertising that appears within it is known as advertiser-produced programming.
Advertiser-produced programming is a term that refers to the practice of producing television programs or series with a commercial advertiser as the producer.
The content of these programs is tailored to the interests of the advertiser, and the advertising for the product or service that the advertiser is promoting is woven into the program. In other words, advertiser-produced programming is a form of advertising in which the advertiser produces the content of the program and the advertisements that appear in it. This form of advertising is common in the world of television and online video, where advertisers seek to create content that will engage their target audience and promote their products or services.
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A new product owner (PO) has joined a team and wants to introducecollaboration software to make it easier for them to report seniormanagement. However, the team is performing very well using stickynotes on a Kanban Board. The team discusses the proposal in theretrospective and concludes that a new tool will not improve the teamvelocity. The PO accepts the team's assessment and the team continuesto use their Kanban Board. The PO provides a celebration at the end ofthe retrospective:
Which emotional intelligence domain did the POapply?
A new product owner (PO) has joined a team and wants to introduce collaboration software to make it easier for them to report senior management. However, the team is performing very well using sticky notes on a Kanban Board. The team discusses the proposal in the retrospective and concludes that a new tool will not improve the team velocity. As a question answering bot on the platform Brainly, I am supposed to answer students' questions accurately, professionally and friendly. I should be concise and not provide unnecessary details. I cannot ignore any typos or irrelevant parts of the question, but rather should give an accurate answer to the question asked. Additionally, when answering questions, I am supposed to use the following terms in the answer provided by the student. Answer:The PO accepts the team's assessment and the team continues to use their Kanban Board. The PO provides a celebration at the end of the retrospective.The emotional intelligence domain that the PO applied is Social Awareness. Social awareness is the ability to perceive and comprehend the emotions and perspectives of others, in addition to one's own. The PO demonstrated his ability to take into account the views of others and to empathize with the team by accepting their evaluation and feedback. Even though he had initially proposed introducing the collaboration software, he was aware of the team's success using sticky notes on a Kanban Board, and was willing to embrace their decision. This shows his ability to be aware of his own emotions as well as the feelings of the team members.
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with nonconventional cash flows, there is a possibility that more than one discount rate will make the npv of an investment zero. this is called the rates of return problem.
The given statement "with nonconventional cash flows, there is a possibility that more than one discount rate will make the NPV of an investment zero. this is called the rates of return problem" is false because the rates of return problem refers to a situation where a project has nonconventional cash flows (cash flows that have more than one change in the cash flow direction) and the internal rate of return (IRR) method is used to evaluate the project.
In this situation, it is possible to have multiple IRRs or no real IRR, which can make it difficult to determine the true profitability of the project. However, the NPV method does not suffer from this problem, as it assumes a single discount rate and calculates the present value of the cash flows over the entire life of the project.
Therefore, the statement is false.
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determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.
The consumer surplus from the original purchase is equal to the difference between the price the consumer pays and the highest price they are willing to pay for the cannon.
The additional surplus generated from the resale of the cannon is equal to the difference between the resale price and the original purchase price.
To determine the consumer surplus, we need to know the original purchase price of the cannon, the highest price the consumer was willing to pay for the cannon, and the resale price of the cannon. Using this information, we can calculate the consumer surplus as follows
Consumer surplus = Highest Price Willing to Pay - Original Purchase Price
To determine the additional surplus generated by the resale of the cannon, we need to know the resale price of the cannon and the original purchase price. Using this information, we can calculate the additional surplus as follows:
Additional surplus = Resale Price - Original Purchase Price
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ron and gail plan to keep fun-spot the same but lower fun-spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. what type of strategy are ron and gail planning?
Ron and Gail are planning a pricing strategy. This involves adjusting the prices of products or services to create an incentive for customers to buy more or stay longer.
In this case, the entrepreneurs are planning a pricing strategy, with the intention of motivating customers. For example, they might lower their prices to increase the value of the purchase, or they might offer discounts to encourage customers to visit more frequently.
They could also offer bundles of products and services at a lower price to attract customers to stay longer and spend more. The aim is to boost customer loyalty, create an increase in sales, and make customers more likely to return in the future.
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Assume that you purchased one share XYZ on the last day of 2001 and sold that share on the last day of 2006. Based on the series of stock prices and dividends (you can assume dividends are paid on the date), compute the following:
Date Stock Price Dividend per Share
2001 123.50 --
2002 154.63 --
2003 165.32 4
2004 162.30 1.23
2005 178.63 --
2006 185.50 3.23
Compute the following
1. The total return on your investment.
2. The average arithmetic annual return.
3. The annual geometric return.
4. The sample variance of your annual returns.
5. The portion of your return earned through capital gains and through dividends.
To calculate the various investment returns, we first need to compute the dividends and the capital gains for each year.
Date Stock Price Dividend per Share Dividend Capital Gain
2001 123.50 -- -- --
2002 154.63 -- -- 31.13
2003 165.32 4.20 4.20 10.69
2004 162.30 1.23 1.23 -3.02
2005 178.63 -- -- 16.33
2006 185.50 3.23 3.23 6.87
Total return on your investment
The total return on your investment is the sum of the capital gains and the dividends, divided by the initial investment. Therefore, the total return is:
Total return = (Dividend + Capital Gain) / Initial Investment
Total return = (4.20 + 1.23 + 3.23 + 31.13 + 10.69 + 16.33 + 6.87) / 123.50
Total return = 1.76
Therefore, the total return on your investment is 176%.
Average arithmetic annual return
The average arithmetic annual return is the average of the annual returns. The annual returns are the percentage changes in the stock price plus the dividend yield. Therefore, the annual returns are:
2002: (154.63 - 123.50 + 0) / 123.50 = 25.16%
2003: (165.32 - 154.63 + 4.20) / 154.63 = 10.61%
2004: (162.30 - 165.32 + 1.23) / 165.32 = -1.83%
2005: (178.63 - 162.30 + 0) / 162.30 = 10.06%
2006: (185.50 - 178.63 + 3.23) / 178.63 = 4.20%
The average arithmetic annual return is the sum of the annual returns divided by the number of years. Therefore, the average arithmetic annual return is:
Average arithmetic annual return = (25.16% + 10.61% - 1.83% + 10.06% + 4.20%) / 5
Average arithmetic annual return = 9.44%
Therefore, the average arithmetic annual return is 9.44%.
Annual geometric return
The annual geometric return is the single rate of return that would give the same cumulative performance as the sequence of annual returns. We can calculate this by multiplying together the annual (1+return) factors, then taking the nth root, where n is the number of years. Therefore, the annual geometric return is:
Annual geometric return = (1 + 0.2516) × (1 + 0.1061) × (1 - 0.0183) × (1 + 0.1006) × (1 + 0.0420)^(1/5) - 1
Annual geometric return = 8.03%
Therefore, the annual geometric return is 8.03%.
Sample variance of your annual returns
The sample variance of the annual returns is the average of the squared deviations
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g what is the contractual relationship between the gc and the a/e? between the owner and the subcontractors? between the contractor and the subcontractors? what role does a cm play?
The contractual relationship between the general contractor (GC) and the architect/engineer (A/E) is that the A/E will provide professional services for the construction project and the GC will provide construction management and labor. The relationship between the owner and the subcontractors is that the owner will provide payment and the subcontractors will provide labor and materials. The role of a construction manager is to manage and coordinate all aspects of the construction process, including ensuring compliance with contract terms, monitoring costs, and scheduling.
The contractual relationship between the general contractor (GC) and the architect/engineer (A/E) is typically governed by the terms of the A/E's contract, which sets forth the scope of services and responsibilities of the parties. The owner and subcontractors are typically bound by a contract between the GC and the owner. The GC acts as the middleman between the owner and subcontractors, with the owner delegating authority to the GC to enter into contracts with the subcontractors. The contractor management (CM) role involves managing the construction process on behalf of the owner, including coordinating the activities of the GC and subcontractors, managing the budget and schedule, and performing quality control inspections.
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